Paul Merchants books ₹251.7 cr gain from gold loan business sale
The company's net profit from discontinued operations dwarfs its core earnings after offloading the gold loan unit to L&T Finance.
— 2 earlier stories on Paul Merchants Ltd. →What's new
- Paul Merchants reported FY26 consolidated revenue of ₹3,552.9 cr.
- Net profit from discontinued operations hit ₹251.7 cr following the L&T Finance deal.
- Standalone results show a modest profit of ₹13.1 cr on revenue of ₹2,055.9 cr.
Why this matters
The sale of the gold loan business has fundamentally altered the company's financial profile. With a market capitalization of only ₹175 cr, the one-time gain is larger than the entire company's current valuation, leaving investors to weigh the future of its core forex and travel operations.
What we're watching
- How management plans to deploy the proceeds from the gold loan sale.
- The sustainability of earnings now that the gold loan unit is gone.
- Future growth prospects for the remaining forex and travel business.
The full read
Paul Merchants closed FY26 with consolidated revenue of ₹3,552.9 crore. The headline figure is the ₹251.7 crore net profit booked from discontinued operations, a result of selling its gold loan business to L&T Finance. This one-time gain is massive relative to the company's ₹175 crore market capitalization. By contrast, the core standalone business reported a modest profit of ₹13.1 crore on revenue of ₹2,055.9 crore. The statutory auditors provided an unmodified opinion, confirming the numbers. The transaction has effectively cleared the company's balance sheet of its gold loan unit, but it also leaves a void in the earnings profile. The open question is how the company will generate value from its remaining forex and travel operations now that the primary driver of this year's profit is gone.
Questions answered
- What drove the company's profit in FY26?
- The profit was primarily driven by a one-time gain of ₹251.7 crore from the sale of its gold loan business to L&T Finance.
- How do the standalone results compare to the consolidated figures?
- The standalone business generated a much smaller profit of ₹13.1 crore on revenue of ₹2,055.9 crore, highlighting the impact of the discontinued operations on the consolidated bottom line.
- What is the current market capitalization of Paul Merchants?
- The company is a nano-cap entity with a market capitalization of approximately ₹175 crore.
- Did the auditors raise any concerns?
- No. The statutory auditors issued an unmodified opinion on both the standalone and consolidated financial statements.
Story so far
All notes on PML →- 27 May 2026 · 9:05 PM IST Paul Merchants books ₹251.7 cr gain from gold loan business sale
- today Paul Merchants books ₹268.74 cr profit from gold loan sale
- today Paul Merchants lifts loan to real estate arm by ₹50 crore