Piramal Enterprises Limited
6,399words
17turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
₹ 85,756
22%
6%
33%
7%
9%
3%
4%
5%
₹ 276
52%
Guidance — 14 items
Notes
opening
“(*) Pro forma business P&L Legacy AUM ₹ 6,327 Cr down 85% since March 2022 4 Q1 FY26 highlights 1 2 3 Continued resurgence in consol.”
Notes
opening
“NIM* 5.8% 5.7% 5.9% 22% 5 / 3 y r a m m u S e v i t u c e x E 4.3% -1% 5.1% 12% 4.9% 4.9% 4.7% 4.6% 8% 10% 5% 4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY24 FY25 FY26 8,155 3,545 509 48 137 181 163 102 39 -196 -1,536 -2,378 276 Q1 FY26 3 …Growth PBT is now driving the Consol.”
Notes
opening
“PBT Growth PBT 248 205 190 173 212 91 301 295 307 116 17% 16% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY25”
Notes
opening
“(*) Pro forma business P&L; (#) Total AUM = On-B/S assets + off-book assets (^) Last quarter, Q4 FY25 credit cost included a negative impact of about ₹ 45 Cr due to ECL rebalancing mainly in microfinance.”
Notes
opening
“In Q1 FY26, ECL rebalancing for the overall portfolio had a positive impact of about ₹ 105 Cr 7 FY24 FY25 Q1 FY26 On track to meet all FY26 targets Total AUM - YoY growth Growth AUM - YoY growth Retail share in total AUM 1 x i m d n a h 2 t w o r g M U A 3 5 / 5 y r a m m u S e v i t u c e x E FY25 17% 36% 80% Q1 FY26 FY26 Target 22% 38% 80% 25% 30% 80-85% 4 Legacy AUM (₹ Cr) 6,920 6,327 3,000-3,500 5 Consol.”
Notes
opening
“fee income) 90+ DPD 0.8% Stable portfolio over three years 10 Growth momentum across product verticals Retail AUM up 37% YoY Disbursements up 28% YoY 69,005 4% 5% 8% 9% 6% Total (₹ Cr) 27% Others * 64,652 4% 4% 9% 8% 6% 27% 41% 41% Digital loan Salaried PL Business loan Used car LAP Housing Total (INR Cr) 47,927 4% 8% 6% 9% 4% 22% 46% 32,144 6% 9% 3% 8% 2% 22% 52% 21,552 27% 67% FY26 FY25 FY24 FY23 In ₹ Cr.”
Notes
opening
“9,754 8,910 6,828 8,362 7,692 5,111 8,066 6,248 3,973 8,718 6,816 5,706 2,459 FY22 FY23 FY24 FY25 Q1 FY26 Q1 Q2 Q3 Q4”
Notes
opening
“(*) In Q1 FY26, AUM of ₹ 1,043 Cr from self-employed cross-sell customers have been re-classified from Salaried PL to UBL (^) Unsecured business loans (#) Q1FY26 business loans disbursements comprises of UBL (₹ 618 Cr) & Microfinance (₹ 123 Cr) 14 Customer profile for branch-based acquisition Median customer at 38 years of age c.55% customers are self-employed Geographic split of branches 7% 19% 41% Age group 33% 18 - 34 yrs.”
Notes
opening
“of branches Share in retail AUM % 1 1 19 1 19 8 13 8% 40 45 11% 6 30 25 5 6 3 7 13 1 83 19% 29 9% 1 30 52 9% 1 19 59 11% Customers acquired through branch network represent 91% of total retail AUM Note : All donut charts are for number of customers acquired in Q1 FY26; (*) Excluding 76 microfinance branches 15 Cross-sell franchise | 25-30% of unsecured disb.”
Note
opening
“(1) >=3 years bracket in Q1 FY26 mostly represent DHFL branches acquired in Sep’21; (2) Only for branch led products Benchmark monthly disbursement2 per branch by vintage 4.8 2.8 1.3 1.4 0.5 <6 months 6 months-1 yr.”
Advertisement
Risks & concerns — 3 flagged
(*) Pro forma business P&L; (#) Total AUM = On-B/S assets + off-book assets (^) Last quarter, Q4 FY25 credit cost included a negative impact of about ₹ 45 Cr due to ECL rebalancing mainly in microfinance.
