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.

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.