Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2026 earnings conference call of Piramal Enterprises Ltd. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. The results material are available on exchanges and the company's website, and you may refer to them during the discussion. Please note that today's discussion may include certain forward-looking statements, which must be viewed in conjunction with the risk and uncertainties that the company faces. These statements are based on management's current expectations and are subject to uncertainty and changes. On the call today, we have with us Mr. Anand Piramal, Executive Chairman; Mr. Jairam Sridharan, MD and CEO; Mr. Rupen Jhaveri, Group President; Mr. Jagdeep Malareddy, CEO, Retail Lending; Mr. Yesh Nadkarni, CEO, Wholesale Lending; Mr. Vikas Singla, CFO; and Mr. Ravi Singh, Head of Investor Relations and Strategy. I now hand the conference over to Mr. Anand Piramal for his comments. Thank you and over to you, sir. Good afternoon, everyone. Thank you for joining us today. This is a significant moment for us. Our first earnings call as Piramal Finance Limited following the merger of Piramal Enterprises Ltd with Piramal Finance in September. With this transition, my father, Mr. Ajay Piramal, has moved on from his role as the Chairman of this company and continues to guide us as the Chairman of the Piramal Group. I want to take a moment to acknowledge his remarkable journey from his beginnings in textiles in the mid-1980s to founding, scaling, and transforming the pharmaceutical and financial services businesses over the last 40 years. Under his stewardship, the combined market cap of our finance and pharma businesses has grown nearly 210 x since 1992 versus 22x for the Nifty 50, delivering a 17% CAGR for our investors. More than the numbers, he has deeply shaped our values, culture, and purpose. I want to thank him for his leadership and look forward to his continued wisdom and guidance in the future. Today, I feel privileged to lead Piramal Finance at what I believe is a pivotal moment. We are amongst India's fastest-growing upper-tier NBFCs with a total growth book of INR 86,000 crore. We are privileged to have served over 5 million customers, more than the population of New Zealand, Singapore, and Norway, and disbursed over 2.5 million life-changing loans or high-impact loans across the underserved segments in areas such as affordable housing, business loans, and microfinance. With the structured reduction of the legacy real estate book to less than 6% of our total AUM and our high-tech plus high-touch model and a strong team, we have, I believe, the foundation to deliver a balanced outcome in growth, profitability, and risk over the next three to five years and beyond. We continue to invest strategically, expanding branches and embedding AI and analytics across operations with an ambition to double our AUM to more than INR 1.5 lakh crore in three years by FY 2028. Our priority in the next few years is to grow profits steadily while achieving a sustainable ROAUM north of 3% in steady state. With that, I'll hand over to our new CEO and MD, Jairam, and his team to share the detailed financials and outlook. Thank you, Anand. Hello, everyone. As Anand highlighted, as a company, we are introducing today a framework for value creation and long-term alignment with our shareholders. If you look at slide three in our presentation, you can see the framework clearly laid out, the framework of growth, profitability, and predictability. These are the three drivers of value creation for Piramal Finance in our view: superior AUM growth, improving profitability towards our steady-state targets, and improving predictability of our risk and earnings trajectories. To support these value drivers, we are building a future-proof AI-native company through a set of initiatives that we call Piramal.ai. You should expect to be updated on this blueprint regularly in the quarters ahead. On the growth driver, which is the first value driver, we are targeting doubling of our AUM in three years to more than INR 1.5 lakh crore by FY 2028. If you look at stage four, you can see that we are progressing steadily on this dimension of growth with strong tailwinds on both disbursements and AUM growth. On profitability, I would point you to slide five. Our aspiration is to eventually deliver a return on AUM of more than 3%, as Anand mentioned, with a target AUM to equity of 4.5x- 5x. As you can see here, our trajectories on OpEx, BPOP, ROAUM, and AUM to equity are all strong and are aligned well towards these long-term goals that we have laid out. On predictability, I would refer you to slide six. As you can see on the right-hand side, our consult path has now been steadily growing for the last seven quarters after a prior period of intense volatility. We expect this journey of steady growth and ROAUM expansion to be predictable and to deliver steady earnings and stable risk. In September this year, we unveiled Piramal.ai, our enterprise AI strategy. You should refer to slide seven for progress on this strategy. As we disclosed a month ago, we currently have about 45 scaled and live AI use cases at this moment. As shown on the slide, we see five key impact areas: underwriting outcomes getting better, productivity getting better, growth staying very strong, customer experience improving, and software development getting