Piramal Enterprises Limited (PEL) reported its financial results for Q4 FY25 and the full financial year FY25, highlighting a significant transformation in its business mix and a return to profitability.
- For FY25, the consolidated Asset Under Management (AUM) stood at ₹80,689 crore, marking a 17% year-on-year (YoY) increase. The retail segment now constitutes 80% of the total AUM, up from 70% in FY24, with retail AUM growing 35% YoY.
- The company posted a consolidated Profit After Tax (PAT) of ₹485 crore for FY25, a turnaround from a loss of ₹1,684 crore in FY24. The Growth business, on a pro forma basis, reported a Profit Before Tax (PBT) of ₹896 crore in FY25.
- Legacy AUM significantly reduced by 53% YoY to ₹6,920 crore, now representing only 9% of the total AUM.
- For Q4 FY25, the consolidated PAT was ₹102 crore, an increase from ₹39 crore in Q3 FY25. Retail 90+ Days Past Due (DPD) remained stable at 0.8%, and Wholesale 2.0 maintained 100% collection efficiency.
- The company's liquidity position remains strong with cash and liquid investments of ₹10,084 crore, and total capital adequacy at 23.6%. AIF recoveries for FY25 amounted to ₹926 crore.
- PEL successfully raised USD 815 million (approximately ₹6,700 crore) from global debt capital markets in FY25, including USD 265 million (approximately ₹2,300 crore) in Q4 FY25 through External Commercial Borrowings (ECB).
- Management emphasized the successful three-year transformation journey, including the demerger of Pharma in 2022 and ongoing non-core divestments of ₹6,300 crore.
- The Reserve Bank of India (RBI) has approved the merger of PEL with Piramal Finance Limited (PFL). The National Company Law Tribunal (NCLT) process has been initiated, with the merger expected to be completed by around September 2025, simplifying the group structure and providing direct access to the lending business for shareholders.
- Looking ahead to FY26, PEL projects total AUM growth of approximately 25% YoY to reach around ₹100,000 crore. Growth AUM is expected to grow by around 30% YoY to approximately ₹96,000 crore, with retail's share in total AUM targeted at 80-85%. The company anticipates a consolidated PAT between ₹1,300 crore and ₹1,500 crore for FY26.