Transcript of conference call on the Audited Financial Results (Standalone and Consolidated) of the Company for the year ended 31st March, 2025
Awaiting price reaction for this filing.
Piramal Enterprises reported FY25 consolidated net profit of Rs. 485 crores versus a loss of Rs. 1,684 crores in FY24. Total AUM grew 17% YoY to Rs. 80,689 crores, with Retail:Wholesale mix improving to 80:20. Legacy AUM was reduced to Rs. 6,920 crores (from Rs. 14,572 crores target) and the opex-to-AUM ratio improved to 4.0% (vs 4.6% target). For FY26, management guided AUM growth of ~25% YoY to over Rs. 1,00,000 crores and consolidated PAT of Rs. 1,300-1,500 crores. The PEL-Piramal Finance merger is at final stages, unlocking a Rs. 14,500 crore tax shield. Cost of borrowings moderated 10 bps QoQ to 9.1%, and capital adequacy remains strong at 23.6% with net worth of Rs. 27,096 crores. A dividend of Rs. 11 per share (50% payout ratio, the maximum regulatorily allowed) was announced.
Strong FY25 execution with all targets met or beaten signals management credibility. The FY26 PAT guidance of Rs. 1,300-1,500 crores (3x growth) and AUM crossing Rs. 1 lakh crore could drive positive sentiment, though the heavy reliance on legacy book run-down gains and one-offs (Piramal Imaging deferred consideration of ~USD140 million) introduces some execution risk. Shareholders benefit from the maximum allowable 50% dividend payout.