better and better and quicker and quicker to help us build more. In Q2 FY 2026, we have made strong progress on all the drivers of our value creation framework. Piramal Finance delivered a profit after tax of INR 327 crore in the quarter, up 101% YoY. The negative drag of our legacy business continues to soften every quarter, resulting in our growth business PBT of INR 344 crore being almost the same as our consolidated PBT of INR 330 crore. In our retail business, disbursements grew very strongly by 36% year- on- year. This drove retail AUM growth also by 36% year- on- year, coincidentally. With wholesale 2.2 AUM up 43%, our growth AUM was overall up 37% year- on- year, and consolidated AUM was up 22% year- on- year. On the whole, this has been a quarter of 22% AUM growth and 100% PAT growth. Cost of borrowings was an important story during the quarter, and it dipped by 19 basis points on a QoQ basis and fell below 9% after a five-quarter period where it was elevated above that level. Growth business NIM was up 10 bps QoQ. Asset quality was stable across retail and wholesale businesses, both in terms of delinquency as well as in terms of credit costs. Led by the continued improvement in retail OpEx to AUM, and Jagdeep will speak about this in a minute, growth business ROAUM continues to improve steadily. ROAUM was 1.7% in Q2 versus 1.5% in Q1 and 1.4% in FY 2025. As shown on slide 13, at the end of FY 2025, we shared our five targets for the year on AUM, AUM mix, and total consolidated PAT. With the first half of FY 2026 numbers in the bag, we are well on track to meet all these targets. As you're aware, PFL stock is currently in blackout period after the merger of PEL with PFL and allotment of PFL shares to PEL shareholders. We expect listing of PFL stock in early November, subject to the final regulatory approvals that we are awaiting. It typically takes 40 days- 45 days since the record date of the transaction. Our record date was 23rd September. With this, I hand over the call to our CEO of Retail Lending, Jagdeep Malareddy, to talk through our performance there. He'll be followed by Vikas, who will discuss our wholesale business and financial performance, respectively. Jagdeep? Thank you, Jairam. The strong start for our retail lending business in Q1 further gained pace in Q2. We had our lifetime high disbursements in Q2 FY 2026 at INR 10,954 crore. Disbursements were up 36% YoY. Our flagship mortgage business, comprising affordable housing loans and LAPs, grew by 37% YoY and crossed the INR 50,000 crore mark in AUM. Mortgages account for 56% of the total AUM of the company and 68% of retail AUM. On a QoQ basis, the disbursement momentum accelerated in UBL and digital loan businesses, while salaried PL maintained the earlier strong momentum. AUM across our unsecured retail products were thus up by 31% YoY. Moving on to our credit risk performance, as you can see on slide number 23, 90+ DPD in retail at 0.8% is within the narrow range we have maintained consistently over the last three and a half years. Secured lending products had a stable quarter on most risk metrics. The improvement seen for the overall unsecured businesses in Q4 FY 2025 has continued into Q1 and Q2 of FY 2026. Trends for digital loans and microfinance improved significantly in Q2 FY 2026. Unsecured business loans and used car loans are the two pockets of the portfolio that need closer monitoring. Unsecured business loans risk was stable in quarter two, even as it is at a slightly elevated level, similar to that seen in FY 2025. Used car loans risk was stable quarter on quarter after an unusual uptick seen in Q1. We had some favorable impact of ECL rebalancing in Q1 FY 2026. Adjusted for that, the credit costs were stable in Q2 versus Q1. Vikas will share more details on this in his commentary. As shown on slide number 20, our customer franchise grew by 23% YoY to 5.2 million customers. We capture a significant portion of our customer originations for future cross-sale opportunities. In Q2, as unsecured disbursements picked up, we were able to keep our sourcing from cross-sale in the 25% - 30% range. We expect this number to further materially improve over the coming years. As shown on slide number 22, over the last 10 quarters, we have consistently reduced our retail OpEx to AUM ratio from 6.5% in Q4 FY 2023 to 3.9% in Q2 FY 2026. We thus met our medium-term guidance of 3.5% - 4% ahead of our expectation. We have now refreshed the retail OpEx to AUM target downward by 25 basis points to 3.25% - 3.75%. As shown on the same slide, AUM yield in retail has been broadly stable at around 13.3%. The reported fee, which was impacted by the processing fee amortization in FY 2025, is gradually normalizing, led by stable underlying fee collection. Overall, we remain confident about the continued steady scale-up of our multi-product retail lending business with consistent improvement in operating leverage and stable asset quality through the cycle. With this, I hand over the call to Vikas. Thank you, Jagdeep. Since the inception of Wholesale 2.0 about three years ago, we have built gradually the book to INR 11,295 crore today across our real estate and CML strategy. During this period, we have disbursed INR 20,000 crore across 313 loans. As you know, in our real estate strategy, we fund real estate projects where we have a total of 150 loans with a total AUM of INR 8,608 crore. CML