The Non-Banking Financial Company (NBFC) sector in India plays a vital role in providing financial services, including loans, asset management, and investment services, especially in areas under-served by traditional banks. The sector includes prominent players such as Bajaj Finance, Manappuram Finance, HDFC Ltd., and Shriram Transport Finance.
NBFCs are also involved in trading securities, with companies like Reliance Capital, Piramal Enterprises Limited, ICICI Securities, and Kotak Mahindra Capital offering such services. With India’s growing middle class, increasing demand for credit, and favorable regulatory environment, the NBFC sector is expected to experience substantial growth, particularly in retail financing, securities trading, and infrastructure funding.
Share Price
The share Piramal enterprises are currently trading at Rs. 1,022.4 up by 7.86% from its previous close of Rs. 947.9. The stock also touched an intraday high of Rs. 1,028 as of January 14, 2025.
Financial Performance
In Q2 FY25, the company reported a 22% year-on-year (YoY) increase in interest income, rising from ₹1,800 crore in Q2 FY24 to ₹2,198 crore. Net interest income (NII) also saw a 17% growth, increasing from ₹750 crore to ₹881 crore.
The pre-provision operating profit (PPOP) grew significantly by 58%, from ₹250 crore in Q2 FY24 to ₹396 crore in Q2 FY25, reflecting strong operational performance. Net profit showed an impressive 238% YoY growth, rising from ₹48 crore in Q2 FY24 to ₹163 crore in Q2 FY25.
This substantial improvement in profit was driven by higher interest income and a significant increase in PPOP, while operating expenses grew at a slower pace.
Recent Update
In 2018, Piramal Enterprises divested its step-down subsidiary, Piramal Imaging SA, to Alliance Medical Acquisition Limited (AMAL), with the deal including deferred consideration based on the future performance of the Imaging Group. Life Healthcare Group, a South African multinational healthcare company, owns AMAL and has now decided to sell a part of this business—Life Molecular Imaging Limited. This sale is subject to shareholder approval and regulatory clearances.
Once the sale is completed, Piramal Enterprises is set to receive an estimated USD 140 million in FY 2026. Additionally, there is potential for the company to receive up to USD 200 million in total, depending on future profits and earnouts from the Imaging Group. This expected inflow of funds will significantly boost Piramal Enterprises’ liquidity and cash flow, offering it greater financial flexibility.
This deal will allow Piramal Enterprises to strengthen its balance sheet and improve its financial position. By monetizing a non-core asset, the company will have more resources to focus on its core business areas such as pharmaceuticals, healthcare, and financial services.
Moreover, this transaction provides an opportunity for Piramal Enterprises to invest in strategic growth opportunities, enhance shareholder value, and ensure long-term business sustainability. Overall, it represents a positive development for the company’s future prospects.
About the Company
Piramal Enterprises is the holding company of the Piramal Group, led by Chairman Ajay Piramal. The company has a strong presence across various industries, with key operations in financial services through Piramal Enterprises, and pharmaceutical services through its subsidiary Piramal Pharma Ltd (PPL), which focuses on Contract Development and Manufacturing (CDMO), Critical Care, and Over-the-Counter (OTC) products.
In addition to its financial and pharmaceutical businesses, the group is also involved in real estate development and consulting through a separate entity. The diversified business model allows Piramal Enterprises to leverage synergies across sectors and capture growth opportunities, strengthening its position as a prominent player in the Indian and global markets. The company’s broad portfolio reflects a commitment to innovation, operational excellence, and creating long-term value for stakeholders.
Written By: Dipangshu Kundu
