Piramal Finance Q4 Results: This company's stock jumped 11% on strong results, has given a 24% return since January.

News Topical, Digital Desk : Shares of finance company Piramal Finance saw a strong rally on Tuesday. Following the company's strong Q4 FY26 results, the stock jumped 11% and traded around ₹2,040. The stock has gained approximately 24% so far this year.

The company demonstrated a remarkable turnaround in the quarter. Profit after tax (PAT) grew by a whopping 390% to ₹502 crore in Q4, while PAT for the entire fiscal year 26 increased by 210% to ₹1,506 crore. The company's total assets under management (AUM) grew by 25% to cross ₹1 lakh crore, with growth AUM increasing by 33% to 97% of the total portfolio. The retail segment contributed 85%.

Gross NPAs declined to 2.3%
Asset quality also improved. Gross NPAs declined to 2.3%, while retail 90+ DPD remained stable at 0.6%. Net interest margin (NIM) increased to 6.5%, a 23 basis point increase from the previous quarter. The company reduced its legacy loan book to ₹2,807 crore, which now represents less than 3% of the total portfolio. Operating efficiency also showed signs of improvement, with the retail operating expense/AUM ratio declining to 3.6%.

Brokerage Opinion
Brokerage firm Nomura has maintained a 'Buy' rating on the stock with a target price of ₹2,150. The firm expects the company's loan growth to be around 25% in FY27 and RoAUM to reach 2.5% by Q4FY27.

Jefferies has a 'Hold' rating and a target price of ₹1,940. According to the brokerage, profits and returns will improve in the coming years, but upside may be limited at current valuations.

Forward Outlook
Management has guided for 25% AUM growth, 50% profit growth, and RoAUM to reach around 2.5% for FY27. Margins are also expected to improve further, supported by lower costs, a shrinking legacy book, and a growing share of high-yield segments such as unsecured and gold loans.

Overall, Piramal Finance has delivered an impressive performance in Q4 with strong growth, improved asset quality and a clean balance sheet, further strengthening investor confidence.

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