28 Apr , 2026 By : Debdeep Gupta
Piramal Finance stock rose sharply on Tuesday, gaining nearly 12 percent in noon trade after the company reported a strong March quarter performance and outlined a robust growth outlook. The stock was trading at Rs 2,062, up 11.88 percent on the day.
The rally comes after Piramal Finance reported a 390 percent year-on-year jump in Q4 profit after tax to Rs 502 crore, while FY26 PAT rose 210 percent to Rs 1,506 crore. Assets under management crossed Rs 1 lakh crore, growing 25 percent year-on-year, with the retail segment contributing 85 percent of the overall book. The company also continued to wind down its legacy book, which now stands at just 3 percent of total AUM. Its asset quality improved with gross NPAs declining to 2.3 percent.
Margins and operating metrics showed improvement during the quarter. Net interest margin expanded to 6.5 percent, while the retail operating expense-to-AUM ratio declined to 3.6 percent, indicating improving operating leverage. The company has guided for around 25 percent AUM growth and 50 percent profit growth in FY27, along with an exit return on assets under management of about 2.5 percent.
Brokerages remain constructive on the stock, even as they flag some near-term limitations.
Nomura has a ‘buy’ rating on Piramal Finance shares with a target price of Rs 2,150. The brokerage said that the company is “cleaning up and scaling up well,” supported by strong growth guidance and improving returns. It highlighted unsecured loans, gold loans and lower cost of funds as key levers for margin expansion.
Jefferies has a more cautious ‘hold’ rating with a target price of Rs 1,940, saying that upside may be capped at current valuations. The brokerage pointed out that while AUM growth and margins were in line and asset quality in the growth book remained stable, reported profit included one-off gains used to provision legacy assets. It added that the return ratios are expected to remain relatively subdued over the medium term.
Piramal Finance stock has gained 56 percent in one year, sharply outperforming the Nifty 50, which is down 1.1 percent over the same period. It has a market capitalisation of over Rs 46,000 crore.
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