Aditya Birla Group stock Pilani Investment edges higher despite weak trends in Indian stock market

Shares of Pilani Investment and Industries Corporation, a part of the Aditya Birla Group, inched higher on Wednesday despite weakness across broader indices. The stock gained 2 percent in intraday trading to touch a high of ₹5,325, defying overall market pressure and continuing its upward trajectory for the fourth consecutive month.

Even with this rise, the stock remains over 35 percent below its 52-week high of ₹8,265.95, touched in October 2024. It had earlier fallen to a 52-week low of ₹3,296.05 in March 2025. Nonetheless, the stock has displayed a strong recovery since then, gaining significant investor attention.

Over the last one year, Pilani Investment has climbed over 34 percent, backed by steady earnings and key regulatory approvals. In June alone, the stock has already added more than 10 percent, after posting gains of 10 percent in May, 12 percent in April, and 3.5 percent in March. This rebound followed a weak spell between November 2024 and February 2025, when the stock had remained in the red for four straight months.

Financials

The rally has been supported by the company’s strong FY25 financials. For the fiscal year ended March 2025, Pilani Investment reported a net profit of ₹98.46 crore, while total income rose to ₹307 crore, up 7 percent from ₹286.3 crore in FY24. The company’s robust portfolio of investments across Aditya Birla Group entities and rising market value of holdings have further bolstered its prospects.

As part of its shareholder-friendly initiatives, the company has declared a dividend of ₹15 per equity share of face value ₹10 each for FY25, subject to shareholder approval at the upcoming AGM on June 30, 2025. The record date for determining dividend eligibility has been fixed as June 23, 2025.

CIC Conversion Approval

Additionally, Pilani Investment received approval from the Reserve Bank of India (RBI) for conversion from a Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC) to a Core Investment Company (CIC). This strategic shift is expected to streamline its investment operations and reduce compliance burdens, further enhancing long-term stability.

In another significant development, the board has approved increasing the company’s borrowing limit to ₹3,500 crore, subject to shareholders’ approval at the forthcoming AGM. This move is expected to provide the company with greater flexibility in managing future capital needs and expanding its investment base.

As of March 2025, the promoter group holds a 57.55 percent stake in the company, ensuring continued control and alignment with the interests of the broader Aditya Birla Group.

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