Piramal Enterprises Limited
6,337words
18turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
INR80,689
0.6%
INR73,769
1.4%
12%
45%
INR15lakh
0.8%
INR485
INR896
INR40,188
Guidance — 6 items
Notes
opening
“FY25 FY24 FY23 47,927 4% 8% 6% 9% 4% 22% 46% 32,144 6% 9% 3% 8% 2% 22% 52% 4% 4% 9% 8% 6% 27% 41% Total (INR Cr) Others * Digital loan Salaried PL Business loan Used car LAP Housing Total (INR Cr) 9,754 8,910 6,828 8,362 7,692 5,111 8,066 6,248 3,973 6,816 5,706 2,459 FY23 FY24 FY25 Q1 Q2 Q3 Q4”
Note
opening
“G Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~12.0% ~11.0% ~14.0% ~13.0% ~12.5% ~13.5% ~17.0% ~15.0% FY24 FY25”
Notes
opening
“Effective Interest Rate (EIR)* <14% >14% Total WS2.0 AUM (INR Cr.) Portfolio EIR^ 13.5% 13.7% 6,347 2,605 3,741 FY24 2,792 1,296 1,495 FY23 14.4% 9,117 5,143 3,974 FY25 Real estate AUM by geographic exposure* As of Mar 2025 CMML AUM by ratings* As of Mar 2025 7% 3% 5% 20% 7% 10% 17% 15% 16% MMR Bangalore Chennai Hyderabad Pune NCR - Delhi Kolkata Goa Others 22% 2% 33% A and better BBB- upto A- BB+ or below Not rated 43%”
Note
opening
“(1) >=3 years bracket in Q4 FY25 mostly represent DHFL branches acquired in Sep’21 (2) Only for branch led products 27 3 Superior data driven underwriting capabilities Origination Initial Assessment Detailed Due Diligence Approval & Loan Negotiation Disbursement Monitoring Lead generation (e.g.”
Note
opening
“(*) Liabilities includes fixed rate borrowings of INR 15,248 Cr for Q4 FY25 41 6 Asset-liability profile As on Mar 31, 2025 In INR Cr.”
Note
opening
“LCR % - period end Regulatory LCR% requirement (NBFCs) 1032% 87,827 76,807 69,674 63,397 8,303 11,769 13,867 16,025 11,809 1,084 3,174 7,443 34,953 32,430 21,957 17,843 330% 337% 226% 448% 230% 85% 100% up to 14d up to 1m up to 2m up to 3m up to 6m up to 1 yr up to 3 yrs up to 5 yrs > 5 yrs Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Cumulative GAP (%) +666% +271% +86% +36% +23% +8% +10% +14% +10% Q4 FY25 consol.”
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Risks & concerns — 1 flagged
16% of people we reject get a loan elsewhere, but their risk is 2.8x of those we approve Off-Us analysis1 of the reject base (All products) Risk on the portfolio2 Total loan applications (100) 1x 2.8x
— Note
Speaking time
10
8
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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 24th Jun 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 INR 807bn with 80 : 20, retail : wholesale mix Announce 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 4 Board with industry leaders having deep expertise in FS and Tech Vijay Shah Non-Executive Director Former MD, Piramal Glass Shikha Sharma Non-Executive Director Former MD & CEO, Axis bank Rajiv Mehrishi Independent Director Former Finance Secy., GoI1 Gautam Doshi Independent Director Former Chairman,
Notes
(1) Government of India (2) Economic Law Practice (3) World Bank Group 5 Strong management team on-board Jairam Sridharan Rupen Jhaveri CEO, Retail Lending Former CFO at Axis bank IIT Delhi, IIM Calcutta Group President Former MD at KKR India NYU Stern School of Business Yesh Nadkarni Upma Goel CEO, Wholesale Lending Former MD & CEO at KKR – RE Lending business London Business School CFO Former CFO and KMP at Ujjivan Small Finance Chartered Accountant Kalpesh Kikani CEO, Piramal Alternatives Former MD at AION Capital ( JV of Apollo & ICICI) Bombay University and Member of CFA Institute 6 Experienced and strong leadership team to drive retail business Jairam Sridharan CEO, Retail Jagdeep Mallareddy Sunit Madan Saurabh Mittal Markandey Upadhyay Vipul Agarwal Chief Business Officer Chief Operating Officer Chief Technology Officer Chief Data & Analytics Officer Business Head – Partnerships 25+ years 25+ years 20+ years 20+ years 20+ years Arvind Iyer Head – Marketing 15+ years 7 Experience