focuses on providing credit to mid-market companies across key sectors, and in this strategy, we have 60 loans with AUM of INR 2,687 crore. The second quarter of FY 2026 was quite active for us. In Q2 FY 2026, our Wholesale 2.0 AUM grew by 43% year- on- year to INR 11,295 crore. We disbursed INR 2,043 crore across RE and CML segment. This was an increase of 11% YoY in the origination. Origination per loan was INR 59 crore during Q2, while disbursement amount was INR 25 crore per loan. The portfolio has an average ticket size of INR 71 crore and a stable effective interest rate of 14.5%, featuring a well-balanced asset duration and diversification. We continue to see tailwind across RE and CML segment and will grow this book in a calibrated manner through FY 2026. Repayments were almost 57% of disbursement during Q2, significantly better than expected performance of the book, which continues to benefit from strong sector performance and quality partner and asset selection. The legacy AUM are down by INR 1,472 crore in H1, and these now stand at INR 5,448 crore, which is less than 6% of total AUM. We are on track to bring this book to below INR 3,500 crore by the end of the year as we guided initially. Moving to our financial performance, in Q2 FY 2026, we reported our consolidated net profit of INR 327 crore with a growth of 101% YoY over Q2 FY 2025, with net profit of INR 163 crore. Proforma PBT for growth business stood at INR 344 crore, growth of 98% YoY over PBT of INR 173 crore in Q2 FY 2025. With growth business, OpEx growth of 14% YoY versus income growth of 36% YoY. Operating profit grew by 73% YoY to INR 687 crore. In Q2 FY 2026, we reported growth business credit cost of 1.7% versus 1.4% in Q1 FY 2026 and 1.6% in FY 2025. Net positive impact of ECL rebalancing in Q1 FY 2026 over Q2 FY 2026, which is 36 basis points, explains this quarter-on-quarter movement in growth business credit cost. With completion of PEL merger with PFL in Q2 FY 2026, carry forward losses are now available at PFL at combined level. We were thus able to write back taxes which we booked over FY 2025 and Q1 FY 2026 for as well PEL. In Q2 FY 2026, we reported a tax write back of INR 78 crore, which includes DTA of INR 35 crore. There were some exceptional expenses of INR 81 crore during the quarter. This largely includes merger-related expenses of INR 60 crore and one-off tax expenses of INR 21 crore. Our total GNPA and NNPA ratio stands at 2.6% and 1.8% respectively. Our net worth stands at INR 27,447 crore, with capital allocation at 20.7%. In Q2 FY 2026, our cost of borrowing reduced 19 basis points quarter on quarter to 8.9%. We continue to actively diversify our borrowing mix. Securitization and international borrowing shares stand at 18%, while share of borrowing from mutual funds has increased, which is 13% versus 6% in March 2024. With these remarks, I would now like to open the floor for questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take a first question from the line of Prithviraj Patil from Investec. Please go ahead. Yeah, hi. My first question is on the IRR on the portfolio Wholesale 2.0. If you can just give the split between the fee and the interest portion there, and are we doing structured transactions like two 2 to developer here? The IRR seems extremely high here. Sorry. No, we aren't doing any structured transactions. These are pure operating loans. Some of the old kind of structures which are back-ended or which are at holdco level or mezzanine level, none of those transactions are actually being done. These are plain-vanilla loans. You can see that we are only doing INR 2,000 crore of disbursement a quarter. It's not a massive number, and this level of business is available at 14%. This is not a problem. You don't have to chase structured transactions for this year. Given our cost of funds, we'll need to get a 14% IRR for the business to work, and hence we are limiting our appetite to whatever we can get at that price point. We are getting just enough to satisfy our appetite. Okay. Thank you. Thank you. We'll take our next question from the line of Avinash Singh from Emkay Global Financial Services. Please go ahead. Hey, Avinash. Yeah, hi. Hi, Jairam. Good evening. My question is more on the capital side and growth plan. I mean, of course, on one hand, we are very, very, I would say, less levered for different issues and, of course, growing fast. If we see, like, your INR 1.5 lakh crore kind of ambition by FY 2028, if, again, if we see the net worth of INR 27,500 crore, that looks kind of, you know, even for INR 1.5 lakh crore kind of AUM, it looks all right. Current, of course, capital inefficacy, that will have a lot of adjustments, of course, that is putting at 21% odd. If you were to consider that, okay, some of the capital consumption from legacy going away, some of the investment you will be kind of able to monetize. If you must, kind of, explain how the sort of capital development, and, of course, you will be organic profit generation, is, how is the journey of capital going to be in this, you know, your journey towards INR 1.5 lakh crore eventually? I mean, from which all sources your organic profit you seem the capital will get released from more capital? Thanks. Yep. Thank you, Avinash. [Foreign language]. So your question contains all the right answers. That's exactly the way we are thinking about it. Your point is