Piramal Enterprises Limited — PPTs, 26-05-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises’ consolidated AUM rose 17% YoY to INR 80,689 Cr, with retail accounting for 80%. Q4 PAT rebounded to INR 102 Cr from a loss last year, while FY25 PAT hit INR 485 Cr. Growth business PBT declined to INR 896 Cr from INR 1,044 Cr in FY24. Credit costs held steady at 1.8%, aided by INR 926 Cr recoveries from Alternatives Investment Funds. Borrowings increased to INR 65,484 Cr and net worth stood at INR 27,096 Cr. Operating expenses improved, with opex to AUM down 220 bps over eight quarters to 4.3%. Liquidity remains strong with cash and liquid investments of INR 10,084 Cr and capital adequacy at 23.6%.

2. Strategic Initiatives & Growth Drivers:

Focus is shifting from legacy assets (9% of AUM) to retail and Wholesale 2.0 segments—retail AUM grew 35% and Wholesale 2.0 rose 44% YoY. Branch network expanded to 517, enhancing product penetration and productivity. Launched micro-LAP, offering small-ticket secured loans (~INR 7-9 lakh) with full collection efficiency. AI and generative AI are deeply integrated into credit scoring, fraud detection, customer engagement, and collections, boosting efficiency and risk control. Digital interactions surged via WhatsApp and mobile apps.

3. Business Developments:

Piramal Finance Limited received approval to merge with Piramal Enterprises, expected by Q2 FY26, which will simplify structure and enhance shareholder value. FY25 saw USD 815 million raised through external commercial borrowings, including USD 265 million in Q4. New distribution channels like Direct Assignment, co-lending, and Common Service Centres accelerated asset and liability mobilization, with cumulative disbursements surpassing INR 7,000 Cr.

4. Market Position & Competitive Advantage:

The company leads the small-ticket mortgage segment with a 23-25% market share among affordable housing finance firms, growing faster than peers. Wholesale 2.0 benefits from a granular asset mix and strong underwriting, with high prepayments at 45% of FY25 disbursements. Improved leverage and stable liquidity support continued growth. AI adoption and a mature branch network bolster scalable, disciplined credit expansion.

5. Investor Implications:

The strategic pivot to retail and Wholesale 2.0, stable credit costs, strong recoveries, and solid balance sheet offer positive growth potential. AI-driven efficiencies and channel expansion enhance scalability. Execution risk around the merger remains a factor to watch. Reduced legacy exposure and diversified assets improve risk profile, positioning Piramal as an appealing retail lending growth story with improving profitability and strong capital buffers.