Piramal Enterprises Limited
8,529words
24turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
5%
46%
35%
58%
₹ 256
₹ 250
100%
18%
INR566
₹ 858
₹ 46
Guidance — 18 items
Notes
opening
“(*) Book value as on the balance sheet (^) FY25 Gross Written Premium 9 Executive Summary Up 17% YoY in FY25 Growth AUM 50% CAGR over 3 years Legacy AUM Down at 46% CAGR over 3 years Three years of transformation Total AUM In ₹ Cr.”
Notes
opening
“WS 2.0 Retail 7 / 1 y r a m m u S e v i t u c e x E FY22 FY23 FY24 FY25 74k 9k 65k FY25 3.3x 22k 22k FY22 In ₹ Cr.”
Notes
opening
“43k 66% FY22 Legacy AUM (₹ Cr.) % Total AUM -84% 7k 9% FY25 Value unlocking in recent years Retail now forms 80% of total AUM % Retail in Consol.”
Notes
opening
“AUM We now have 517 branches # Retail branches 517 Simplified corporate structure Pharma demerger in 2022; PEL-PFL merger ongoing 301 Non-core divestments INR 6.3k Cr monetized; balance in motion 80% 34% 9% Pre-DHFL merger Jun-21 Post-DHFL merger Sep-21 FY25 14 Pre-DHFL merger Jun-21 Post-DHFL merger Sep-21 FY25 Available tax shield Assessed carry forward losses of INR 14.5k Cr 11 June 2025 Snapshot Consol.”
Notes
opening
“AUM ₹ 85,756 Cr up 22% YoY / 6% QoQ Growth : Legacy AUM mix 93 : 7 91 : 9 in Q4 FY25 Illustrative examples 33% 7% 9% 3% 3% 4% 7% 7% AUM mix Q1 FY26 5% 22% Housing loans LAP Used car loans Salaried PL Business loans Digital loans Other retail CMML New real estate Legacy Consol.”
Notes
opening
“PAT ₹ 276 Cr up 52% YoY Net worth ₹ 27,174 Cr Debt to equity: 2.5x Growth business PBT* ₹ 295 Cr up 44% YoY Borrowings ₹ 68,767 Cr up 25% YoY 7 / 2 y r a m m u S e v i t u c e x E Growth business credit cost* 1.4% 1.8% in Q4 FY25”
Notes
opening
“(*) Pro forma business P&L Legacy AUM ₹ 6,327 Cr down 85% since March 2022 12 Q1 FY26 highlights 1 2 3 Continued resurgence in consol.”
Notes
opening
“NIM* 5.8% 5.7% 5.9% 22% 7 / 4 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.”
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Risks & concerns — 4 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
34 Retail risk (1/2) – Overall stable 90+ DPD reflects diversified AUM mix Housing loans 28,034 33% LAP 3% 2% 1% 0.6% 0.9% 1.0% 0.6% 0.6% 0.4% 0.4% 0.3% 0.4% 0.5% 0.5% 0.5% 0.5% 0% 3% 2% 1% 0% 1.6% 1.5% 0.7% 0.7% 0.6% 0.6% 0.3% 0.2% 0.3% 0.3% 0.4% 0.5% 0.5% 19,067 22% % of consol.
