Piramal Enterprises Limited (PEL) has announced its investor presentation for Q4 and FY25, highlighting a significant financial turnaround and strategic progress. The company presented its results at the B&K Securities 15th Annual Investor Conference on 28th May 2025.

• FY25 Performance Highlights:

  • Consolidated Assets Under Management (AUM) grew by 17% year-on-year (YoY) to ₹80,689 crore.
  • The Retail to Wholesale (WS) AUM mix shifted to 80:20 in FY25, compared to 70:30 in FY24, demonstrating a strong retail focus.
  • The company reported a consolidated Profit After Tax (PAT) of ₹485 crore for FY25, a substantial turnaround from a loss of ₹1,684 crore in FY24.
  • Legacy AUM reduced by 53% YoY to ₹6,920 crore, now constituting only 9% of total AUM.
  • Growth business PBT stood at ₹896 crore.
  • Net worth increased to ₹27,096 crore.
  • AIF gains amounted to ₹926 crore, with gross recoveries totaling ₹1,601 crore.

• Q4 FY25 Highlights:

  • Consolidated PAT for Q4 FY25 was ₹102 crore.
  • Retail AUM grew by 35% YoY, reinforcing its position as 80% of the total AUM.
  • Wholesale 2.0 AUM increased by 44% YoY.
  • Retail 90+ DPD (Days Past Due) remained stable at 0.8%, while Wholesale 2.0 maintained 100% collection efficiency.
  • Cash and liquid investments stood at ₹10,084 crore, with a total capital adequacy of 23.6%.
  • Legacy AUM was further reduced by ₹3,433 crore quarter-on-quarter (QoQ).
  • The company raised USD 265 million (approximately ₹2,300 crore) through External Commercial Borrowings (ECB) in Q4 FY25, contributing to a total of USD 815 million raised from global debt capital markets in FY25.

• Business Transformation & Strategic Initiatives:

  • Piramal Enterprises has completed three years of transformation, with retail AUM now forming 80% of the total, supported by 517 retail branches.
  • The company announced the Reserve Bank of India (RBI) approval for the merger of PEL with Piramal Finance Limited (PFL), with the NCLT process initiated and expected completion by September 2025. This merger aims to simplify the group structure and provide shareholders direct access to the entire lending business.
  • The company is actively leveraging AI/ML for risk management, fraud prevention, and operational efficiency, including automated credit memos and AI assistants.
  • Digital engagement and collection efforts have shown significant growth, with WhatsApp engagements up 31% YoY and mobile app active users up 28% YoY.
  • New channels like Direct Assignment (DA) and Co-lending have scaled up, with cumulative disbursements of over ₹7,000 crore and ₹1,000 crore respectively.
  • The company launched micro-LAP in FY25, disbursing ₹235 crore with a 100% collection efficiency.

• FY26 Outlook:

  • Piramal Enterprises projects a total AUM growth of approximately 25% YoY to around ₹100,000 crore.
  • Growth AUM is expected to grow by about 30% YoY to nearly ₹96,000 crore.
  • Retail's share in total AUM is anticipated to be between 80-85%.
  • The legacy book is targeted to further reduce to ₹3,000 - ₹3,500 crore.
  • Consolidated PAT is projected to significantly increase to ₹1,300 - ₹1,500 crore.