Piramal Finance Ltd
Piramal Finance Ltd
Financial ServicesKey Fundamentals
MidcapFinanceFinancial ServicesInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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46 extracted metrics + investor summaries across FY14–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Weaknesses
5- Company has low interest coverage ratio.
- Tax rate seems low
- Company has a low return on equity of 0.55% over last 3 years.
- Dividend payout has been low at 5.51% of profits over last 3 years
- Working capital days have increased from -7.71 days to 83.6 days
Growth Rate
AI Analysis — Bull vs Bear
Piramal Finance Ltd trades at a market cap of ₹46,700 Cr with a P/E of 27.5x and P/B of 1.65x. The company is in a transformation phase — AUM crossed ₹1 lakh crore in FY26 with growth book now at ~97% of total AUM, but historical profitability remains weak with 3-year average ROE of just ~1% and compounded profit declining 56% over 3 years.
- AUM grew 25% YoY to cross ₹1 lakh crore in FY26, with a clear roadmap to ₹1.5 lakh crore by FY28 implying sustained 23-25% CAGR
- Q4 FY26 net profit surged 390% YoY to ₹502 crore, with total income up 56.5% YoY to ₹4,783 crore, signaling operating leverage kicking in
- Growth business now constitutes ~97% of total AUM (up from 34% in FY22), indicating near-complete transition away from legacy wholesale book
- Net Interest Income rose 41% YoY to ₹1,362 crore in Q4 FY26, reflecting improving spread dynamics on the growth book
- Retail lending anchors ~85% of AUM, reducing concentration risk versus the old wholesale-heavy model
- Growth business RoAUM improved to 2.1% in Q4 FY26 from 1.7% in Q4 FY25, showing improving unit economics
- Legacy AUM declined 84% since FY22 to under ₹3,000 crore, reducing the drag from stressed wholesale assets
- TTM revenue growth of 18% with compounded sales CAGR of 21% over 3 years shows steady top-line momentum
- 3-year compounded profit has declined 56% and TTM profit is down 23%, reflecting the heavy cost of business transformation
- 3-year average ROE is just 0.55-1%, extremely low for a financial services company of this scale with ₹46,700 Cr market cap
- GNPA at 2.6-2.8% and NNPA at 1.8-1.9% have remained elevated, rising from 2.4% GNPA and 0.8% NNPA in Q4 FY24
- Interest coverage ratio is low, indicating vulnerability to rate cycle changes or asset quality deterioration
- Working capital days deteriorated sharply from -7.7 days to 83.6 days, signaling potential liquidity management challenges
- Dividend payout has been just 5.51% of profits over 3 years with a yield of only 0.53%, offering minimal income return to shareholders
- P/B of 1.65x is being paid for a business delivering sub-2% ROE currently, implying valuation is pricing in future profitability that is yet to materialize
- 10-year compounded profit CAGR is negative at -11%, reflecting a decade of inconsistent earnings through multiple business pivots
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Higher impairment charges in Q1 Aug 24
Piramal Finance recorded higher impairment charges in Q1FY27 despite overall profit growth, signaling potential asset quality pressure ahead.
- Q1FY27 profit up 67% YoY Aug 25
Net profit rose 67% YoY to ₹461 crore in Q1FY27, with revenue up 27% to ₹3,368 crore and retail AUM growing 32%.
- ₹4,000 crore capital raise approved Aug 18
Shareholders approved a special resolution to raise up to ₹4,000 crore via equity or other securities with 99.97% assent in postal ballot.
- ₹1,750 crore promoter warrant issue Aug 24
Board approved preferential issue of 82,94,000 warrants to Nithyam Realty at ₹2,110 per warrant, with 25% upfront payment and EGM on September 19, 2026.
- QIP floor price set at ₹2,102.65 Aug 24
Piramal Finance opened qualified institutional placement with floor price of ₹2,102.65 per share, following shareholder approval on August 17, 2026.
- Investor meeting in Varanasi Aug 14
Analyst and institutional investor meeting scheduled for August 20, 2026, featuring a branch visit in Varanasi.
