Piramal Enterprises recorded a net profit of INR 1.6 billion for Q2 FY25, slightly lower than the previous quarter's INR 1.8 billion. This includes an exceptional gain of around INR 770 million from recoveries in the Alternative Investment Fund (AIF) portfolio.

The company's net interest income (NII) increased by 17% year-on-year and 9% quarter-on-quarter to approximately INR 8.8 billion, while the profit before provisions and taxes (PPOP) rose by 58% year-on-year to around INR 4 billion.

In the first half of FY25, the company's profit after tax (PAT) declined by 38% year-on-year, totaling INR 3.4 billion. Total assets under management (AUM) grew by 12% year-on-year and 6% quarter-on-quarter.

Wholesale 2.0 AUM increased by 12% quarter-on-quarter to INR 78.9 billion, while Wholesale 1.0 AUM decreased by 49% year-on-year and 7% quarter-on-quarter to INR 121 billion. Retail AUM, however, grew by 42% year-on-year to INR 547 billion, with its share in the loan book increasing to 73%.

Analysts predict a return on assets (RoA) of approximately 1.3% and a return on equity (RoE) of around 5% in FY26E for Piramal Enterprises. They maintain a neutral rating with a revised target price of INR 1,015.