Recommendation of Final Dividend for the Financial Year ended 31st March, 2025
Awaiting price reaction for this filing.
The Board of Piramal Enterprises has recommended a final dividend of Rs. 11 per equity share (face value Rs. 2, i.e., 550%) for FY ended 31 March 2025, subject to shareholder approval at the 78th AGM. The company also announced audited standalone and consolidated financial results. Standalone FY25 profit after tax rose to Rs. 503.73 crore from Rs. 474.05 crore in FY24, though Q4 FY25 standalone saw a loss of Rs. 23.33 crore versus a profit of Rs. 183.30 crore in Q4 FY24. Total revenue from operations dropped sharply to Rs. 2,138.36 crore from Rs. 3,734.30 crore, largely due to absence of one-time gains from prior-year Shriram stake sales. Key subsidiary Piramal Finance Ltd received RBI approval to convert from an HFC to an NBFC-ICC on 4 April 2025, and the composite scheme of arrangement has received RBI approval with NCLT filing done on 10 April 2025. Gross NPA stood at 3.18% and Net NPA at 0.93%.
The 550% dividend declaration signals healthy distributable profits and is positive for income-seeking shareholders, though it represents a payout against the backdrop of a weak Q4 standalone performance. The HFC-to-NBFC conversion of the key lending subsidiary and the composite scheme are structural milestones that could reshape the consolidated business, while the sharp revenue decline reflects the unwinding of one-time investment gains rather than core business deterioration.