Piramal Enterprises Posts ₹485 Crore Profit 

MUMBAI, May 22, 2025 – Piramal Enterprises Ltd (BSE: 500302, NSE: PEL) has reported a consolidated net profit of ₹485 crore for the financial year ending March 31, 2025 (FY25), marking a sharp turnaround from the net loss of ₹1,684 crore recorded in FY24. The company’s strategic pivot towards retail lending and sustained asset growth have played a central role in this recovery, as outlined in its investor presentation ahead of the MACM India Conference 2025.

Key Financial Highlights (FY25)

Commenting on the results, the company’s management stated, “Our transition toward a retail-focused model is yielding tangible results, with 80% of our AUM now in retail. We remain focused on long-term profitability, capital efficiency, and expanding our digital ecosystem.”

Segment-Wise Performance

Retail Lending

Piramal’s retail segment demonstrated strong momentum, with the retail AUM rising 35% year-on-year to ₹64,652 crore. Mortgages, comprising housing loans and loans against property (LAP), accounted for ₹43,841 crore, or 68% of the retail portfolio.

The company expanded its physical footprint, operating through 517 branches. Asset quality remained robust, with the 90+ Days Past Due (DPD) metric steady at 0.8%. Yield on assets was sustained at approximately 13.6%. Operational efficiency also improved, as reflected in the reduction of the operating expense-to-AUM ratio to 4.3%, a decline of 220 basis points over the last eight quarters.

Wholesale 2.0

The Wholesale 2.0 business witnessed a 44% year-on-year rise in AUM to ₹9,117 crore. The portfolio maintained an average ticket size of ₹70 crore, with a 73:27 split between real estate loans and corporate mid-market lending (CMML). The effective interest rate remained steady at around 14.4%.

Notably, 45% of disbursements during FY25 were prepaid, underscoring strong underwriting standards and client creditworthiness.

Legacy Business

Legacy AUM declined sharply to ₹6,920 crore, now constituting just 9% of the total AUM—down from 21% in FY24. This drop aligns with the company’s stated objective of progressively winding down legacy exposures. Over the past three years, legacy AUM has contracted by 84%.

Strategic and Operational Developments

• PEL–PFL Merger: The Reserve Bank of India (RBI) has approved the merger of Piramal Enterprises Ltd with Piramal Finance Ltd. The process, currently underway via the National Company Law Tribunal (NCLT), is expected to conclude by September 2025.
• Funding & Liquidity: In FY25, Piramal raised $815 million through External Commercial Borrowings (ECBs), including $265 million in Q4. The company maintains a robust liquidity position with ₹10,084 crore in cash and liquid assets.
• Capital Adequacy: The capital adequacy ratio stands at a healthy 23.6%.

FY26 Outlook

Company Overview and Transformation

Piramal Enterprises Ltd, a core entity of the Piramal Group, has undergone a substantial transformation since FY21. Following the demerger of its pharmaceutical business in 2022, the company acquired DHFL’s retail loan book and has since expanded its retail AUM by 3.3 times over three years. In its bid to streamline operations, Piramal has divested non-core assets worth ₹6,300 crore and carries a significant tax shield of ₹14,500 crore in accumulated losses.

The firm’s strategic realignment toward retail lending, continued investment in digital capabilities, and the impending PFL merger are expected to solidify its path toward sustainable, long-term growth. As Piramal enters FY26 with a sharpened focus on profitability and expansion, investors are likely to watch its performance with renewed interest.

Disclaimer: This content is for informational purposes only and does not constitute any investment advice or recommendation. Prospective investors should carefully read the offer documents and understand the associated risks before investing. Market conditions and company performance may affect investment outcomes.