Piramal Enterprises Limited — PPTs, 16-05-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises’ consolidated AUM rose 17% YoY to INR 80,689 Cr, with retail now 80% of total AUM. Consolidated PAT turned positive at INR 485 Cr versus a loss last year. Growth business PBT declined to INR 896 Cr from INR 1,044 Cr due to operational challenges. Retail AUM surged 35% YoY, with secured assets making up 78% of retail AUM. Legacy AUM fell 53% YoY to INR 6,920 Cr, just 9% of total AUM. Operating expenses to AUM improved to 4.3%, down 220 bps over two years. Capital adequacy remained strong at 23.6%, net worth stood at INR 27,096 Cr, and gross borrowings rose to INR 65,484 Cr. Liquidity is solid with INR 10,084 Cr in cash and liquid investments.

2. Strategic Initiatives & Growth Drivers:

Focus remains on retail lending growth through 517 branches across 428 cities, prioritizing deeper product penetration over branch count expansion. Secured segments like housing loans, LAP, used car loans, and salaried personal loans are growing strongly, supported by AI/ML in underwriting and risk management. Introduction of micro-LAP with 100% collection efficiency adds new growth avenues. Wholesale 2.0 (real estate & mid-market corporate loans) expanded 44% YoY with a granular portfolio. The ongoing merger with Piramal Finance aims to simplify structure and enhance scale.

3. Business Developments:

Piramal raised USD 815 million in global debt this fiscal, including USD 265 million recently via ECB, bolstering liquidity. Non-core asset sales have unlocked INR 6,300 Cr. The PEL-PFL merger has RBI nod and awaits final approvals, targeting completion by Sept 2025. Digital channels like WhatsApp and mobile apps have doubled service requests and more than doubled overdue collections YoY. Lending partnerships through common service centres and co-lending are scaling rapidly.

4. Market Position & Competitive Advantage:

Piramal is a leading small-ticket mortgage lender in India, growing retail mortgage AUM around 35% YoY, faster than peers. Its secured, granular portfolio and AI-enhanced underwriting create a strong competitive moat. Wholesale 2.0’s high prepayments and collections highlight credit quality. Rising branch productivity and diversified product mix indicate improving operating leverage and maturity for scale benefits.

5. Investor Implications:

Shift to retail and growth segments, return to profitability, strong capital and liquidity, and tech-enabled underwriting support positive growth potential. Key risks include timely merger completion and credit cost management amid expansion. Overall, digital adoption and diversified funding underpin confidence in sustainable value creation, positioning Piramal well for long-term growth.