Piramal Enterprises Limited (PEL) reported strong consolidated financial results for the first quarter of FY2026, with profit after tax rising by 52 per cent year-on-year to Rs 276 crore.
The company’s robust performance was driven by a surge in assets under management (AUM), a favourable shift in its portfolio mix, and disciplined execution across business verticals.
For the quarter ended 30 June 2025, total AUM grew 22 per cent year-on-year to Rs 85,756 crore, with the ‘Growth’ segment now comprising 93 per cent of the overall book.
Retail AUM increased 37 per cent year-on-year to Rs 69,005 crore, while the legacy book continued its downward trajectory, shrinking by 51 per cent to Rs 6,327 crore.
Net interest margin (NIM) expanded to 5.9 per cent, reflecting a more profitable lending structure.
Retail lending remained the primary growth engine, with mortgage assets contributing Rs 47,101 crore and forming 68 per cent of the retail portfolio.
Disbursements across retail lending rose 28 per cent to Rs 8,718 crore, driven in large part by a 50 per cent rise in mortgage lending.
Piramal’s retail customer base expanded by 21 per cent to 4.8 million, supported by its wide footprint of 517 branches in 428 cities across 26 states.
The company’s Wholesale 2.0 lending segment also demonstrated strong momentum, with AUM increasing 47 per cent to Rs 10,425 crore.
Disbursements rose to Rs 2,302 crore during the quarter, and repayments of Rs 999 crore were received, highlighting healthy portfolio performance.
The effective interest rate on wholesale assets stood at 14.5 per cent, with the average ticket size pegged at Rs 74 crore.
Piramal also reported an improvement in operating efficiency, with operating expenses to AUM reducing to 4.2 per cent.
Credit quality remained stable, with gross non-performing assets (GNPA) at 2.8 per cent and net NPA at 2.0 per cent.
The growth business’s credit cost declined to 1.4 per cent from 1.8 per cent in the previous quarter.
Ajay Piramal, Chairman of Piramal Enterprises, noted that FY26 has begun on a strong footing.
“Our diversified lending model continues to scale efficiently, supported by strong asset quality, improved leverage, and the deepening integration of technology and AI across our platforms. The upcoming merger with Piramal Finance, expected to conclude by September 2025, will further enhance operational synergies and sharpen strategic focus,” he said.
The company’s net worth stood at Rs 27,174 crore, with a robust liquidity buffer of Rs 9,070 crore in cash and liquid investments.
Piramal also highlighted the embedded value in its balance sheet, including investments in Shriram, recoveries from alternative investment funds, and deferred transaction proceeds.
These assets are expected to be monetised in a value-accretive and timely manner.
As it looks ahead, Piramal Enterprises remains committed to long-term value creation and sustainable expansion, leveraging its strong financial foundation and data-driven strategies to build a future-ready financial institution.
Send news announcements/press releases to:
info@b2bmarketmedia.com
