Piramal Enterprises (PEL) Q1 25/26 earnings summary

Executive summary

• Consolidated AUM grew 22% YoY to ₹85,756 crore, with retail AUM up 37% YoY, now 80% of total AUM.

• PAT rose 52% YoY to ₹276 crore; growth business PBT at ₹295 crore.

• Legacy AUM declined 85% since March 2022, now at ₹6,327 crore, with growth business forming 93% of AUM and driving profitability.

• Asset quality stable: retail 90+ DPD at 0.8%, wholesale 2.0 with zero delinquencies.

• Merger with Piramal Finance Limited expected by September 2025, streamlining operations and unlocking synergies.

Financial highlights

• Q1 FY26 consolidated net profit at ₹276 crore, up 52% YoY; operating profit up 58% YoY to ₹425 crore.

• Gross AUM grew 38% YoY to ₹79,430 crore; retail AUM at ₹69,005 crore.

• Net interest margin increased by 10 bps QoQ to 5.9%; net interest income up 25% YoY to ₹1,010 crore.

• Credit cost for growth business declined to 1.4% from 1.8% in Q4 FY25.

• Net worth at ₹27,174 crore; cash and liquid investments at ₹9,070 crore (9% of assets).

Outlook and guidance

• FY26 PAT guidance maintained at ₹1,300–1,500 crore; Q1 performance supports this trajectory.

• Merger completion expected to reverse 245 bps of capital adequacy reduction.

• Management expects the merger to streamline operations and enhance strategic focus.

• Focus remains on value-accretive monetization of embedded balance sheet assets.

• Positioned for sustainable growth and long-term value creation.