| Consol. PAT FY26 | ₹1,506 Cr210% YoY Growth |
|---|---|
| Market Cap | ₹43,637 CrFinance Sector |
| Total AUM | ₹1,01,230 Cr85% Retail Mix |
| Day RSI | 54.69Neutral Zone |
Key highlights
- Consolidated Net Profit for FY26 rose 210% YoY to reach ₹1,506 crore, exceeding management guidance.
- Total Assets Under Management (AUM) grew 25% YoY to cross the ₹1,01,230 crore mark.
- Retail AUM witnessed a 33% YoY growth, with the retail mix now constituting 85% of the total portfolio.
- The growth business Profit Before Tax (PBT) increased by 74% to reach ₹1,560 crore.
- Successfully launched the Gold Loans business with an initial rollout of 22 branches.
- Operating leverage improved significantly as retail opex-to-AUM declined by 290 bps over three years to 3.6%.
- Company achieved an AI-native pivot, with 59% of new code generated by AI and a 3x increase in Gen-AI usage.
Financial Performance
Piramal Finance delivered robust financial results for the fiscal year ending March 2026, characterized by significant bottom-line expansion. The consolidated PAT of ₹1,506 crore represents a 210% increase compared to the previous year, surpassing the management's earlier guidance range of ₹1,300-1,500 crore. Total income for the year stood at ₹5,601 crore, up 22% year-on-year.
For the final quarter of FY26, the company reported a net profit of ₹500.94 crore, a 389% increase over the same period last year, while quarterly operating revenue grew by nearly 20% to ₹3,424 crore. Consolidated Net Interest Margins (NIM) remained healthy, improving to 6.5% in Q4 FY26.
Management Outlook
The leadership team expressed strong confidence in the company's long-term growth trajectory, aiming to reach an AUM of ₹1.5 lakh crore by March 2028. For the upcoming fiscal year (FY27), the management has set a target of 25% AUM growth and approximately 50% profit growth. The strategy remains focused on scaling the retail franchise, which saw disbursements grow by 34% YoY in the recent quarter.
Additionally, the company intends to further leverage its AI-native infrastructure to drive operational efficiencies and customer acquisition, which currently stands at 5.7 million users.
Business Overview and Innovation
- Retail AUM grew to 85% of total mix, completing a multi-year transition from wholesale lending.
- Wholesale 2.0 AUM grew 38% YoY, focusing on granular and high-quality corporate exposures.
- The customer base expanded by 22% YoY, reaching a total of 5.7 million customers.
- Technology integration remains a core pillar, with over half of the new system code being written by AI to accelerate product launches.
- Phase 1 of the gold loan business is underway, marking an entry into high-yield secured retail segments.
- Legacy AUM has been successfully contained and now represents less than 3% of the total portfolio.
Sector Dynamics and Risks
The company operates within a competitive NBFC landscape where credit quality and borrowing costs are paramount. Piramal Finance received credit rating upgrades from CARE, ICRA, S&P, and Moody's during the period, reflecting its improved balance sheet strength and diversified funding mix. Total borrowings stood at ₹79,945 crore with a Debt-to-Equity ratio of 2.8x.
While the growth trajectory is strong, management remains watchful of credit costs in specific high-yield segments, such as rural micro-loans, where the 90+ DPD (Days Past Due) currently stands at 0.9%.
Executive Commentary
Successfully transitioned to 85% retail-led AUM mix. Management explicitly confirmed meeting all FY26 targets.
What to Watch
- Progress toward the ₹1.5 lakh crore AUM target by March 2028.
- Scalability and asset quality of the newly launched Gold Loans business.
- The impact of the AI-native pivot on further reducing the opex-to-AUM ratio.
- Movement in credit costs within the high-yield rural micro-loan portfolio.
“Stated on track for all long-range Mar-28 goals.”
| Share price | ₹1925.1 |
|---|---|
| Market capitalisation | ₹43,637.72 Cr |
| Revenue (annual) | ₹11,852.49 Cr |
| Net profit (annual) | ₹1,504.31 Cr |
| Revenue (latest quarter) | ₹3,424.01 Cr+17.35% vs previous quarter |
| Net profit (latest quarter) | ₹500.94 Cr+25.18% vs previous quarter |
| P/E (TTM) | 29.01×Sector 22.64× |
| Promoter holding | 46.16%0.00% QoQ |
| FII holding | 14.63%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Piramal Finance Limited announcing the consolidated audited financial results for the quarter and year ended March 31, 2026. Market figures from a third-party data provider.
