Piramal Enterprises Limited (PEL) presented its 'Key Milestones & Way Forward' at the IndiaBonds Corporate Webinar on 5 June 2025, highlighting its transformation into a retail-led NBFC.

Key financial highlights for FY25:

• Consolidated AUM stood at ₹80,689 crore, marking a 17% year-on-year (YoY) growth.
• The retail:wholesale mix shifted significantly to 80:20 from 70:30 in FY24, with growth AUM now comprising 91% of total AUM.
• The company reported a consolidated Profit After Tax (PAT) of ₹485 crore in FY25, a turnaround from a loss of ₹1,684 crore in FY24.
• Growth business PBT was ₹896 crore.
• Capital Adequacy stood at 23.6% and Net Worth was ₹27,096 crore.
• Gross NPA (GNPA) and Net NPA (NNPA) were 2.8% and 1.9% respectively.

PEL successfully met its stated FY25 targets:

• Total AUM reached ₹81,000 crore (target ~₹80,000 crore).
• Retail:Wholesale mix achieved 80:20 (target 75:25).
• Legacy AUM was reduced to ₹6,920 crore (target ₹6,000-7,000 crore).
• AIF gains were ₹926 crore (target ₹1,700 crore over two years).
• Growth business opex to AUM was 4.0% (target 4.6%).

Outlook for FY26:

• The company aims for a total AUM of approximately ₹100,000 crore, reflecting a ~25% YoY growth.
• Growth AUM is projected to reach ~₹96,000 crore, growing ~30% YoY.
• Retail share in total AUM is expected to be 80-85%.
• Legacy book is targeted to reduce further to ₹3,000-3,500 crore, aiming to be less than 5% of total AUM.
• Consolidated PAT is anticipated to be between ₹1,300-1,500 crore, implying a 2.5-3X profit growth.

Business Segment Performance:

• Retail Lending AUM grew 35% YoY to ₹64,652 crore, supported by 517 branches across 26 states and 428 cities. Mortgages AUM (Home Loans + Loans Against Property) stood at ₹43,841 crore. Disbursements increased 9% YoY in FY25.
• Wholesale 2.0 AUM increased 44% YoY to ₹9,117 crore, with disbursements of ₹7,192 crore in FY25, characterized by a diversified and granular book.

Asset Quality and Liabilities Management:

• Retail 90+ DPD remained stable across product segments.
• The average borrowing cost in Q4 FY25 was 9.2%.
• PEL maintains a strong liquidity position with ₹10,084 crore in cash and liquid investments, providing 4.9 months of coverage.
• The gross debt to equity ratio was 2.4, and the company reported a strong asset-liability profile.

Merger Update:

• The proposed merger of Piramal Enterprises Limited (PEL) with Piramal Finance Limited (PFL) is anticipated to be completed by Q2 FY26. This merger aims to simplify the group structure and provide shareholders with direct access to the entire lending business.

Management Comment: The company stated, "A growing diversified lending business, being built by an experienced management team and backed by solid promoter group." They also highlighted a "2.5 -3X Profit growth outlook for FY 26."