Piramal Finance Revisits Keertana’s Gold Loan Pivot

A potential acquisition interest, shifting lending models, and fast evolving gold loan demand have pushed Keertana Finserv and Piramal Finance into focus this week. But how do financial performance, business transitions, and early December technical trends shape the story?

Why the Renewed Interest?

People tracking the matter say Piramal Finance revisited an earlier proposal to acquire Keertana, something that had originally surfaced late in FY25 but faded out soon after. Piramal’s public line did not reveal anything, only stating that it evaluates opportunities that fit its strategy. The company rarely comments beyond that, so the silence itself is not unusual.

Keertana, meanwhile, has been working through a major shift. The company, set up by Padmaja Reddy just a few years ago, started with microfinance and gold loans. But as the stress in microfinance dragged on, Keertana began winding down that book. The numbers tell the story better than anything else. What was about ₹706 crore in loans distributed last year has now dropped to roughly ₹194 crore. After assessing the situation, Reddy has said she intends to exit the segment entirely by FY26.

Most of the energy has gone into expanding gold loans, which now make up more than 90% of the book. The portfolio sits near ₹3,250 crore. The internal target is ₹4,200 crore by FY26, and an eventual IPO once assets touch ₹5,000 crore. Reddy has been firm that the company is not for sale. A minor dilution is possible, but that is more about scaling than surrendering control.

For Piramal, which wants to enter the gold loan business by FY26, Keertana’s shift naturally overlaps with its own plans to serve a wider Bharat customer base. Rising gold prices have pushed up loan amounts for the same collateral weight, and that has brought in steady demand from households, small traders and farmers.

What Do the Numbers Say?

Keertana’s September 2025 quarter reflects a business mid-transition. Revenue rose 24.15% year on year to ₹156.41 crore. Profit, however, fell sharply to ₹6.82 crore from ₹29.21 crore. The drop is largely tied to the cost of running down microfinance and expanding secured lending.

Piramal Finance operates on a much larger scale, with AUM around ₹91,500 crore. More than half of that comes from housing loans and loans against property. The company recently completed a reverse merger with Piramal Enterprises and relisted in early November. The restructuring has created a more direct and focused lending entity. In that context, revisiting Keertana does not look out of place.

What Are the Early December Charts Showing?

The first week of December offered a mixed picture for Piramal Finance’s stock. The daily moving averages stayed positive, with the share price hovering close to ₹1,514.20 during the period. Weekly and monthly MACD (Moving Average Convergence Divergence) and KST (Know Sure Thing) readings also showed strength, pointing to a supportive trend.

The RSI (Relative Strength Index), though, leaned bearish on both timeframes. That usually suggests the possibility of a slowdown or consolidation. Bollinger Bands did not indicate major volatility. Weekly OBV (On Balance Volume) showed accumulation, though the monthly chart did not add much clarity.

Despite a weaker performance than the Sensex during the week, the longer-term picture is still impressive. The stock has delivered a five-year return of more than 4,700%, which is highly unusual for a lending business. Over ten years, its return was lower than the index, but its wide 52-week range from ₹16.70 to ₹1,785.00 shows how volatile the stock has been.

Why the Structural Shift Matters

The reverse merger that brought Piramal Enterprises into Piramal Finance has given the lending arm a cleaner structure. Advisory teams across capital markets, disputes, corporate departments, and compliance helped steer the process. With the structure now settled, Piramal Finance has more room to push categories it wants to scale, including MSME lending and gold loans.

Do Gold Loans Bring the Firms Closer?

Watch this space to see how the story develops. Piramal has floated an acquisition interest in Keertana previously as well. Meanwhile, Keertana’s pivot to a secured portfolio and Piramal’s upcoming entry into the same space place both companies on parallel tracks that occasionally intersect. However, whether any of these will lead to a transaction is unclear.

Sources

Economic Times
Economic Times2
Business Standard
Markets Mojo