Piramal Finance reported a 67% increase in its profit for the first quarter, according to the company’s latest financial results. The board has also approved a fundraise of ₹4,000 crore to support its growth plans, the company announced this week. This marks a significant financial milestone for the non-banking financial company (NBFC) amid a challenging economic environment.
The profit surge was driven by improved operational efficiencies and a rise in lending activities. The board’s approval of the ₹4,000 crore capital raise aims to bolster the company’s lending capacity and strengthen its balance sheet. The fundraise will be executed through a mix of debt and equity instruments, as per the company’s filing with market regulators.
This development places Piramal Finance among the more robust NBFCs in India, especially as the sector faces tightening liquidity conditions. Comparable fundraises by peers have ranged between ₹2,000 crore and ₹5,000 crore in recent quarters, highlighting the company’s strategic positioning to capitalize on market opportunities. The capital infusion is expected to support its retail and wholesale lending businesses, which have shown steady demand.
Piramal Finance’s next quarterly earnings report, due in October, will provide further insight into how the fundraise impacts its lending growth and profitability. The ₹4,000 crore fundraise is one of the largest by an NBFC this year, reflecting investor confidence in the company’s business model and growth prospects.