— Notes
In Q1 FY26, ECL rebalancing for the overall portfolio had a positive impact of about ₹ 105 Cr 7 FY24 FY25 Q1 FY26 On track to meet all FY26 targets Total AUM - YoY growth Growth AUM - YoY growth Retail share in total AUM 1 x i m d n a h 2 t w o r g M U A 3 5 / 5 y r a m m u S e v i t u c e x E FY25 17% 36% 80% Q1 FY26 FY26 Target 22% 38% 80% 25% 30% 80-85% 4 Legacy AUM (₹ Cr) 6,920 6,327 3,000-3,500 5 Consol.
— Notes
(*) AUM as of Q1FY26 for Unsecured business loans (UBL) is ₹ 5,264 Cr and Microfinance is ₹ 770 Cr 21 Retail risk (2/2) – vintage risk* : controlled quality of new originations Housing loans 28,034 33% LAP 6% 5% 4% 3% 2% 1% 0% 1.5% 0.6% 0.4% 0.4% 0.5% 0.4% 0.5% 0.3% 0.5% 6% 5% 4% 3% 2% 1% 0% 0.6% 0.9% 0.5% 0.4% 0.2% 0.4% 0.4% 0.4% 0.4% 19,067 22% % of consol.
— Note
Speaking time
8
8
1
Advertisement
Opening remarks
Notes
(*) Pro forma business P&L Legacy AUM ₹ 6,327 Cr down 85% since March 2022 4 Q1 FY26 highlights 1 2 3 Continued resurgence in consol. AUM growth (up 22% YoY), led by retail (up 37% YoY; 80% of consol AUM) Stable asset quality: Retail 90+ DPD at 0.8% (Q4 FY25: 0.8%) | Wholesale 2.0 maintained zero delinquencies Sustained reduction in Growth business opex-to-AUM (down 55bps YoY to 3.9%) | Growth business PBT-to-AUM at 1.5% 4 Declining drag of Legacy AUM | Growth business PBT (₹ 295 Cr) drives Consol PBT (₹ 301 Cr) | Consol PAT up 52% YoY to ₹ 276 Cr 5 Last quarter before PEL-PFL merger: Expect completion by September 2025 6 Total capital adequacy at 19.3% (vs 23.6% at end-FY25) | Completion of the merger to reverse ~245bps of this reduction 5 / 2 y r a m m u S e v i t u c e x E 7 Strong liquidity: Cash and liquid investments of ₹ 9,070 Cr (9% of total assets) 5 With mix shift from Legacy to Growth… 1 Consol. AUM growth and NIM are increasing,… 2 …volatility in net profit is reducing, and
Notes
(*) Excludes fee Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 6 Growth business profitability* Ratios on on-balance sheet (B/S) assets Ratios on AUM 5 / 4 y r a m m u S e v i t u c e x E 1 Total income (on-book) As % on-B/S assets Total Retail fee Interest income 2 Net total income (on-book) As % on-B/S assets 3 FY24 FY25 Q1 FY26 14.8% 1.4% 14.4% 0.8% 14.3% 0.9% 14.8% 14.4% 14.3% 13.4% 13.6% 13.4% 7.3% 7.3% 6.5% 8.2% 7.1% 7.0% FY24 FY25 Q1 FY26 Total income Interest expense Net total income FY24 FY25 Q1 FY26 5 Credit cost^ Credit cost ex-POCI recoveries Credit cost POCI recoveries As % of AUM 6 PBT As % of AUM 4 Opex & PPOP As % of AUM 5.1% 4.2% 3.9% 3.2% 3.0% 3.0% Opex PPOP 1.4% 0.8% -0.6% FY24 1.9% 1.6% -0.3% FY25 1.5% 1.4% -0.1% Q1 FY26 Net total income + DA/co-lending income As % of AUM# 8.4% 0.2% 8.1% FY24 3.0% 2.4% 0.6% 1.8% Total DA/Co-lending income Net total income Off-B/S asset as % of AUM 7.2% 0.6% 6.7% FY25 9.5% 1.4% 0.3% 1.1% 6.9% 0.5% 6.3% Q1 FY26 10.3% Total POCI recoveries P
Notes
(*) Pro forma business P&L; (#) Total AUM = On-B/S assets + off-book assets (^) Last quarter, Q4 FY25 credit cost included a negative impact of about ₹ 45 Cr due to ECL rebalancing mainly in microfinance. In Q1 FY26, ECL rebalancing for the overall portfolio had a positive impact of about ₹ 105 Cr 7 FY24 FY25 Q1 FY26 On track to meet all FY26 targets Total AUM - YoY growth Growth AUM - YoY growth Retail share in total AUM 1 x i m d n a h 2 t w o r g M U A 3 5 / 5 y r a m m u S e v i t u c e x E FY25 17% 36% 80% Q1 FY26 FY26 Target 22% 38% 80% 25% 30% 80-85% 4 Legacy AUM (₹ Cr) 6,920 6,327 3,000-3,500 5 Consol. PAT (₹ Cr) 485 276 1,300-1,500 8 Retail Snapshot - Retail Lending AUM ₹ 69,005 Cr 37% YoY Presence 517 Branches 428 Cities 26 States Mortgages AUM (HL+LAP) ₹ 47,101 Cr 38% YoY | 68% of retail AUM Opex to AUM 4.2% 230bps in nine quarters AUM yield 13.6% Steady QoQ * Weighted average of all live loan accounts (excl. fee income) 90+ DPD 0.8% Stable portfolio over three years 10 Grow
