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.

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.