Piramal Enterprises Limited (PEL) has released an investor presentation highlighting its robust financial performance and ambitious growth strategies for its financial services business. The company's focus on retail lending and plans for corporate restructuring underscore its commitment to creating shareholder value and streamlining operations.

Financial Performance Highlights

PEL reported a consolidated Assets Under Management (AUM) of ₹80,689.00 crore as of March 2025, marking 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 ₹73,769.00 crore with a Return on Assets Under Management (RoAUM) of 1.40%.

Retail Lending Momentum

The retail lending segment has shown particularly strong momentum:

• 35% year-over-year AUM growth in retail lending
• Presence expanded to 517 branches across 26 states
• Average Ticket Size (ATS) for retail loans at ₹15.00 lakh based on disbursements

Corporate Restructuring

PEL outlined plans for a significant corporate restructuring move:

• Merger of PEL with Piramal Finance Limited (PFL)
• Expected completion by Q3 FY26
• Aims to simplify the group structure
• Will provide shareholders direct access to the lending business

Financial Projections

The company has set ambitious targets for the near future:

• Consolidated Profit After Tax (PAT) of ₹485.00 crore for FY25
• Projected growth business AUM of approximately ₹96,000.00 crore for FY26
• Retail share in total AUM expected to reach 80-85% in FY26

Strategic Focus Areas

PEL's presentation emphasized several key strategic areas:

1. Diversification: Building a granular and diversified lending portfolio
2. Distribution: Expanding multi-channel, high-touch, and high-tech distribution model
3. Risk Management: Implementing superior data-driven underwriting capabilities
4. Technology Integration: Leveraging an agile tech framework for improved customer experience

Asset Quality

The company reported improving asset quality metrics:

• Gross Non-Performing Assets (GNPA) at 2.80%
• Net Non-Performing Assets (NNPA) at 1.90%

Conclusion

Piramal Enterprises' latest investor presentation paints a picture of a company in transformation, with a clear focus on retail-led growth and operational efficiency. The planned merger with Piramal Finance Limited signifies a strategic move to streamline the corporate structure and enhance shareholder value. As PEL continues to expand its retail presence and leverage technology for growth, investors will be watching closely to see if the company can deliver on its ambitious financial projections for FY26.

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.