Piramal Enterprises Q4 results: PAT at Rs 137 cr on AIF provisions reversal

India's Piramal Enterprises posted a profit for the fourth quarter on Wednesday as it reversed some funds set aside for its investments in Alternative Investment Funds (AIF).

The non-banking financial company reported a consolidated profit of Rs 137 crore ($16.41 million) for the quarter ended March 31, aided by a one-time gain of Rs 1,517 crore due to the reversal of AIF provisions.

The company had posted a loss of Rs 2,378 crore in the December quarter when it had set aside Rs 3,540 crore for such provisions.

In December, the Reserve Bank of India (RBI) asked lenders to stay away from investing in AIFs that have investments in existing and recent borrowers. The central bank also urged lenders to liquidate their investments in such AIFs or to make 100% provisions on such investments.

However, the RBI eased these rules in March, allowing lenders to reverse some provisions made for AIF investments.

Piramal said it expects gains of Rs 1,200 crore in fiscal year 2025 and five billion rupees in fiscal 2026 from AIF investments.