Piramal Enterprises (PEL) Q4 24/25 earnings summary

Executive summary

• Consolidated AUM grew 17% year-on-year to INR 80,689 crore in FY25, with retail AUM rising to 80% of the mix and legacy AUM reduced by 53% to INR 6,920 crore.

• Net profit after tax for FY25 was INR 485 crore, reversing a loss of INR 1,684 crore in FY24; Q4 FY25 PAT was INR 102 crore.

• Achieved all FY25 objectives, including strong AIF recoveries of INR 926 crore and improved operating efficiency.

• Retail branch network expanded to 517 branches, with increased productivity and product penetration.

• RBI approved the merger of PEL with Piramal Finance; NCLT process underway, expected completion by September 2025.

Financial highlights

• Interest income for FY25 was INR 8,909 crore, up 20% year-on-year; net interest income rose 19% to INR 3,591 crore.

• Pre-provision operating profit for FY25 was INR 1,581 crore, up 32% year-on-year; loan loss provisions fell 82% to INR 1,073 crore.

• Net worth stood at INR 27,096 crore; capital adequacy ratio at 23.6%.

• Cash and liquid investments totaled INR 10,084 crore (11% of total assets).

• Average borrowing cost stabilized at 9.1% in Q4 FY25.

Outlook and guidance

• FY26 AUM expected to grow 25% year-on-year, targeting over INR 100,000 crore; growth AUM to rise ~30% year-on-year.

• Retail share in AUM projected at 80-85%; legacy AUM to decline to INR 3,000-3,500 crore.

• FY26 consolidated PAT guidance: INR 1,300-1,500 crore, including one-offs and recoveries.

• Management expects to receive up to USD 140 million in FY26 as deferred consideration from a prior divestment.