right. At INR 27,500 crores as a starting point, getting to one and a half lakh crores without additional raise of capital should be possible in theory. It does have some of the important caveats that you mentioned, which is that we have a large investment book, larger than most NBFCs. We need to exit those investment books. That will release a lot of capital for lending. That's an important one for us to do. Of course, as the legacy book goes down, that can also get redeployed into our core growth book. Those will continue to be important components. As you can see now, our core profit generation engine has started firing more and more every quarter. You are seeing a steady improvement in ROAUM over the last four quarters. You will continue to see it in the future as well. All that will contribute to our capital as well. If you are able to get all of these things lined up, then we are probably not looking at a capital raise. Certainly not this year, but likely not next year as well. Let's see. You know, never say never in these things. We are open to all possibilities, but it's unlikely that we will require any new capital infusion. As I've mentioned in the past, our internal threshold for evaluating the capital position more deeply is 18%. If capital adequacy falls below that, we will internally start talking about it. I'm not saying that we will immediately raise capital, but we will certainly get into the conversation on capital at 18%. We don't want to get too close to the regulatory line. Given where we are, and given all the levers that we just spoke about, including organic profit growth, I think we should be able to manage all through FY 2026 and FY 2027. We will keep you posted on this on a regular basis. We also have some of the extraordinary gains coming up, etc., which is baked into our profit guidance for the year. On a full-year basis, we have guided for INR 1,300 -INR 1,500 crores of profits, of which we have delivered INR 600 crores so far in the first half. You should expect anywhere from INR 700 to 900 crores in the second half, because we are reiterating that guidance. All that will contribute towards capital position as well. We feel fairly comfortable with where we are on this front. Okay. Thanks. If, sort of one more, I mean, when I see your operating cost guidance, you know, relatively being downward revised to 3.25% - 3.75% for retail. Broadly, again, I am drawing that, okay, your 80/20 or 75/25 ambition of retail wholesale. At the aggregate level, a 3, 3.5 kind of OpEx to AUM is a fair assumption? Yeah, three to three-quarter, I would say. Okay. Perfect. Lastly, on your Shriram investment, particularly in the general insurance side, there are so much of media reports also coming in. What are the options open? Is it a kind of a transaction with some strategic investor, or even going or taking the company public is among the options? Thanks. I don't want to comment on this right now. There is all the chatter that's going on in this, all options are on the table, but we don't want to compromise our position by talking a lot about it publicly. Let it play out as it plays out. Got it. Thanks. Thanks. Thank you. Before we take the next question, we'd like to remind participants to ask a question, please press star and one on your phone. Next question is from the line of Kushagra Goel from CLSA. Please go ahead. Hi, Kushagra. Hi. Thank you for taking my question. I have sort of. I'm sorry, Kushagra, you're not audible. Hello. Is this better? Yes, please go ahead. Hi. Thank you for taking my question. It's majorly on the cost of funds side. You have said that it's now below 9%. Could you give sort of some guidance about the medium term? Where do you think this can go down to? Are you having some conversations with rating agencies, etc., to sort of bring this down? Yeah. Firstly, let's talk a little bit about the decline that has happened this quarter. You've seen a 19 basis point decline in cost of borrowing this quarter, of which I would say there is a little bit of optics there. I think more sustainably, 14, 14 to 15 basis points is probably the more realistic way of thinking about the decline because my Q1 was overstated a little bit. Q1 cost of borrowing was overstated a little bit because we did a prepayment of a few loans in Q1, and prepayment penalties got applied. Q1 numbers are overstated by three or four basis points, which is actually explained by that. I would say about 15 basis points has been the actual decline in this quarter. We've not seen a lot of action from banks yet. You can see that about 42% of our borrowing is from banks, and bank MCLRs haven't really come down that much. I expect that play to come only in Q4. My expectation is Q3, not much will change. Q3 should remain roughly flat to Q2 on the cost of borrowing. Q4 should see a decline mostly led by the bank side, with bank MCLRs starting to get cut by that time, hopefully, and it's starting to flow through to our numbers. My expectation is flat in Q3, down another, let's say, 10 basis points in Q4. That's my medium-term expectation. All of this will give us a lot more benefit in the next year if, let's say, RBI reduces on the whole by about 120 basis points. I would guess that the impact to us will be about 70 basis points on cost of borrowing, of which we will probably pass on about 25 to 30 basis points to our customers based on the mix of variable, and