Piramal Enterprises Limited (PEL) has submitted an investor presentation to stock exchanges, highlighting robust performance in its financial services business and outlining plans for corporate restructuring. The company reported significant growth in its lending portfolio and announced intentions to merge with Piramal Finance Limited.

Strong Growth in Assets Under Management

PEL's consolidated Assets Under Management (AUM) reached INR 80,689.00 crores as of March 2025, reflecting a 12% Compound Annual Growth Rate (CAGR) from FY23 to FY25. The company's growth business, comprising retail and wholesale 2.0 segments, achieved an AUM of INR 73,769.00 crores with a Return on Average AUM (RoAUM) of 1.40%.

Retail Lending Momentum

The retail lending segment demonstrated strong momentum with a 35% year-over-year AUM growth. PEL has expanded its presence to 517 branches across 26 states, indicating a strategic focus on increasing its geographical footprint.

Financial Performance

For the fiscal year 2025, Piramal Enterprises reported a consolidated Profit After Tax (PAT) of INR 485.00 crores. The company's growth business, which includes retail and wholesale 2.0 segments, achieved a Profit Before Tax (PBT) of INR 896.00 crores.

Merger Plans

A key highlight of the presentation was the announcement of PEL's plans to merge with Piramal Finance Limited. This merger is expected to be completed by the third quarter of FY26. The company stated that this move will simplify the group structure and provide shareholders with direct access to the lending business.

Future Projections

Looking ahead, PEL projects its growth business AUM to reach approximately INR 96,000.00 crores by FY26. The company also anticipates that retail lending will constitute 80-85% of its total AUM in the coming fiscal year.

Corporate Restructuring Timeline

The merger process is set to unfold over the next year:

Conclusion

Piramal Enterprises' latest investor presentation showcases the company's strong growth trajectory in its financial services business. With a focus on retail lending, geographical expansion, and strategic corporate restructuring, PEL is positioning itself for continued growth in the Indian financial services sector.

The proposed merger with Piramal Finance Limited represents a significant step towards streamlining operations and enhancing shareholder value. As the company moves forward with its growth plans and corporate restructuring, investors and market watchers will be keen to observe the impact on PEL's market position and financial performance in the coming years.

Piramal Enterprises Limited (PEL), a leading diversified NBFC, has reported a strong start to the fiscal year 2026 with a 52% year-on-year increase in consolidated profit after tax (PAT) for the first quarter ended June 30, 2025. The company's strategic focus on retail lending and improved portfolio mix have driven this growth.

Key Financial Highlights

Retail Lending Performance

PEL's retail lending segment showed robust growth, with the retail AUM reaching ₹69,005.00 crore, a 37% increase YoY. The company's focus on affordable housing and digital lending has paid off, with mortgages AUM growing by 38% YoY to ₹47,101.00 crore, now representing 68% of the retail AUM.

Asset Quality and Efficiency

The company maintained stable asset quality with retail 90+ DPD (Days Past Due) at 0.80%. The Growth business credit cost declined to 1.40% from 1.80% in the previous quarter. PEL also reported a sustained reduction in Growth business operating expenses to AUM ratio, which fell by 55 basis points YoY to 3.90%.

Wholesale 2.0 Segment

The Wholesale 2.0 segment, which refers to loans sanctioned under new real estate and corporate mid-market loans from FY22 onwards, saw its AUM grow by 47% YoY to ₹10,425.00 crore. This segment maintained zero delinquencies, reflecting strong underwriting practices.

Legacy Business Wind-down

PEL continued to reduce its exposure to the legacy (discontinued) business, with the Legacy AUM declining by 51% YoY to ₹6,327.00 crore. This represents an 85% reduction since March 2022, aligning with the company's strategy to focus on growth segments.

Liquidity and Capital Position

The company reported a strong liquidity position with cash and liquid investments of ₹9,070.00 crore, representing 9% of total assets. The total capital adequacy ratio stood at 19.30% as of June 30, 2025.

Management Commentary

Ajay Piramal, Chairman of Piramal Enterprises Ltd., commented on the results: "FY26 has commenced on a strong note with profitable growth and disciplined execution. Our diversified lending model continues to scale efficiently – driven by robust asset quality, improved operating leverage, and deeper integration of technology and AI across platforms."

Future Outlook

PEL is on track to meet its FY26 targets, including 25% YoY growth in total AUM and increasing the retail share in total AUM to 80-85%. The company is also progressing with the merger of PEL and Piramal Finance Limited, expected to be completed by September 2025, which will simplify the group structure and provide shareholders with direct access to the entire lending business.

As Piramal Enterprises continues to focus on its retail-led growth strategy and wind down its legacy portfolio, the company appears well-positioned to capitalize on the growing demand for financial services in India's expanding economy.