Piramal Enterprises Reports ₹485 Crore Profit in FY25, Eyes Growth with PFL Merger

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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