Piramal Finance enters the market with big goals
When Piramal Finance stepped onto the stock market stage in early November 2025, it did not arrive quietly. The company’s listing became one of the most talked-about financial events of the season. It wasn’t just the share price performance that caught eyes, but the bold statement that followed. The firm announced its intention to grow its assets under management (AUM) to ₹1.5 lakh crore by 2028, a target that immediately grabbed headlines and stirred conversations across the financial industry.
The listing, a result of the merger between Piramal Enterprises and its financial arm, marked a new chapter for the group. The market’s reaction was loud and clear. Shares opened at a premium of more than 12 percent over the discovered price, signaling strong investor appetite and trust in the Piramal brand.
But this debut wasn’t just about the numbers flashing on the screen. It represented a transformation — from a traditional conglomerate to a more transparent, retail-focused financial powerhouse.
The man steering the ship
Leading this ambitious charge is Jairam Sridharan, the Managing Director and CEO of Piramal Finance. Known for his data-driven yet customer-centric approach, Sridharan used the listing event to outline the company’s vision in simple, confident terms. “Our goal is not just size. We want predictable, stable, and sustainable profitability. By 2028, Piramal Finance should be counted among the largest retail-focused NBFCs in India,” he told investors.
As of March 2025, the company’s AUM had already grown to around ₹80,689 crore, showing an impressive 17 percent year-on-year rise. This solid foundation gives credibility to its future target. The firm also shifted its lending mix strategically — with retail loans now accounting for nearly 80 percent of the total portfolio, compared to 70 percent a year earlier. This move toward retail lending reflects a deliberate attempt to balance growth with risk control.
Sridharan has made it clear that Piramal Finance is focusing on Tier 2 and Tier 3 cities, a space that remains under-served by traditional banks. “We are not chasing just volume. We are chasing value in markets where access to credit can make a life-changing difference,” he said in a post-listing media interaction.
A confident start in the market
Piramal Finance’s shares opened strong, with early trades reflecting optimism from both institutional and retail investors. The buzz extended beyond the financial circles, partly thanks to the high-profile listing event where industry leaders and well-known personalities were present. The day’s visuals, which later went viral online, showed the blend of celebration and confidence that surrounded the company’s new journey.
The market’s enthusiasm was not misplaced. Over the past few years, Piramal’s lending arm has worked quietly to clean up legacy issues, strengthen its balance sheet, and adopt stricter underwriting standards. The company has diversified across multiple verticals — housing finance, MSME loans, personal loans, and gold loans — aiming to serve five million customers by the end of FY2025.
Chairman Anand Piramal shared his optimism during the event, calling Piramal Finance “India’s next big story in affordable credit.” He added, “Our strength lies in understanding real Bharat. We are building products for the middle-income Indian who wants to grow, invest, and dream.”
The bigger picture: NBFCs in transformation
The timing of Piramal Finance’s listing could not have been better. India’s non-banking financial sector (NBFC) is in the middle of a structural transformation. After years of liquidity challenges and regulatory tightening, the market is stabilizing. Well-managed NBFCs with strong capital and governance are now being rewarded by investors.
Piramal Finance’s retail focus positions it in direct competition with large players like Bajaj Finance, Tata Capital, and Shriram Finance. However, what sets it apart is its hybrid approach — blending physical branches with digital lending capabilities. With around 400 branches and growing online reach, the firm is pushing deep into semi-urban markets where loan demand is rising rapidly.
According to market analysts, the company’s next challenge will be maintaining asset quality as it expands. Aggressive growth can strain credit discipline if not managed carefully. Sridharan acknowledges this risk but remains confident. “We have learned from past cycles. Our goal is long-term trust, not short-term hype,” he told reporters.
The road to ₹1.5 lakh crore
To achieve its 2028 goal, Piramal Finance will need to nearly double its AUM in three years. That means consistent growth of 20 to 25 percent annually — ambitious but not impossible given the current trajectory. The company has hinted at raising additional capital through selective divestments and strategic partnerships to fuel its expansion.
Industry experts believe that if Piramal can maintain a Return on Assets (RoA) near 3 percent and keep its net interest margin above 7 percent, it could meet or even exceed its projections. Stable funding, continued diversification, and smart risk management will be key.
In the short term, investors will watch how the company performs in its first few quarters as a listed entity. The early trading sessions have been encouraging, but the true test will come with consistent quarterly results and the ability to sustain growth without compromising asset quality.
Final word
Piramal Finance’s market debut marks more than just another listing. It signals the rise of a new kind of financial company — one that blends scale with social reach. The ₹1.5 lakh crore target is not just a financial number; it’s a statement of intent, a declaration that Piramal Finance wants to redefine what modern lending looks like in India.
For investors, the story is only beginning. With strong leadership, a clear retail focus, and India’s credit demand booming, Piramal Finance has a real shot at building something big. Whether it hits the ₹1.5 lakh crore mark by 2028 or not, one thing is certain: this is a company that has entered the market with both eyes firmly on the future.