FINANCIAL CAPITAL
Financial capital is the foundation of Piramal Enterprises Limited (PEL)s ability to generate sustained value for stakeholders. We recognise that financial capital is not merely a measure of our monetary resources; it represents our ability to invest in opportunities, support our stakeholders, and sustain our business in a competitive landscape. PEL successfully completed its three-year transitional phase. In FY2025, it outperformed its stated targets around AUM growth, AUM mix and operating efficiency. Against the expected AUM growth of 15% y-o-y, we delivered an AUM growth of 17% y-o-y at Rs 80,689 crore as of March 2025.
As we navigate the complexities of the financial environment, we remain committed to maintaining a robust capital structure that enables us to respond effectively to market dynamics and regulatory requirements. Our focus is on optimising our financial resources to enhance value creation, ensuring that we are well-positioned to meet the evolving needs of our clients and investors.
We focus on embracing sustainable finance principles following our Sustainable Finance Framework (SFF) which not only helped us raise capital but also allowed us progress on sustainability journey. We responsibly deploy our capital across our business segments including green financing. We aim to offer a transparent view of how we leverage our financial capital to achieve our strategic objectives and contribute to the long-term sustainability of our organisation.
Our well-outlined strategy and policies have resulted in robust balance sheet, enhancing our sustainable financial position. Overall, FY2025 financial outcomes underscore PELs prudent financial management, strategic fund-raising, and responsible capital deployment.
UNMATCHED RUNDOWN OF LEGACY WHOLESALE
The pace and scale of our legacy wholesale book rundown are likely unprecedented in the industry. Even as we actively ran down the legacy portfolio and channelled investments into new businesses, we successfully preserved our net worth, remaining broadly stable at around Rs 27,000 crore, excluding the impact of dividends and share buybacks.
OPTIMISING CAPITAL AND CORPORATE STRUCTURE
With a healthy capital adequacy ratio of 23.6%, PEL continues to operate from a position of strength. The year also witnessed a structural milestone - following the earlier demerger of the pharmaceuticals business, we received RBI approval for the merger of Piramal Enterprises with Piramal Finance. The NCLT process is underway, and once complete, will unveil a tax shield of Rs 14,500 crore through assessed carry-forward losses, providing a significant boost to profitability in the coming years. This will effectively align our PBT and PAT in the years ahead. Beyond this, our strategic investments continue to offer monetisation opportunities, particularly in Shriram General and Life Insurance businesses, as well as our AIF book.
| (In Rs crore) | FY24 H | FY25 |
| Gross Asset Under Management | 67,219 | 73,685 |
| Total Assets | 79,959 | 92,580 |
| Total Income* | 8,371 | 9,913 |
| PAT | (1,684) | 485 |
SUSTAINABLE FINANCE
FRAMEWORK
We place a strong emphasis on financial literacy and inclusion, striving to make financial services more accessible by addressing the needs of underserved communities, recognising them as a critical factor in achieving the true potential of ‘Bharat. We actively promote financial literacy and inclusion through various efforts designed to bridge the gap for those in need.
We continue our commitment to integrate ESG principles into our financial ecosystem through our Sustainable Finance Framework (SFF). This initiative aligns with our mission empowering Indias underserved individuals, micro-entrepreneurs, emerging businesses, and value-oriented customers. By prioritising investments that accelerate Bharats development, we are actively contributing to a more resilient and sustainable future. We received a US$550 million financing in FY2025 for our social loans and sustainability linked bonds. The funds raised following the SFF fortifies our intention and ability to drive sustainable future.
Our SFF framework complies with globally accepted standards, such as the Social Loan and Green Loan Principles established by ICMA and has been validated by an independent review from S&P. The fund generated under this framework is directed towards financing or refinancing qualifying projects. These include retail home loans, loans for MSMEs and SMEs, priority sector lending beyond the RBIs mandated minimum, microfinance, green finance, and digital lending. The projects may consist of newly developed initiatives or those funded by PEL within 36 months before issuing financial instruments linked to the framework. In the FY2025, the proceeds were used to finance microfinance institutions (MFI), mainly women borrowers, MSME and Affordable Housing among other projects.
This initiative is closely aligned with the 2030 Sustainable Development Agenda and its Sustainable Development Goals (SDGs), enabling us to contribute directly to key global objectives. Through this framework, we reaffirm our commitment to driving innovation, fostering inclusivity, and advancing sustainability, supporting Bharats journey towards a more equitable and resilient economy.
RESPONSIBLE LENDING
We practice responsible lending through all our three businesses - Retail Lending, Wholesale Lending and Alternative Funds. Our retail business enables us to reach out to underprivileged communities through affordable housing loans (including green housing) and access to financial services. We promote funding towards green building construction through our wholesale business.
Through our alternative funds, we conduct a rigorous evaluation of financial and ESG risks in our loan proposals, integrating market trends, product and facility assessments, loan pricing, and a thorough screening process against a high-risk watchlist. Our risk assessment framework considers geographic factors, sectoral dynamics, market conditions, and local legal requirements, with third-party vendors conducting in-depth due diligence on ESG and other identified risks.
Based on the severity of these risks, we implement customised environmental and social safeguards. Financing agreements may include affirmative covenants requiring compliance with environmental and social regulations, along with performance reporting when necessary. Additionally, negative covenants are introduced to prevent actions that could violate E&S guidelines, while corrective action plans outline steps to enhance ESG performance in cases of non-compliance.
We place a strong emphasis on monitoring the ESG performance of our portfolios, with a particular focus on green buildings, renewable energy projects, and low-carbon technologies. Infrastructure projects undergo stringent evaluations to identify potential environmental or social risks, particularly those impacting vulnerable communities or indigenous populations. For high-priority infrastructure transactions, we engage in-house or third-party experts to conduct ESG assessments under mutually agreed terms with borrowers.
A testament to this commitment is the IndiaRF initiative through Alternatives, where ESG due diligence is a key part of portfolio management. This includes the application of an exclusion list for high- risk sectors and adherence to IFC guidelines and regional regulations. The key focus areas include fire safety, waste management, employee well-being, and biodiversity. Both internal teams and third- party auditors regularly assess compliance with the Environmental and Social Action Plan (ESAP) to ensure adherence to the highest standards.
In FY2025, IndiaRFs portfolio companies - Setco, Livasa and Synthimed undertook various projects directing our cumulative efforts towards sustainability.
Livasa, Hospital Portfolio Company, undertook detailed Life and Fire Assessments for all the 5 hospitals and is implementing recommendations to improve the fire prevention and fighting capacity of the company assets. It has also initiated a Free accommodation initiative for the nursing staff coming from remote locations outside of the state. This initiative not only improves nurses lives but also enhances patient care, creating a ripple effect of positive impact across the healthcare system. The philosophy of service (Sewa Bhav) is validated by the testimonials of the nurses benefiting through Livasa.
Leads to Savings and feels Safe
The Livasa hostel provided here is a good place to stay. I find it very convenient and affordable.
The facilities are good like 24x7 electricity, water supply and cleanliness. There is a CCTV Camera also installed for our safety. Transportation facility is easily available from here.
- Ms. Anshika, Nursing staff
Finds it comfortable
The hostel is free from nuisance, and city traffic. There is peace of mind for us to rest and live comfortably. There is a security guard always present for our safety. Cleaning of the rooms is also done on a regular basis. Cloth drying facility is also safe and hassle free.
- Ms. Amanjot, Nursing staff
Synthimed undertook various initiatives around ESG. It reduced its dependency on both diesel and coal by 35% by partially shifting to the grid connectivity. It maintains three water recharge ponds in Rampur Bahal village under the Rampur Bahal Gram Panchayat to support water conservation and groundwater recharge.
The company is currently undertaking the development of a playground in Behra village, a project poised to benefit over 12,600 residents, including immigrants. This initiative aims to foster youth engagement by providing dedicated space for sports and community events. This commitment underscores our dedication to creating an inclusive environment that promotes active participation and well-being within the community.
GREEN FINANCE
The growing global demand for green finance fuelled by the urgency of climate action and heightened awareness among businesses and investors, highlights the financial sectors critical role in driving a sustainable, low-carbon economy. In response, we have made financing environmentally responsible initiatives a top priority, supporting renewable energy projects, sustainable infrastructure, and green buildings. Our deep commitment to environmental stewardship reflects our dedication to combating climate change and shaping a more sustainable future
We are committed to supporting renewable energy and e-mobility projects, allocating 3% of our Corporate & Mid Market Lending portfolio to each of these critical sectors.
Our approach to project financing is built on thorough due diligence and a strong commitment to governance, environmental compliance, and worker safety. By implementing regular audits and proactive monitoring, we ensure that our investments not only align with our sustainability goals but also create a positive impact on the communities and environments where we operate.
With a significant share of our real estate portfolio dedicated to eco-friendly development, including 11 green building projects, we are dedicated to sustainable urban growth. Expanding the green portfolio is a core component of our sustainability strategy, reflecting our commitment on driving the transition to a low-carbon economy.
We adopt a rigorous approach to project financing, ensuring strict compliance with governance frameworks, environmental laws, and safety protocols. Through regular audits and proactive monitoring, we ensure that our investments align with sustainability objectives while delivering tangible benefits to local communities and ecosystems.
As part of our commitment to fostering eco-conscious development, we continue to expand our green building portfolio to create sustainable communities, support local economies, and positively impact the environment. These projects reduce carbon emissions, conserve energy and water, and promote biodiversity while enhancing urban living spaces.
The funding criteria for green building initiatives require either an IGBC certification or active steps toward achieving one, with projects expected to attain a Gold or Platinum rating. Of the 11 green projects financed by us, 9 have achieved IGBC certification (6 Gold, 3 Platinum), with the remaining in the process of certification. These projects are anticipated to drive economic growth, enhance infrastructure, and generate significant employment opportunities.
An example of our green finance efforts is Rs 275 crore cumulative funding provided for Marathon Futurex, an IGBC Gold-rated commercial building. This ecofriendly project stands out for its sustainable design and construction, achieving reductions of up to 57.7% in waste and 54.3% in CO2 emissions. This initiative reflects our broader goal of supporting projects that align with the sustainability mission while creating lasting value for the environment and society.
THE JOURNEY CONTINUES
As we close a defining three-year transformation journey, we are poised to solidify our position as a scaled, performance-driven financial services company. In FY2026, we anticipate ~25% y-o-y AUM growth, led by our high-performing Growth AUM, expected to grow by ~30% in FY2026. Retail lending is expected to constitute 80-85% of our total AUM, reaffirming our strategic pivot. Meanwhile, our legacy book is expected to decline further to Rs 3,000 - 3,500 crore, rendering it negligible relative to our overall balance sheet.
Simultaneously, the momentum in our growth business and value realisation from our balance sheet are set to accelerate earnings in FY2026. We project a consolidated PAT of Rs 1,300 - 1,500 crore, up sharply from Rs 485 crore in FY2025.
We remain steadfast in executing our plans for the coming year while navigating and withstanding customer expectations and dynamic market, technological, economic, and regulatory landscapes.
MANUFACTURED CAPITAL
Our manufactured capital forms the backbone of our operational efficiency and service delivery. We have significantly expanded our reach to the people of ‘Bharat by establishing new branches in recent years. We continued to invest in our manufactured capital including our offices and branches along with the efforts to enhance energy, water and waste management.
This section focuses on initiatives that we undertook in FY2025, to improve the overall experience of our employees and customers visiting our 517 branches. Our targeted investments in this capital not only support our business today but also lay a strong foundation for tomorrow, aligning with our commitment to serving our customers.
GEOGRAPHICAL IMPACT
As part of our strategic growth initiative, we have expanded our reach to Bharat with our 517 branches across 26 States and Union Territories, now serving a vast customer franchise of 4.7 million. This expansion underscores our dedication to fostering financial inclusion and strengthening the impact across diverse regions in India.
Along with our increased geographical presence, we have also focused on transforming our workplace infrastructure to create an environment that enhances productivity, instills a sense of belonging amongst our employees and provides our customers with better experience. Through our Navikaran initiative we revamped 38 branches in FY2025 by including branch aesthetics and branding, upgraded IT infrastructure - Wi-Fi, printers etc. for seamless operations and improved facilities and safety provisions - seating layouts, CCTV systems, air conditioning, and fire extinguishers to ensure comfort and safety.
Our commitment to sustainability is conveyed through various green building certifications that we have successfully obtained for our multiple office buildings. We have received the LEED certification for Piramal Tower (Piramal Corporate Tower Pvt. Ltd.). Leadership in Energy and Environmental Design (LEED) is the worlds leading Green Building Rating System developed by the US Green Building Council. The certification is granted for design, construction, operations, and performance addressing energy efficiency, water conservation, site selection, material selection, daylighting, and waste reduction.
Our Kurla office has received IGBC certification from the Indian Green Building Council. It considers numerous factors, including energy and water savings, air quality, etc. Eight of our offices—Bangalore Office at Vasanth Nagar, Bangalore Tech Office, Bangalore Wholesale, Hyderabad CPU, Kurla Office, Lower Parel Office, Offices at Noida Sector 2, and Noida Sector 62—are ISO 45001 certified. We are committed to contributing to the environment and caring for our people by improving our operations and work environment.
OUR PRODUCT IMPACT
"We underwrite People, not just papers"
The principle of "Sewa Bhav" is deeply embedded in our business philosophy. We provide a wide array of financial products designed to cater to the distinct needs of our customers with a strong emphasis on empowering underserved groups, including women. Through the adoption of cutting-edge technology and innovative digital solutions, we are committed to enhance financial accessibility, improve livelihoods, and generating long-term value for the communities we serve.
