Piramal Finance profit jumps, but operating margin falls to 42.24%
Revenue grew +19.99% YoY, but faster expense growth and a 24.08-point sequential margin decline overshadowed the operating performance.
Filed 27 Apr 2026, 16:04 IST · after market close · Piramal Finance Ltd (PIRAMALFIN)
Key takeaways
- Consolidated net profit rose +389.82% YoY to Rs 501.77 cr, but other income represented 272.82% of pre-tax profit.
- Operating margin narrowed 3.90 percentage points YoY to 42.24% as expenses grew +28.68%, faster than revenue at +19.99%.
- Management reported retail AUM growth of +33.00% YoY and Q4FY26 retail disbursement growth of +34.00% YoY, while the stock gained +8.99% on the first trading day.
Price around the results
Profit growth was heavily dependent on other income
Consolidated revenue grew +19.99% YoY, while operating profit rose only +9.85% because expenses increased +28.68%, faster than revenue. Net profit still rose +389.82% YoY as other income surged +411.36% and represented 272.82% of pre-tax profit. The tax rate also fell 11.15 percentage points YoY to 0.59%, further supporting reported profit.
Sequential margin pressure was substantial
Revenue increased +17.35% QoQ, but expenses rose +101.26%, pushing operating margin down 24.08 percentage points. Interest expense increased only +1.65% QoQ, while depreciation rose +1,031.18%; the reported cost base therefore expanded much faster than revenue. This left operating profit down -25.26% QoQ despite higher revenue.
Margin ended below the financial-services peer median
Operating margin had reached 66.32% in Q3FY26 after 65.11% in Q1FY26, before falling to 42.24% in Q4FY26. The company’s margin was 17.17 percentage points below the 59.41% median for 52 Financial Services peers that had reported the quarter. The sequential decline is the clearest change in the recent operating trend.
Retail expansion and gold loans were management’s focus
Management said retail AUM grew +33.00% YoY and Q4FY26 retail disbursements increased +34.00% YoY; it also reported +20.00% YoY growth in used-car and gold-loan disbursements. For FY27, management said it plans to open approximately 180 more gold-loan branches, with expected average ticket size of approximately Rs 1.5 lakh and expected yield of approximately 18%. The company also said its gold-loan business uses AI for customer sourcing and 24x7 security monitoring.
The stock rose sharply after the post-close filing
The results were filed after market close, and the stock gained +8.99% on the first trading day, including a +4.17% opening gap. Its return was +9.39% relative to the market, while trading volume reached 29.97 times the reference level. The immediate market response was therefore concentrated on the reported profit growth despite the margin decline.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,424 cr | ₹2,918 cr | +17.35% | +19.99% |
| Other income | ₹1,377 cr | ₹96 cr | +1330.58% | +411.36% |
| Expenses | ₹1,978 cr | ₹983 cr | +101.26% | +28.68% |
| Operating profit | ₹1,446 cr | ₹1,935 cr | -25.26% | +9.85% |
| Operating margin (%) | 42.24% | 66.32% | — | — |
| Interest | ₹1,674 cr | ₹1,646 cr | +1.65% | +18.14% |
| Depreciation | ₹645 cr | ₹57 cr | +1031.18% | +1114.23% |
| Profit before tax | ₹505 cr | ₹328 cr | +53.94% | +334.88% |
| Tax | ₹3 cr | ₹-73 cr | — | -78.06% |
| Net profit | ₹502 cr | ₹401 cr | +25.13% | +389.82% |
| EPS (₹) | ₹22.14 | ₹17.69 | +25.16% | +387.67% |
Operating margin of 42.24% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.99% | +9.39% |
| Next session | +9.23% | — |
| 5 sessions | +4.95% | +3.96% |
| 15 sessions | +4.47% | — |
| 30 sessions | +5.81% | — |
Volume on the results session was 29.97× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Retail AUM increased 33% year on year and Q4 FY26 retail disbursements increased 34% year on year.
- Used-car and gold-loan disbursements increased 20% year on year in Q4 FY26.
Guidance & outlook
- The expected average ticket size for the gold-loan business is approximately ₹1.5 lakh.
- The expected yield for the gold-loan business is approximately 18%.
Expansion
- The company plans to open approximately 180 more gold-loan branches in FY27.
New initiatives
- The gold-loan business uses AI tools for customer sourcing and 24x7 AI-based security monitoring.
- The company targets 100% e-waste recycling.
- The WhatsApp service bot supports eight languages and uses conversational AI.
What to watch
- Whether operating margin moves from the 42.24% Q4FY26 level.
- Whether other income’s 272.82% share of pre-tax profit declines.
- Retail AUM and disbursement growth relative to +33.00% and +34.00% YoY.