Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended 30th June 2025
Awaiting price reaction for this filing.
Piramal Enterprises reported mixed Q1 FY26 results. On a standalone basis, total income fell ~12% YoY to Rs 500.88 Cr and profit after tax dropped ~29% YoY to Rs 162.43 Cr, with interest income declining ~19% to Rs 396.24 Cr. On a consolidated basis, total income rose ~20% YoY to Rs 2,693.53 Cr and PAT grew ~52% YoY to Rs 276.37 Cr, driven by subsidiary Piramal Finance Ltd (interest income up ~24% to Rs 2,393.43 Cr). The Board also approved issuance of redeemable non-convertible debentures up to Rs 1,000 Cr via private placement in tranches through March 2026. PEL invested Rs 700 Cr in Piramal Finance via a rights issue during the quarter. The composite scheme of merger between PEL and Piramal Finance Ltd is pending NCLT approval. Joint statutory auditors N.M. Raiji & Co. and Chhajed & Doshi issued an unmodified review report but flagged an Emphasis of Matter on deferred tax assets of Rs 1,522.28 Cr recognized at PFL based on future taxable profit projections. Consolidated gross NPA stood at 2.83% and net NPA at 2.01%, with debt-to-equity at 3.0x and total debts to total assets at 70.21%.
The standalone decline reflects the transition of lending business to subsidiary PFL ahead of the pending merger, while consolidated growth shows the underlying lending franchise scaling well with improving PAT. The Rs 1,000 Cr NCD raise strengthens funding capacity for PFL's NBFC operations. Shareholders should watch NCLT approval of the merger, asset quality trends, and recovery of AIF-related regulatory provisions as key swing factors.