— Note
(*) AUM as of Q1FY26 for Unsecured business loans (UBL) is ₹ 5,264 Cr and Microfinance is ₹ 770 Cr 35 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
16% of people we reject get a loan elsewhere, but their risk is 2.8x of those we approve Illustrative examples Off-Us analysis1 of the reject base (All products) Risk on the portfolio2 Total loan applications (100) 1x 2.8x
— Note
Speaking time
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Opening remarks
Notes
` (1) Carlyle holds 18% stake (2) Balance held by Goldman Sachs and Warburg Pincus (3) Market Cap as of 11th Aug 2025 FS entry Piramal Group enters financial services through fund management and NBFC entities Scaled up wholesale book Stood at an AUM of INR566bn, primarily real estate developer financing DHFL merger DHFL merger leads a pivot to retail lending Pharma demerger Demerger and simplification of corporate structure Pureplay FS AUM of ₹ 858 bn with 80 : 20, retail : wholesale mix Merger of lending entities to create single brand – Piramal Finance Entry and scale-up as a wholesale lender Start of transformation into a retail-led NBFC Simplification of corporate structure 5 Shriram investments ▪ ▪ 2014 Invested ₹ 46bn in Shriram group of companies 2023 & 2024 ▪ ▪ Bulk of Shriram stake divested with residual stake of INR17bn book value Illustrative examples Conversion into listed NBFC ▪ ▪ Piramal pharma demerged ▪ Piramal Enterprises converts from 2022 a corporate Holdco to an NBF
Notes
(1) Government of India (2) Economic Law Practice (3) World Bank Group 8 Business snapshot Illustrative examples GROWTH BUSINESS LEGACY (Discontinued) BUSINESS Retail AUM Wholesale 2.0^ AUM ₹ 69,005 Crore Multi-product retail platform – Housing loans, LAP, Used car loans, Business loans, Salaried PL and Digital loans ₹ 10,425 Crore Real estate and corporate mid market loans (CMML) OTHER ASSETS Legacy (discontinued) AUM ₹ 6,327 Crore Investments in Shriram ~₹ 1,700 Crore* Life Insurance GWP Alternatives Committed Funds ₹ 2,074 Crore^ ~$ 1.3 Billion Strong capitalization levels and low leverage provide firepower to sustained AUM growth. Total AUM: ₹ 85,756 Cr Net Worth: ₹ 27,174 Cr Capital Adequacy: 19.3% Debt / Equity: 2.5x GNPA 2.8% / NNPA 2.0%
Notes
(*) Book value as on the balance sheet (^) FY25 Gross Written Premium 9 Executive Summary Up 17% YoY in FY25 Growth AUM 50% CAGR over 3 years Legacy AUM Down at 46% CAGR over 3 years Three years of transformation Total AUM In ₹ Cr. 65k 64k 69k 81k In ₹ Cr. WS 2.0 Retail 7 / 1 y r a m m u S e v i t u c e x E FY22 FY23 FY24 FY25 74k 9k 65k FY25 3.3x 22k 22k FY22 In ₹ Cr. 43k 66% FY22 Legacy AUM (₹ Cr.) % Total AUM -84% 7k 9% FY25 Value unlocking in recent years Retail now forms 80% of total AUM % Retail in Consol. AUM We now have 517 branches # Retail branches 517 Simplified corporate structure Pharma demerger in 2022; PEL-PFL merger ongoing 301 Non-core divestments INR 6.3k Cr monetized; balance in motion 80% 34% 9% Pre-DHFL merger Jun-21 Post-DHFL merger Sep-21 FY25 14 Pre-DHFL merger Jun-21 Post-DHFL merger Sep-21 FY25 Available tax shield Assessed carry forward losses of INR 14.5k Cr 11 June 2025 Snapshot Consol. AUM ₹ 85,756 Cr up 22% YoY / 6% QoQ Growth : Legacy AUM mix 93 : 7 91 :
Notes
(*) Pro forma business P&L Legacy AUM ₹ 6,327 Cr down 85% since March 2022 12 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 7 / 3 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) 13 With mix shift from Legacy to Growth… 1 Consol. AUM growth and NIM are increasing,… 2 …volatility in net profit is reducing, a
Notes
(*) Excludes fee Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 14 Growth business profitability* Ratios on on-balance sheet (B/S) assets Ratios on AUM 7 / 5 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
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 15 FY24 FY25 Q1 FY26 We met FY25 targets FY25 – stated targets FY25 - actual Total AUM (INR ‘000 Cr) ~80 (up ~15% YoY) Retail : Wholesale mix 75 : 25 81 (up 17% YoY) 80 : 20 Legacy AUM INR 6,000 - 7,000 Cr INR 6,920 Cr AIF gains INR 1,700 over 2 years (FY25 & FY26) INR 926 Cr in FY25 Exit quarter opex to AUM - Growth business 4.6% 4.0% 7 / 6 y r a m m u S e v i t u c e x E x i m d n a h t w o r G k o o b y c a g e L g n i t a r e p O y c n e i c i f f e ✓ ✓ ✓ ✓ ✓ 16 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 7 / 7 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%
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