Piramal Enterprises Limited — PPTs, 21-05-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises reported consolidated AUM of INR 80,689 Cr, up 17% YoY, with retail now 80% of AUM (from 70%). Consolidated PAT turned positive at INR 485 Cr versus a loss last year. Growth business PBT reached INR 896 Cr. Retail AUM grew 35% YoY, 78% secured; Wholesale 2.0 AUM up 44%. Operating expenses to AUM fell 220 bps over two years to 4.3%, boosting margins. Legacy business AUM dropped 53% YoY to 9% of total. Net worth stood at INR 27,096 Cr, capital adequacy at 23.6%, borrowings rose to INR 65,484 Cr.

2. Strategic Initiatives & Growth Drivers:

Focus on retail lending expansion via 517 branches and increased product penetration. New micro-LAP loans (~INR 7-9 lakh ticket, ~18% yield) and digital lending scaled up. Heavy use of generative AI across credit, fraud, software, and engagement enhances efficiency. Wholesale 2.0’s granular, diversified asset-backed loans growing 44% YoY. USD 815 million capital raise in global markets strengthens growth and liquidity.

3. Business Developments:

Merger of Piramal Enterprises with Piramal Finance is progressing to simplify the group and integrate lending by ~Q2 FY26, aiming to provide shareholders direct lending exposure. Expansion of liability channels via Direct Assignment, co-lending, and asset channels through Common Services Centres (CSCs) acquired ~15,000 customers in FY25. Digital engagement surged with 10x Q4 versus Q1 disbursements and 41% rise in unique customer interactions YoY.

4. Market Position & Competitive Advantage:

Leading in small-ticket mortgages with 35% YoY retail AUM growth and mature branch network. Wholesale 2.0 benefits from strong underwriting and high prepayment (~45% FY25 disbursements). AI-driven data insights and digital distribution improve risk and experience. Productivity gains per branch and employee support scalable growth.

5. Investor Implications:

Shift to retail and growth segments backed by tech adoption and cost efficiency indicates positive growth potential. Merger progress should clarify structure and unlock value. Stable asset quality and shrinking legacy risk lower execution concerns. Key monitors include integration execution, credit trends, and expense management to sustain profitability gains.