Piramal Enterprises Limited — PPTs, 06-05-2025: Investor Presentation

1. Financial Highlights:

Consolidated AUM grew 17% YoY to INR 80,689 Cr, with retail comprising 80% of total AUM. PAT turned positive at INR 485 Cr versus a loss last year. Growth business PBT stood at INR 896 Cr, while legacy AUM declined 53% to INR 6,920 Cr, now only 9% of AUM. Operating expenses to AUM improved 220bps over two years to 4.3%, with credit costs stable. Net worth increased to INR 27,096 Cr, borrowings rose to INR 65,484 Cr, and capital adequacy remained strong at 23.6%, backed by INR 10,084 Cr in cash and liquid assets.

2. Strategic Initiatives & Growth Drivers:

Focus on retail lending deepens with 517 branches and improved product penetration per branch. Retail AUM surged 35% YoY, driven by housing loans, LAP, used car loans, and digital lending. Micro-LAP, a small-ticket secured loan with ~18% yield and 100% collection efficiency, targets business loans. Wholesale 2.0 AUM rose 44% YoY to INR 9,117 Cr, backed by diversified real estate and corporate mid-market loans. AI and digital tools enhance customer engagement and operational efficiency.

3. Business Developments:

Piramal Finance (formerly Piramal Capital & Housing Finance) surrendered its HFC license, converting into an NBFC. RBI-approved merger of Piramal Enterprises with Piramal Finance aims for completion by Sep 2025, simplifying the group and consolidating lending. USD 815 million (~INR 7,100 Cr) was raised from global markets in FY25, including USD 265 million ECBs. Co-lending, direct assignment, and Common Service Centres channels are scaling, expanding distribution reach.

4. Market Position & Competitive Advantage:

Among India’s largest small-ticket mortgage lenders with INR 44k Cr AUM, Piramal grows faster than peers. Diversified retail and granular wholesale portfolios, backed by strong underwriting, support stable credit costs and productivity gains. Digital customer engagement and AI integration across risk and operations strengthen competitive advantage. Strong capital and liquidity reduce execution risks.

5. Investor Implications:

Retail dominance expansion and shrinking legacy portfolio bode well for growth and profitability. The merger promises operational simplification and potential value uplift. Investors should watch execution risks in scaling new channels and integration. Overall, a strategic pivot toward retail and Wholesale 2.0 with operational upgrades signals improving earnings quality and sustainable returns.