the rest could accrue. Okay. Got it. Thanks. Thank you. Thank you, Kushagra. Thank you. We'll take our next question from the line of Pradyumna Ladha, an individual investor. Please go ahead. Thank you for taking my question. Jairam, hi. Just touching on the previous question to follow up. Any conversations going on with the rating agencies? Yeah, I forgot about that. Sorry, I forgot to respond to that part of the question. Yeah, we are discussing with rating agencies very regularly. Every quarter, we are presenting our information to them. I have a call scheduled next week as well with our key rating partners. Let's see. The key question from rating agencies' perspective so far has been, yes, the business mix shift has checked all the boxes. Risk stability has come in, that's a check. Legacy book coming down, that's a check. Capital position being strong, that's a check. Liquidity position being really strong and improving, that's a check. The one area where we have not got a check so far is profitability and whether we can actually deliver profitability on a sustained basis. With every passing quarter, that is coming. At some point of time, I'm sure the rating agency will take a little bit of a forward-looking view and get constructive on our paper. Of course, I speak on their behalf, but I think with every passing quarter, our case is getting stronger. We'll continue to have discussions with the rating agencies in the hope of being able to convince them over the next few quarters. Understood. The number of the 70 bps reduction in cost of borrowing you mentioned, that's all exclusive of any ratings update? Of course. That is just kind of rating action. That's cyclical rather than structural. Right. By the way, that 70 is I don't mean for that as a guidance. I'm just saying that that's my estimate that if RBI cuts by 120 basis points, roughly 70 will come to us. That's an estimate based on historical data. It depends on the banks what they do. It's not for me to say. Understood. Thanks, Jairam. Thank you. Thank you. Next question is from the line of Kamal from Jefferies. Please go ahead. Hi, Kamal. Hi, sir. Thank you for taking my question. Sir, if you could just highlight firstly on the comments which were passed that there is still some caution in terms of unsecured business loans and used car loans. I was seeing that the 90 plus has increased marginally for LAP as well. If you could just highlight some comments on the asset quality overall. Yeah. Good question. I think the, and it's a good catch on LAP, yes, there is something there to watch. The quarter has been very good for unsecured in general. Unsecured risk has generally either stayed stable or taken a dip. You can see that in our PL numbers, our digital lending numbers, our micro-finance numbers, of course, have fallen very steeply. Also, unsecured business loans, which has been the flavor of the last couple of quarters. Even on unsecured business loans, you saw our delinquency fall. The quarter has actually been good on asset quality for most of the unsecured lending side. Things have been stable to improving. On the secured product side, it has been mostly stable. Used car, which gave us a little bit of a shock last quarter, has slightly, marginally improved, I would say. LAP, you know, you're right, the delinquencies have gone up a tad during the quarter. You should also recognize that LAP in absolute terms has been at super duper low risk. If you look at the last three years' data here, LAP risk has been at the same levels or slightly lower than housing. Whereas in LAP, we are getting almost 200 basis points higher yield. It doesn't make sense for LAP to remain that low risk for the higher yield that it is getting at. You are seeing a little bit of normalization there. I do expect LAP's delinquency to be higher than HL. It is kind of reverting a little bit to that mean. Whether it is indicative of something underlying and whether there is a risk issue, it's too early to tell. We are certainly seeing a reversion to a more average risk performance in the LAP business compared to the abnormally good environment that we have had for the last two and a half years. Okay. Thank you so much for that. If I can ask one more question, in terms of our AUM expansion over the next few years, which are the products where we would be more focused on going forward, or if any new product which we are planning to add on? Yeah. You are going to continue to see mortgages, which is HL plus LAP, continue to be the anchor part of our portfolio. The share of mortgages is going to either remain stable or slightly go down, right? That is what you should expect. We would like our unsecured lending business to go up. We have unsecured at about 17% of our overall book. We would like for that to be about 25% of overall book or about 30% of retail. The last year and a half, two years have not been conducive to increasing the share of unsecured given the risk environment. We have not actually increased it. It has remained stable. In the medium term, we would like to see 25% of our overall book as unsecured compared to the 17% today. That is something that you should expect to see. All our unsecured businesses, we will keep kind of finding ways to accelerate when the opportunity is right. In terms of new businesses, we have said this publicly before. We will restate the businesses that we want, newly launched