Piramal Finance Limited (PIRAMALFIN)
Small CapFinancial Services stocks · Small cap · NSE
Piramal Finance Limited is an NBFC focused on retail and wholesale lending in India. It aims for 2x AUM growth in ~3 years, RoAUM >3%, stable risk, and steady earnings, leveraging AI to build a future-proof, AI-native company.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 67/100Rev +28% YoY · PAT +67% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,368 Cr | +27.6% | -1.6% |
| EBITDA | ₹2,073 Cr | +20.5% | +43.4% |
| Operating margin | 62.0% | -300 bps | +2000 bps |
| PAT | ₹461 Cr | +67.0% | -8.2% |
| PAT margin | 13.7% | +323 bps | -97 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 saw strong AUM growth (+25% YoY), robust PAT (+67% YoY), and improved RoAUM (1.9%), driven by retail segment expansion and declining operating costs, while maintaining stable asset quality.
The company is demonstrating strong execution on its "blueprint for value creation," with significant AUM growth, particularly in retail, and improving profitability metrics like RoAUM and cost-to-income. Asset quality remains stable, and AI integration is enhancing productivity and risk management.
AUM mix (Jun-26)
Latest issuer-disclosed distribution across 11 reported categories.
Retail Lending Scale-up
Retail AUM up 32% YoY, disbursements up 44% YoY. Fastest among retail NBFCs to grow AUM from ₹20k Cr to ₹90k Cr in ~4 years.
Digital & Unsecured Products
Digital loans AUM +67% YoY, disbursements +115% YoY. Salaried PL AUM +49% YoY, disbursements +53% YoY.
Rural Micro-lending
Micro-loan AUM +101% YoY, disbursements +296% YoY, with expanding rural branch network.
AI Integration
Use of Gen-AI grown >5x, 57% of code written by AI, impacting underwriting, growth, CX, productivity, and collections. Credit manager productivity up ~50% in 2 years.
Branch Network Expansion
Total branch network 780 (Urban 535, Rural 178, Gold 67). Rural branches increased from 76 to 178 YoY.
Gold Loan Business Launch
Gold loans business launched in Q1 FY27, disbursed ₹6 Cr in June'26. Aiming to reach 200 branches by end-FY27.
AI-powered Investor Relations
Launched Pia (Piramal Investor Assistant) to parse financials and synthesize transcripts for investors.
Declining Operating Costs
Retail opex-to-AUM 3.5%, down 66bps YoY, ~300 bps reduction over 13 quarters. Company cost-to-income 52.5% vs 65.6% in Q1 FY26.
Improving Borrowing Costs
COB declined ~37bps during this cycle to 8.80% in Q1 FY27.
Granular Wholesale Book
Wholesale AUM mix by ratings shifting towards higher rated borrowers, with strong repayment rates.
Lower Direct Assignment (DA)
Company chose to do lower Direct Assignment (DA) in Q1FY27 resulting in lower other income.
Increased Loan Loss Provisions
Loan loss provisions & FV loss / (gain) increased 127% YoY to ₹460 Cr.
Digital Loan Asset Quality
Digital loans 90+ DPD (12 months on book) at 1.0% (Q1 FY27), which is higher than other retail products like Housing (0.5%) and LAP (0.6%).
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing annual growth trends in AUM, PAT, and cost efficiency, especially given the company's long-range goals. QoQ comparison is important for tracking sequential momentum in disbursements, profitability, and asset quality management.
AUM Growth
Total AUM ₹1,06,940 Cr, up 25% YoY / 6% QoQ. Retail AUM ₹91,249 Cr, up 32% YoY. Wholesale AUM ₹13,238 Cr, up 27% YoY.
Disbursements
Retail disbursements up 44% YoY. Wholesale disbursements up 13% YoY.
Net Interest Margin (NIM)
NIM 6.5%, up 47bps YoY, stable QoQ. Growth NIM 6.8% (Q1 FY27).
Borrowing Cost (COB)
COB 8.8%, stable QoQ. COB (as % of debt) 8.80% (Q1 FY27) vs 9.13% (Q1 FY26), ~37bps decline.
Focus on Value Creation Blueprint
Management is focused on achieving long-range goals of 2x AUM in ~3 years, RoAUM >3%, stable risk, and steady earnings.
AI-Native Company Vision
Management is building a future-proof, AI-native company, with significant AI adoption across operations, credit, and customer experience.
Productivity and Efficiency Drive
Management highlights urban branch productivity improvement and increasing product penetration into existing branches.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Growth Business RoAUM | 1.9% (Q1 FY27) | Progress towards the long-range goal of >3%. |
| Retail Opex-to-AUM | 3.5% (Q1 FY27) | Continued decline towards the guided range and further efficiency gains. |
| GNPA/NNPA Ratios | GNPA 2.4%, NNPA 1.6% (Q1 FY27) | Stability or further improvement, especially with rapid growth in unsecured and micro-loans. |
| Gold Loan Branch Expansion | 67 branches (Jun-26) | Achievement of the target of 200 branches by end-FY27 and portfolio build-up. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
84Strong Bullfull bull SMA stack · SMA20 +2.5% / mo · MACD + · near 52W high
Technical chart
PIRAMALFINdaily · 1Y · AUTO+23.2%Daily history is available from 2025-11-07; the requested 1Y window is partially covered.
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 58. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~2.4% over last month) — short-term momentum positive.
- RSI(14) at 58 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 4% off 52W high · 77% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 13.8% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.6%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 16 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 16 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 12/25 to the score.
- Cash flow contributes 3/10 to the score.
- Valuation contributes 1/30 to the score.
Main drags
- Altman Z is 1.2, in distress territory.
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -7.5%.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 3rd percentile of the scored universe and 4th percentile within Financial Services. Main check: balance sheet trust is weak at 8/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-15892 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 4th pctile, median 62 · Small: 4th pctile, median 66
118 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-15892 Cr.
- ▸Debt/equity is 2.84.
- ▸Altman Z is 1.17.
- ▸Promoter holding fell 1.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 117.00
- P/B
- 1.79
- EV/EBITDA
- 15.97
- Market Cap
- 52650.00Cr
Profitability
- ROE
- 0.86%
- ROCE
- 6.47%
- ROA
- 1.53%
- Dividend Y
- 0.49%
Growth (CAGR)
- Revenue 5Y
- 6.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 21.00%
- EPS 3Y
- -56.00%
Balance Sheet
- Debt/Equity
- 2.84
- Interest Coverage
- 1.12×
- Altman Z
- 1.17
- Book Value
- 1242.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 4/5
- OCF
- -15892.00 Cr
- EPS TTM
- 74.59
Shareholding
- Promoter Hold
- 44.22%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 91%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.