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.

Piramal Enterprises Limited (PEL), a leading diversified NBFC, has announced robust financial results for the first quarter, demonstrating strong growth and improved performance across key metrics.

Profit Surge and Revenue Growth

PEL reported a significant 52% year-over-year increase in consolidated Profit After Tax (PAT), reaching ₹276.00 crore for Q1, compared to ₹181.00 crore in the same quarter last year. This impressive growth was driven by a 22% year-over-year expansion in total Assets Under Management (AUM), which stood at ₹85,756.00 crore.

Retail Lending Momentum

The company's retail lending segment showed remarkable progress:

• Retail AUM grew by 37% year-over-year to ₹69,005.00 crore, now constituting 80% of the total AUM.
• Mortgage AUM, including housing loans and loan against property, increased by 38% year-over-year to ₹47,101.00 crore.
• Quarterly retail disbursements rose by 28% year-over-year to ₹8,718.00 crore.

Wholesale 2.0 Performance

PEL's Wholesale 2.0 business also demonstrated strong growth:

• Wholesale 2.0 AUM grew by 47% year-over-year to ₹10,425.00 crore.
• Quarterly disbursements in this segment increased by 46% year-over-year to ₹2,302.00 crore.

Asset Quality and Operational Efficiency

The company maintained stable asset quality with overall retail 90+ days past due (DPD) at 0.8%. PEL also achieved significant improvement in operational efficiency, with Growth business operating expenses to AUM ratio reducing by 55 basis points year-over-year to 3.9%.

Financial Position

PEL reported a strong financial position with:

Strategic Developments

The company is in the final stages of its merger with Piramal Finance Limited, expected to be completed by September. This merger is anticipated to simplify the group structure and provide shareholders with direct access to the entire lending business.

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."

Outlook

With a strong foundation, clear strategic priorities, and continued operational momentum, Piramal Enterprises is poised to drive sustainable growth and long-term value creation as a future-ready financial services institution.