Piramal Enterprises Limited — PPTs, 12-06-2025: Investor Presentation

1. Financial Highlights:

Piramal Enterprises reported consolidated AUM of INR 80,689 Cr, up 17% YoY, with retail constituting 80% of total AUM. Consolidated PAT turned positive at INR 485 Cr, a sharp recovery from a loss of INR 1,684 Cr the previous year. Growth business PBT stood at INR 896 Cr with RoAUM of 1.8% in Q4. Operating expenses to AUM improved 220 bps over eight quarters, now at 4.3%, reflecting strong operational leverage. Legacy AUM reduced 53% YoY to INR 6,920 Cr (9% of total AUM). Capital adequacy at 23.6%, net worth at INR 27,096 Cr, and borrowings rose to INR 65,484 Cr with stable costs and liquidity coverage ratio at 205%. Quarterly PAT shows sequential improvement and retail credit costs remain stable around 1.8%.

2. Strategic Initiatives & Growth Drivers:

The shift to retail and growth assets continues, supported by 517 branches driving retail lending. Retail AUM grew 35% YoY, driven by small-ticket mortgages, LAP, used cars, business loans, salaried personal loans, and digital loans. Product penetration per branch is rising, focusing on yield and disbursements through a mature branch network. New distribution channels like direct assignment, co-lending, and Common Service Centres are scaling rapidly. AI is deployed for risk management, fraud prevention, and customer engagement. The micro-LAP product launched recently shows strong early traction.

3. Business Developments:

Merger progress between Piramal Enterprises and Piramal Finance is ongoing to simplify the group structure, expected completion by Q2 FY26. Piramal raised $265 million (~INR 2,300 Cr) via external commercial borrowings, part of a total $815 million raised globally in FY25. Legacy assets are being run off, with INR 6,300 Cr monetized through non-core divestments. Digital engagement surged, with WhatsApp and app collections doubling YoY and unique customer interactions up 41%.

4. Market Position & Competitive Advantage:

Piramal is among India’s largest small-ticket mortgage lenders, with mortgage AUM growing faster than peers and a diversified portfolio backed by strong underwriting. Wholesale 2.0 book is granular with an average ticket size of INR 70 Cr yielding ~14.4%. Transition from legacy to growth AUM enhances margin stability and reduces profit volatility. Robust asset-liability management, increased securitization, and international borrowings strengthen balance sheet resilience. AI integration supports better credit decisions and customer experience.

5. Investor Implications:

The company’s decisive move towards retail and growth assets, coupled with a strong earnings turnaround and solid risk controls, points to positive growth potential. Operational efficiency gains, stable credit costs, expanding digital capabilities, and healthy capital cushions lower execution risks. The pending merger offers value unlocking through structural simplification. Key points for investors include watching merger progress and sustained retail AUM growth as primary growth drivers.