- Board met on preferential allotment Aug 19
Board meeting held on August 24 to consider raising funds via preferential allotment; trading window closed for designated persons.
TL;DR: Piramal Finance delivered strong Q1FY27 results with 67% profit growth and 32% retail AUM expansion, while actively raising capital through multiple channels totaling up to ₹5,750 crore. The promoter warrant issue at a premium signals confidence, though rising impairment charges bear watching. The growth and capital-raising trajectory is clearly positive, but asset quality trends in coming quarters will determine whether the re-rating sustains.
Quarterly Results
| Jun 2022 | Dec 2022 | Mar 2023 | Dec 2023 | Mar 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,672 | 1,751 | 1,640 | 1,689 | 1,717 | 2,365 | 2,825 | 2,854 | 2,639 | 2,872 | 2,918 | 3,424 | 3,368 |
| Expenses | 366 | 1,570 | 966 | 729 | 2,780 | 936 | 1,374 | 1,537 | 919 | 922 | 983 | 1,978 | 1,296 |
| Operating Profit | 1,306 | 181 | 674 | 960 | -1,063 | 1,429 | 1,451 | 1,317 | 1,721 | 1,949 | 1,935 | 1,446 | 2,073 |
| OPM % | 78% | 10% | 41% | 57% | -62% | 60% | 51% | 46% | 65% | 68% | 66% | 42% | 62% |
| Other Income | 95 | 7 | -10,250 | -1,855 | 249 | 121 | 58 | 269 | 129 | 11 | 96 | 1,377 | 160 |
| Interest | 890 | 834 | 848 | 928 | 999 | 1,305 | 1,364 | 1,417 | 1,492 | 1,567 | 1,646 | 1,674 | 1,734 |
| Depreciation | 18 | 22 | 37 | 38 | 45 | 55 | 54 | 53 | 57 | 144 | 57 | 645 | 56 |
| PBT | 492 | -668 | -10,461 | -1,862 | -1,858 | 190 | 91 | 116 | 301 | 249 | 328 | 505 | 443 |
| Tax % | 25% | -523% | -14% | -31% | -60% | 14% | 57% | 12% | 8% | -31% | -22% | 1% | -4% |
| Net Profit | 370 | 2,824 | -8,982 | -1,282 | -752 | 163 | 39 | 102 | 276 | 327 | 401 | 502 | 461 |
| EPS in Rs | 0.17 | 1.32 | -4.2 | -0.6 | -0.32 | 0.07 | 0.02 | 0.04 | 0.11 | 14.42 | 17.69 | 22.14 | 20.34 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 6,420 | 7,835 | 11,465 | 10,849 | 12,882 | 9,558 | 8,771 | 6,039 | 6,644 | 6,729 | 10,375 | 11,903 | 12,582 |
| Expenses | 968 | 1,196 | 1,477 | 1,413 | 4,496 | 21,824 | 28,621 | 1,859 | 5,660 | 4,915 | 4,608 | 4,801 | 5,178 |
| Operating Profit | 5,451 | 6,639 | 9,989 | 9,436 | 8,386 | -12,266 | -19,850 | 4,180 | 984 | 1,814 | 5,767 | 7,102 | 7,403 |
| OPM % | 85% | 85% | 87% | 87% | 65% | -128% | -226% | 69% | 15% | 27% | 56% | 60% | 59% |
| Other Income | 2 | 4 | 6 | 41 | -22 | 19 | 32 | -62 | -10,210 | -1,618 | 373 | 1,563 | 1,644 |
| Interest | 4,460 | 5,492 | 6,674 | 7,744 | 9,417 | 5,736 | 218 | 3,337 | 3,470 | 3,659 | 5,282 | 6,379 | 6,621 |
| Depreciation | 27 | 30 | 43 | 28 | 51 | 79 | 81 | 52 | 97 | 152 | 214 | 903 | 902 |
| PBT | 966 | 1,121 | 3,276 | 1,706 | -1,104 | -18,063 | -20,117 | 728 | -12,794 | -3,616 | 645 | 1,383 | 1,525 |
| Tax % | 34% | 34% | 15% | 27% | -11% | -26% | -25% | 26% | -42% | -45% | 25% | -9% | — |
