Shares of Piramal Finance rallied nearly 12.5 per cent on the NSE on Tuesday after reporting a sharp jump in March quarter earnings, with brokerages largely highlighting improving growth visibility, margin expansion and a shrinking legacy book, though some flagged valuation constraints. The stock rose to ₹2,066.20 at 11.56 am, after hitting an intraday high of ₹2,073.20, compared with the previous close of ₹1,843.10.
The company reported a consolidated net profit of ₹502 crore for the March quarter of FY26, marking a steep 390 per cent y-o-y increase, driven by improved margins, a stronger retail mix and one-off gains.
Global brokerage Nomura maintained a “buy” rating with a target price of ₹2,150, stating that the company is “cleaning up and scaling up well.” It highlighted management guidance of around 25 per cent loan growth for FY27 and expects return on assets under management (RoAUM) to reach 2.5 per cent by Q4FY27 and exceed 3 per cent by FY28. The brokerage noted multiple levers for margin expansion, including growth in unsecured and gold loans, as well as a declining cost of funds, while the stock currently trades at about 1.4x one-year forward valuations.
However, Jefferies retained a “hold” rating with a target price of ₹1,940. The brokerage said AUM growth was in line with expectations and net interest margins expanded, with asset quality in the growth book remaining stable. It expects profitability and returns to improve over FY26–28E, supported by retail AUM growth, lower cost of funds following a rating upgrade, and improving operating efficiency, though valuations may limit upside given subdued return ratios.
Among domestic brokerages, Emkay Global Financial Services said the company delivered a strong Q4FY26 performance. It highlighted that the growth book now accounts for about 97 per cent of AUM, while the legacy book has reduced sharply to roughly 3 per cent. The brokerage expects growth to be supported by branch expansion, scaling up of newer segments such as gold loans and microfinance, and improving operating efficiency. It maintained an “add” rating, while raising the target price to ₹2,000.
HDFC Securities also maintained an “add” rating with a revised target price of ₹1,765, noting steady operating performance, excluding one-offs. It said AUM and disbursement growth remained strong at 25.5 per cent and 39 per cent y-o-y, respectively, driven by retail and wholesale 2.0 portfolios. The brokerage added that the company has utilised one-off gains for incremental provisioning towards the legacy book, which should help stabilise credit costs, although relatively lower leverage could keep return on equity under check in the near term.
Published on April 28, 2026