Piramal Enterprises (PEL) Q1 24/25 earnings summary

Executive summary

• Total AUM grew 10% year-on-year to INR 70,576 crore, with Growth business AUM up 51% YoY to INR 57,601 crore, now 82% of total AUM.

• Retail AUM rose 43% YoY to INR 50,530 crore; Wholesale 2.0 AUM increased 132% YoY to INR 7,071 crore.

• Legacy (discontinued) AUM declined 50% YoY to INR 12,975 crore, now 18% of total AUM, with a target to reduce below 10% by FY2025 end.

• Consolidated PAT for Q1 FY25 was INR 181 crore; GNPA at 2.7% and NNPA at 1.1%.

• Net worth at INR 26,863 crore; capital adequacy ratio at 24.4%.

Financial highlights

• Net interest income up 34% YoY to INR 900 crore; fee income stable at INR 97 crore.

• Operating profit for growth business rose 48% YoY to INR 375 crore.

• Gross credit cost (excluding recoveries) was 1.6% in Q1 FY2025, compared to 2.1% in Q1 FY2024 (adjusted for one-time ECL policy change).

• PBT at INR 205 crore, down from INR 233 crore in Q1 FY24.

• Loan loss provisions and FV loss/gain decreased 26% YoY to INR 133 crore.

Outlook and guidance

• Targeting ~15% AUM growth for FY25, with legacy AUM to fall below 10% of total AUM by year-end.

• Retail:Wholesale AUM mix expected to reach 75:25 by FY25 exit.

• Profitability targets: ROA of 3.0–3.3% by FY28E.

• Guidance maintained for INR 1,200 crore AIF gains in FY2025.

• Expects continued growth in Growth business and further reduction in legacy AUM.