PEL

Q4 2025 Result Analysis

Piramal Enterprises reported strong progress in its transformation journey for FY25, marked by a sharp shift in business mix and a return to profitability. The company’s total Assets Under Management (AUM) grew 17% YoY to Rs 80,689 crore, with the Growth AUM rising 36% YoY to Rs 73,769 crore, now comprising 91% of the total AUM. Legacy AUM continued its steep decline, falling 53% YoY to Rs 6,920 crore, down 84% since FY22. The company expects this to reduce further to Rs 3,000–3,500 crore in FY26. Recoveries from Alternative Investment Funds (AIF) were strong, with Rs 802 crore in Q4 alone, and total gains of Rs 926 crore in FY25. The Growth business delivered a pro forma PBT-RoAUM of 1.8% in Q4, supporting an FY25 consolidated PAT of Rs 485 crore, a turnaround from a Rs 1,684 crore loss in FY24. Asset quality remained stable, with a consolidated GNPA of 2.8% and NNPA of 1.9%. Credit costs in the Growth business stood at 1.8%. Liquidity remained robust, with Rs 10,084 crore in cash and liquid investments, while the capital adequacy ratio stood at 23.6%. Net worth was Rs 27,096 crore. Strategically, the transition of its lending subsidiary to Piramal Finance Ltd (PFL), an upper-layer NBFC, was a key milestone. RBI has approved the merger of Piramal Enterprises Ltd (PEL) with PFL, and the NCLT process is underway, expected to conclude by September 2025. Ajay Piramal highlighted the successful execution of the firm’s transformation goals and projected strong profitability in FY26, led by the Growth business.