Note
(*) Others includes loan against mutual fund (LAMF) (₹ 1,064 Cr as of Q1 FY26), SRs (₹ 1,587 Cr as of Q1 FY26) & pass-through certificates (PTC) (₹ 109 Cr as of Q1 FY26) 11 AUM tailwinds: multi-product approach & leadership in mortgages 1 Large diversified retail NBFCs have grown faster than large monoline retail NBFCs 2 Further, in small-ticket mortgages, Piramal is outpacing peers… Mortgage AUM growth - Piramal vs peers3 Piramal YoY growth Diversified NBFCs YoY growth 1 Monoline NBFCs YoY growth 2 29% 29% 30% 28% 27% 24% 24% 23% 22% 16% 16% 16% 16% 16% 16% 16% 16% 16% 38% 24% 27% 23% Peer group - mortgage YoY growth 37% 37% 35% 34% 38% 22% 21% 20% 18% 18% Q3 Q4 Q1 Q2 Q3 Q4 FY24 FY25 Q1 FY26 23% 20% Q1 24% 20% Q2 3 …while being among the largest players in the segment Mortgage AUM leaderboard – June 2025 47 k 39 k AUM (₹ Cr) ~12.0% Mortgage yield 26 k 21 k 15 k 13 k 11 k 9 k Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY24 FY25 Q1 FY26 Piramal Co. A Co. B Co. C Co. D Co. E Co. F Co. G ~12.0% ~11.0% ~11.0
Notes
(1) Data from six diversified retail NBFCS for analysis – Bajaj Finance, Chola Finance, Aditya Birla Finance, L&T Finance, Poonawalla and IIFL Finance (2) Data from eight monoline retail NBFCS for comparison – Shriram, Sundaram, Mahindra Finance, Muthoot Finance, Credit Access G, Bajaj HF, LIC HF and PNB HF (3) Data from seven affordable housing finance companies for comparison – Aadhar, Aavas, Aptus, Home First, IIFL HF, India Shelter and Repco HF 12 Sustained growth momentum across secured products M U A t n e m e s r u b s i D Housing loans +23% YoY LAP +67% YoY Used car loans 22,706 23,965 25,287 26,661 28,034 19,067 17,180 13,040 11,398 14,740 3,530 3,077 2,524 (In ₹ Cr) +73% YoY 4,357 4,039 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 +31% YoY 2,887 2,692 2,509 2,476 2,313 2,313 2,416 1,908 1,846 Q1 Q2 Q3 Q4 2,617 1,508 851 Q1 2,144 1,024 Q2 +73% YoY 3,129 1,918 2,396 1,607 Q3 Q4 668 574 269 Q1 FY26 FY25 F
Notes
(*) In Q1 FY26, AUM of ₹ 1,043 Cr from self-employed cross-sell customers have been re-classified from Salaried PL to UBL (^) Unsecured business loans (#) Q1FY26 business loans disbursements comprises of UBL (₹ 618 Cr) & Microfinance (₹ 123 Cr) 14 Customer profile for branch-based acquisition Median customer at 38 years of age c.55% customers are self-employed Geographic split of branches 7% 19% 41% Age group 33% 18 - 34 yrs. 35 - 44 yrs. 45 - 54 yrs >=55 yrs. 52% Employment category 48% Salaried Self empoyed Median customer earns ₹49k monthly c.58% customers in tier-2/3 markets 13% 29% 19% Income band (monthly) 39% <INR 30k INR 30k - 59k INR 60k - 99k >=INR 1 lakh 12% 23% Geography 48% 18% Metro adjacent Tier-1 Tier-2 Tier-3 517 Branches* 26 States No. of branches Share in retail AUM % 1 1 19 1 19 8 13 8% 40 45 11% 6 30 25 5 6 3 7 13 1 83 19% 29 9% 1 30 52 9% 1 19 59 11% Customers acquired through branch network represent 91% of total retail AUM Note : All donut charts are for number
Advertisement