Retail Lending
We are dedicated to expanding our retail lending platform, aligning with our mission to drive financial inclusion across Bharat. We focus on serving underserved segments, especially self-employed borrowers, with a strong commitment to offering accessible and affordable financing solutions.
We follow strong due diligence in securing customers in the segment. Our commitment is reinforced by strong governance, proactive asset monitoring, and regular portfolio reviews.
Our Impact
> Financial literacy for customers
> Empowering women entrepreneurs
> Promoting affordable housing
> Our Impact Building trust in customers
> Promoting first generation entrepreneurs
> Access to finance for the economic empowerment of marginalised and underserved communities
> Enhanced Financial inclusion through digital channels
| Product Segment (FY2024-25) | Number of New Customers | Loan Amount to New Customers (in Rs cr) | % of Women Borrowers |
| Housing Loans | 46,813 | 9,339 | 4.8% |
| LAP | 39,359 | 9,227 | 3.8% |
| Used Car Loans | 41,945 | 2,813 | 15.2% |
| Business Loans | 1,02,295 | 2,821 | 78.7% |
| Salaried Personal Loans (PL) | 51,200 | 2,734 | 17.9% |
| Digital Loans | 4,302 | 149 | 15.0% |
| Loan Against Security (LAS) | 6,741 | 1,584 | 7.4% |
Secured Lending
We take pride in our robust and diverse retail portfolio, built on the stability of secured loans and a strategic focus on long-term financing. Our offerings including Home Loans, Secured MSME Loans, and Used Car Loans are designed to support the financial aspirations of budget customers, primarily individuals and small business owners.
We embrace a sustainable approach, seamlessly blending digital innovation with a personalised, high- touch service model. This allows us to maintain a well-balanced customer base, with 68% self-employed and 32% salaried individuals, ensuring accessibility and financial empowerment for a wide range of borrowers.
Housing Loans
Our housing loan division plays a leading role in our retail lending strategy. With a strong focus on affordable, mass affluent, and budget housing, we are committed to making homeownership more accessible. By providing tailored financing solutions, we empower individuals and families to secure their own homes, laying the groundwork for a better quality of life.
Beyond individual benefits, our efforts contribute to community development, social welfare, and broader economic upliftment, enabling more people to invest in property and build personal wealth.
With the expansive branch network, we are deeply invested in empowering Indias heartland, leveraging innovative, data-driven underwriting that incorporates alternative data for more accurate financial assessments.
Rs 24 lakh
Average loan size
Loan Against Property
As a financial institution, we play a crucial role in driving economic growth by providing LAP and MSME loans, enabling individuals and small businesses to unlock their potential. By allowing borrowers to leverage their assets for financial advancement, we empower entrepreneurs to expand their operations, innovate, and generate employment opportunities. Our financial solutions are designed to foster inclusivity and economic resilience, supporting a diverse range of customers while fuelling entrepreneurial ambitions.
We are committed to enhancing our customer experience through technology-driven solutions, ensuring swift disbursals using proprietary scoring systems. Through these initiatives, we are contributing to the expansion of Indias underserved credit landscape while promoting financial sustainability and long-term growth.
4,517
women served, enabling them to thrive in their endeavours
Used Car Loans
Our Used Car Loans division is a key pillar of our sustainability efforts. By promoting ecofriendly practices, social inclusivity, and ethical governance, we are redefining vehicle financing with a responsible approach. Our paperless loan process not only streamlines approvals but also reduces our carbon footprint, reinforcing our commitment to environmental stewardship.
Beyond sustainability, we focus on democratising vehicle ownership, ensuring that underserved communities gain access to financing solutions that promote social equity. Through transparent partnerships with local dealers and a commitment to ethical lending, we uphold the highest governance standards, positioning ourselves as a responsible corporate entity aligned with global ESG mandates.
100%
of Used car loans screened digitally
Unsecured Lending
We believe in economic empowerment, particularly for women and underrepresented segments of society. Our Unsecured Loans portfolio includes salaried personal loans, business loans and digital loans, designed to offer flexible, accessible, and hassle-free financing that supports both entrepreneurs and individuals in achieving their aspirations.
Salaried Personal Loans
Salaried personal loans go beyond financial assistance. They act as enablers of personal growth, offering individuals the support they need to improve their quality of life and realise their dreams.
We serve the needs of salaried individuals with good bureau behaviour through our vast distribution network and a complete centralised digital platform.
Business Loans
Our Business Loans cover microfinance and unsecured business loans, helping businesses thrive and scale. Through microfinance, we support female entrepreneurs from households earning Rs 25,000 or less per month. By targeting this demographic, we empower women with financial independence while fostering sustainable economic progress.
Digital Loans
By embracing digital transformation, we continually enhance our product portfolio to provide a seamless and efficient lending experience. Significant investments in risk management and advanced technology have reinforced our commitment to sustainable growth, strengthening our position as a key player in the financial sector.
Embedded Finance business processed 17.2 lakh loan applications digitally with zero paperwork, which reduces our carbon footprint, reinforcing our commitment to environmental stewardship. We have served over 60,000 female borrowers and 82,000 small businesses who would face challenges in obtaining working capital from traditional banks due to stringent credit requirements. Working with payment platforms, we created small ticket credit products tailored products to their specific needs.
Wholesale Lending
Our wholesale lending business focuses on more than just transactions, prioritising sustainable growth in the Real Estate Loans and Corporate & Mid Market Lending (CMML). We stand out as a leading credit provider addressing significant market needs by building a granular and diversified wholesale portfolio.
Real Estate Loans
Real estate developer financing makes up a significant portion of the wholesale portfolio. We provide tailored lending solutions secured by assets in residential and commercial real estate, primarily focusing on midsegment residential project financing.
As of FY2025, we have funded 28 affordable housing and redevelopment projects in Tier 2 or 3 cities or Tier 1 outskirts.
In the reporting year, we expanded our reach by through our Small Developer Finance (SDF) business. SDF focuses on mid-market and affordable residential housing projects in low penetrated markets in the outskirts of Tier 1 cities and select Tier 2 and 3 cities. This move will transform the landscape of developer financing in such cities, complementing our vision to democratise credit for all sections of the society and to cater to a larger addressable market.
Corporate & Mid Market Lending
In our CMML division, our strategy prioritises granular exposures in key sectors including education, renewable energy, NBFC- MFIs, and healthcare contributing 8.6%, 6.3%, 3.4%, and 1.5%, of the CMML portfolio, respectively in FY2025.
Alternatives
Fund Management Business with Marquee investors
Our fund management division oversees an investment portfolio specialising in India-centric alternative investments across private debt and equity. The Piramal Performing Credit Fund and IndiaRF (Special Situations Fund) continues to prioritise strong capital returns by providing tailored financial solutions while maintaining best-in-class performance. Additionally, these funds work closely with portfolio companies, helping them strengthen financial resilience, secure growth capital, enhance management capabilities, and advance ESG initiatives.
Impact of Alternative Investment Funds:
> Fostering economic growth and employment opportunities
> Providing capital access across various industries
> Offering adaptable financial solutions tailored to business needs
> Promoting responsible and sustainable investment practices
> Enhancing long-term value for investors and stakeholders
> Supporting business recovery, stability, and expansion
Insurance
JV with Prudential International Insurance Holdings
Since its inception, Pramerica Life Insurance has covered over 11.9 million lives. We have retained a strong focus on covering underinsured segments. We are the pioneers and industry leaders in protecting the lives and families of Defence personnel, having insured more than 330,000 Defence lives till date. We also insured 3.7 million (predominantly) rural lives in FY2025, by leveraging the distribution network of our Microfinance Institution partners.
Beyond our business operations, we remain steadfast in our commitment to improving the quality of lives in our communities. Our Swabhimaan programme supports the dependents of deceased soldiers at a difficult moment. In FY2025, Pramerica Life was able to assist 362 widows, mothers and daughters of deceased soldiers.
We recognise that our 3,140 strong employee base underpin our growth, and we continue to invest in their future. We have implemented leadership development programmes, impacting 293 mid-level leaders and 33 Vice Presidents. These programmes, coupled with various employee wellness initiatives and an ‘active listening philosophy helped us secure the Great Place to Work certification for a second consecutive year, with an overall score of 88 and a 5-point increase in the Trust Index.
Moreover, we launched our first national brand campaign, ‘This is My Climb, through print, outdoor and digital media across 35 key markets. Our public relations efforts generated close to 200 news articles and helped us secure a Share-of-Voice rank of #5, ahead of leading life insurance brands.
INTELLECTUAL CAPITAL
Recognising our intellectual capitals vital role, we implement initiatives to add value for employees, partners, and customers. Our operations leverage digital and technological expertise to boost business growth. Through campaigns and PR efforts nationwide, we continually explore, strengthen, and utilise our intellectual capital.
DIGITALISATION IN
OPERATIONS
We use AI-powered platforms and data analytics to adapt and ensure long-term profitability. Embracing a technology-first mindset, we foster collaboration, innovation, and continuous learning.
Driving Efficiency through Innovation
We drive innovation culture by leveraging employee potential to enhance operational efficiency.
Project Drishti: Embraces the ‘Kabhi TAP (Tech-Driven), Kabhi PAT (Process-Driven) philosophy.
It celebrates process-first solutions, fostering a culture valuing process improvements alongside technology innovation. Drishti inspires employees to streamline workflows, reduce turnaround times, optimise operations, and enhance customer experience, promoting transparency, collaboration, and fairness.
It focuses on three objectives centred on process- led solutions.
Shift Mindset: Promote process-driven solutions as impactful, efficient alternatives to techcentric approaches.
Cultural Balance: Advocate a balanced reliance on technology and processes for operational success.
Recognise Excellence: Reward exceptional process transformations, inspiring continuous improvement
We enable data democratisation by providing real-time business metrics via custom dashboards for lending. These insights drive operational efficiency and strategic decisions, strengthening our competitive edge in the BFSI sector.
> Over 250 custom-build dashboards
> 75% monthly active user rate
> Adoption increased 33 times in 2.5 years
We introduced PRISM to apply a scientific, data- driven approach to HR, improving recruitment, engagement, and performance management through behavioural insights.
Our innovation includes channel partners through the ‘Piramal Mitra platform, streamlining onboarding, customer submissions, and commission payouts to boost operational efficiency and partner satisfaction.
Piramal Mitra achieved
> 40% of total branch-led logins 13,000 active monthly users
> 75% digital invoice adoption in Unsecured Business
> Over 40% digital invoice adoption in Secured Business
> Approximately 4 days of commission payment TAT from earlier 10 days
DATA PRIVACY &
CYBER-SECURITY
We implement strong governance and security technologies, fostering a security-first culture with transparency and ongoing risk mitigation. Our policies and infrastructure protect customer data through regular training and audits. Enhanced cybersecurity tools guard against threats. Our privacy policy ensures user control over data, with sensitive information like PAN and Aadhaar encrypted and accessible only to authorised personnel, complying with RBI guidelines.
We received zero identified leaks, thefts, or losses of customer data and received zero complaints on Data Privacy issues in FY2025.
Cybersecurity Strategy & Threat Management
Aligned with the RBI/NHB Information Security framework, we enhanced cybersecurity by adopting Gartners framework, performing red team cyberattack simulations, and deploying advanced threat detection for real-time monitoring and response.
Employee Awareness & Training
Recognising human vigilances importance, we developed interactive, gamified training, phishing simulations, and hands-on sessions to boost threat detection and response. These build a proactive security mindset, equipping employees to counter cyber threats effectively.
DATA-DRIVEN DECISIONMAKING ACROSS THE CUSTOMER JOURNEY
We use advanced scorecards for secured and unsecured loans to analyse customer behaviour, personalise offers, enhance risk assessment, and streamline approvals.
Our AI-powered multivariate models optimise decisionmaking by evaluating multiple factors simultaneously, resulting in:
> Faster loan approvals
> Improved objectivity and consistency in credit assessments
> Enhanced risk management
We deployed machine learning-based digital income detection to replace physical underwriters, speeding loan processing and enhancing customer experience.
In FY2025, we launched Next Best Action (NBA), an analytical tool empowering branch teams and call centres with actionable insights. NBA guides employees to take impactful customer steps, improving service, proactive resolution, and cross-selling. It boosted overdue collections by 3% and National Automated Clearing House (NACH) registrations by 17%.
Integrating digitised banking data via account aggregators, we refine credit risk models to balance approval rates and risk.
TECHNOLOGY IS THE CORNERSTONE AT PIRAMAL ENTERPRISES LIMITED
Building a strong technology-first culture requires state-of-the-art platforms and analytics aligned with business needs. Piramal Enterprises Limited leads this approach.
Eight years into our digital journey, we leverage automation, IoT, cloud, ML, and AI to optimise decisions, processes, and customer experience.
We analyse vast data from credit bureaus, transactions, and alternatives to assess creditworthiness. Using internal and external data, we democratise insights for data-driven decisions.
Our High Tech + High Touch strategy serves Indias budget customers by combining digital solutions with personalised engagement, improving service and efficiency.
Moreover, we have adopted new ways of working, including agile methodology, self-empowered scrum teams, design thinking, collective problem-solving, and idea generation, empowering teams to drive the organisations growth and success.
Leveraging AI and ML
With strong investments, were becoming an AI-first, data-led organisation. Data analytics guide decisions, while AI, automated intelligence, decision science, and ML improve customer experience and detect fraud— forming the basis of our lending.
This shift has driven retail Opex-to-AUM ratio improvements, exceeding expectations. Strategic tech investments, including traditional and generative AI, enhance risk management, efficiency, productivity, and controls, building a scalable, intelligent operating model for the future.
AI IN CREDIT UNDERWRITING
Core AI Risk Models
Our AI risk models embody our data-driven decisionmaking. We use custom product-specific scorecards instead of standard one-size-fits-all models, which dilute performance. Product-specific scorecards detect unique behaviours, better predicting default risk.
