Buy Parag Parikh Unlisted Shares

Parag Parikh Financial Advisory Services Limited (PPFAS)

Parag Parikh Financial Advisory Services Limited (PPFAS) is a financial enterprise, established in 1992, that serves as an integrated advisory and asset management group. The core of the Group’s business model is rooted in Investment based analysis and the application of Behavioral Finance concepts.

1. Core Business and Service Offerings

The Group’s activities involve managing investments and providing financial advisory services, with revenue recognized based on accrued fees for services rendered.

• Investment Management: The Group acts as the investment manager to PPFAS Mutual Fund. This activity generates Investment Management Fees, which are calculated as a percentage of the Assets Under Management (AUM) and are subject to SEBI regulations.
• Portfolio Management & Advisory Services: PPFAS offers Portfolio Management Services and Investment Advisory Services to its clients, earning management fees generally charged as a percentage of the AUM.
• Trusteeship Services: The Group also generates revenue by providing Trusteeship Services, for which fees are recognized over time as the customer receives and consumes the benefits.

2. Group Structure and Subsidiaries

The consolidated financial statements include the Parent Company (PPFAS Limited) and its wholly-owned subsidiaries.

3. Revenue Sources and Financial Performance (Consolidated FY 2024-25)

The Group’s total consolidated income for the year ended March 31, 2025, reached ₹ 429.09 Crore (₹ 42,909.32 lakh), demonstrating significant growth over the previous year's ₹ 286.43 Crore (₹ 28,643.02 lakh).

A. Core Operational Revenue (₹ 428.84 Crore)

The operational revenue (₹ 42,883.56 lakh) is derived from fees and investment gains:

1. Fees and Commission Income: This category totaled ₹ 375.88 Crore (₹ 37,587.88 lakh), comprising the largest share of operational income:
   • Asset Management Fees (primarily from PPFAS Mutual Fund): ₹ 374.20 Crore (₹ 37,420.25 lakh).
   • Trusteeship Fees: ₹ 1.22 Crore (₹ 122.03 lakh).
   • Portfolio Management Fees: ₹ 0.45 Crore (₹ 45.40 lakh).
2. Net Gain on Fair Value Changes (Investments): This stream, derived from investments measured at Fair Value Through Profit or Loss (FVTPL), amounted to ₹ 52.81 Crore (₹ 5,281.03 lakh). This is broken down into Unrealised Gains (₹ 49.72 Crore) and Realised Gains (₹ 3.09 Crore).

B. Key Financial Highlights (₹ in Crore)

The Group reported a strong bottom line and increased investment value:

• Profit Before Tax: ₹ 335.76 Crore (₹ 33,575.58 lakh).
• Profit After Tax (PAT): ₹ 246.60 Crore (₹ 24,660.20 lakh).
• Total Investments (FVTPL): The investment portfolio grew substantially, totaling ₹ 604.86 Crore (₹ 60,485.83 lakh) as of March 31, 2025.
• Basic Earnings Per Share (EPS): ₹ 321.45 (Rupees).
• Diluted Earnings Per Share (EPS): ₹ 284.30 (Rupees).

4. Recent Developments and Financial Highlights

The fiscal year 2024-25 included several noteworthy corporate and financial actions:

• International Presence: The Group established a new wholly-owned subsidiary, PPFAS Alternate Asset Mangers IFSC Private Limited, incorporated on November 18, 2024.
• Dividend Recommendation: The Board recommended a dividend of ₹ 15 per equity share (of face value ₹ 10 each) for the year ended March 31, 2025, subject to shareholder approval. An interim dividend of ₹ 6.59 Crore (₹ 659.45 lakh) was paid during the year.
• ESOP Cash Settlement: A specific one-time cash settlement option was offered to certain employees whose stock options were vesting on October 1, 2024. The total cash payout for the cancelled options under the 2019 and 2021 schemes amounted to ₹ 6.40 Crore (₹ 639.61 lakh). Separately, 27,800 options were exercised during the year, resulting in an addition to equity share capital.