Piramal Enterprises reports ₹485 crore FY25 profit, AUM up 17% YoY, and PFL merger progress; Retail and Wholesale lending drive growth.
Piramal Enterprises Ltd. (PEL), a major non-banking financial company (NBFC) in India, has announced its financial results for the fourth quarter (Q4) and full year ending March 31, 2025 (FY25).
Key Financial Highlights – FY25
- Assets Under Management (AUM)
Total AUM rose by 17% year-on-year (YoY) to ₹80,689 crore, led mainly by the Growth business.
- Growth AUM grew 36% YoY to ₹73,769 crore.
- Legacy (discontinued) AUM declined 53% YoY to ₹6,920 crore and is expected to reduce further to ₹3,000–3,500 crore in FY26.
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- Profit and Recovery
- Profit After Tax (PAT): ₹102 crore in Q4 vs ₹39 crore in Q3; FY25 PAT stood at ₹485 crore (vs a loss of ₹1,684 crore in FY24).
- AIF recoveries totaled ₹802 crore in Q4 and ₹926 crore for the year.
- Other Financial Indicators:
- Gross NPA at 2.8% and Net NPA at 1.9%.
- Growth business credit cost at 1.8%.
- Net worth: ₹27,096 crore; Capital Adequacy Ratio: 23.6%.
- Liquidity position: ₹10,084 crore in cash and liquid assets.
Major Developments
- Raised $815 million in FY25 from international markets, including $265 million in Q4 via the ECB (External Commercial Borrowing) route.
- Notable embedded value in the balance sheet includes stakes in Shriram Life and General Insurance, AIF recoveries, and deferred payments from past business sales.
PEL-PFL Merger Update
- PCHFL, a PEL subsidiary, was renamed Piramal Finance Ltd (PFL) and reclassified from a housing finance company to an Upper Layer NBFC.
- PFL is now among the top 10 private NBFCs in India.
- RBI has approved the merger of PEL with PFL; the company has begun the NCLT approval process.
Growth Business – Retail Lending
- Retail AUM increased by 35% YoY to ₹64,652 crore.
- Mortgage Loans account for 68% of retail AUM at ₹43,841 crore.
- Disbursements in Q4 stood at ₹9,754 crore, up 9% YoY.
- Mortgage disbursements grew 21% to ₹5,821 crore.
- Cross-sell accounted for 30% of unsecured and 10% of total retail disbursements.
- Delinquency (90+ DPD) remained low at 0.8%.
- Operating Efficiency: Opex to AUM ratio reduced by 220 basis points over two years to 4.3%.
- Network: 517 branches across 428 cities in 26 states.
- 16 partnerships for co-lending and direct assignment with top public and private banks and NBFCs.
Growth Business – Wholesale Lending (Wholesale 2.0)
- AUM grew 44% YoY to ₹9,117 crore.
- Disbursements in Q4 were ₹1,708 crore, up 18% YoY.
- Repayments totaled ₹1,496 crore in Q4.
- Effective Interest Rate: 14.4%, with an average loan size of ₹70 crore.
- Pre-payments made up 45% of total disbursements in FY25, indicating healthy asset quality.
Debt and Borrowing Management
- Average borrowing cost at 9.1%, which has now started easing.
- Diversified borrowing through securitization and overseas funding.
- Improved fixed-to-floating rate debt mix at 57:43.
- Asset-Liability Management (ALM) remains positive across time buckets.
About Piramal Enterprises Ltd (PEL)
PEL is a diversified NBFC registered with the Reserve Bank of India. It operates in retail lending, wholesale lending, and fund-based investments. With assets worth ~$10 billion, the company uses advanced technologies including AI-driven platforms to offer financial solutions across sectors.
Conclusion
Piramal Enterprises delivered a strong turnaround in FY25 with significant growth in its lending businesses and a sharp reduction in legacy assets. The successful transition of its subsidiary into Piramal Finance Ltd and the planned merger are expected to strengthen its position as a top-tier NBFC in India. With robust liquidity, a growing customer base, and tech-driven solutions, PEL is well-positioned for sustainable growth in FY26.
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