We tailor scorecards for secured and unsecured products to reflect different customer behaviours. For example, digital loan borrowers show distinct tendencies compared to those seeking loans over Rs 10 lakh.
Our acquisition approach customises treatment based on these behaviours, aligning with each customers unique needs.
Piramal Enterprises Limited (PEL) enhances underwriting with AI-driven models to improve credit quality, scalability, and risk management. As an illustrative example, we introduced a model family - DAS (Debt Appetite Model), targeting lending risk and efficiency. The DAS predicts customers future leverage to screen high-risk borrowers early, addressing rising unsecured loan delinquencies. This innovative AI model is patent-pending.
GENERATIVE AI: ENABLING FASTER AND MORE RESPONSIVE BUSINESS PRACTICES
We recognise Generative AIs potential to boost operational excellence, innovation, and stakeholder experience. We integrate Gen AI across key functions to enhance efficiency, personalisation, and automation.
Piramal Finances GenAI Chatbot
We introduced a GenAI Chatbot for sales teams to boost productivity with strategic support and instant, visually clear data access. It helps extract operational insights for effective sales strategies and opportunity capture.
Leveraging advanced Language Model Machines (LLMs), the Chatbot offers conversational access to performance metrics, eliminating manual calculations and enhancing precision and efficiency.
This breakthrough highlights our commitment to innovation and setting AI-driven standards in financial sales productivity.
ARYA - Our AI Buddy at Piramal Finance
ARYA (Anthropomorphic Reliable Yearning Ambitious Assistant) is Piramal Finances Gen AI virtual employee, delivering friendly, proactive customer experiences. Available on the app, website, WhatsApp, Teams, and email, ARYA interacts seamlessly, addressing customer and employee needs like a full-time digital team member.
DATA DEMOCRATISATION
With 7,000+ relationship managers and many credit underwriters, PEL prioritises data availability at all levels. We democratise data for secure, real-time insights, enabling data-driven decisions.
We capture vital KPIs shown on personalised dashboards for senior leaders to frontline RMs. Daily sales huddles, underwriter reviews, and CEO meetings rely on these as the single source of truth.
Each product and function has dashboards with near real-time metrics, helping teams monitor performance and adjust strategies, giving us a competitive edge.
BUILDING AN AI ECOSYSTEM
PEL advances its AI ecosystem by integrating AI and ML across lending operations to streamline sales, logistics, and manufacturing while managing uncertainties.
We also prioritise employee well-being and talent development, providing resources and support to build future-ready skills, foster innovation, and sustain AI-driven growth.
A BRAND BUILT ON TRUST
At Piramal Finance, our brand continues to reflect our deep commitment to empathy, trust, and inclusion. Staying true to our vision — to empower Indias underserved individuals and emerging businesses with thoughtful financial access — weve used storytelling, campaigns, and community engagement to build authentic connections.
Aaiye Baat Karte Hain: A Campaign with Character
Our brand promise - Hum Kaagaz Se Zyada Neeyat Dekhte Hai - has always guided how we connect with customers. This year, we extended that promise through Aaiye Baat Karte Hain.
Together, they opened up space for honest, two-way conversations with customers — building confidence among those who often hesitate to approach formal finance. At the heart of the campaign are two protagonists — a rickshaw driver and a sugarcane juice vendor — whose small but significant gestures reflect integrity and intent of doing right - values we honour and support.
The campaign was delivered through a strategic omnichannel media mix across television, digital, radio, hyperlocal outreach, grassroots activation and our widespread branch network ensuring relevance, reach, and resonance across offline and online touchpoints. This integrated approach helped drive relevance and reach across diverse customer touchpoints, resulting in a 2.5x lift in total awareness and a 1.8x increase in brand consideration.
Parakh: Stories of Grit and Aspiration
True to the Groups ethos of Doing Well and Doing Good, we turned the spotlight on real customer journeys through our regional docu-series — Parakh. Told in local languages and voiced by regional icons, these short films, captured the spirit of individuals who pursued progress against all odds. Each story reflected our role in enabling intent-led growth and advancing financial inclusion.
Marketing with Meaning: Serving Bharat Better
To further anchor our narrative, the Piramal Finance podcast brings together leadership voices in candid conversations. One of our episodes with Jairam Sridharan and Arvind Iyer explores how intent- led lending is not just a slogan but a systemic transformation in how we view risk, responsibility, and returns.
Reaching over 13,000 pin codes, our focus has remained steady — to make finance feel simpler, more useful, and more human.
Through honest storytelling, local engagement, and thoughtful communication, we tried to bring finance a little closer to those who need it most. And as we look ahead, we carry with us the same quiet promise — to grow with our customers and to serve with heart, humility, and purpose.
HUMAN CAPITAL
Human capital is vital to our success. The contributions of our employees define it. We ensure opportunities for our people to perform at their best. Recognising the pivotal role of human capital and the dynamics of mutual growth, we are committed to strengthening it through various initiatives in employee wellbeing, learning and development, safe work environment, youth and women empowerment, and employee volunteering.
Workforce Distribution for FY2025
| Category | Age Group |
Gender |
||||
| Less than 30 years | 30-50 years | More than 50 years | Male | Female | Total | |
| Other than Permanent Employees | 314 | 40 | 8 | 100 | 262 | 362 |
| Junior Management | 5,639 | 9,544 | 156 | 13,609 | 1,730 | 15,339 |
| Middle Management | 4 | 550 | 60 | 531 | 83 | 614 |
| Senior Management | 0 | 59 | 23 | 73 | 9 | 82 |
| Total | 5,957 | 10,193 | 247 | 14,313 | 2,084 | 16,397 |
New Hires for FY2025
| Category | Age Group |
Gender |
||||
| Less than 30 years | 30-50 years | More than 50 years | Male | Female | Total | |
| Other than Permanent Employees | 376 | 23 | 2 | 133 | 268 | 401 |
| Junior Management | 4,678 | 4,558 | 3 | 8,057 | 1,182 | 9,239 |
| Middle Management | 2 | 84 | 1 | 70 | 17 | 87 |
| Senior Management | 0 | 1 | 0 | 1 | 0 | 1 |
| Total | 5,056 | 4,666 | 6 | 8,261 | 1,467 | 9,728 |
In June 2024, we unveiled 10 behaviours that form the foundation of Piramal Finances Culture. We emphasise on fostering a work culture focused on enhancing employee experience by making them take cognisance of two fundamentals - ‘How We Work and ‘How We Behave, which guide our people to inculcate 10 behavioural tenets.
How We Work
1. TAP to Progress: We use Technology, Analytics and Process (TAP) design to solve business problems.
2. Be Conservative: We know things dont always go to plan. So, we do not over-commit and say no when needed.
3. Collaborate: We work as one team. We are all Piramal.
4. Act Like a Start-Up: Were entrepreneurs who try new things and arent afraid to fail.
5. Execute Rigorously: We love to Do more than to just Plan. We monitor closely and only celebrate when the job is done.
How We Behave
1. Respect: We respect everyone and never use rude words.
2. Ask ‘Why not ‘Who: We dont blame people for mistakes; we learn from them and grow stronger.
3. Embrace Respectful Dissent: We value diverse opinions, even if they differ from seniors. We speak up respectfully for both the person and the idea.
4. Play for Win-Win: We want everyone to Win. We help each other succeed.
5. Have Fun: We are relaxed at work; we have fun working with each other, whether we win or we dont.
We also launched a microsite ‘Culture Corner, populated with inspiring videos, from our employees and leaders, exemplifying connections and relationships build on behaviours aligning with our values, celebrating Culture Champions and hosting engagements related to Culture.
EMPLOYEES
We value our employees diverse strengths and support their growth through professional and personal development opportunities. Our Employee Value Proposition, ‘Design Your Destiny (DYD), reflects our culture—balancing ambition with humility and trust.
Under DYD, weve launched programs to foster a workplace where employees feel valued, respected, and empowered. Initiatives like ‘Service Saarthi and ‘Bring Your Buddy offer opportunities for learning and growth, while employee clubs and awards recognise their contributions. Our digital journey is driven by efforts such as ‘Drishti and ‘NBA, covered in detail on page 50-51.
Encouraging Young talent
We are committed to provide young minds opportunities to thrive and contribute through our talent acquisition and professional advancement approaches.
Bring your Buddy (BYB): We empower employees to refer talent from their networks through the BYB initiative, built on collaboration, inclusion, talent acquisition and engagement. 2,772 referral payouts were processed under this initiative.
Campus Recruitment: We hired high-potential talent from top educational institutions nationwide, aligning them with our values through a rigorous selection process and continuous engagement.
Career Opportunity Programme (COP): We enable professional growth through internal mobility.
Inclusive Work Culture
We strive to build an inclusive, dynamic workplace with a safe environment, equal opportunities, and strong benefits that drive motivation and independence. Our Diversity, Inclusivity, Belongingness and Accessibility (DIBA) initiatives foster diversity, inclusion, belonging, and accessibility.
> HR Academy- Unconscious Bias: Recognising HRs role in shaping culture, we launched a programme on Unconscious Bias, to build awareness and foster a more inclusive, diverse, and equitable workplace
> Inclusive Policies: Our system now includes partner details, with Mediclaim for LGBTQIA+ partners and gender-neutral POSH policies
> LGBTQIA+ Internships: We introduced internships exclusively for LGBTQIA+ individuals to foster inclusivity
> Pride Month Sensitisation Sessions: During Pride Month, we held sensitisation sessions including leadership training, a talk by Ms. Radhika Piramal, a company-wide webinar, and a Human Library event to foster empathy and inclusion
> Piramal Empowered Networks: We have three Employee Resource Groups, called Piramal Empowered Networks (PENs), that connect employees with shared interests or identities to offer support and build awareness
Empowering Women
We prioritise diversity and gender balance in hiring, while also empowering women in India through personal and professional development initiatives beyond the workplace.
> Supporting women through ‘Maitreyi branches:
We launched 6 all-women branches named ‘Maitreyi across India. Symbolising wisdom and intelligence, Maitreyi reflects our belief in the potential of women professionals to shape their destinies while serving customers financial needs
> Empowering our women employees: We launched Tejaswini, a monthly award recognising 97 women employees for their impact in shaping the financial landscape through leadership, innovation, and excellence. More than a reward, it celebrates diversity and the extraordinary women driving growth
Talent Retention
Retention is key to ensuring continuity, stability, and a positive workplace. We foster a supportive environment to drive engagement and retain talent.
> Introduced gender-neutral leave policies and a comprehensive Parental Support Scheme for primary caregivers
> Promoted two-way feedback through regular surveys to gauge employee satisfaction and drive targeted engagement improvements
> Enhanced the employee experience with a usercentric platform known as the Digital Centre of Excellence (CoE)
> Revised our Local and Domestic Travel Policy to enhance inclusion, flexibility, and reimbursement support as most of our employees travel to work
> We launched Quest2Travel, an automated, realtime Travel and Expense Management system to enhance convenience, transparency, and efficiency, benefiting 7,000 employees
| Parameters for FY2024-25 | Male | Female | Total |
| Employees entitled to parental leave in the reporting period | 14,213 | 1,822 | 16,035 |
| Employees that availed parental leave in the reporting period | 196 | 55 | 251 |
| Employees who returned to work after availing parental leave in the reporting period | 195 | 29 | 224 |
| Employees who were due to return to work after availing parental leave in the reporting period | 195 | 52 | 247 |
| Total number of employees retained 12 months after returning to work following a period of parental leave | 179 | 12 | 191 |
| Return to work rate | 100% | 55.77% | 90.69% |
| Retention rate | 59.47% | 75% | 60.25% |
Learning & Development
We prioritise learning and development through Piramal Learning University (PLU), using peer learning, coaching, and projects, along with top platform partnerships. The average learning per employee was 22.03 hours. Over 1,00,000 courses are offered for entry-level staff and 60,000 for managers, ensuring functional growth.
1. Wholesale Learning Academy: To develop future leaders in real estate financing, we launched the RE Accelerator Programme (REAP) under the Wholesale Learning Academy.
2. Alternatives Academy: Through the Alternatives Academy, we introduced Individual Learning Cards to provide employees with personalised learning paths aligned to their aspirations and preferences.
3. Ways of Working: Guided by the Ways of Working framework, our Internal Audit transformation reflects our focus on innovation, efficiency, and agility through continuous process refinement.
4. Masterclass and Leader Connect Series:
The Masterclass and Leadership Series offered inspiring sessions on topics like economic insights, operational efficiency, and agile methodologies.
5. First Time Managers: Our First Time Managers initiative aims to develop emerging leaders with essential skills, thereby improving managerial effectiveness and fostering a cadre of adept leaders for our future growth.
6. ASPIRE- Leadership Development Programme:
A customised learning programme for over 50 Zonal Heads focused on organisational challenges and opportunities, consisting of three carefully designed modules on Personal Excellence, People Excellence, and Performance Excellence.
7. AXCELERATE- First Line Manager: Our First- Line Manager Programme is a managerial development programme, that trains new talent for managerial positions, providing essential skills and insights. Over 320 managers across India have been trained through this initiative.
8. Data Science Academy (DSA)- Fresher and existing talent development (technical upskilling): The DSA is a specialised training hub for the Business Intelligence and Analytics teams, offering hybrid sessions to build skills in emerging tools, techniques, and industry knowledge.
9. Credit Academy: Our Credit Academy is crucial for standardising learning to empower the Credit Team in making precise lending decisions and driving business growth.
10. Piramal Learning University- Virtual Campus (PLU-VC): A comprehensive online platform offering courses in collaboration, personal effectiveness, management skills, leadership development, and conflict resolution.
