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Piramal Finance may see 55% profit CAGR as turnaround enters payoff phase

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Piramal Finance may see 55% profit CAGR as turnaround enters payoff phase

Piramal Finance may see 55% profit CAGR as turnaround enters payoff phase

The company is expected to deliver AUM growth of around 25% annually over FY26-FY28, taking total AUM to approximately Rs 1.6 lakh crore by FY28.

Piramal Finance ने QIP के जरिए 2,100 करोड़ रुपये की इक्विटी पूंजी जुटाई है।

Piramal Finance is projected to post a 55% profit CAGR over FY26-FY28, with AUM expected to grow 25% annually to Rs 1.6 lakh crore by FY28. Higher-yielding products, including gold loans, microfinance and unsecured lending, are expected to improve portfolio yields. Gold-loan branches are targeted to rise to 200 by FY27-end from 67 in June 2026. Operating leverage is improving, with the cost-to-income ratio falling to 52.5% in Q1FY27 from 65.6% a year earlier. NIM is projected to rise to 5.9% by FY28 from 4.7% in FY26. Motilal Oswal Financial Services expects RoA and RoE to reach 2.8% and 11.4%, respectively, by FY28. It has reiterated its Buy rating with a target price of Rs 2,480.

Piramal Finance could see profit after tax compound at around 55% annually over FY26-FY28 as the benefits of its multi-year transformation increasingly translate into earnings. The lender's legacy portfolio has fallen to less than 2% of assets under management (AUM), while retail accounts for about 85% of AUM. Improving net interest margins, operating leverage, a richer product mix and controlled credit costs are expected to drive the earnings recovery. Advt

6 lakh crore by FY28. Its growth portfolio accounts for about 98% of AUM, while retail disbursements rose 44% year on year to Rs 12,500 crore in the first quarter of FY27 and consolidated AUM grew around 25% , according to Motilal Oswal Financial Services.


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