Piramal Enterprises projects strong growth, simplification by FY26

Piramal Enterprises Limited (PEL) has announced its financial performance and strategic targets, projecting total AUM growth of 25% by FY26, reaching ₹85,756 Cr as of Q1 FY26. Retail AUM is expected to constitute 80-85% of total AUM, up from 80% in Q1 FY26, with overall growth AUM projected at 30%. The company also targets a consolidated PAT between ₹1,300-1,500 Cr by FY26, compared to ₹276 Cr in Q1 FY26.

Key initiatives include the ongoing merger of PEL and Piramal Finance Limited (PFL), expected to be completed by September 2025, to simplify the corporate structure. The company is actively reducing its legacy AUM, aiming for ₹3,000-3,500 Cr by FY26, a significant decrease from ₹6,327 Cr in Q1 FY26. Strong liquidity is maintained with cash and liquid investments of ₹9,070 Cr in Q1 FY26, representing 9% of total assets.

PEL emphasized its focus on retail lending through a "High Tech / High Touch" model, leveraging an agile tech framework and a strong branch presence. The company's average borrowing cost has stabilized, and its capital adequacy stood at 19.3% in Q1 FY26, with a debt-to-equity ratio of 2.5x, providing firepower for sustained AUM growth.