11. Skill Wallet- Learning Reward System: Skill Wallet is a gamified learning initiative on the PLU-VC, promoting continuous learning in Retail Finance. Learners can track their credits through the Skill Wallet widget within the PLUs LMS.
12. Piramal Learning Festival: A two-day event, promoting continuous learning, offered employees a range of valuable virtual content. In FY2025, the festival attracted about 8,000 digital participants across 8 sessions, with more joining from branches and regional offices. It covered inspiration, wellness, skill-building, and culture.
13. Sustainability Learning Modules: Our ESG policy commits to increase employee awareness on ESG and sustainability through various initiatives. We launched an online learning module on ESG and Human Rights to ensure that our employees are informed and empowered to uphold responsible and sustainable business practices.
Trainings of employees at all levels taking courses on ESG module
| Category | Coverage (in%) |
| Junior Management | 99.5% |
| Middle Management | 99% |
| Senior Management | 75% |
Upskill Branch Operations Staff
Train employees to deliver exceptional customer service that fosters loyalty and builds trust.
Drive Cross-Selling Revenue Growth
Leverage improved service experiences to increase branch-level sales performance and cross-selling opportunities.
Optimise Operational Efficiency
Build competencies within branch teams to achieve operational excellence and reduce inefficiencies.
In FY2025, we launched the Service Saarthi upskilling programme to enhance customer experience and service-to-sales (S2S) skills, supporting growth through branch operations. The programme aims to:
The programme, implemented in three phases, trained 640+ employees across branches, boosting S2S performance and customer satisfaction.
We launched Saksham, a 20-hour self-paced e-learning program designed for campus hires and employees from non-financial backgrounds, offering comprehensive knowledge of retail finance products, processes, and industry insights.
> 920 learners completed Saksham module.
> 70% Net Promoter Score (NPS), a 3% improvement over the previous financial year.
Geared up to instil our employees with advanced tech knowledge, we organised various workshops round the reporting year.
Audio/Voice Analytics and Computer Vision Workshop: Advanced ML Techniques
A two-days workshop provided participants with hands-on training in advanced Natural Language Processing (NLP) and image processing techniques such as FFNN, CNNs, and LSTMs.
Databricks Workshop: Data Engineering and AI/BI Analytics
A 2-days intensive programme designed to enhance participants expertise in ML Ops and data engineering workflows using Databricks tools.
GreyAmp Workshop: Building Efficient Product Development Processes
The workshop focused on improving product development and agile collaboration within our BIU team.
In FY2025, we launched Pragya, a leadership programme enhancing decision-making, communication, and change management. It supports succession planning, cultural change, and fosters accountability, collaboration, customer centricity, and mentorship.
Pragya follows the 70:20:10 learning model with 70% real-world application, 20% group projects and peer coaching, and 10% classroom sessions, expert chats, coaching, and e-learning modules. CXOs are actively involved, underscoring our commitment to leadership development.
Employee Health and Safety
Human Rights
We are committed to respecting human rights and providing equal opportunities for all our employees. Our Code of Conduct and ESG Policy guide and reaffirm this commitment, ensuring fair and ethical treatment within the workplace.
POSH
We stand for Zero Tolerance against any form of sexual harassment. Our POSH policy is gender- agnostic, ensuring a workplace where every member feels safe, respected and valued. This commitment is a cornerstone of our ethos. We undertake various workplace safety initiatives to stand true to our commitments:
> Trainings: Over 280 POSH training batches conducted across India, ensuring that each employee gains in-depth knowledge of workplace safety and ethics. 13,650 employees were trained in the year via refresher modules
> Internal Trainers: 40+ dedicated internal POSH trainers, spread across India, not only impart knowledge but also create a sense of community and understanding
> Protection Beyond Boundaries: Our commitment to trust goes beyond organisational boundaries by considering the well-being of all stakeholders and reinforcing trust in our commitment to safety
> Zero-Tolerance Approach: A Zero-Tolerance policy against sexual harassment reinforces our commitment to accountability
A Holistic Approach to Employee Well-being
We prioritise employee well-being by offering extensive resources to foster a supportive workplace culture and ensure employees receive the necessary health support.
Wellspring is our holistic initiative designed to enhance employees physical, mental, and social well-being. It offers resources, expert guidance, and activities to boost productivity. The Employee Assistance Program (EAP) provides 24/7 access to psychologists, nutritionists, yoga instructors, and physiotherapists in 15 languages via video calls. It also includes self-assessments, video nuggets, and journaling. Over 100 users actively use and benefit from EAP.
We engaged our employees through virtual, hybrid, and in-person campaigns during Mental Health Awareness Month and on World Heart Day. We conducted 7 sessions on stress management and parenting, and organised blood donation camps across our branches. Emphasising our value of ‘Care, we launched the Annual Health Checkup (AHC) programme to promote preventive healthcare. Our partnership with Ekincare offers employees and their dependents discounted health checkups, doorstep blood sample collection, follow-up tests, and app-based report access, with strict confidentiality maintained.
Our comprehensive initiatives support our employees personal and professional growth through a culture that prioritises care and resilience of our employees and their loved ones.
Fire drills and other safety measures
Our efforts go beyond compliance with legislation. We strive for excellence in minimising health hazards and offering a safe working environment through our indepth occupational health evaluation programme. We have implemented the following measures:
> Installation of fire and burglar alarms with fire and smoke sensors in multiple offices, along with fire extinguishers
> Automatic fire suppressants in data/ server rooms in selected offices
> Earthing pits in all branches, with some equipped with lightning conductors
> Display of important contact numbers for emergency services at branches/offices Public address systems in office premises
> Display of floor plans and exit routes in office premises
> CCTV surveillance for monitoring activities, including sabotage etc.
> Provision of first aid kits
> Periodic maintenance of fire safety equipment and measures
> Conducting mock drills, fire drills, and physical checks of evacuation plans and safety equipment
> Identification and training of fire marshals
ACKNOWLEDGING EXCELLENCE
We celebrate our peoples contribution as recognition is at the heart of our culture, reflecting our unwavering commitment to valuing and rewarding excellence. We ensure that the employees from diverse verticals are celebrated for their exceptional contributions through our distinct programmes namely Achievers Club, Chairmans Award, Champions Club, MDs Club, Shikhar, and Service Superstar.
> Achievers Club honours the top 10% performers in Credit, Operations, Collections, and FCU who exceed their Quarterly Variable Pay QVP targets. With Gold, Platinum, Diamond, and the exclusive MDs Club tiers, over 1,700 employees were recognised for their outstanding performance in FY2025
> Chairmans Award celebrates employees who exemplify our core values and our purpose of ‘Doing Well and Doing Good. It honours exceptional contributions that create a meaningful impact on the business and society under four categories - Individual Awards, Team Awards, Top Retail Branch Awards and Social Impact Award. A total of 33 individuals and teams were awarded for their valuable contributions while inspiring others to reinforce a culture of excellence and value-driven performance
> Champions Club highlights the pivotal role of sales employees with a tiered loyalty structure that rewards consistent achievements. The programme features three levels namely Gold, Platinum, and Diamond, each with tailored qualification thresholds. Progression brings exclusive incentives, recognition, gift boxes, and access to specialised training programmes. In FY2025, 8,565 employees were recognised under this programme
> MDs Club is an exclusive annual programme honouring top performers from Champions and Achievers Club based on their cumulative yearly performance. In FY2025, 261 employees from both sales and non-sales functions were acknowledged for their consistent excellence in performance
> Shikhar drives excellence in Sales, Collections, Recoveries, and FCU by setting aspirational targets and enabling real-time performance tracking through a custom-built dashboard. The Shikhar Dashboard empowers employees with visibility into individual, team, and zonal performance, fostering transparency and motivation. In FY2025, 1,417 employees were recognised for their achievements, with 455 earning international trips and 857 receiving domestic trip sponsorships
> Service Superstar is a recognition programme that celebrates employees who go above and beyond to deliver exceptional customer experiences. By enabling self-nominations, the initiative empowers employees, fostering a sense of ownership and pride in their contributions. In FY2025, we published over 65 inspiring stories showcasing outstanding service. This initiative has helped strengthen our brand, enrich our culture, inspire our people, and delight our customers
By acknowledging efforts objectively and offering aspirational milestones, we create an environment where employees feel valued, motivated, and empowered to excel. We acknowledge the dedication and contributions of our employees by also providing monetary rewards. Our Quarterly Variable Pay programme rewards employees by tying their payouts to specific targets aligned with business objectives.
We launched the Branch Collective Incentive (BCI), a quarterly programme that rewards branch employees for their contributions to business outcomes. BCI fosters a unified ‘one branch mindset by aligning individual success with overall branch performance, encouraging teamwork and collective goal achievement. In addition, we actively support employee volunteerism by offering dedicated time off for community service and aim to increase annual volunteering hours. This commitment not only benefits society but also nurtures a culture of social responsibility and personal growth across our workforce.
The details of the volunteering activities are discussed in the Social and Relationship Capital section of this Report. For more details, please refer page 74.
SOCIAL AND RELATIONSHIP CAPITAL
We value strong stakeholder relationships and intangible assets like brand and reputation for long-term sustainability. By fostering community engagement and promoting financial inclusion and literacy, we enhance social capital and support our value creation and sustainability goals.
COMMUNITY DEVELOPMENT
We support Piramal Foundations four Big Bets, driving community engagement to decentralise and include underserved populations by strengthening demand and supply systems.
The Foundation has impacted 143 million+ lives by deploying high-impact systemic solutions to strengthen government service delivery across health, education, and sustainability through stakeholders like national organisations, donors, technical partners and academia. Piramal Foundation operates across 26 states and 2 Union territories, employing over 4,000 people. A key strength is empowering youth and rural women as changemakers in all four Big Bets.
Aspirational Bharat Collaborative
The Aspirational Bharat Collaborative (Bharat Collab), initiated by Kaivalya Education Foundation and Piramal Foundation with NITI Aayog, aims for a developed India by 2047. It targets challenges in least developed and aspirational districts and blocks, engaging local partners—PRI members, SHGs, faith leaders, media, NGOs, and youth—to drive community- led development.
The key focus areas are:
> Universal access to quality education
> Enhancing accessibility to healthcare and improving nutritional standards
> Ensuring the provision of clean and safe water to communities
> Advocating for womens rights and promoting gender equality
Committed to an inclusive, empowered, and sustainable India, it invites stakeholders to contribute toward a ‘Viksit Bharat by 2047 through initiatives in governance, education, health, nutrition, gender equity, and water.
The Viksit Panchayats initiative supports the national vision of ‘Viksit Panchayat se Viksit Bharat by improving HDI indicators. It strengthens Panchayats planning, empowers local leaders, and promotes community- driven decisions over five years. In FY2025, 4,300 Gram Panchayat Planning and Facilitation Teams (GPPFT) were established for comprehensive local planning.
The Panchayat for Education (PfE) programme fosters Panchayat ownership to improve education quality and departmental convergence (health, skilling, WCD, sanitation, water, tribal development). It involves training Sarpanches, engaging School Management Committees, and conducting school assessments with parents, SHGs, NGOs, and volunteers.
Other education efforts include Zero Dropout Panchayat, targeting retention and re-enrolment in 600+ Panchayats, and Inclusive Education for tribal children in 14 PVTG blocks and 300 Panchayats in Jharkhand.
Under Poshan Abhiyaan, we trained anganwadi workers and female supervisors to organise Poshan Pakhwada, enhancing nutrition services at anganwadi centres
Life skilling for adolescent girls focuses on socioemotional learning and financial literacy. Community women, called Karuna Fellows, mobilise, enrol, support, and train girls—offering a more holistic approach than traditional programmes.
Life skilling for
30,000
adolescent girls
Vocational training for
2,000
girls in 5 Aspirational Districts
The Water Secure Panchayat initiative promotes community-led water conservation campaigns. Thousands of Village Water and Sanitation Committee (VWSC) members were trained in planning, implementing, monitoring conservation efforts, standardising water quality checks, source marking, and sanitary inspections.
400+
Paani Samitis activated
3,360
VWSC members trained
The Carbon Neutral Schools initiative transforms schools into eco-friendly hubs aiming for net-zero emissions through student-led actions. Over 3,000 students participate in project-based environmental learning and eco-activity clubs.
Improving Foundational Literacy and Numeracy (FLN) Among Students
This initiative supports State programmes under the Foundational Literacy and Numeracy Mission by enhancing skills in aspirational districts through district collaboration, middle manager capacity building, and community engagement.
Digital Bharat Collaborative
The Digital Bharat Collaborative (DBC) drives digital transformation of public systems to improve access to quality services for underserved communities. Aiming to impact 210 million lives across five states, DBC currently focuses on healthcare, with plans to expand into education, climate, sustainability, and gender equity.
In healthcare, DBC focuses on Reproductive, Maternal, Newborn, Child and Adolescent Health (RMNCHA), Non-Communicable Diseases (NCDs), and nutrition, using data-driven decisions to enhance public health. It supports 24/7 health helplines in Bihar and Assam for advice, counselling, and grievance redressal. DBC runs 133 Mobile Medical Units (MMU), telemedicine centres, and seven clinics with partners, delivering essential care to remote areas. Beneficiaries like Munni and Mahabir have received vital support through the project.
"For several years, I struggled with mental health challenges and have been experiencing persistent weakness. When the Mobile Medical Unit (MMU) began operating in my village, I received a thorough health check-up. The team was able to correctly identify my condition and prescribe the appropriate medication. With their continued support and access to quality healthcare services,
I gradually recovered and began to feel much better. The MMU staff stood by me throughout this journey and provided both care and compassion."
Munni, 40 years
Beneficiary, Niramaya- SMFG - MMU
"Through the MMU camps organised by PSMRI, I was diagnosed with hypertension. With the timely support and care provided by the team, Ive been able to manage my condition and feel a sense of relief. Im truly grateful to the entire team for their dedicated and compassionate treatment, all provided free of cost."
