CARE Ratings Upgrades Piramal Finance to 'CARE AA+; Stable'

Piramal Finance Limited today announced that CARE Ratings has upgraded its Long-Term Bank Facilities and Debentures rating to 'CARE AA+; Stable' from 'CARE AA; Stable', reflecting the continued strengthening of the company's financial and risk profile.

This is the second domestic rating action at the AA+ level, following CRISIL's assignment of AA+/Stable in January 2026, reinforcing confidence in Piramal Finance's business stability, earnings resilience, and overall credit strength.

The CARE upgrade reflects expectations of improved business stability, supported by the steady run-down of legacy exposures and the company's transition to a predominantly retail-led portfolio. Retail loans are projected to account for approximately 85% of total AUM by FY26. The rating also factors in the company's strong promoter backing, which provides financial flexibility, strategic stability, and sustained support for longterm growth.

Jairam Sridharan, Managing Director & CEO, Piramal Finance, said, "The rating upgrade is a strong endorsement of the progress we have made in strengthening our balance sheet, diversifying our portfolio, and enhancing our operational resilience. Receiving AA+ ratings from two domestic agencies within a short span is a clear reflection of market confidence in our strategic direction.

This rating action complements our sustained focus on disciplined growth, robust risk management, and funding diversification, while enhancing our ability to access capital at competitive costs to support long-term expansion."

Piramal Finance, classified by the Reserve Bank of India as an Upper Layer NBFC, is among the fastest-growing large NBFCs in India. Retail AUM (excluding legacy exposures) has grown at a CAGR of 40% over the past four years to approximately ₹86,000 crore, with total AUM exceeding ₹96,000 crore. The upgrade comes alongside continued strengthening of the company's liability profile. Piramal Finance has total outstanding borrowings of approximately ₹75,000 crore and has raised nearly ₹14,000 crore through External Commercial orrowings (ECBs) across FY25 and FY26.

In January 2026, the company secured USD 350 million in multilateral funding from the International Finance Corporation (IFC) and the Asian Development Bank (ADB) under its Sustainable Finance Framework - its first development finance institution borrowing - with discussions underway to scale this to USD 500 million. In February 2026, S&P Global Ratings upgraded Piramal Finance Limited's long-term issuer credit rating to 'BB' from 'BB-', with a Stable outlook, reflecting strengthening asset quality, improved earnings stability, and continued progress in the company's retail-led transformation.

Additionally, the company recently raised USD 400 million through an external commercial borrowing facility from a consortium of leading global and domestic lenders, including Axis Bank, DBS Bank Ltd, Deutsche Bank AG, Far Eastern International Bank, and Sumitomo Mitsui Banking Corporation (SMBC), further strengthening its diversified funding base.

Source : Equity Bulls

Keywords

PiramalFInance RatingUpgrade CARERatings