Piramal Enterprises Q3 FY25 Results: Returns to Profit with ₹39 Crore Gain

Piramal Enterprises, a leading NBFC, posted a net profit of ₹39 crore for Q3FY25, a significant turnaround from a ₹2,378 crore loss in the same quarter last year. The previous year’s loss was due to a one-time provision of ₹3,540 crore on its Alternate Investment Fund (AIF) book following an RBI directive.

This quarter, a recovery of ₹550 crore from the AIF provision contributed to a ₹376 crore gain in the profit and loss account, as explained by Jairam Sridharan, MD of Piramal Capital & Housing Finance.

Sequential Performance

Compared to Q2FY25, profits declined 76% from ₹163 crore due to higher provisions, which nearly doubled to ₹648 crore during the quarter.

Revenue and Margins

Net interest income (NII) rose by 13% YoY to ₹940 crore from ₹835 crore. Net interest margins (NIMs) improved to 5.7%, up from 4.9% in the same period last year.

Asset Growth and Quality

• Total Assets Under Management (AUM): Grew 16% YoY to ₹78,362 crore.
  • Growth business: Increased 40% YoY to ₹68,009 crore.
  • Legacy business: Rose 45% YoY to ₹10,353 crore.
• Gross Non-Performing Assets (GNPA): Improved to 2.8% from 3.1% in Q2FY25.
• Net NPA: Remained stable at 1.5% sequentially.

Other Key Updates

• Credit Cost: Increased to 1.9% from 1.6% in Q2FY25.
• Deferred Consideration: The company expects to receive $140 million in the next fiscal year from the 2018 divestment of Piramal Imaging.

Merger and Name Change

Following the merger of Piramal Enterprises with Piramal Capital & Housing Finance (PCHFL) in December 2024, the RBI has directed PCHFL to rename itself as Piramal Finance Ltd. The company is in the process of obtaining approvals from the Registrar of Companies and expects to finalise the merger by September 2025.

About Piramal Enterprises Limited

Piramal Enterprises Limited (PEL) is a top non-banking financial company (NBFC) in India. With assets of about $10 billion, it operates through over 400 branches in 26 states and Union Territories. The company offers a variety of financial products and services, including retail and wholesale lending, fund-based platforms, and investments.

Piramal Enterprises share price is trading at ₹930.60, up by ₹16.10 (1.76%) as of January 28, 10:04 AM IST. The stock opened at ₹947.95, reached a high of ₹984.85, and a low of ₹915.95. It has a market cap of ₹20,860 crore, a dividend yield of 1.08%, and its 52-week range is ₹736.60 to ₹1,275.00.

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