Piramal Enterprises Limited — PPTs, 02-06-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises’ total AUM grew 17% YoY to INR 80,689 Cr, driven by retail now 80% of the book (up from 70%). Retail AUM surged 35% YoY while Wholesale 2.0 rose 44%. Consolidated PAT turned positive at INR 485 Cr versus a loss last year, supported by a growth business PBT of INR 896 Cr. Operating efficiency improved with opex to AUM down 220 bps at 4.3%. Credit costs held steady at 1.8%, with strong asset quality seen in retail 90+ DPD at 0.8%. Legacy AUM fell 53% YoY, now 9% of portfolio. Net worth modestly rose to INR 27,096 Cr; borrowings increased to INR 65,484 Cr. Liquidity remains robust with cash and liquid investments at INR 10,084 Cr; capital adequacy stands at 23.6%.

2. Strategic Initiatives & Growth Drivers:

The focus is on retail lending expansion through 517 branches and deeper product penetration, including new secured offerings like micro-LAP with ~18% yields. Growth channels include Common Services Centres and Direct Assignment/co-lending models, enhancing diversification. Heavy investment in AI supports credit decisions, fraud detection, customer engagement, and operational automation. Wholesale 2.0 targets granular, cash-flow-backed loans characterized by strong underwriting and elevated prepayments.

3. Business Developments:

The merger of PEL and Piramal Finance Ltd is progressing, expected by Q2FY26, streamlining corporate structure and shareholder value. The company raised USD 265 million (~INR 2,300 Cr) through ECB during the quarter, totaling USD 815 million in FY25 from global debt markets. Legacy asset monetization continues with INR 6,300 Cr in recent non-core asset sales.

4. Market Position & Competitive Advantage:

Piramal is among India’s largest small-ticket mortgage lenders, outpacing peers with 35% retail AUM growth and a presence in 428 cities across 26 states. Scale, diversified product mix, and strong branch-level productivity provide competitive advantage. Stable asset quality and expanding offerings improve RoAUM and reduce earnings volatility.

5. Investor Implications:

Retail-led growth, operational efficiencies, and solid credit discipline indicate positive growth potential. The merger and capital market access enhance structural strength. Execution risks include managing legacy asset rundown and sustaining asset quality amid growth. Overall, the company is well-positioned for sustainable earnings improvement and value creation.