Piramal Enterprises Limited (PEL) has reported a robust financial performance for the first quarter, with a significant increase in profit and assets under management (AUM).

Profit and Revenue Growth

The company's consolidated profit after tax jumped to ₹276.37 crore, compared to ₹181.48 crore in the same quarter last year, marking a substantial year-on-year increase. On a standalone basis, the company reported a profit of ₹162.43 crore, down from ₹228.07 crore in the previous year's quarter.

Consolidated revenue from operations increased to ₹2,642.67 crore from ₹2,226.51 crore year-on-year. However, standalone revenue from operations declined to ₹476.20 crore from ₹557.26 crore in the same period.

AUM Growth and Portfolio Mix Improvement

PEL's total Assets Under Management (AUM) grew by an impressive 22% year-on-year to ₹85,756 crore. The company has successfully improved its Growth-to-Legacy AUM mix to 93:07, reflecting its strategic shift towards more profitable and sustainable business segments.

Key highlights of the AUM growth include:

• Growth AUM increased by 38% YoY to ₹79,430 crore
• Retail AUM grew by 37% YoY to ₹69,005 crore, now forming 80% of total AUM
• Legacy (discontinued) AUM declined by 51% YoY to ₹6,327 crore, down 85% since FY22

Improved Financial Metrics

The company reported several positive financial indicators:

NIM expanded by 10 basis points quarter-on-quarter, while PPOP increased by 58% YoY.

Asset Quality and Capital Adequacy

PEL maintained a stable asset quality with Gross Non-Performing Assets (GNPA) at 2.8% and Net Non-Performing Assets (NNPA) at 2.0%. The company's total capital adequacy ratio stood at 19.3%, ensuring a strong financial position.

Strategic Developments

The company's board has approved the issuance of redeemable non-convertible debentures up to ₹1,000 crore through private placement from July 29, 2025 to March 31, 2026. Additionally, during the quarter, PEL invested ₹700 crore in its wholly owned subsidiary Piramal Finance Limited through a rights issue.

The company is on track to complete the merger of PEL with Piramal Finance Limited (PFL) by September, which is expected to streamline operations and unlock synergies.

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."

He added, "With a strong foundation, clear strategic priorities, and continued operational momentum, we are well positioned to drive sustainable growth and long-term value creation as a future-ready financial services institution."

Outlook

As PEL continues to focus on its retail lending expansion and portfolio optimization, the company appears well-positioned for sustained growth in the coming quarters. The impending merger with PFL and the approved debenture issuance are expected to further enhance operational efficiencies and strengthen the company's financial position in the financial services sector.

Note: All figures are based on the unaudited financial results for the quarter ended June 30, as reported by Piramal Enterprises Limited.

Piramal Enterprises Limited (PEL) has announced that the final hearing for the sanction of its composite scheme of arrangement with Piramal Finance Limited (PFL) is scheduled for August 22, 2025. This development marks a significant step in the proposed merger between the two Piramal entities.

Key Details of the Announcement

• The National Company Law Tribunal (NCLT) Mumbai Bench will conduct the final hearing.
• The scheme involves PEL, PFL, and their respective shareholders and creditors.
• PEL published newspaper advertisements on July 24, 2025, in Business Standard (English), Jansatta (Hindi), and Navshakti (Marathi) regarding this final hearing.
• The advertisements were published following NCLT orders dated July 11, 2025, and July 18, 2025.

Background of the Merger

The proposed merger comes in the wake of significant changes in PFL's operational structure. As of April 4, 2025, PFL transformed from a housing finance company to a Non-Deposit Taking Non-Banking Financial Company (NBFC).

Implications of the Merger

The merger is expected to consolidate the financial services businesses of the Piramal Group. It aligns with regulatory requirements and strategic business objectives:

1. Regulatory Compliance: The merger addresses the Reserve Bank of India's (RBI) regulation allowing only one NBFC-Investment and Credit Company (NBFC-ICC) per group.

2. Strategic Consolidation: It aims to combine PEL and PFL's operations, potentially leading to operational efficiencies and a stronger market presence.

3. Listing Requirement: Post-merger, PFL is expected to be listed on stock exchanges, providing direct ownership for PEL shareholders in a unified listed entity housing the lending business.

As the final NCLT hearing approaches, stakeholders will be keenly watching the outcome of this significant corporate restructuring in the Piramal Group.