Piramal Enterprises Q1 Results | Net profit zooms 52% to ₹276 crore on strong lending growth

Non-bank lender Piramal Enterprises Ltd, on Tuesday (July 29) reported a 52.4% jump in net profit at ₹276 crore for the first quarter ended June 30 over ₹181 crore in Q1FY25.

Revenue from operations increased 18.8% to ₹2,646 crore from ₹2,226 crore in the corresponding period of the preceding fiscal.

The company reported a 22% year-on-year (YoY) growth in total assets under management (AUM), reaching ₹85,756 crore. The mix of growth to legacy AUM has significantly improved to 93:07, compared to 34:66 in FY22.

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Growth AUM increased 38% YoY to ₹79,430 crore, while retail AUM, which now forms 80% of the total AUM, grew 37% to ₹69,005 crore. Meanwhile, legacy (discontinued) AUM declined 51% YoY to ₹6,327 crore, representing an 85% drop since FY22.

The company’s net interest margin (NIM) expanded by 10 basis points quarter-on-quarter to 5.9%. Profit before tax (PBT) for the quarter stood at ₹301 crore, with the growth business contributing ₹295 crore.

The PBT-to-AUM for the growth business stood at 1.5%, supported by a reduction in both operating expenses and credit costs. Gross non-performing assets (GNPA) stood at 2.8%, while net NPA was 2% over the previous quarter. Credit cost in the growth business declined to 1.4%, compared to 1.8% in Q4FY25.

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Q1FY26 is expected to be the final quarter before the merger of PEL and Piramal Finance, which is anticipated to be completed by September 2025. The company reported a net worth of ₹27,174 crore and maintained strong liquidity, with ₹9,070 crore in cash and liquid investments, accounting for 9% of total assets.

In the retail lending segment under the growth business, AUM rose 37% YoY to ₹69,005 crore. Secured loans accounted for 79% of retail AUM. Mortgage AUM expanded 38% YoY to ₹47,101 crore, comprising 68% of retail AUM and 55% of total AUM.

Quarterly disbursements increased 28% YoY to ₹8,718 crore, with disbursement yields remaining stable at 14.2%. Mortgage disbursements surged 50% YoY to ₹5,033 crore. Cross-sell stood at 26% of unsecured disbursements and 9% of total retail disbursements. Operational efficiency improved, with opex-to-AUM reducing by 230 basis points over the past nine quarters to 4.2%.

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In the wholesale 2.0 lending segment, AUM rose 47% YoY to ₹10,425 crore. Quarterly disbursements grew 46% YoY to ₹2,302 crore. The company received repayments, including pre-payments, worth ₹999 crore during Q1FY26.

The effective interest rate (EIR) in this segment stood at 14.5%, with an average ticket size of ₹74 crore. Repayments accounted for 43% of disbursements, indicating strong performance of the wholesale portfolio.

The results came after the close of the market hours. Shares of Piramal Enterprises Ltd ended at ₹1,296.80, up by ₹2.90 or 0.22%, on the BSE today (July 29).