Synopsis: Shares of this finance company jumped over 12 percent after strong FY26 results, with 210 percent PAT growth, rising retail AUM, margin expansion, and improved operational efficiency boosting sentiment.
The share of this company, which provides retail and wholesale financial solutions, including home loans, personal loans, MSME loans, and used-vehicle financing, with an AUM that crossed Rs 1 lakh crore, gained investor traction after strong Q4 numbers.
With a market capitalization of Rs 45,539 crore, Piramal Finance Ltd’s share made a day high of Rs 2,073.25 per share, up by 12.5 percent from its previous day’s close of Rs 1,841.55 per share. The share of this company gave a return of 52 percent since its listing after merger with PEL in November 2025.
Results Highlight
- QoQ View: Net interest income rose from Rs 1,227 crore in Q3 FY26 to Rs 1,362 crore in Q4 FY26, up about 11 percent QoQ. Pre-provision operating profit increased from Rs 659 crore to Rs 694 crore, a rise of around 5.3 percent QoQ. PAT also jumped from Rs 401 crore to Rs 502 crore, marking strong growth of about 25.2 percent QoQ.
- YoY View: Net interest income rose from Rs 964 crore in Q4 FY25 to Rs 1,362 crore in Q4 FY26, marking a sharp increase of about 41.3 percent YoY. Pre-provision operating profit increased from Rs 557 crore to Rs 694 crore, up around 24.6 percent YoY, showing stronger core operating performance. PAT surged from Rs 102 crore to Rs 502 crore, a rise of nearly 392.2 percent YoY, supported by an imaging gain of Rs 1,326 crore.
- Fiscal year Comparison: Net interest income rose from Rs 3,591 crore in FY25 to Rs 4,371 crore in FY26, up about 21.7 percent YoY. Pre-provision operating profit increased from Rs 1,582 crore to Rs 2,294 crore, a rise of around 45.0 percent YoY. PAT jumped from Rs 485 crore to Rs 1,506 crore, up nearly 210.5 percent YoY, supported by imaging gain, Shriram merger gains, and merger-related expenses.
Business performance highlight
Total AUM crossed Rs 1 lakh crore, rising 25 percent YoY to Rs 1,01,230 crore, supported by strong growth in AUM expansion of 33 percent YoY. Growth-to-legacy mix improved to 97:03, showing portfolio shift. Net income margin improved to 6.5 percent, up 14 bps YoY and 23 bps QoQ.
PAT surged 390 percent YoY to Rs 502 crore in Q4 FY26 and 210 percent YoY to Rs 1,506 crore in FY26, driven by strong growth business profitability. RoAUM improved to 2.1 percent, while Opex to AUM fell to 3.4 percent, showing better efficiency. Asset quality stayed stable with GNPA at 2.3 percent and NNPA at 1.6 percent.
Retail lending remained strong with AUM growing 33 percent YoY to Rs 85,885 crore, forming 85 percent of total AUM. Mortgage AUM rose 32 percent YoY, while disbursements increased 34 percent YoY to Rs 13,101 crore. Customer base expanded 22 percent YoY to 5.7 million across 701 branches.
Wholesale 2.0 AUM grew 38 percent YoY to Rs 12,538 crore, supported by strong disbursement growth of 63 percent YoY in Q4 FY26. However, repayments remained high at Rs 2,268 crore, indicating active portfolio churn and strong collection performance in the segment.
Profitability and asset quality stayed stable, with retail yields at 14.2 percent and Wholesale 2.0 EIR at 14.4 percent. Retail opex improved to 3.6 percent of AUM, while credit cost declined to 1.5 percent. Borrowing cost eased to 8.84 percent, and asset quality remained strong with retail 90+ DPD at 0.6 percent.
Key pointer on its high growth phase
Strong profitability momentum: PAT surged 210 percent YoY in FY26 to Rs 1,506 crore, driven by sharp improvement in core earnings and one-off gains, indicating a major earnings reset for the company.
Clear retail-led growth shift: Retail AUM now forms 85 percent of total AUM, growing 33 percent YoY, showing a structural transition towards a more stable and scalable retail lending model.
Improving efficiency and margins: Net income margin expanded to 6.5 percent, while retail opex-to-AUM fell to 3.6 percent, reflecting better operating leverage and cost control as scale improves.
Stronger business quality and support factors: Asset quality remains stable with GNPA at 2.3 percent, borrowing costs declined to 8.84 percent, and AI-led operations are improving productivity, supporting a more sustainable growth phase.
AI-led underwriting and efficiency gains: AI significantly improved risk and operational efficiency, with bank statement analysis rising to 1.99 lakh in Q4 FY26 from 70 thousand in Q1 FY26 and fraud detection doubling to over 19 lakh cases. This enabled faster, more consistent credit decisions without slowing disbursement momentum.
Piramal Finance’s management commentary clearly highlights a structural shift in the business, reinforcing the view that the company is entering a sustained high-growth phase. The focus on crossing Rs 1 lakh crore AUM while steadily moving towards a retail-led model shows that growth is now being driven by a more stable and scalable portfolio mix, supported by improving profitability and controlled risk.
Conclusion
Management’s emphasis on disciplined growth, stronger portfolio quality, and AI-driven efficiency through Piramal.ai further strengthens the earnings visibility going ahead. With retail expansion, better credit discipline, and productivity gains driving operating leverage, the company appears well positioned to sustain this growth momentum, supporting the narrative of a durable high-growth phase beyond the FY26 PAT surge.
About the Company
Piramal Finance Limited is a retail-led upper layer NBFC with a pan-India presence, having served over 5 million customers across 26 states. The company manages Assets Under Management (AUM) of over ₹ 1,00,000 Cr and operates a distinctive phygital model—combining high-touch engagement across 13,000+ pin codes with high-tech capabilities including machine learning models, agentic AI tools and real-time dashboards.
In retail lending, Piramal Finance offers home loans, loans against property, used car loans, personal loans, digital loans and small business loans, with a strong focus on metro-adjacent, semi-urban and rural markets. In wholesale lending, the company provides asset-backed, data-driven solutions across real estate and select non-real estate sectors, with a focus on mid-segment residential projects and capital solutions for mid-market corporates.
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