businesses that we want to scale, is microfinance. A new business that we do not yet have, but we are in the process of launching, is gold. We will launch it, but we will be very slow. We are doing it organically. We will take it very slowly. As investors, you might not notice it for a while, for a couple of years, because the scale is going to be really small. As a management team, we have started work on it, and we have put the team together, and we got our strategy down, and you will start seeing some execution in the second half of this year. Okay. Thank you so much for that. Just to follow up, if I could ask, what is your view on the overall gold loan portfolio? We are seeing a lot of aggression amongst all the NBFCs. They are aggressively, everyone has some aggressive plans to add branches over the next one to two years. Yes. What is your view on that portfolio as well? That would be my question. See, gold is the kind of, is a little bit of a last bastion left in the lending space right now. It's a large product. Underlying product has not been monetized yet. The market size is still small compared to the overall potential, and the yields are still relatively attractive. Of course, cyclically, the gold is going through probably the best period in the cycle. It's natural that you're seeing a lot of interest. If the cycle goes down, you'll probably see a lot of this interest fade away. That's okay. These things happen. Remember that for a product, we all know the size of holdings of Indian households, etc., all that data is known to everyone. The potential size of the market, the TAM, is extremely large, and not enough people are in that market. The total size of the number of players in that market compared to, let's say, a microfinance market where there are like 100 players chasing an INR 4 lakh crore opportunity, the number of players in gold is still very, very low. It's natural that you will see more competition, and it is also natural that as more competition comes in, the economics of the business will deteriorate a little bit. All those things you have to assume. You should also take into account the fact that the business is at a cyclical high right now, and it can only get worse from here. It cannot get any better. Whoever is getting into this business today should absolutely keep in mind that the economics next year are going to be worse than the economics this year in this business. We are fully aware of all these dynamics. We will conservatively and very slowly build it, and if it doesn't work out, it doesn't work out. We're not wedded to the idea, but it's an important product for our customer segment, so it is something that we want to own. Okay, thank you so much for all the answers. Thank you. Thank you. Next question is from the line of Prithviraj Patil from Investec. Please go ahead. Yeah. Hi, Prith. Thanks. Thanks for the opportunity. My first question is on the $140 million contingent income that is supposed to be coming in this year from Paramount Imaging. I just wanted to know if there's any update on that or are we expecting that to come for the next year? It will come. You see, there's no update. The transaction is completed. The way the transaction works is that the consideration is due to us only in Q4. The actual exact amount calculation will happen based on calendar year 2025 numbers. Once calendar year 2025 gets over, they will calculate the numbers and the exact consideration will get finalized. We continue to expect the consideration to come to us in Q4 of our fiscal. Nothing has changed on that front. There is nothing new to report on that situation. The transaction completed in July of this year. Not much has happened since then. Okay. Another question on page 22 of the slide you've mentioned is that the amortization fee dropped in FY 2025 and FY 2026 compared to FY 2024 because there was an amortization processing fee. Was it clarification why we were not amortizing it earlier? Yeah, we were not amortizing it earlier. There are some historical reasons for that. The fee income line was so small in the earlier years that it didn't seem to matter. The auditors also didn't insist on it because the amounts were too small. For some historical reasons, it was not getting amortized. In FY 2025, starting April 1, 2024, we started amortizing it. You saw a big dip in our fee income earning in FY 2025. Since then, because the backbook has slowly gotten created, you have seen that fee income line slowly move up. There's no particular reason for why that date was chosen. It is just that the book had become large enough at that time and the fee income line had become large enough that it made sense to do a more standardized kind of accounting approach there. Yeah. A last question on the one-time expense that we have taken. It mentions that there's a one-off tax expense and some INR 60 crore of expense related to the merger. If you could just throw some light on the expense. Right. Vikas, you want to talk about that? On mergers first, we have to pay INR 50 crore as a stamp duty on various assets which are moving, and INR 10 crore are like professional fees. Regarding this INR 20 crore, this pertains to that imaging game which was sold way back in 2018. The tax assessment has been concluded in this quarter, leading to a demand of INR 21 crore. I hope that explains the total INR 81 crore. Okay. Thank you. Thank you. Thank