| Net Profit | 642 | 749 | 2,806 | 1,263 | -966 | -13,456 | -15,051 | 540 | -7,401 | -1,975 | 485 | 1,506 | 1,691 |
| EPS in Rs | 22.05 | 25.68 | 89.62 | 40.28 | -30.78 | -429 | -480 | 0.25 | -3.46 | -0.85 | 0.19 | 66.36 | 74.59 |
| Div. Payout % | 14% | 31% | 4% | 14% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 17% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 146 | 292 | 313 | 314 | 314 | 314 | 314 | 21,365 | 21,365 | 23,365 | 45 | 45 |
| Reserves | 4,836 | 5,098 | 7,417 | 8,684 | 7,624 | -5,860 | -20,959 | 823 | -6,584 | -8,470 | 27,051 | 28,103 |
| Borrowings | 48,881 | 61,050 | 81,511 | 91,979 | 96,812 | 90,412 | 89,851 | 46,416 | 41,233 | 45,680 | 65,577 | 79,989 |
| Other Liabilities | 1,567 | 2,805 | 3,048 | 5,367 | 1,853 | 964 | 1,153 | 11,036 | 6,253 | 5,283 | 2,271 | 2,409 |
| Total Liabilities | 55,429 | 69,245 | 92,290 | 1,06,344 | 1,06,602 | 85,830 | 70,359 | 79,640 | 62,266 | 65,858 | 94,943 | 1,10,546 |
| Fixed Assets | 191 | 508 | 211 | 850 | 865 | 920 | 940 | 10,820 | 1,616 | 1,768 | 3,268 | 2,352 |
| CWIP | 810 | 590 | 634 | 129 | 104 | 105 | 0 | 12 | 4 | 10 | 43 | 116 |
| Investments | 1,751 | 1,811 | 13,509 | 8,120 | 2,498 | 3,881 | 8,449 | 13,851 | 12,966 | 8,307 | 12,539 | 9,814 |
| Other Assets | 52,677 | 66,336 | 77,936 | 97,245 | 1,03,135 | 80,924 | 60,970 | 54,956 | 47,681 | 55,773 | 79,094 | 98,264 |
| Total Assets | 55,429 | 69,245 | 92,290 | 1,06,344 | 1,06,602 | 85,830 | 70,359 | 79,640 | 62,266 | 65,858 | 94,943 | 1,10,546 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -12,272 | -12,582 | -15,593 | -18,136 | -8,735 | 12,576 | 7,135 | 8,661 | 6,723 | -1,928 | -8,119 | -15,892 |
| Investing | -866 | 24 | -10,930 | 6,091 | 6,135 | 644 | -4,526 | 764 | 72 | -816 | -471 | 2,631 |
| Financing | 12,643 | 15,416 | 26,289 | 11,173 | 1,937 | -7,631 | 0 | -8,366 | -9,487 | 2,773 | 11,625 | 12,393 |
| Net Cash Flow | -496 | 2,858 | -234 | -872 | -663 | 5,589 | 2,609 | 1,060 | -2,691 | 29 | 3,035 | -869 |
| Free Cash Flow | -12,315 | -12,710 | -15,693 | -18,319 | -8,820 | 12,556 | 7,139 | 8,615 | 6,694 | -2,149 | -8,160 | -15,949 |
| CFO/OP | -220 | -184 | -148 | -188 | -99 | -103 | -36 | 217 | 683 | -106 | -141 | -224 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 11 | 10 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash Conversion Cycle | 11 | 10 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Working Capital Days | -585 | -661 | -346 | -421 | -62 | 38 | 34 | -495 | -230 | -178 | 71 | 84 |
| ROCE % | — | 11% | 10% | 10% | 8% | -13% | -26% | 6% | 1% | 3% | 8% | 6% |
Documents
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Company Information
Piramal Finance Corporation's main business is of providing loans to Retail customers for construction or purchase of residential property, loans against property, etc.