Piramal Finance AUM Crosses ₹1 Lakh Crore, Eyes Microfinance Acquisitions for Growth

Piramal Finance has reported that its assets under management (AUM) have surpassed ₹1 lakh crore, marking a key milestone in its growth trajectory.

The company is now focusing on expanding its portfolio through diversification and potential acquisitions, particularly in the microfinance segment, as per The Economic Times report.

With evolving market conditions and sectoral shifts, the lender is aligning its strategy to capture new opportunities while maintaining a balanced risk approach.

AUM Growth and Future Targets

The company has maintained its long-term target of scaling its AUM to ₹1.5 lakh crore by March 2028. This growth is expected to be driven by a mix of organic expansion and strategic initiatives across lending segments.

Shift Towards Diversified Lending

Currently, a significant portion of the AUM is concentrated in home loans and loans against property. Going forward, the company plans to gradually reduce this share by expanding into other lending categories, thereby improving portfolio diversification.

Focus on Microfinance Expansion

Microfinance has emerged as a key area of interest for Piramal Finance. The company has already been present in this segment for over a year and is exploring opportunities to scale its presence further, including through acquisitions. While no specific deal is currently in advanced stages, the firm remains open to suitable opportunities.

Entry into Gold Loan Segment

Gold loans are another area being developed as part of the company’s growth strategy. The lender has initiated operations in this segment and may consider acquisition opportunities if smaller, suitable businesses become available.

Acquisition Strategy and Considerations

The company’s approach to acquisitions is guided by factors such as branch network, operational systems, and availability of experienced personnel. Management has indicated a cautious stance, focusing on viable deals rather than aggressive expansion.

Sector Conditions and External Factors

The microfinance sector has faced challenges in recent periods, though conditions are showing signs of stabilisation. Additionally, global geopolitical developments have not yet had a noticeable impact on the company’s operations, though the situation continues to be monitored.

Approach to Borrowings

In the current environment, the company plans to limit reliance on external commercial borrowings. However, it may explore selective opportunities for foreign funding where conditions are favourable.

Read More: PAN Becomes Mandatory for High Value Transactions from April 1, 2026.

Conclusion

Piramal Finance’s AUM milestone reflects steady growth, with future plans centred on diversification and selective acquisitions. The company’s measured approach towards expansion and evolving sector conditions will play a role in shaping its growth trajectory over the coming years.

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