Conference Call with Piramal Enterprises Management and Analysts on Q4FY25 & FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company Piramal Enterprises announced Q4FY25 & FY25 results Total Assets Under Management (AUM) grew 17% YoY to Rs 80,689 crore, led by our Growth1 business. In FY26, we expect AUM growth of c.25% YoY. Growth AUM to Legacy AUM mix has improved to 91:09 from 34:66 in FY22. Growth AUM grew 36% YoY to Rs 73,769 crore. Legacy (discontinued) AUM are down 33% QoQ and 53% YoY to Rs 6,920 crore, down 84% since FY22. We expect further run down to Rs 3,000-3,500 crore in FY26. AIF recoveries of Rs 802 crore including gains of Rs 369 crore in Q4FY25. FY25 gains of Rs 926 crore. In FY25, we met all our stated targets on AUM growth and mix, run-down of Legacy business, AIF recoveries and operating efficiency in our Growth business. Reported a consolidated Profit After Tax (PAT) of Rs 102 crore, vs Rs 39 crore in Q3 FY25. FY25 consolidated PAT stood at Rs 485 crore, vs a loss of Rs 1,684 crore in FY24. Pro forma Growth business PBT-RoAUM* of 1.8% in Q4FY25. Consolidated GNPA at 2.8% with NNPA ratio at 1.9%. Growth business credit cost at 1.8%, vs 1.7% in Q3 FY25. Net worth of Rs 27,096 crore with capital adequacy ratio at 23.6% on consolidated balance sheet. Strong liquidity with cash and liquid investments of Rs 10,084 crore (11% of total assets). Significant embedded value in our Balance Sheet - such as stakes in Shriram GI and LI, AIF recoveries and deferred consideration from a past business sale. We continue to look to monetize this Raised USD 815mn in FY25 from global capital markets, including USD 265 million raised in Q4FY25 through ECB route. PEL-PFL merger: In Q4FY25, PCHFL, a subsidiary of PEL, was renamed Piramal Finance Limited (PFL) and transitioned from a Housing Finance Company (HFC) to a Non-Banking Financial Company (NBFC). PFL is now an Upper Layer NBFC and one of top-10 private sector NBFCs in India. We also received Reserve Bank of India (RBI) approval for the merger of PEL with PFL and have initiated the Hon’ble National Company Law Tribunal (NCLT) process for approvals, which is expected to conclude around September 2025. Ajay Piramal, Chairman, Piramal Enterprises, said: “FY25 marks the successful conclusion of a three-year transition phase, during which we reshaped our organisation and repositioned our business mix for the future. I am pleased to report that we delivered on all the key objectives we had set for the year — including AUM growth and mix, the run-down of our Legacy business, strong AIF recoveries, and improved operating efficiency in our Growth business. We have received RBI approval for the merger of PEL into PFL and are now working through the NCLT process, which we expect to complete within the next five months. Once concluded, we will operate as a single entity — Piramal Finance Ltd. As we look ahead, we are confident in our ability to sustain this momentum and continue building a scaled financial services platform that delivers consistent and high-quality performance. In FY26, we expect a sharp YoY increase in our consol PAT, led primarily by our Growth business profits.” Result PDF