Outcome of Board Meeting i.e. 13.08.2025
PML · price
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Awaiting price reaction for this filing.
Paul Merchants Limited reported Q1 FY26 results showing a significant slowdown at the standalone level. Standalone revenue from operations fell to ₹49,305.54 lakhs from ₹57,808.78 lakhs in Q1 FY25, a decline of about 15%. Standalone profit after tax dropped sharply to ₹143.71 lakhs from ₹590.98 lakhs in the year-ago quarter. On the consolidated side, the picture looks very different — total profit jumped to ₹24,716.15 lakhs (vs ₹1,669.35 lakhs in Q1 FY25), driven almost entirely by a one-time gain from the discontinued Gold Loan business of its subsidiary PMFPL. The subsidiary successfully transferred its Gold Loan business to L&T Finance Limited for a total consideration of ₹660.64 crores, effective June 9, 2025. Additionally, wholly-owned subsidiary PML Realtors issued 2.25 crore equity shares at a premium of ₹0.90 per share, raising ₹24.75 crores. The statutory auditors issued an unmodified (clean) limited review report with no qualifications.
The core standalone business (Forex, Travel, Money Transfer) is clearly under pressure with both revenue and profits declining meaningfully. However, shareholders should view the strong consolidated profit with caution as it is largely a one-time gain from the Gold Loan divestment rather than recurring earnings. The cash inflow from the L&T deal strengthens the balance sheet, but the underlying operating business momentum is weak and may weigh on the stock.