Mahabir, 51 years
Beneficiary, Swasthya Kiran- Bokaro Power Supply Company Limited (BPSCL) - MMU
DBC developed AMRIT, an open-source Electronic Health Records (EHR) platform for low-resource settings. It supports scalable primary healthcare delivery and ensures care continuity. Fully compliant with the Ayushman Bharat Digital Mission (ABDM), AMRIT is publicly available on GitHub for transparency and collaboration.
DBC emerged as winner under the Doing Good for Healthcare category of ‘Doing Good for Bharat Award which is a testament to the relentless hard work, innovation, and dedication of the Piramal Foundation team and the DBC team.
Inclusive Bharat
Collaborative, Anamaya
Anamaya, the Inclusive Bharat Collaborative (IBC), aims to eliminate preventable deaths among tribal and marginalised groups by working with communities, sharing knowledge, and strengthening government systems. Tribal Health Collaborative (THC) aims to improve healthcare access and outcomes for the 104 million tribal people living in 177 tribal districts in India, through a three-pronged approach:
> Strengthen public health system: Piramal Foundation leads a multi-stakeholder initiative involving MoHFW, GoM, NHM Mizoram*, SACS Mizoram, SWTA Mizoram, WHO, JHPIEGO, and WIAI.
> Community engagement: Onboarded 3,000 tribal healers and 1,352 PRIs, SHG, AAA trained as nutrition change champions and 36,275 referrals of persons with presumptive TB by community influencers.
> Community-driven development: Piramal Foundation partnered with St. Xaviers College,
Ranchi, to translate IEC materials into five central Indian tribal languages. It conducted 644 community-based BCC activities on maternal health determinants.
Anamaya IBC has notably advanced tribal health in India, overcoming obstacles like service inaccessibility, remote locations, and poor healthcare systems by collaborating with government, community groups, and academics.
Note:
(*) MoHFW-Ministry of Health and Family Welfare, GoM- Government of Mizoram, NHM-National Health Mission
Community Engagement with Stakeholders
We engaged with the tribal communities in multiple states of India through health screening and awareness camps to facilitate early detection and support for managing sickle cell disease (SCD) and TB.
Developing Knowledge Products and Promoting Dialogue
> The decade-long maternal and child healthcare transformation in Araku was featured in the International Journal of Community Health and Public Health, highlighting the ‘ASARA technology-driven model and its impactful innovations.
> Launched and operationalised a comprehensive monitoring dashboard to track BC products, providing real-time insights into targets and achievement statuses, and ensuring accountability and progress.
> A Jagar Series Seminar on Inclusive Health Practices and the Impact of TB on vulnerable communities was organized in partnership with Dispur College and
Snehbandhan Guwahati, Assam. The seminar aimed to raise awareness about TB among the transgender communities of Assam.
Initiatives to Address Health Inequities in Tribal Communities
1. 2,141 VHSNDs visited to provide supportive supervision to improve maternal health service delivery and uptake amongst tribal mothers.
2. AI-guided TB detection using analogue X-rays and fast tracks treatment in Chhattisgarhs tribal districts with Qure.ai
3. Launch of IBC Karuna Fellowship, a two-year programme designed to empower young tribal women with the skills and mindsets necessary for sustainable livelihood. Our 20 Karuna Fellows will be enabled as community health workers in two tribal districts of Dima Hasao and Udalguri in Assam.
4. AI-enabled hand-held X-ray machines in Odisha for the 100-day intensified TB case-finding campaign, with learnings from the initiative to be shared for potential scaling with the Government of Odisha and Government of India.
Tribal Community Engagement
> 66 districts involved in TB Forums with tribal community members.
> Awareness sessions about TB conducted for tribal children in 113 Ekalavya Model Residential Schools (EMRS).
Sickle Cell Awareness
Sickle cell awareness day observed in 40 districts across Jharkhand, Chhattisgarh, Madhya Pradesh, and Maharashtra.
Health Screening Camps
> 532 health screening camps organized.
> 30,676 individuals screened for SCD and other conditions.
> 698 individuals (2.3%) identified with SCD.
TB Screening
> 20,105 individuals screened for TB.
> 2,016 individuals (10%) identified as presumptive TB cases.
> One confirmed TB-positive case detected.
Empowering transformation through empowerment of Tribal Healers
The IBC empowers tribal healers to improve healthcare access for tribal communities. It trained 1,196 healers in Tuberculosis, Nutri/Herbal Gardens, Water, Sanitation, and Hygiene (WASH), and Anaemia. This initiative enhances healthcare quality through healer recognition and involvement in events like AYUSH Melas and Janjatiya Gaurav Diwas. Documenting and integrating traditional practices with modern care promotes sustainable health and preserves tribal heritage.
Transforming maternal health with innovative SBCC interventions
Sankalp, Anamayas flagship programme, enhances maternal health services in tribal regions through VHSND platforms, utilising evidence-based Social and Behavioural Change Communication (SBCC) strategies to improve service delivery.
In Baksa, the team creatively transformed VHSND sites into safe spaces by setting up designated areas with curtains, ensuring better equipment and safer facilities are available at the sites. They also engaged with puppet shows and informative pamphlets in English, Bodo, and Assamese. This made the approach both fun and effective. In a single session, four Self-Help Groups were brought on board, educating 53 women. Meanwhile, in Kathalguri, complex information was transformed into relatable experiences. Through role-playing techniques, VHSNDs monthly themes became clear and impactful for the community.
In April 2024, over 150 SBCC activities reached 300+ participants, driving positive change and promoting a healthier future for mothers and babies in Baksa and Kathalguri.
Bringing healthcare to the doorsteps in a Naxalite zone
In the remote, Naxal-affected village of Silger, the PF team, in collaboration with the District TB Cell (DTC), organised a TB camp under the Tribal TB Initiative (TTI).
Initially, the villagers were hesitant to participate, fearing the teams affiliation with law enforcement. To overcome this, the team adopted a door-to- door screening approach as proposed by DTO, to build trust within the community. This resulted in the screening of 550 individuals and the collection of 30 presumptive TB samples, leading to one TB diagnosis and immediate treatment. In addition to TB screenings, basic medicines for common health issues were distributed. The success of the Silger camp highlights that trust-building and adaptability, such as a door-to-door approach, are crucial for overcoming healthcare barriers and improving access in conflict zones.
Piramal School of Leadership
The Piramal School of Leadership (PSL) is a residential facility aimed at developing government leaders and improving public governance. It seeks to inspire ‘Agency to Serve among one million middle managers by fostering self-transformation and Sewa Bhaav. The school nurtures empathetic leaders to tackle challenges in education, health, climate, and inclusion, strengthening institutions and promoting sustainable change.
Holistic Child Development through SEE Learning
Social, Emotional, and Ethical (SEE) Learning is a holistic development programme designed to foster social, emotional, and ethical intelligence in K-12 classrooms and educate the hearts and minds of children.
SEE Learning provides an inclusive framework for social, emotional, and ethical education, blending ancient Indian meditation with Western science. A Proof of Concept in Jhunjhunu, Rajasthan, inspired adoption in several states and led to inclusion in two National Curriculum Framework papers and Rajasthans State Curriculum Framework advocacy.
The programme has impacted 15,000+ middle managers, 5 Lakh teachers, promoting systemic reform, reaching 1,00,000 schools.
Case Study
A Tale of T ransforming T ribal Districts
In Narmada Puram, teacher shortages and low motivation challenged education. A Gandhi Fellow introduced SEE Learning, starting with a workshop in Betul where 35 educators practiced self-awareness, kindness, and mindfulness. Empowered, they embraced roles as guardians of emotional wellbeing. The SEE Learning curriculum equips educators to manage emotions and foster supportive environments beyond textbook.
Karmayogi Saarthis Program
PSL eads the Karmayogi Saarthi Program for the Capacity Building Commission, Government of India, under Mission Karmayogi. The programme trains youth (Karmayogi Saarthis) deployed across 93 central ministries to implement capacity-building initiatives impacting ~3 million civil servants.
Saarthis undergo leadership development via PSLs Nation Building Curriculum, learning behavioural skills like influencing without authority, non-violent communication, and active listening. The programme aims to engage youth in nation-building and build a talent pool for public-sector HR management.
"The Karmayogi Saarthis to be effective at their work, need regular supervision, handholding, somebody to inspire them and give them the necessary tools. This is effectively done by the PSL who come with the experience of running the Gandhi Fellowship - mentoring the Karmayogi Saarthis and making sure that they are able to work with different stakeholders and deliver on their critical mandate. PEL has long standing experience of working with the government and varied social development projects. We at the Capacity Building Commission consider it our fortune that such an organisation with the right knowledge, capacity and intent to strengthen state capacity is partnering with us."
Dr. R Balasubramaniam
(Member-HR, CBC)
FELLOWSHIPS
Indias youth, making up 22% of the population, present a major opportunity for change but face a lack of leadership platforms. Fellowships like Gandhi and Karuna empower rural and diverse youth as future leaders, aiming to train 5,000 fellows for nation-building and equip 1,000 women with digital skills to support government and community development.
Gandhi Fellowship:
Nurturing System Leaders for India
The Gandhi Fellowship is a two-year flagship programme that develops young professionals to lead large-scale change in Indias public system by solving complex challenges in health, education, climate, and other sectors.
The Fellowship has transformed into a national programme with fellows embedded at the district and sub-district levels, co-creating solutions with administrators, frontline workers, and communities by identifying system gaps, piloting innovations, and supporting implementation at large scale.
The Fellowship emphasises personal transformation through a comprehensive Leadership Curriculum. It guides Fellows to reflect on values, build emotional resilience, and clarify purpose. Gandhi Fellowship alumni have joined civil services, led non-profits, supported governments, and launched mission-driven ventures, earning national and international recognition.
At its core, Gandhi Fellowship envisions a cadre of young leaders who dont just work in the system but work on the system—to make it more inclusive, efficient, and accountable for every citizen.
Karuna Fellowship:
Empowering Women
In partnership with Piramal Foundation, we hire trained women from the Karuna Fellowship, which empowers disadvantaged women through skill development. Fellows gain domain, digital, communication, leadership, livelihood, gender, health, and well-being skills. After a rigorous selection and training process, they are placed in Corporates, NGOs, and other roles.
The fellowship equips rural women aged 19-40 with technology and employable skills to support teacher development and improve student outcomes through essential services and experiential learning.
Karuna Fellowship Programme has achieved the following impacts:
1. The Scheme for Adolescent Girls (SAG) is a 14-month programme to develop women leaders who guide girls in vocational training and life skills. Implemented by the Karuna Fellowship team in five Prime Minister Utkarsh Districts, 72 local women trained as Master Trainers cover life skills, digital literacy, and reproductive health. Vocational training challenges gender stereotypes with roles like warehouse associate, retail management, office automation, and graphic design.
2. Building on DEI, with Piramal Foundations expertise, the Samruddhi programme was launched in 2024 with 38 apprentices in three cities. After pilot success, it scaled to seven cities by November 2024, enrolling 175 local
Case Study
Arjuma Ahmed, a compassionate Karuna Fellow of the Integrated Sarathi has become a beacon of hope for pregnant women and new mothers in Nalbari district. She engages daily with 100 to 150 women, offering vital counselling on pregnancy risks, ANC, PNC, immunisation, supplements, and overall health until their children turn two.
A nine-month pregnant lady expressed her concern over the absence of foetal movements for the past two days. Arjuma promptly contacted the local ASHA worker with detailed information about the situation. Her followup revealed that the woman had delivered a healthy baby, and both mother and child were doing well. Arjumas swift action and commitment have made her a guardian angel for motherhood, significantly enhancing the well-being of families in her community. women to boost skills, careers, and private- sector employment.
3. Piramal Foundation, with Piramal Pharma Limited (PPL), Digwal Plant, and Life Sciences Sector Skill Development Council (LSSSDC), launched a Skill Development Centre under
Project Vardhana in Digwal, Telangana, to empower womens workforce participation. The first batch of 27 Sanginis began accelerated training as Lab Technicians and Associate Store in November 2024, gaining self-awareness and regulation skills for corporate success. A major achievement is placing 15 Sanginis at PPL and seven at MRF Tyres after a rigorous, inclusive recruitment process.
4. Karuna Fellowship fostered collaboration among local communities, government, and businesses to meet workforce demand for trained women.
It also conducted gender diversity and inclusion training for 79 middle managers across three PPL plants to create a supportive environment for womens career growth.
Case Study
Subah Gupta, a Karuna Fellow from Jammu. During a particularly low point, she discovered the fellowship application, and by the end of her orientation, she felt a renewed sense of hope, believing she was finally in the right place at the right time.
Still unsure of her own potential, she embarked on her fellowship journey. Eventually, as part of an internal capacity building session, she wrote down a dream for herself - I want to create a library in a school. Over the next two months, as she continued her efforts toward her dream, she developed a SEE Learning library at LHS Bain Bajalta school and initiated the process of creating SEE Learning corners in four other schools. Chasing her dream, she not only helps children explore and understand their emotions but also moves another step away from self-doubt and towards belief.
EMPLOYEE VOLUNTEERISM
We promote employee volunteerism, along with the CSR team providing frequent opportunities and time off for causes like education, health, and environment. Our goal is to increase volunteering hours, fostering community support and social responsibility.
In FY2025, Karuna Fellows from Palghar received 20 hours of volunteer support from PPL leaders on career development topics and placement assistance. They also gained 960 hours of mentoring during internships, including guidance from PFL Audit on data management and reporting. Employees engaged in projects like student outreach, knowledge-sharing, and workshops to serve the community.
