Piramal Enterprises Limited — PPTs, 04-06-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises’ consolidated AUM rose 17% YoY to INR 80,689 Cr, with retail forming 80% of the book. Retail AUM surged 35%, led by mortgages at INR 43,841 Cr (+34%). Consolidated PAT turned positive at INR 485 Cr versus a loss last year. Growth business PBT was INR 896 Cr, supported by stable asset quality (GNPA 2.8%, NNPA 1.9%) and improved operating efficiency (opex/AUM at 4.0%). Capital adequacy remains strong at 23.6%, while gross debt-to-equity increased to 2.4x, reflecting managed leverage for growth. Liquidity coverage is robust at 205%, with prepayments healthy at 45% of wholesale disbursements.

2. Strategic Initiatives & Growth Drivers:

The retail lending network expanded to 517 branches, focusing on Tier II/III cities and key products like home loans, loans against property, used car loans, and small business loans. Wholesale 2.0 portfolio is diversified across real estate, NBFCs, and corporate mid-market loans with strong underwriting. The company targets ~25% AUM growth to ~INR 100,000 Cr by FY26 and aims to shrink legacy assets to below 5% of total AUM. Growth AUM now comprises 91% of the portfolio, marking significant transformation.

3. Business Developments:

Merger of Piramal Enterprises and Piramal Finance is expected by Q2 FY26, simplifying structure and consolidating lending under Piramal Finance. This will provide shareholders direct access to a unified lending platform. Asset monetization continues with INR 6,300 Cr from non-core divestments, alongside a substantial assessed tax shield of INR 14,500 Cr.

4. Market Position & Competitive Advantage:

Piramal benefits from strong promoter backing (net worth USD 3.4 bn) and a seasoned management team with experience across top banks. A wide lender base of 30+ institutions supports funding diversity. Shift toward granular retail and Wholesale 2.0 loans enhances risk diversification and stable returns. Cost of funds remains competitive around 9.1%, backed by diversified sources including securitization and ~20% international borrowings. Capital adequacy is robust.

5. Investor Implications:

Piramal Enterprises shows solid growth potential driven by rising profitability, stable asset quality, and a clear reduction in legacy assets. Expansion in retail and wholesale segments improves earning visibility. The pending merger will simplify operations and potentially unlock shareholder value. Execution risk lies in maintaining asset quality and integrating merged entities, but overall, it presents a well-capitalized, retail-focused NBFC positioned for scaling.