Piramal Enterprises (PEL) Q3 24/25 earnings summary

Executive summary

• Total AUM grew 16% year-over-year to INR 78,362 Cr, with Growth AUM up 40% YoY and now 87% of total AUM, reflecting a strategic shift toward growth businesses, mainly retail and Wholesale 2.0.

• Retail AUM rose 37% YoY to INR 59,093 Cr, forming 75% of the book; secured loans are 68–78% of retail AUM.

• Wholesale 2.0 AUM increased 60% YoY to INR 8,916 Cr, with 100% collection efficiency and 24% YoY disbursement growth.

• Legacy AUM reduced by INR 1,713 Cr QoQ to INR 10,353 Cr, now 13% of total AUM and targeted to fall below 10% by March 2025.

• Strong liquidity with cash and liquid investments of INR 8,277 Cr (9% of total assets); capital adequacy at 23.7%.

Financial highlights

• Consolidated net profit for Q3 FY25 was INR 39 Cr; 9M FY25 net profit at INR 845 Cr.

• Net interest income for Q3 FY25 at INR 940 Cr, up 13% YoY; interest income up 19% YoY to INR 2,318 Cr.

• Pre-provision operating profit (PPOP) for Q3 FY25 at INR 358 Cr; loan loss provisions and FV loss/gain at INR 648 Cr, up 152% YoY.

• Exceptional gain of INR 376 Cr from AIF recoveries in Q3 FY25.

• Cost of funds for growth business reduced by 50 bps to 7.1%; average borrowing cost at 9.2%.

Outlook and guidance

• Confident in meeting or exceeding FY25 targets for business growth, mix, and operating performance.

• Legacy AUM expected to fall below 10% of total AUM by March 2025 and below 5% in FY26.

• Further significant AIF recoveries anticipated in Q4 FY25 and FY26.

• Merger of PEL into PCHFL expected to complete by September 2025, with rebranding to Piramal Finance Ltd.

• Medium-term ROA guidance remains unchanged, with improving profitability metrics and FY28E AUM target of ~INR 150,000 Cr.