‘Project Sakhyam: Skills based Employee Volunteering
Sakhyam is Piramal Foundations flagship volunteering programme connecting PEL executives with Gandhi Fellows or programme teams for 12-14 weeks. It fosters one-on-one buddy partnerships, enabling a meaningful exchange of skills and knowledge between PEL executives and Foundation teams.
Case Study
Transforming Lives at Grassroot: Sakhyam Pilot
15 Corporate Executives from the Wholesale Team engaged in the Sakhyam pilot initiative, where they were paired with 15 Gandhi Fellows from Jharkhand and Assam States, in Tribal Health Collaborative. The 15 Wholesale Executives have spent 60+ hours each in Sakhyam, resulting in 900+ hours of volunteering engagement with the Fellows.
The Sakhyam pilot fostered mutual growth. Corporate executives engaged in selfreflection, embraced Sewa Bhaav, and developed empathy and compassionate leadership. Gandhi Fellows gained corporate insights, financial management, data analysis, problem-solving, and project management skills. The pilots success is reflected in participant testimonials.
"I was excited to explore how public system projects could be implemented on a larger scale. Sakhyams collaboration between corporate executives, grassroots problem-solving, and field visits to see Gandhi Fellows in action was an enriching experience. Through this community immersion,
I realised the importance of government and private sector involvement in improving access to essential services like health and education for underserved communities. Sakhyam deepened my understanding of diversity, equity, and inclusion, and reminded me of the importance of seeing beyond my daily work."
Yogesh Rathi,
Deputy Vice President,
Asset Management,
Wholesale Team, Pune
"The Sakhyam programme has been a journey of personal and professional growth. Working with my buddy taught me the value of trust, collaboration, and to continuously keep learning. I gained skills in project and time management, strategic thinking, and effective communication.
A memorable moment was introducing my buddy to Jharkhands health system, tribal culture, and social medias role in community initiatives. I am grateful to the Sakhyam team for their support, which has inspired me to lead confidently and drive meaningful change."
Anisha Kumari,
Gandhi Fellow- Batch 16, West Singhbhum, Jharkhand
"Through interactions with my buddy, I gained invaluable skills in networking, communication, and time management. Observing his approach to work and challenges taught me the importance of resilience, adaptability, and a holistic mindset. I learned practical skills like data analysis, presentation techniques, and understanding community dynamics, which have enriched my professional and personal growth. Sakhyam buddyship programme has inspired me to adopt a proactive, reflective approach to work and life, and I now approach challenges with greater confidence and clarity.
Prachuriya Deori,
Gandhi Fellow Batch 16,
Udalguri, Assam
Leading by Example: Senior Leadership in Volunteering
Our leadership actively fosters a culture of Sewa Bhaav through volunteering. Senior leaders across departments demonstrate strong community commitment. Five Piramal Alternatives leaders contributed 300+ hours to problem-solving with PSL Program Directors. Four Piramal Realty leaders dedicated 2,000+ hours overseeing finance and construction of PSL Jaipur. PEL Legal, Finance, and Risk teams provided 200+, 200+, and 100+ hours respectively supporting Piramal Foundations legal, financial, audit, and risk policy needs.
Engaging Employees with Project NEEV
Project NEEV is a collaboration between Piramal Finance and Piramal Foundation-Aspirational Bharat Collaborative, supporting Government-designated Aspirational locations under NITI Aayogs Aspirational Districts Programme. The Fellow Connect App, focused on technology, helps Gandhi Fellows bridge personal and professional goals by enabling reflection, skill development, and community engagement.
> Community Impact: The app facilitates reflective and connective experiences for Gandhi Fellows. With features like community posts, it fosters a sense of belonging and collaboration among changemakers
> Purpose and Drive: Fellows are motivated to align with their milestones, helping sustain their purpose through the app
> Collaborative Learning: Sharing insights and experiences inspires innovation and strengthens confidence within the fellowship community
> Growth Monitoring: Integration with NB4 assessments enables fellows to track personal development, articulate journeys, and improve selfexpression.
The app also provides a centralized platform to document and showcase the fellows efforts, increasing their visibility and acknowledgement.
Fellow Connect has achieved significant milestones:
As we continue this journey, our focus remains on innovation, collaboration, and impact and through such concerted efforts through NEEV, we aim to make a meaningful and lasting impact on the communities we serve.
Financial Inclusion
We are committed to advancing financial inclusion in cities, focusing on underserved borrowers like nonsalaried individuals and affordable housing sectors across Bharat. To foster better reach we tied up with Communication Service Centre (CSC) to offer 800 services in Tier 2 and Tier 3 city-villages.
As an NBFC, we complement traditional banks in advancing financial inclusion by supporting MSMEs and retail borrowers in smaller towns. Our partnership with Paytm leverages 450+ branches to provide merchant loans, expanding credit access and empowering small businesses in underserved markets.
Financial Literacy
Our financial literacy initiatives have positively impacted crore of individuals, with a strong emphasis on Tier 2 and Tier 3 cities. To further drive development and empower women in these areas, we have introduced targeted programmes that equip beneficiaries with essential financial knowledge. This year our efforts have collectively reached more than 20 million people, helping them grasp key financial concepts and make informed decisions.
Looking ahead, we remain committed in our mission to strengthen financial awareness. Over the next few years, we plan to train 10,000 partners to foster economic growth and job creation. Additionally, we aim to continue financial literacy and awareness sessions while actively working to increase womens participation in the workforce, reinforcing our commitment to inclusive financial empowerment.
Customer Centricity
We remain deeply committed to customer well-being by offering products and services tailored to their needs. Through transparency and engagement, we have grown our customer base and strengthened loyalty.
To ensure optimal customer experience, we have embarked on several technology-related initiatives outlined below:
> New product loan offerings like Loans against Mutual Fund
> Internal software development unit, in Bengaluru, dedicated to crafting digital solutions to enhance customer service
> Customer apps on both Android and iOS platforms, enabling customers to access their loan statements and take advantage of cross-selling opportunities. In FY2025, 20,16,673 customers downloaded the app
> Universal API stack for Embedded Finance partners, allowing them to offer loans to its customers
> Cloud-based supplier relationship portal to streamline the invoicing process, reducing the cost of managing supplier invoices
> This portal offers secure 24/7 access to up-to- date information and complies with emerging regulatory requirements
> Chatbot and WhatsApp for business to enhance customer and stakeholder engagement. We have added more than ten meticulously curated features to WhatsApp for Business which are aligned with our priorities and developed in collaboration with cross-functional teams
> A KYC platform, consolidating various types of KYC into a single seamless journey for customers
Additionally, we have modernised our operations by adopting a multi-cloud platform, aiming to digitalise the entire loan lifecycle and data management. We have embraced Artificial Intelligence/Machine Learning (AI/ ML), Decision Sciences, and Automated BI to transform the customer experience through various initiatives:
> Implementing a credit rule engine for onboarding new customers
> Employing an ML model for credit underwriting for new-to-credit (NTC) customers
> Utilising AI for fraud detection and screening loan applications
> Managing portfolio risk and monitoring through AI-driven methods
> Enhancing cross-selling strategies
> Implementing measures for attrition management
> Enhancing collection and NPA management processes
> Integrating AI into everyday operations
We launched Partner Central, a centralised portal for sales associates to connect with us. Digitalising our partner registration reduced processing time from over 4 days to 12 minutes. We also introduced Policy Engine, enabling easy integration of new data sources and policy creation.
We continue to prioritise dialogue and interaction with our clients, building trust, and cultivating long-term customer connections. Continuing with our efforts, we launched our AI-driven WhatsApp service bot in April, 2024. The bot supports eight languages and uses conversational AI, expediting information exchange beyond traditional menu-driven interactions.
This year, digital engagement in service and collections boosted business efficiency by enabling overdue/ advance EMI collections, NACH registration, loan document access, EMI details, cross-sell intent, and credit education.
We have been able to uphold customer centric approach through our employees. Our customers testimonials are evidence of the impact we create.
Enhancing customer experience with Digitalisation
We leverage Generative AI to personalise customer interactions. The CX team uses Dhwani, an interactive dashboard, to analyse feedback from calls, emails, and visits, providing instant operational insights.
With customer centricity, we introduced Next Best Action (NBA), guiding employees to deliver impactful responses. In FY2025, NBA engaged 1,65,000 customers, offering tailored products and preventing dissatisfaction.
AI automates call quality assessments and feedback for agents. A Generative AI voice-bot by ThoughtWorks assists customers with loan processes in real-time.
We launched Sampark, an inhouse Contact Center Platform that routes customers to the best live agents, enhancing connectivity and response speed.
Our wholesale operations advanced with a multicloud platform, digitally transforming the loan lifecycle and data management using agile, cutting- edge technology.
Grievance redressal mechanism
We prioritise resolving customer grievances through a structured system accepting feedback via toll-free numbers, emails, branches and all other complaint origins including regulatory bodies. A quarterly complaints report is reviewed by the Board, which monitors compliance with the Fair Practices Code (FPC) and grievance effectiveness. FPC details are displayed in branches. About 55% of service queries were resolved digitally.
Information on the Companys grievance redressal policy and Nodal Officer is available on our website.
Supplier Sustainability
We prioritise ethical, sustainable sourcing aligned with our ESG strategy, positively impacting society and environment. Our procurement practices focuses on local sourcing, especially from MSMEs, and domestic IT suppliers to the extent possible.
> 99.77% of our input material procurement is directly from suppliers within India
> 19.92% of our input material procurement is directly from MSMEs/small producers
Suppliers must comply with laws, uphold ethics and human rights, and ensure integrity. They are encouraged to promote these values in their supply chains, maintain safe workplaces, support diversity, prohibit forced and child labour, and address stakeholder concerns.
Our Sustainable Procurement Practices
> We strive to source products and services that are environment friendly, recycled, energy efficient and locally sourced, to the extent possible
> We ensure the procurement of Ozone Friendly Air Conditioners for our branches
> We enlisted the services of a green consultant for our new office space in Kurla to ensure the procurement of environmentally friendly and sustainable products
NATURAL CAPITAL
Natural capital emphasises the responsible use of finite resources like air, water, land and biodiversity to support company growth. We recognise the link between financial success and environmental health, committing to sustainable practices that ensure the availability of these resources.
CARBON EMISSIONS MANAGEMENT AND ENERGY EFFICIENCY
A companys carbon footprint significantly arises from fuel consumption emissions. While energy is essential for daily operations, we primarily use electricity and diesel generators for backup. Aware of energy efficiencys impact on emissions and costs, we are committed to responsible resource consumption and initiatives that reduce our carbon footprint and promote sustainability.
Many of our offices have obtained green building certifications emphasising our commitment and comprehensive effort towards resource and energy efficiency. To reinforce the commitment towards efficiency and reducing emissions, we have installed a solar plant with a capacity of 27.5 kWh in the Bengaluru office at Vasanth Vihar. The solar energy produced is used internally with additional power sourced from the grid. Moreover, our Bengaluru Tech Offices now procure electricity from green energy supplier while the Kurla office fulfils part of its electricity requirement from renewable energy source. To further improve our energy efficiency and hence reduce emission, we have proactively replaced CFL lights with energy-efficient LED lighting at our branches. Looking forward, we have also partnered with companies to implement energy saving IoT devices in AC units with plans to transition to solar power source at our larger offices this year.
To maximise the output of our energy saving efforts, we have partnered with a service provider capable of retrieving electricity bills across all office locations to analyse precise usage. This enables to surrender excess sanctioned load, address power factor implications, and optimize energy requirements to prevent wastage.
Emissions and Energy from Direct Operations
| Parameters | Unit | FY2024-25 | FY2023-24 |
| Diesel Consumption by Company own vehicles/DG sets | GJ | 1,204.58 | 258.04 |
| Petrol consumption by Company owned vehicles | GJ | 27.83 | 67.91 |
| Scope 1 Emissions | tCO2e | 91.96 | 24.30 |
Emissions and Energy from Indirect Operations
| Parameters | Unit | FY2024-25 | FY2023-24 |
| Purchased Electricity from non-renewable sources | GJ | 28,935.63 | 27, 830.72 |
| Scope 2 Emissions | tCO2e | 5,843.39 | 5,535.22 |
GHG Intensity and Energy
| Parameters | Unit | FY2024-25 | FY2023-24 |
| Energy Intensity per rupee of turnover | GJ/Rs in crore | 3.38 | 2.84 |
| Total Scope 1 and Scope 2 emissions intensity per rupee of turnover | tCO2e/Rs in crore | 0.58 | 0.55 |
We monitor our emissions and energy usage patterns to analyse reduction measures. We aim to identify more energy-saving opportunities and establish targets for reducing absolute GHG emissions (Scope 1 and 2) in alignment with SBTi standards. Additionally, we plan to implement an internal energy management system integrating global best practices, retrofit energy- efficient appliances, and deploy smart sensor switches by FY2028.
WATER CONSUMPTION
We acknowledge the importance of water conservation for environmental sustainability and community wellbeing. We limit our water consumption to office and branch usage and have employed water-saving tactics, such as fitting water-efficient fixtures in washrooms and monitoring usage for further reductions. Aligning with the principle of reuse, we have installed storage tanks to collect and store the water discarded by the water filtration systems. The collected water is repurposed for tasks such as dishwashing and floor mopping.
We promote water conservation awareness and plan to explore using recycled water in washroom systems by FY2026. This technology is key to reducing waste and saving water through treated water in corporate park common areas.
WASTE MANAGEMENT
We embrace the 5R waste hierarchy—reduce, reuse, recycle, recover, and rethink—to manage resources like paper, e-waste, and general waste in our offices and branches. We undertake numerous measures in fostering a well-managed waste disposal system while keeping our employees and vendors motivated to reduce and reuse resources.