Note
(*) Others includes loan against mutual fund (LAMF) (INR 936 Cr as of Q4 FY25), SRs (INR 1,626 Cr as of Q4 FY25) & pass-through certificates (PTC) (INR 118 Cr as of Q4 FY25) 13 1 Retail Lending: Piramal’s commanding position in small-ticket mortgages Piramal is among the largest small-ticket mortgage lenders… Mortgage AUM leaderboard – FY25 …and growing much faster than the relevant market segment Mortgage AUM growth - Piramal vs peers 44 k 38 k AUM (INR Cr) Mortgage yield Piramal YoY growth Peer group - mortgage YoY growth 38% 37% 37% 35% 34% 24 k 20 k 14 k 12 k 10 k 8 k 27% 23% 24% 23% 20% 20% 24% 22% 21% 20% 18% Piramal Co. A Co. B Co. C Co. D Co. E Co. F Co. G Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ~12.0% ~11.0% ~14.0% ~13.0% ~12.5% ~13.5% ~17.0% ~15.0% FY24 FY25
Note
(*) We have used data from seven affordable housing finance companies for comparison – Aadhar, Aavas, Aptus, Home First, IIFL HF, India Shelter and Repco HF 14 1 Retail Lending: Strong AUM growth momentum across secured products Housing loans +27% YoY LAP +57% YoY Used car loans M U A t n e m e s r u b s i D 26,661 22,022 16,568 17,180 10,590 6,980 FY23 FY24 FY25 FY23 FY24 FY25 +20% YoY 9,424 9,523 6,614 +71% YoY 9,178 3,126 5,400 FY23 FY24 FY25 FY23 FY24 FY25 Data as of FY25 778 FY23 810 FY23 (In INR Cr) +128% YoY 4,039 2,117 FY24 FY25 (In INR Cr) +88% YoY 1,694 2,849 FY24 FY25 24 Lac Average ticket size 65% 754 11.6% Average LTV Average CIBIL score Disbursement yield 24 Lac Average ticket size 48% 749 12.9% Average LTV Average CIBIL score Disbursement yield 7 Lac Average ticket size 72% 748 15.3% Average LTV Average CIBIL score Disbursement yield 15 1 Retail Lending: Actively managing disbursements to navigate risk Salaried PL +171% YoY Business loans (UBL1 and Microfinance) +46% YoY
Notes
(1) Unsecured business loans (2) Split of Q4FY25 disbursements of INR 703 Cr (Q3FY25: 736 Cr): UBL at 637 Cr (Q3FY25: 639 Cr) & Microfinance at 66 Cr (Q3FY25: 97 Cr) 1.1 Lac Average ticket size 759 16.0% Average CIBIL score Disbursement yield 16 1 Retail Lending: Customer profile for branch-based acquisition Median customers at 35-40 years age c.55% customers are self-employed 8% 21% 37% Age group 34% 18 - 34 yrs. 35 - 44 yrs. 45 - 54 yrs >=55 yrs. Employment category 55% 45% Salaried Self empoyed Median customers earn INR30k-60k monthly income c.58% customers in tier-2/3 markets 16% 24% 19% Income band (monthly) 40% <INR 30k INR 30k - 59k INR 60k - 99k >=INR 1 lakh 13% 24% Geography 45% 19% Metro adjacent Tier-1 Tier-2 Tier-3 Note : All donut charts are for number of customers acquired in FY24 & FY25 Customers acquired through branch network represent 91% of total retail AUM 17 1 Retail Lending: Cross-sell franchise | ~30% of unsecured disbursements through cross-sell Total customer f
Notes
(*) Represents data for outstanding AUM (^) Portfolio EIR % includes fee income 22 1 Legacy AUM down 84% in three years AUM down by INR 3,433 Cr QoQ -53% YoY -33% QoQ AUM composition 51,436 45,429 91% 89% 44,411 91% 43,174 Legacy AUM (INR Cr.) % Total AUM -33% YoY 29,053 66% 45% -50% YoY 14,572 -53% YoY 21% 6,920 9% FY19 FY20 FY21 FY22 FY23 FY24 FY25 29,053 46% 17% 5% 15% 7% 10% FY23 14,572 27% 24% 5% 7% 22% 13% FY24 Total (INR Cr) Stage 1 loans Stage 2 loans Stage 3 loans AIF SRs Lands & receivables Total AUM 6,920 30% 12% 28% 19% FY25 5% 6% 23 2 Established branch led sourcing strategy # branches (FY25) FY25 Sourcing Mix (% Retail Disbursement) 1 1 19 1 19 13 8 40 45 25 29 30 83 1 52 1 19 59 30 517 Branches 26 States Maharashtra, 20% 6 13 1 6 3 7 5 Others, 33% Delhi, 7% FY25 Retail AUM Mix % Tamil Nadu, 12% Uttar Pradesh, 11% Telangana, 9% Karnataka, 9% 54% Of Branches with >=3 years vintage 68% Increase in revenue per branch* in last 2 years DSAs, 37% In-House, 63% ~16,400 Mar’25 PE
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