PIFINL: From property to granular retail focus

Research evidence excerpt

PIFINL: From property to granular retail focus

Barclays | Piramal Finance Ltd

Housing finance continues to be an important retail growth area, supported by branch

expansion and a broad customer sourcing network across urban and non-Tier-1 markets.

LAP represented INR259.8bn, or 26% of total AUM, as of FY26 and remains another important

component of PIFINL's secured lending franchise. The product primarily serves self-employed

borrowers, SMEs and small business owners, with average ticket sizes of INR3.0mn as of FY26.

Compared with traditional housing finance, LAP provides moderately higher yields while

retaining collateral protection, although borrower repayment capacity remains more closely

linked to business activity and economic conditions.

Used-car finance totaled INR55.4bn, or 5% of AUM, as of FY26, and comprises relatively short-

tenor, higher-yielding loans with average ticket sizes of INR0.7mn. In addition, PIFINL also offers

unsecured business loans, salaried personal loans and digital lending products, which together

represent c.18% of total AUM as of FY26. Management continues to expand selectively across

these categories as part of its broader retail diversification strategy.

Wholesale 2.0 represents PIFINL's ongoing wholesale lending business and accounts for

INR125.4bn, or c.11% of total AUM, as of FY26. The portfolio includes loans sanctioned by PIFINL

as new loans to the real estate sector and loans to the mid-market corporate sector (CMML)

from FY22 onwards. Management views Wholesale 2.0 as different from the legacy wholesale

portfolio, with greater diversification across borrowers. However, portfolio performance

remains linked to broader economic conditions, property markets and borrower execution.

Wider branch reach supports retail origination