you. Thank you. Next question is from the line of Mayank Mistry from JM Financial. Please go ahead. Hi, Mayank. Yeah. Hi, sir. Thanks for the opportunity. Sir, I had a question on the wholesale book, mainly in the CMML AUM by rating that you have given on slide number 29. We see that close to 70%, less than 70% of the book you have is below A - rated, right, in the CMML book. Yeah. Over the last few years, we have seen that a lot of NBFCs have actually moved out of this segment completely, or they are doing it very conservatively to only the A and better rated companies. What gives you confidence to continue this book with, you know, what gives you confidence to do fresh disbursals in this book right now? The point you're making about A and A and below, or B BB+ and below, let us say, or the entire BBB family, that is the play for a non-AA rated NBFC today. If you're a AAA rated NBFC, then you can go lend to a AA rated company or an A company or an A plus company. If I'm a AA rated NBFC, which is what we are, I cannot lend to an A or A plus company. There just isn't enough, like the difference in cost of funds for us and for them is not large enough for us to actually lend to them. Our game is always going to be two notches below where we are. We are AA. Our two notches below is going to be BBB +. BBB is generally going to be the area for an NBFC like us. Of course, if I am a Tata Capital or an Aditya Birla Capital or a Bajaj Housing, I might have a different play. I can actually target A rated entities and lend to them. As Piramal Finance, that is not our game. Our game is very much in BBB. We are priced for it because we are charging 14%, right? We are priced for it. We are doing operating loans. We are keeping ticket sizes really small. In this business, we are keeping ticket sizes at INR 50 crore. The ticket sizes are small. Tenures are short. It's unstructured. The deals are plain vanilla, right? Yield is strong enough. That's why the business has turned out to be quite profitable in the last two to three years. Let's see how this plays out. The size might not be very big of this opportunity. Even in the long-term future, you might never see us get beyond, let's say, INR 10,000 crore. We might not be able to grow the business beyond that. Till that space, till that size, opportunity is available for this type of business. Okay, sir. Got it. What would be the similar mix for the real estate book then? Of rating. Real estate [Foreign language]. For risk, I mean. [Foreign language], that's the business that we will do, right? If the business is doable only at 11% or 12% at our current cost of funds, that might not work. If, God willing, we are able to get a rating upgrade, etc., we might be able to actually target slightly kind of, you know, better risk profiles as well. Today, pure operating projects where all approvals are there, where no structuring is required, and I'm lending at the project level, not to whole core entities, etc., in an unstructured fashion for a relatively short duration, that's where we want to enter. Our ticket sizes need to be on average less than INR 2.00 billion. Those are our constraints. Within those constraints, we still believe, let's say, a INR 200 billion to INR 250 billion opportunity can get created. AUM of that size can get created. We are still far away from there, but we can see in the INR 4 trillion AUM market that real estate is. We think this opportunity that I spoke about, something like a INR 200 billion - INR 250 billion, we can create. We will keep working towards that outcome. In the interim, if we are able to get a rating upgrade, etc., and we are able to go to even better rated clients, yeah, even better. For now, we believe our current strategy can get us to that size. Okay. Nearly you want to make us tired of maybe 5% - 6% at least in this book, right? Yes, exactly. Without that, the math will not work. Got it. Okay, sure, sir. Thanks. Having said that, I also want to hesitate to add that we are not also kind of going out there yield chasing. It's not like we are chasing an 18% business, which kind of, let's say, distressed funds or some other special funds might be tackling with highly structured transactions. We are not in that market. We are in a very narrow band of interest rates where we want operating asset loans. We do not want structured loans. We are not in the structured market. You will not see us be in the, let's say, 17%- 18% range where you'll see a lot of funds. Okay, sir. Thank you. Next question is from the line of Abhijit Tibrewal from Motilal Oswal. Please go ahead. Abhijit. Yeah, thank you. Hi, sir. Good evening. Just on the asset quality, we've already spoken about it, but I'm just double-checking with you. Today, none of the retail segments where we are present, we are seeing any risks, so as to say, right? I mean, risks which were there maybe a quarter, two quarters back, they kind of continue at the same levels. In this quarter, we have not seen any of the other retail products that we exhibit a higher risk. Is that a fair understanding? Correct. Yes, that's fair. The big increase in retail products all happened in Q2 and Q3 last year. You saw a slight reduction in Q4, and things since then have been stable at that level. Q4, Q1, and Q2 have been relatively at the same level. Nothing much has happened. That is true in delinquency and in credit costs. Across all risk