Transcript of conference call on the Unaudited Financial Results (Standalone & Consolidated) for the quarter ended 30th June, 2025
Awaiting price reaction for this filing.
Piramal Enterprises reported strong Q1 FY26 results with consolidated AUM up 22% year-on-year to ~INR85,700 crore, driven by 37% growth in retail AUM (now 80% of total). Consolidated net profit rose 52% YoY to INR276 crore, with Growth business PBT at INR295 crore. Consolidated NIM improved 10 basis points quarter-on-quarter to 5.9%, while Growth business credit costs fell to 1.4% from 1.8% in Q4 FY25. Operating efficiency continued to improve, with Growth business opex-to-AUM dropping to 3.9% from 4.5% a year ago. Management reaffirmed it is on track to meet all five FY26 targets, including full-year PAT guidance of INR1,300-1,500 crore. The merger of PEL with Piramal Finance is expected to be completed by September 2025, which will release about 245 basis points of capital adequacy (currently 19.3%). Medium-term ROA target is around 3%, up from current 1.4-1.5%.
For shareholders, this signals continued strong execution on growth and profitability improvement, with margin expansion and lower credit costs. The upcoming merger should simplify the structure, unlock capital, and enable tax shield benefits from carried-forward losses, supporting earnings going forward. No equity raise is expected in FY26.