Piramal Finance Ltd.
NSE: PIRAMALFINPiramal Finance Ltd.: A 30-second snapshot
Piramal Finance (PIRAMALFIN) is an NBFC with ₹1,888.9 current price, trailing PE of 28.6 compressing sharply to a forward PE of 13.2 on FY26 results that showed PAT up 210% and AUM growing 25% YoY to ₹1.01 lakh crore. Despite this recent operating upturn, the 5-year record shows revenue down 24.7%, ROE at 6.72% — lowest among six sector peers — and FCF positive in only 1 of the years measured.
P/E
28.6
Forward P/E
13.2
ROE
+6.7%
Debt / Equity
283.74
Profit Margin
+28.9%
Div. Yield
—
5Y ROE > 15%
1/5
5Y FCF > 0
1/5
Quality
37/100
News
5 headlines · 4 positive · 0 negative
PIRAMALFIN: AUM up 25% YoY to ₹1,01,000 Cr, retail 85%, PAT up 210%, and asset quality improved - TradingView
TradingView
PIRAMALFIN: FY26 net profit more than doubled year-over-year, with strong asset cover and dividend proposed - TradingView
TradingView
Piramal Finance Files NCLT Application for Multi-Entity Amalgamation - TipRanks
TipRanks
Piramal Finance Limited Recommends Final Dividend for the Financial Year Ended 31 March 2026 - marketscreener.com
marketscreener.com
Piramal Finance Limited Announces Change in the Registered Office Address - marketscreener.com
marketscreener.com
Recent context
- ·FY26 results (April 2026): AUM crossed ₹1.01 lakh crore, up 25% YoY; PAT more than doubled YoY; retail now 85% of book; asset quality described as improved — the company proposed a final dividend for the year.
- ·Piramal Finance filed an NCLT application in April 2026 for a multi-entity amalgamation, a structural event that could alter the consolidated balance sheet, capital ratios, and entity-level leverage metrics.
- ·The stock has gained 7.65% over 3 months and trades 3.8% above the 50-DMA; the next resistance cluster sits at ₹1,915–1,954, approximately 1.4–3.5% above the current price of ₹1,888.9.
Strengths
- +AUM grew 25% YoY to ₹1.01 lakh crore with retail proportion at 85%, and PAT more than doubled YoY in FY26, pointing to accelerating operating momentum in recent quarters.
- +Forward PE of 13.2 represents a meaningful compression from the trailing PE of 28.6, reflecting consensus expectations of significantly higher near-term earnings relative to the trailing base.
- +Profit margin of 28.95% is the broadest absolute margin in the peer group context, suggesting the lending spread retained during FY26 was healthy on an operational basis.
- +The stock is 8.89% below its 52-week high and trades above the 50-DMA (₹1,820), with near-term support clustered at ₹1,675–1,696 — recent price action reflects broad participation in the post-results move.
Weaknesses
- −ROE of 6.72% ranks 6th (last) of 6 sector peers; ROE exceeded 15% in only 1 historical year and FCF was positive in only 1 year, indicating that the current profitability recovery lacks a multi-year track record.
- −Five-year revenue contracted 24.7%, reflecting the structural compression in the wholesale lending book that preceded the current retail pivot — the top-line has not yet returned to its historical peak.
- −Rising debt trend on a D/E of 283.7 means the cost of incremental capital is a key sensitivity: if credit spreads widen or the RBI tightens liquidity conditions, net interest margins and PAT could reverse quickly.
- −Quality score of 34 ranks 4th of 6 in the peer group (Axis Bank 53, Bajaj Finance 53), and the 5-year earnings growth of 244,129.9% is a base-effect artefact from a near-zero prior-year base — the headline number overstates the underlying earnings trajectory.
Open questions
- ?Is the PAT-doubling in FY26 driven by a genuine improvement in credit quality and net interest margins, or does it reflect one-time write-back of provisions and a low prior-year base?
- ?How does the proposed NCLT multi-entity amalgamation restructure the consolidated D/E ratio and capital adequacy, and what are the regulatory approval timelines?
- ?Given that ROE has cleared 15% in only 1 historical year, what would need to change in the business model — asset mix, funding cost, or credit spreads — for return on equity to converge with peer averages?
- ?At a forward PE of 13.2, what level of sustained PAT growth is implicitly priced in, and how sensitive is that valuation to a reversal in asset quality or a rise in funding costs?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| PIRAMALFIN | Piramal Finance Ltd.You're viewing | 28.6 | +6.7% | 34 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹1,888.90
SMA 50
₹1,820.16
SMA 200
—
RSI (14)
51.5 (neutral)
From 52w high
-8.9%
1Y return
—
3M return
+7.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highROE of 6.72% ranks last (6th of 6) among sector peers: Axis Bank 13.2%, HDFC Bank 13.8%, HDFC Life 11.3%, Bajaj Finserv 14.6%, Bajaj Finance 17.9%. Only 1 of available historical years cleared the 15% ROE threshold; FCF was positive in only 1 year; and the debt trend is rising — all pointing to structurally weak returns on equity.
- high5-year revenue has contracted 24.7%, indicating sustained top-line pressure in the core lending or financial-services business across multiple years.
- highReported 5-year earnings growth of 244,129.9% is a base-effect artefact from a near-zero or loss base year, not evidence of sustained profitability. Absolute PAT trajectory requires independent verification.
- mediumDebt-to-equity of 283.7 is typical of NBFC balance-sheet leverage, but combined with a 6.72% ROE and a rising debt trend, incremental borrowing does not appear to be generating commensurate returns on equity.
- mediumOnly 126 price bars are available, below the 200-bar threshold needed to compute SMA200. The long-term trend position is therefore unverifiable from this dataset.
- lowNews sample is sparse at 5 articles. Sentiment skews positive (4 positive, 0 negative), but the small sample limits the reliability of the overallLabel as a sentiment gauge.
Cross-section contradictions
- Near-term price momentum is constructive — up 7.65% over 3 months and trading above the 50-DMA — yet trailing ROE of 6.72% sits at the bottom of all 6 sector peers and 5-year revenue has contracted 24.7%. Price action and fundamental quality are diverging.
- Q4 FY26 results show AUM up 25% YoY to ₹1.01 lakh crore and PAT up 210% YoY, while the 5-year ROE persistence shows only 1 year above 15% and FCF positive in only 1 year — recent operating recovery has not yet translated into a sustained historical profitability record.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days