metrics, that has been true. I will also say that businesses like unsecured business loans or MSME unsecured, where risk reached a certain peak in Q3 last year, have not come down from that peak. Things have not gotten significantly better in MSME unsecured. It is stable, but it has not gotten better. I do not want us to start celebrating too quickly on this front. Yes, nothing has gotten worse this quarter. This quarter has by and large been neutral to positive on all product categories. Okay. Lastly, I mean, mortgages, which is home loans and LAP, right? LAP in itself, right? At an industry level, probably we are seeing the kind of growth that we've never seen earlier. One of the other things that keeps getting discussed is, are we seeing some consolidation of unsecured loans into a secured loan, which is a LAP product today? Yeah. At the same time, even home loans for us, you'll acknowledge, right, has been very strong, right? Yes. We're not seeing that at an industry level, mortgages, right? Yes. If we talk about us, right, we are not really doing prime, right? The yields that we have in home loans, right? Yes. I will not really call them very small ticket home loans either. They're somewhere in between, right, between prime and what we call as small ticket affordable loans. Is this a segment which is doing particularly well and where we are seeing such strong growth in home loans? How would we want to explain that the industry is still struggling? Yeah, no, it's a very good observation. I mean, we find, honestly, we are also kind of trying to understand this deeper. Like, how are we getting this kind of growth in a market when everybody else is struggling or many others are struggling? I think the, you know, the point you mentioned in your question, Abhijit, is the core part of the answer. This segment that we are in, which is kind of that in-between segment, not the larger ticket prime stuff, but not the very small ticket affordable housing stuff either, that in-between segment that semi-urban India is doing well. If you see kind of data from CIBIL, etc., as well, semi-urban is where much of the growth is happening. The overall business is growing at 8% or 9% for the industry. If you split it by semi-urban, urban, and rural, you see that semi-urban is where most of the growth is. As it happens, Piramal is totally focused on semi-urban. That is our game. We are actually getting that tailwind because of the segment choice and geography choice that we have. On top of that, some of the work that we have done in using technology and AI has created what we internally think of as like super highways where, you know, sales managers and sales staff productivity can be really, really high because applications that come into the system are on a super highway where there are no bottlenecks. Things flow a lot more quickly, etc. Conversions are better, you know, for us overall. Certainly, our investments in technology and AI are helping in converting a lot more of the leads and potential interest into final business. Got it. Just one last follow-up. While we spoke about LAP, this subsegment, which is micro-LAP, interesting what is happening at the industry level, especially small ticket LAP loans maybe less than INR 1 million. I mean, would you like to comment on what's really happening? Is the risk getting better, or are we in that part of a cycle where maybe it will take a few more quarters for things to start getting better? Yes. Why I ask is we spoke about UDL. We spoke about MFI risk, right? It will be stable to getting better at some point in time. Likewise, I mean, micro-LAP, I mean, are we seeing something? Micro-LAP, I think will get worse. It will not get better. In the short term, it will get worse. See, we have a small micro-LAP business. How much do we have, Jagdeep? A couple of hundred. Okay. We just have a couple of hundred crores. We don't have much of a LAP business. We just started it a year ago, but I can see the signs there. You know, the situation is tough. I would expect that business to be under some stress for a couple of quarters, at least. I don't see it in the same space as where UBL is or where microfinance is, which have, I think, their worst is very much microfinance, 100% the worst is behind. UBL, you could argue that it's still at the peak, not on the other side of the hill. Micro LAP, I don't think has reached the top of the hill yet. I think it'll get worse before it gets better. Got it, sir. This is very useful, sir. Thank you very much. I wish you and the team the very best. Trusted meetings too. Thank you, Abhijit. Thank you. Listing day is in two weeks, Abhijit, just saying. Thank you. Ladies and gentlemen, we'll take that as the last question for today. I would now like to hand the conference to Mr. Jairam Sridharan for closing comments. Over to you, sir. Hey, thank you very much, everyone, for participating in the call. I know it's been a very busy day and there are a lot of FS companies that are declaring results. We appreciate and are grateful for the time that you have taken to understand Piramal's numbers. Thank you for participating. On behalf of the Piramal family, we would like to wish all of you a very happy Diwali and festive season. Thank you very much and have a good evening. Thank you, members of the management team. On behalf of Piramal Finance Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.