Piramal Enterprises shares zoom 7% after Q4 results; details here

Shares of Piramal Enterprises rose over 7 per cent on Wednesday's intraday session even after it reported a 25 per cent fall in consolidated profit in the March quarter. 

 

The company's stock rose as much as 7.61 per cent during the day to ₹1,036.1 per share. The stock pared gains to trade 7 per cent higher at ₹1,031 apiece, compared to a 0.01 per cent decline in Nifty 50 as of 11:15 AM. 

 

Shares of the company have recovered by about 20 per cent from its lows of ₹850, which it hit in early March. The stock has fallen by 6 per cent this year, compared to a 3 per cent advance in the benchmark Nifty 50.  

 

 

Piramal Enterprises Q4 analysis

 

Piramal Enterprises reported a 25 per cent fall in consolidated profit in the March quarter to ₹102 crore, compared to a net profit of ₹137 crore in the year-ago period. Its consolidated profit for the entire FY25 was ₹485 crore as against a loss of ₹1,684 crore in the year-ago period.

 

The revenue from operations increased to ₹2,854 crore during the reporting quarter from ₹2,473 crore in the year-ago period, while the other income rose to ₹179 crore from ₹55 crore. The total expenses reduced to ₹3,007 crore from ₹4,719 crore for the quarter under review. 

 

 

Piramal Enterprises asset quality 

 

On the assets quality front, the gross non-performing assets ratio increased to 2.8 per cent when compared with the year-ago period's 2.4 per cent. The credit costs increased to 1.8 per cent from 1.2 per cent in the year-ago period.

 

The overall assets under management grew 17 per cent during the fiscal year, and the company plans to accelerate the growth to 25 per cent in FY26. 

 

Q4 management commentary 

 

Chairman Ajay Piramal said the company has concluded a three-year transition phase and has now repositioned its business mix for the future. He said after the Reserve Bank's approval for the merger of Piramal Enterprises into its subsidiary Piramal Finance, both companies approached the National Company Law Tribunal seeking approval, and the amalgamation will take five more months to complete.

 

"As we look ahead, we are confident in our ability to sustain this momentum and continue building a scaled financial services platform that delivers consistent and high-quality performance," he said.