We prioritise waste segregation and ensure proper recycling or safe disposal, with segregation bins already installed in our major corporate offices. Our thoughtful endeavours include using various eco-friendly materials at our offices by continuously identifying vendors who supply sustainable products. We are currently using BECO Tissue Papers which are made from bamboo, sourcing biodegradable plastics for waste management and eco-friendly cleaning chemicals at the offices. We are keen to manage waste generated through cafeteria service. We use an in-house cafeteria app which has helped us reduce food waste by over 3,50,000 kgs. Moreover, we have engaged with an external vendor for dishwashing to replace disposables in food service ware with reusables. The core service includes end- to-end centralized dishwashing to reduce Scope 3 emissions and offer more hygienic and cost-effective food service ware.
We partnered with PadCare to responsibly dispose used sanitary napkins in our premises. We placed padcare bins in our lavatories to collect the sanitary waste. PadCare made the sanitary waste planet-friendly by recycling it and producing recycled paper from 100% safe-to-use output extracted from the waste. The recycled paper was further used to make daily planners, notebooks and calendars, reducing the multi-fold environmental impact of the sanitary waste.
Additionally, we introduced a structured process to identify obsolete IT assets and those suitable for reassignment or trade-in, optimizing resource utilisation while minimising electronic waste. For asset disposal, we prioritise responsible e-waste management, partnering exclusively with licensed recyclers who adhere to industry best practices.
We are also planning awareness sessions to encourage responsible paper use and aim to replace paper cups with sustainable alternatives, targeting 100% paper waste recycling.
Initiative to reduce food waste
Food service ware management company, chosen for Mumbai sites, has delivered impactful sustainability outcomes over twelve months, saving approximately 90,856 kilograms of CO2 emissions, preserving 17,13,649 litres of fresh water, and diverting 5,850 kilograms of waste. Additionally, significant cost reductions of around 30% in operational expenses and over Rs 32,20,000 in capital expenditure have been achieved.
Eco-friendly Innovations for the Kurla Office
The office boasts over 35% circulation space with open workstations near the perimeter, enhancing daylight and outdoor views. Water use has been cut by 45% with efficient fixtures and aerators. Energy-efficient HVAC systems have led to a 40% reduction in lighting power consumption, improved energy efficiency. Separate meters monitor energy use for lighting, HVAC, and equipment, and green power utilised. More than 30% of materials are locally sourced to reduce transport emissions, and eco-friendly materials, including six GreenPro certified, are used. The office features eco- certified, renewable wood-based furniture. Indoor air quality is boosted by exceeding fresh air standards by 10%, CO2 sensors, maximised views, and ergonomic furniture. Collaborative spaces and low-emitting materials in finishes enhance health and well-being.
Our Kurla Office has been awarded the IGBC Platinum Green Interiors certification in July 2024.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Economy
The global economy navigated a complex landscape influenced by geopolitical shifts, trade fluctuations and inflationary pressures in 2024. Despite persistent challenges, proactive policies and continued investments in key sectors strengthened stability and resilience. The global economy grew by 3.5% in 2023, with a slight slowdown to 3.3% in 2024. Advanced economies grew at a steady 1.7% in 2023 and at
1.8% in 2024, constrained by high interest rates. Meanwhile, Emerging Markets and Developing Economies (EMDEs) expanded by 4.7% in 2023 and 4.3% in 2024. Heightened supply chain vulnerabilities prompted businesses and governments to reevaluate trade dependencies and implement strategic measures to enhance economic stability.
Several countries introduced tariffs on global trade in March 2025, followed by retaliatory actions that disrupted international trade, increased inflation, and slowed economic growth. Higher import costs are expected to raise consumer prices in many regions. The global economy is projected to grow steadily at 2.8% in 2025 and 3.0% in 2026, supported by stable performance in both advanced and emerging markets. Growth in advanced economies is likely to stay modest at 1.4% in 2025 and 1.5% in 2026, influenced by domestic demand and different policy approaches. Meanwhile, emerging markets such as China and India are expected to show stronger growth of 3.7% in 2025 and 3.9% in 2026, despite global uncertainties and recent trade tensions. Even so, economies are expected to stay resilient by adopting new technologies and implementing strategic policy measures.
Indian Economy
India continued to be one of the fastest-growing major economies, driven by strong domestic demand, structural reforms and supportive policies. In recent years, the countrys rapid economic expansion enabled it to surpass the UK, making it the worlds fifth-largest economy. However, in FY2025, global uncertainties, rising geopolitical tensions and persistent inflationary pressures contributed to a slowdown in overall economic growth. According to the second advance estimates from the Ministry of Statistics and Programme Implementation (MOSPI), Indias economy grew by 6.5% y-o-y in FY2025, compared to 9.2% in the previous year.
Inflationary pressures remained a key concern in FY2025, driven by global supply chain disruptions and commodity price volatility. In response, the RBIs Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points in two successive cuts, bringing it down to 6% as of April 2025, while continuing with an accommodative stance. Consumer Price Index (CPI) inflation is expected to average 4.9% in FY2025, down from 5.4% in the previous year, and is projected to ease further to 4.0% in FY2026.
India continued on a steady path of economic growth, driven by a strong manufacturing sector, an expanding services industry and increased investments in infrastructure. Various government-led initiatives, including digital transformation efforts and financial inclusion programs, played a crucial role in
INDUSTRY OVERVIEW
Non-Banking Financial Companies (NBFC) Industry
The NBFC sector plays a crucial role in Indias financial system by providing credit to various economic sectors, including those that traditional banks may not adequately serve. At the same time, NBFCs maintain strong partnerships with commercial banks, mutual funds and insurance companies to ensure financial stability and a diversified funding base. The growth of assets under management (AUM) for NBFCs is expected to remain robust at 15-17% over FY2025 and FY2026. While this reflects a slight moderation from the strong 23% growth recorded in FY2024, it continues to exceed the decade-long term average growth of 14% per annum (FY2014-2024).
The NBFC sector has faced consecutive challenges since FY2019, beginning with the failure of a large NBFC and subsequent liquidity stress, followed by the COVID-19 pandemic and most recently, monetary policy tightening due to high inflation. However, these pressures have eased over the past two years. According to the RBIs Financial Stability Report (December 2024), the sector remains healthy, supported by strong capital buffers (Capital to Risk strengthening domestic manufacturing capabilities and attracting foreign direct investment (FDI) across key sectors. The availability of capital, evolving investment trends and access to credit remained essential factors in driving economic expansion, supporting business growth, facilitating infrastructure development and creating employment opportunities. Additionally, interest rates and government policy measures significantly contributed to maintaining economic stability, positively influencing various industries and boosting consumer demand. The steady rise in urbanisation, along with a rapidly growing middle class, further contributed to increased consumer spending across multiple sectors. With these strong economic drivers in place, Indias economy is projected to grow at a robust rate of 6.5% in FY2026.
However, risks stemming from geopolitical tensions, global commodity price fluctuations and financial market uncertainties persist. Looking ahead, Indias economic outlook remains positive, with growth projections exceeding the global average. India is well-positioned to sustain its growth momentum and establish itself as a leading economic powerhouse.
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Weighted Assets Ratio at 26.1% in September 2024), robust interest margins and earnings (Net Interest Margin at 5.1% and Return on Asset at 2.9%) and improving asset quality (Gross Non-Performing Asset at 3.4% of gross loans).
NBFCs are currently adjusting to a changing regulatory landscape and heightened scrutiny from the central bank. Since November 2023, the increase in risk weights on bank lending to NBFCs has moderated their Assets Under Management (AUM) growth. However, with the reversal of this regulatory requirement from the beginning of FY2026, bank funding is expected to ease once again. The reduced availability of bank credit has led NBFCs to explore alternative funding sources, including capital market instruments, foreign currency borrowings and securitisation. However, greater reliance on non-bank funding has increased their cost of capital, impacting profitability.
Despite these challenges, NBFCs have maintained adequate provisions for non-performing assets, demonstrating effective loan resolution and asset quality improvement. Additionally, ongoing regulatory recalibration, with a stronger focus from RBI on customer protection, operational compliance and pricing disclosures, are expected to shape the sectors future lending practices.
Growth Drivers for the Indian NBFC Industry
Technology and Digital Transformation
NBFCs are leveraging digital tools such as AI, big data analytics and machine learning to enhance operational efficiency, improve credit risk assessments and expand their reach. The adoption of super apps, digital sourcing platforms and partnerships with fintech is reshaping the lending landscape. Technology-driven innovations such as digital Know Your Customer (KYC), alternate credit scoring models and blockchain- based lending are further driving financial inclusion, particularly in rural and semi-urban markets.
Strengthened Funding Strategies to Drive growth
The ability to access diverse funding sources remains a key strength for NBFCs. NBFCs are actively diversifying their funding mix to strengthen their financial position and expand lending opportunities. Meanwhile, bank lending has remained stable within the Rs 13-13.5 lakh crore annual range since November 2023. Large NBFCs, particularly those with strong parent backing, have successfully leveraged capital markets, foreign borrowings and securitisation to sustain their growth momentum. For small and mid-size NBFCs, continued focus on optimising funding costs will play a vital role in maintaining expansion.
Expansion of Key Segments
> Retail Loans: Growth in retail lending is driven by increasing disposable incomes, urbanisation and changing consumer preferences. Home loans, vehicle financing and personal loans continue to witness strong demand, supported by government incentives and favourable demographic trends
> Micro, Small & Medium Enterprises (MSME) Financing: The MSME sector remains a key focus area, with NBFCs offering customised financial solutions such as unsecured business loans, invoice discounting and supply chain financing.
The expansion of e-commerce and digital marketplaces is further boosting credit demand from small businesses
> Used Vehicle Financing: The rising affordability of pre-owned vehicles and growing demand for cost-effective transportation solutions are creating significant opportunities in used vehicle financing. NBFCs are adopting innovative financing models, including flexible repayment structures, to cater this growing market
Financial Inclusion and Rural Penetration
NBFCs play a vital role in providing credit to underserved and unbanked communities. By using technology and tailored financial products, they enhance financial inclusion in rural and remote areas, improving access to banking and credit services. India has made notable progress in financial inclusion, with 55.08 crore beneficiaries under the Pradhan Mantri Jan Dhan Yojana (PMJDY) as of March 12, 2025. This includes 36.68 crore beneficiaries from rural and semi-urban areas and 18.40 crore from urban centres. Women accounted for 30.67 crore of the total beneficiaries, reflecting increased financial participation. The total deposits in these accounts stood at Rs 26.1 trillion, indicating strong banking penetration.
Sustainability and Electric Vehicles (EV) Financing
The push for sustainability is driving increased focus on green financing initiatives, including renewable energy projects and sustainable infrastructure.
The growing adoption of EVs has also opened new avenues for NBFCs in vehicle financing, battery leasing and charging infrastructure development. Government incentives under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)-II scheme and production-linked incentives (PLI) are further encouraging investments in the EV ecosystem.
Strong Asset Quality
NBFCs are focusing on strengthening their risk management frameworks with the rise in unsecured lending and increasing household debt. The adoption of digital credit monitoring, AI-driven fraud detection and real-time loan tracking systems is helping mitigate credit risks. Diversification of loan portfolios across multiple asset classes and geographies is also contributing to greater financial stability.
Key Regulatory Developments in the NBFC Industry
RBI Amendments: The RBI has revised regulations for Housing Finance Companies (HFCs) and NBFCs to align the HFC Master Directions with the Scale-Based Regulation (SBR) framework. Effective from January 1, 2025, these changes aim to eliminate regulatory discrepancies and create a uniform regulatory structure across financial entities.
Scale-Based Regulation (SBR): In FY2025, the RBI continued refining its four-tier classification for NBFCs—Base, Middle, Upper and Top Layers—based on asset size, systemic significance and business activities. This framework is designed to reduce regulatory arbitrage, enhance financial stability and ensure that NBFCs are subject to suitable supervision and compliance measures.
Microfinance Lending Reforms: In FY2025, the RBI updated lending regulations for NBFC-Microfinance Institutions (MFIs) to prevent borrower over-leveraging and improve operational efficiency. The revised guidelines introduce caps on lending to individual borrowers, stricter borrower assessment procedures and a greater focus on responsible lending practices.
Budgetary Reforms for FY2026
Key policy measures introduced in the FY2026 budget include:
> FDI in Insurance: The foreign direct investment (FDI) limit for insurers reinvesting premiums within India has been raised to 100%, attracting higher capital inflows.
> Infrastructure Financing: The National Bank for Financing Infrastructure and Development (NaBFID) is set to launch a Partial Credit Enhancement Facility to strengthen the corporate bond market
> Grameen Credit Score: Public Sector Banks (PSBs) will develop rural credit scores for Self-Help Group (SHG) members and small borrowers to facilitate easier access to loans
> Pension Sector Expansion: A regulatory forum will be established to promote the introduction of new pension products, improving long-term financial security
> Regulatory Reforms: A high-level committee will be formed to streamline business regulations, enhancing the ease of doing business
> Tax Incentives & Vehicle Demand: Income tax exemptions on earnings up to Rs 12 lakh are expected to boost disposable income, indirectly benefiting the auto and housing finance sectors
> Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund : A Rs 15,000 crore SWAMIH Fund has been established to accelerate the completion of an additional one lakh stressed housing units. Under the SWAMIH Fund, 50,000 units in stressed projects have already been completed, with keys handed over to homebuyers
These regulatory measures are designed to strengthen the NBFC sector by improving financial stability, promoting responsible lending practices and ensuring digital innovations align with consumer protection and financial inclusion objectives.
