Piramal Enterprises Limited (PEL), a leading diversified NBFC, has announced strong financial results for the first quarter. The company reported a significant 52% year-over-year growth in Profit After Tax (PAT), driven by robust growth in Assets Under Management (AUM) and an improved portfolio mix.

Key Financial Highlights

Improved Asset Quality and Portfolio Mix

PEL's strategic shift towards a more balanced portfolio continues to yield positive results. The company's Growth AUM, which includes Retail and Wholesale 2.0, increased by 38% YoY to ₹79,430.00 crore. Notably, Retail AUM grew by 37% YoY to ₹69,005.00 crore, now constituting 80% of the total AUM.

The company has successfully reduced its Legacy (discontinued) AUM by 51% YoY to ₹6,327.00 crore, representing a significant 85% reduction since FY2022. This strategic realignment has contributed to the improved Growth-to-Legacy AUM mix of 93:07.

Stable Asset Quality and Reduced Credit Costs

PEL maintained stable asset quality metrics, with the Retail 90+ Days Past Due (DPD) ratio remaining steady at 0.80%. The Growth business credit cost declined to 1.40% from 1.80% in Q4, reflecting improved risk management practices.

Strong Liquidity and Capital Position

PEL reported a robust networth of ₹27,174.00 crore. The company maintains strong liquidity with ₹9,070.00 crore in cash and liquid investments, representing 9% of total assets. The total capital adequacy ratio stood at 19.30%, providing a solid foundation for future growth.

Strategic Developments

PEL is in the final stages of its merger with Piramal Finance Limited (PFL), which is expected to be completed by September. This merger is anticipated to streamline operations, unlock synergies, and sharpen the company's strategic focus in the financial services sector.

Management Commentary

Ajay Piramal, Chairman of Piramal Enterprises Ltd., commented on the results: "We have 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, "The impending merger of our lending entities will further streamline operations, unlock synergies, and sharpen our strategic focus. 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."

As PEL continues to execute its strategic transformation, the company remains focused on expanding its retail lending portfolio, improving operational efficiency, and maintaining strong asset quality. The positive Q1 results demonstrate the effectiveness of PEL's strategic initiatives and position the company for sustained growth in the evolving financial services landscape.

Piramal Enterprises Limited (PEL), a leading diversified NBFC, has announced strong financial results for the first quarter. The company reported a significant 52% year-over-year increase in consolidated profit after tax (PAT), driven by robust growth in assets under management (AUM) and an improved portfolio mix.

Key Financial Highlights

• Consolidated PAT rose to ₹276.00 crore, up 52% from ₹181.00 crore in the same quarter last year.
• Total AUM grew by 22% YoY to ₹85,756.00 crore.
• Net Interest Margin (NIM) expanded by 10 basis points quarter-on-quarter to 5.90%.
• The Growth-to-Legacy AUM mix improved to 93:07, compared to 91:09 in the previous quarter.

Strong Growth in Retail and Wholesale Segments

PEL's retail segment continued to show robust growth, with retail AUM increasing by 37% YoY to ₹69,005.00 crore, now constituting 80% of the total AUM. The company's focus on secured lending was evident, with mortgages (housing loans and loan against property) growing by 38% YoY to ₹47,101.00 crore, representing 68% of the retail AUM.

In the wholesale segment, Wholesale 2.0 AUM grew by 47% YoY to ₹10,425.00 crore. The company maintained a balanced approach with a 74:26 mix between real estate and corporate lending in this segment.

Asset Quality and Operational Efficiency

PEL maintained stable asset quality with overall retail 90+ days past due (DPD) at 0.80%, unchanged from the previous quarter. The company's focus on operational efficiency was reflected in the reduction of Growth business operating expenses to AUM ratio, which decreased by 55 basis points YoY to 3.90%.

Capital Adequacy and Liquidity Position

PEL reported:

• Total capital adequacy ratio of 19.30%
• Strong liquidity position with cash and liquid investments of ₹9,070.00 crore, representing 9% of total assets
• Net worth of ₹27,174.00 crore

Management Commentary

Ajay Piramal, Chairman of Piramal Enterprises Ltd., commented on the results: "The quarter 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 complete the merger of PEL with Piramal Finance Limited by September, which is expected to streamline operations and unlock synergies. The company remains focused on sustainable growth and long-term value creation as it positions itself as a future-ready financial services institution.

With its strong performance in the first quarter, Piramal Enterprises demonstrates its resilience and growth potential in the competitive NBFC sector. Investors and market observers will be keenly watching the company's progress in the coming quarters as it continues to execute its strategic initiatives.