Street View: India's Piramal Finance sees strong quarter overshadowed by capital raise

Piramal Finance

17/07/2026 08:28

** Shares of India's Piramal Finance PIRL.NS fall 4.41% to 2,090.40 rupees, their highest intraday pct drop since May 4
** The non-bank lender posts a 67% y/y rise in first-quarter profit to 4.39 billion rupees ($45.56 million) and announced 40-billion-rupee fundraise round

STRONG QUARTER, BUT VALUATION AND CAPITAL RAISE CAP UPSIDE
** Nomura says strong quarter puts company on track to achieve FY27 targets, but expects planned 40-billion-rupee capital raise to dilute FY27-29 earnings estimates by 4%-9%
** Jefferies says improving loan growth and margins support earnings trajectory, but says valuation upside remains capped given 10%-12% return on equity expected by FY28-29
** Emkay Global says company remains on track on growth, profitability and asset quality, but cuts FY27 EPS by about 5% after factoring in planned capital raise 
** HDFC Securities says consistent execution in growth portfolio supports medium-term returns, but sub-par leverage and expected equity infusion limit upside at current valuations

($1 = 96.3650 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)
 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))