NBFC INDUSTRY OUTLOOK
NBFCs are strengthening their position by exploring diverse funding sources, including domestic capital markets and offshore options, while leveraging strategic partnerships with banks for greater financial reach. Policy interventions aimed at easing regulatory constraints and improving funding access could further enhance stability. Despite the banking sectors dominance, NBFCs remain a key investment focus due to their resilience and growth potential. With a robust capital position and evolving strategies, the sector is expected to navigate challenges effectively, ensuring a stable outlook for FY2026 and driving financial inclusion.
Indian Retail Lending
India has made significant strides in credit accessibility, yet there remains substantial potential to expand formal credit penetration, particularly in rural and underserved areas. Retail lending emerged as one of the fastest-growing segments after the COVID-19 pandemic, with NBFCs witnessing significant expansion in this space. However, regulatory measures introduced in late 2023, aimed at addressing concerns over a slowing business cycle, led to a moderation in certain retail loan categories after FY2025. The RBI increased risk weights on consumer credit exposures of NBFCs, excluding secured categories such as housing, vehicle, education, gold and microfinance loans. As a result, retail loan growth slowed considerably in the following months, reflected in reduced credit inquiries and approval rates. The most significant decline was observed in unsecured retail loans, including personal loans and credit cards, where risk weights were raised. In response to regulatory concerns, lenders have adopted a more cautious approach, with a shift towards higher credit- quality borrowers, leading to an increased share of super-prime and prime-plus customers across various loan segments.
Going forward, banks and NBFCs are expected to ensure that retail lending maintains strong governance, effective risk management, and sound underwriting practices in response to stricter regulations and reduced exposure to unsecured loans and microfinance. The current business environment presents strong growth opportunities for well-managed NBFCs, as smaller players may face difficulties in meeting higher capital requirements and addressing rising non-performing assets.
Opportunities and Threats
Opportunities
India has made significant progress from being classified as a fragile economy in the 2010s to emerging as a key driver of global growth, even as the rest of the world faces economic uncertainties.
Two key factors supporting this growth are the countrys demographic dividend and its expanding middle-income population. Currently, around 30% of Indias population falls within the middle-income category, contributing approximately 48% of total domestic consumption. This segment is expected to grow to 40% of the population, as per the PRICE-ICE 3600 Survey and will be dominated by the working- age population with a high propensity to spend, including leveraged spending. Additionally, policy reforms focused on infrastructure development, manufacturing expansion and export growth are expected to create more employment opportunities, further increasing the size of the middle-income group and improving living standards.
Threats
A significant portion of large NBFCs relies on bank borrowings to support credit growth. Any disruption in this funding channel can have a cascading impact, affecting not only NBFC credit expansion but also key sectors such as MSMEs, real estate and low-income households, where NBFCs play a crucial role. The increase in risk weights on NBFC loans in November 2023 (set to be restored to previous levels from April 2025) led large NBFCs to seek foreign funding, exposing them to external market risks and increasing their overall cost of funds. Ensuring smooth access to low-cost funding is essential for NBFCs to maintain the last-mile flow of credit across the economy. NBFCs are expected to develop a deeper domestic debt market and strengthen their ability to raise public deposits to diversify funding sources and reduce dependence on bank borrowings.
COMPANY OVERVIEW
Piramal Enterprises Limited (PEL or the Company) is a leading diversified Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI), with experience spanning over three decades. Following a strategic demerger in August 2022, PEL emerged as a focused financial services company, with a strong presence across retail lending, wholesale lending, alternatives and life insurance through a joint venture. Backed by a seasoned management team and a well-informed board of directors, PEL leverages deep industry experience to navigate and lead in Indias evolving financial services ecosystem.
As of March 31, 2025, PEL manages Assets Under Management (AUM) of Rs 78,362 crore, distributed through a vast network of 517 branches across 26 states and union territories in India. PEL offers end-to- end financing solutions in both wholesale and retail funding opportunities across sectors including real estate, infrastructure, renewable energy, hospitality, logistics, industrials, and auto components.
Piramal Alternatives, the fund management business of PEL, has formed strategic partnerships with leading financial institutions such as CPPIB, APG and Ivanhoe Cambridge (CDPQ) across various investment platforms and provides customised financing solutions to high-quality corporates. PEL continues to optimise its portfolio, divesting non-core investments to reinforce its strategic focus.
As part of its transformation journey, PEL has restructured its corporate framework to ensure sharper strategic focus and alignment with its core business priorities. In a further step towards consolidation, the Board has approved the merger of PEL into its wholly owned subsidiary Piramal Housing & Finance Limited (PCHFL), which has been renamed Piramal Finance Limited (PFL) following regulatory guidance. The merger is expected to be completed in FY2026, subject to requisite regulatory and shareholder approvals.
Business Segments
PELs diversified financial services business is structured around four core verticals: Retail Lending, Wholesale Lending, Alternatives, and Life Insurance.
1. Retail Lending: Following the acquisition of Dewan Housing Finance Ltd. (DHFL) in 2021, PEL has successfully built a housing-focused diversified retail lending business catering to the needs of Bharat. Through a "High Tech & High Touch" approach, the Company combines digital efficiencies with human- led customer engagement to deliver a superior borrower experience.
Retail AUM grew 3x in 3 years to Rs 64,652 crore in FY2025 from Rs 21,552 crore in FY2022, driven by robust demand and a growing customer base. Total disbursements also saw a marked increase to Rs 32,996 crore in FY2025 from Rs 18,371 crore in FY2023.
Product Offerings:
Secured Loans: Housing Loans, Loan Against Property, Used Car Loans
Unsecured Loans: Salaried Personal Loans, Business Loans (including Microfinance) and Digital Loans (including Embedded Finance)
2. Wholesale Lending: PELs Wholesale Lending business offers structured financing solutions to real estate developers and corporates in select sectors.
The focus is on creating a balanced and de-risked lending book through sectoral diversification, prudent underwriting practices, and disciplined portfolio management.
Wholesale 2.0 - Building a granular, resilient and Diversified Portfolio
The Company is actively building a granular and diversified portfolio under Wholesale 2.0 across Real Estate and Corporate & Mid Market Lending (CMML), emphasising prudent underwriting, and calibrated growth. As part of its strategic shift, PEL transitioned to Wholesale 2.0, a more risk-mitigated and diversified model. This approach is characterised by:
> Smaller ticket sizes to reduce exposure concentration
> Sectoral diversification beyond real estate into mid-market corporates
> Enhanced underwriting and due diligence standards
> Focus on collection efficiency and robust risk frameworks ensuring improved asset quality
Wholesale 2.0 AUM grew 3.3x in 2 years to Rs 9,117 crore in FY2025 from Rs 2,792 crore in FY2023, driven by the strategic shift to a more diversified, risk-mitigated lending model with strong focus on collection efficiency and sectoral balance.
Legacy Wholesale - Portfolio Rationalisation
As part of its transformation, PEL is systematically winding down this legacy portfolio. The rundown is being executed in a prudent and accelerated manner, with a focus on maximising recoveries and preserving capital.
Legacy Wholesale AUM has been reduced significantly at 46% CAGR over 3 years to Rs 6,920 crore in FY2025 from Rs 43,175 crore in FY2022.
3. Alternatives
Piramal Alternatives, the fiduciary and fund management business of PEL, strengthened by long-term partnerships with marquee investors and a total committed capital of US$1.3 billion. It strategise on optimising risk and returns across the verticals it invest/operate. This places us uniquely in terms of building India-focused alternatives business across real assets/infrastructure, private equity, and private debt.
The segment leverages a team of seasoned senior professionals skilfully navigating investment complexities in India. Further, the segment offers capital and personalised solutions to high-quality corporates looking to maximise their growth through two funds:
Key platforms under Piramal Alternatives include:
> Piramal Credit Fund: A sector-agnostic performing credit fund backed by a significant capital commitment from CDPQ (Caisse de depot et placement du Quebec), targeting investments in mid- to large-sized corporates across sectors
> India Resurgence Fund (IndiaRF): A special situation fund established in partnership with Bain Capital Credit, which is focused on control-driven investments targeting mid-sized Indian enterprises that are undercapitalized or facing operational stress, with the goal of unlocking equity value through significant transformation and positioning them for market-leading growth
4. Life Insurance
PEL holds a 50% stake in Pramerica Life Insurance (Pramerica), a joint venture with Prudential International Insurance Holdings. Operating through 134 branches and a network of over 18,300 agents, Pramerica covered 11.9 million lives in FY2025. With 4 new product launches and modifications in 31 existing products (including riders), the venture achieved its highest-ever Gross Written Premium
(GWP) of Rs 2,074 crore, and 34% y-o-y growth based on Individual New Business Premium (NBP). Strong business quality is reflected in the Claims Paid Ratio of 99.18% and a Solvency Ratio of 233%.
For more details, please refer page 20.
As PEL concludes a transformative three-year journey, the Company enters FY2026 with renewed clarity and focus.
> We expect consolidated AUM growth of ~25% y-o-y, led by ~30% y-o-y increase in Growth AUM
> Retail is expected to constitute 80-85% of the consolidated AUM
> Legacy AUM should further reduce to Rs 3,000-3,500 crore
> The earnings momentum in Growth business and realisation of embedded value in the balance sheet would drive a sharp growth in consolidated PAT from Rs 485 crore. in FY25 to Rs 1,300-1,500 crore in FY26
The progress and prospect projections are accredited to PELs stable platform, a strong capital position, and a strong execution strategy geared towards delivering sustainable and superior earnings growth.
FINANCIAL ANALYSIS
Consolidated Statements
(in Rs cr, unless specified)
| Particulars | FY2025 | FY2024 |
| Net Interest Income | 3,591 | 3,022 |
| Other Income | 1,004 | 948 |
| Total Income | 4,595 | 3,971 |
| PPOP | 1,581 | 1,197 |
| PAT | 485 | (1,684) |
| EPS (Basic) per share | 21.55 | (72.82) |
| EPS (Diluted) per share | 21.33 | (72.82) |
| Networth | 27,096 | 26,557 |
| Gross Debt | 65,484 | 53,402 |
| Total Assets | 92,580 | 79,959 |
| Gross Debt to Equity Ratio (x) | 2.4x | 2.0x |
| Capital Adequacy Ratio (%) | 23.6% | 25.6% |
| Total AUM | 80,689 | 68,845 |
| Provision Coverage Ratio (%) | 2.8% | 5.2% |
| GNPA Ratio (%) | 2.8% | 2.4% |
| NNPA Ratio (%) | 1.9% | 0.8% |
> PEL delivered a total income of Rs 4,595 crore in FY2025, up 39% y-o-y
> Net profit stood at Rs 485 crore, marking a strong turnaround from the previous years loss
> EPS improved to Rs 21.55 (basic) and Rs 21.33 (diluted), reflecting the success of strategic execution across businesses
> As of March 31, 2025, PEL maintained a strong capital adequacy ratio of 23.6% and registered a healthy gross debt-to-equity ratio of 2.4x up from 2.0x in FY2024, reaffirming its position among Indias best-capitalised NBFCs
> Similarly, asset quality was stable with a GNPA of 2.8% and NNPA of 1.9%, compared to 2.4% and 0.8%, respectively, in March 2024
For more details, please refer page 12 and page 38.
Human Resources
PEL remains committed to promoting a dynamic and inclusive work environment by attracting, developing and retaining top talent. Our Company prioritises upskilling and leadership development to build a future-ready workforce aligned with evolving business needs. PEL ensures employees are equipped to drive long-term success by offering career growth opportunities, competitive rewards and a strong learning culture.
Our Company emphasises employee well-being, engagement and diversity to create a high- performance workplace. PEL enhances operational efficiency and the overall employee experience by leveraging digital solutions for human resource management. A strong focus on agility and resilience enables our Company to nurture a workforce capable of contributing to sustained organisational growth.
As of March 31, 2025, our Company had 16,397 employees on it payroll.
For more details, please refer page 58
Internal Financial Control
PEL has established a robust Internal Financial Control framework to ensure financial accuracy, safeguard assets, prevent fraud and maintain regulatory compliance. The framework includes risk assessment, control activities and monitoring mechanisms, with oversight from the Board of Directors through the Audit Committee. Regular internal audits and risk-based reviews help identify control weaknesses and enable timely corrective actions.
Our Company enforces stringent financial controls across all business processes, including revenue recognition, expense management, procurement and financial reporting. Technology-driven solutions enhance accuracy and efficiency, reinforcing transparency, accountability and long-term financial stability while ensuring compliance with regulatory standards.
Risk Management and Mitigation
Our Enterprise Risk Management (ERM) framework integrates the COSO model, focusing on proactive identification, assessment, and mitigation of key risks such as Credit Risk, ALM Risk, Operational Risk, Regulatory and Other Risks. Governed by the Board of Directors and the Sustainability & Risk Management Committee (SRMC), the framework ensures effective risk strategy implementation and alignment with our business objectives. We maintain a robust risk control matrix and a Risk Appetite Framework (RAF) that defines our risk tolerance. Our alignment with TCFD recommendations further emphasizes our commitment to managing climate-related risks and opportunities, ensuring transparency and sustainability in our operations.
For more details, please refer page 92
Internal Control Systems
The operational effectiveness of internal controls, risk management practices and governance systems is reflected in the measures implemented by management. These systems ensure compliance, mitigate risks and enhance overall organisational stability.
The internal audit function plays a crucial role in strengthening organisational resilience by identifying potential risks and evaluating mitigation strategies.
The function also conducts audits across all business lines, including retail branch network audits, centralised audits, business audits, concurrent audits and special reviews. Insights gained from these audits have helped management enhance adherence to policies, processes and regulatory guidelines while strengthening the overall control environment. Additionally, audit findings are regularly shared with senior leadership, enabling proactive decision-making and continuous improvements in risk management and governance frameworks.
For more details, please refer page 94
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1860-267-3000 / 7039-050-000
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+91 9892691696
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