Piramal Enterprises Limited (PEL) has successfully completed its merger with Piramal Finance Limited (PFL), formerly known as Piramal Capital & Housing Finance Limited, in a strategic move that reshapes the company's structure. The merger, which became effective on September 16, 2025, follows the approval of their Composite Scheme of Arrangement by the National Company Law Tribunal (NCLT), Mumbai Bench.

Key Details of the Merger

• The NCLT order approving the merger was dated September 12, 2025.
• Certified copies of the order were filed with the Registrar of Companies, Mumbai on September 16, 2025, marking the effective date of the merger.
• Under the scheme, Piramal Enterprises is merged with Piramal Finance Limited and dissolved without being wound up.

Regulatory Compliance and Communication

PEL has demonstrated its commitment to transparency by promptly informing both the BSE Limited and the National Stock Exchange of India Limited about the effectiveness of the merger scheme. This communication aligns with the requirements under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications and Next Steps

The merger is expected to streamline operations and potentially create synergies between the two entities. Shareholders and stakeholders will be keen to observe how this consolidation impacts the company's financial structure and operational efficiency in the coming months.

As per the company's filing, Bipin Singh, the Company Secretary of Piramal Enterprises Limited, has signed off on the official communication to the stock exchanges, underlining the formal nature of this corporate action.

Investors and market analysts will likely monitor the integration process closely, as well as any subsequent financial reports that will reflect the combined entity's performance post-merger.

The merger marks a significant milestone in Piramal Enterprises' corporate journey, potentially positioning it for enhanced growth and operational synergies in its core business areas.

Piramal Enterprises Limited (PEL) has announced plans to finalize its merger with Piramal Finance by Q3 FY26, marking a significant step in simplifying the group's structure. The company also reported robust financial performance for the first quarter of fiscal year 2026, with substantial growth in key metrics.

Strong Q1 FY26 Performance

PEL witnessed impressive growth in Q1 FY26, with consolidated Assets Under Management (AUM) reaching ₹77,572.00 crore, up 22% year-over-year. The retail segment showed particularly strong momentum, with retail AUM growing by 37% year-over-year to ₹69,005.00 crore.

The company's net profit surged by 52% year-over-year to ₹276.00 crore in Q1 FY26, while total income rose by 27% to ₹1,237.00 crore. Net interest income also saw a significant increase of 25% compared to the same quarter last year, reaching ₹1,010.00 crore.

Merger with Piramal Finance

The proposed merger between PEL and its subsidiary Piramal Finance Limited (PFL) is expected to be completed by Q3 FY26. This strategic move aims to simplify the group's structure and provide shareholders with direct access to the entire lending business. The merger has already received approvals from SEBI, RBI, and NCLT, with the final stages of the process underway.

Diversified Lending Portfolio

PEL's lending portfolio continues to show strong diversification across various segments:

Expanding Distribution Network

The company has significantly expanded its distribution network, now serving 26 states through 517 branches. PEL's workforce has grown to approximately 16,400 employees, including a sales team of around 10,300 members.

Asset Quality and Risk Management

PEL has maintained strong asset quality metrics, with overall retail 90+ days past due (DPD) at 0.8% as of June 2025. The company's robust risk management framework has led to superior asset quality, with consolidated Gross Non-Performing Assets (GNPA) at 2.8% and Net Non-Performing Assets (NNPA) at 1.9% as of March 2025.

Technology Integration

The company has been leveraging artificial intelligence and machine learning to enhance its operations. Notable improvements include:

• 80,000 credit memos generated by AI in FY25
• 25% of new codes written using AI in Q4 FY25
• 29% of customer emails addressed end-to-end by AI agents
• 60% of sales managers using Arya, PEL's in-house Gen AI assistant

Future Outlook

PEL is on track to meet its FY26 targets, including:

• 25% year-over-year growth in total AUM
• 30% year-over-year growth in growth AUM
• 80-85% retail share in total AUM
• Reducing legacy AUM to ₹3,000.00-3,500.00 crore
• Achieving consolidated PAT of ₹1,300.00-1,500.00 crore

With its strong financial performance, ongoing merger plans, and focus on technology integration, Piramal Enterprises is well-positioned for continued growth in the Indian financial services sector.