PPFAS announced FY25 results

21 July 2025

• Financial Highlights: Parag Parikh Financial Advisory Services Limited (PPFAS) reported a robust financial performance for FY25, showcasing significant operational momentum. Total revenue from operations surged by 50% YoY to ₹428.84 Cr from ₹286.27 Cr, driven predominantly by strong growth in fee and commission income, which stood at ₹375.88 Cr (vs ₹212.48 Cr in FY24). This reflects the continuing expansion in Assets Under Management (AUM) across its flagship mutual fund schemes and advisory services. Net gain on fair value changes declined to ₹52.81 Cr (from ₹73.78 Cr) due to lower unrealised investment gains, but the contribution remained sizeable. EBITDA margins improved materially on the back of operating leverage, despite a 28% increase in employee costs to ₹6,291.38 lakh and a 43% rise in other expenses. Profit before tax (PBT) rose to ₹335.76 Cr (up 55%), and PAT grew by 44% to ₹246.60 Cr.
• Operational Developments: On the balance sheet front, PPFAS continues to demonstrate exceptional capital efficiency and a solid equity cushion. Total assets expanded to ₹702.14 Cr, up from ₹434.74 Cr in FY24, with investments (primarily mutual fund and equity holdings) forming the bulk at ₹604.86 Cr, reflecting its conservative treasury strategy. Trade receivables also rose substantially to ₹43.52 Cr, aligning with the strong topline growth. Net worth stood at ₹648.84 Cr, up 59%, aided by internal accruals and a modest equity infusion. The company maintains minimal leverage with financial liabilities of only ₹12.46 Cr. ROE improved sharply to 38%, and ROCE exceeded 50%, reflecting excellent return ratios underpinned by asset-light operations, fee-based revenue, and disciplined cost management.
• Future Outlook: Looking ahead, the outlook for PPFAS remains promising, supported by India’s favourable mutual fund penetration trends, its differentiated investment philosophy rooted in behavioral finance, and regulatory tailwinds favoring investor transparency. The company has made strategic investments in expanding its digital footprint and enhancing operational capabilities (as seen in rising fixed assets and lease liabilities), which should yield scale efficiencies over time. Continued focus on long-term value creation, prudent capital allocation, and a strong brand in the retail investor community positions PPFAS to sustain its high-growth trajectory while maintaining profitability and risk discipline. The full transition to Ind AS during the year also enhances financial transparency and aligns reporting with global standards.

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