Piramal Enterprises reports strong Q1 FY26 growth, retail AUM up 37%

Piramal Enterprises Limited's Q1 FY26 results show a significant 22% year-on-year increase in consolidated Assets Under Management (AUM), reaching ₹85,756 Cr. This was primarily driven by a 37% year-on-year growth in its retail lending portfolio, which now constitutes 80% of total AUM. The company also reported a 52% year-on-year rise in consolidated Profit After Tax (PAT) to ₹276 Cr, with Growth Business Profit Before Tax (PBT) hitting ₹295 Cr, up 44% year-on-year. Asset quality remained stable, with retail 90+ DPD at 0.8% and wholesale 2.0 maintaining zero delinquencies. Operational efficiency improved, with a 55 basis points year-on-year reduction in Growth business opex-to-AUM, now at 3.9%.

The company is on track to meet its FY26 targets, including a 25% year-on-year total AUM growth and a retail share in total AUM of 80-85%. Legacy AUM is projected to decrease to ₹3,000-3,500 Cr, down from ₹6,327 Cr in Q1 FY26. Total capital adequacy stands at 19.3%, with strong liquidity evidenced by cash and liquid investments of ₹9,070 Cr. The merger of PEL and PFL is expected to be completed by September 2025, further simplifying the corporate structure.

The retail lending segment saw its AUM increase by 37% year-on-year to ₹69,005 Cr, with mortgages (housing loans + LAP) growing 38% year-on-year to ₹47,101 Cr, representing 68% of retail AUM. Disbursements across all products showed strong momentum, with housing loans up 23% year-on-year and used car loans up 73% year-on-year. The Wholesale 2.0 segment reported an AUM of ₹10,425 Cr, up 47% year-on-year, with a mix of 74% real estate and 26% Corporate Mid-Market Lending (CMML).