CRISIL Ratings Assigns Long-Term Rating of AA+/Stable to Piramal Finance Limited
CRISIL Ratings has assigned a long-term rating of AA+/Stable to Piramal Finance Limited (Piramal Finance), marking a key milestone in the company’s multi-year transformation into a scaled, diversified retail-focused lender.The company currently has AA/Stable rating, for its domestic long-term debt, by ICRA and CARE Ratings.
It reflects sustained improvements in asset quality, a granular retail loan book, strengthening profitability metrics, robust capitalisation, and a conservative liquidity position. The rating also factors in the company’s strong promoter strength, which provides financial flexibility, strategic stability, and sustained support for long-term growth. The rating also signals growing institutional confidence in the company’s governance framework and risk management capabilities.
Over the past four to five years, Piramal Finance has strengthened its operating model and balance sheet, underpinned by:
* Strong capital buffers and prudent leverage, supported by promoter commitment and capital support
* Improving asset quality, supported by a well-diversified and scaled retail portfolio
* A strengthened liability profile, with access to diversified and longer-tenor funding sources
* Advanced risk management and underwriting capabilities, enabled by data analytics and AI-led decision frameworks across origination, monitoring, and collections
The company has also made significant investments in technology and digital infrastructure, enhancing underwriting precision, early risk identification, and scalable execution across its lending businesses.
Jairam Sridharan, MD & CEO, Piramal Finance, said, “The CRISIL AA+/Stable rating reinforces the progress Piramal Finance has made in building a resilient and diversified lending franchise. It reflects our disciplined approach to risk management, governance, and technology-led execution. With a growing presence across the country’s Tier-2 and Tier-3 markets, we aim to be the lender of choice by expanding responsible access to credit. This recognition further strengthens our ability to access competitive funding and pursue sustainable, long-term growth.”
Piramal Finance has total outstanding borrowings of approximately Rs.75,000 crore and raised nearly Rs.21,000 crore in long-term funding in FY25. Classified by the Reserve Bank of India (RBI) as an Upper Layer NBFC, the company is among the fastest-growing large NBFCs, the company’s AUM (excluding legacy business) growing at a 40% CAGR over the last four years to about Rs.86,000 crore. The total AUM at Rs.91,000 crore. The AA+/Stable rating significantly expands Piramal Finance’s addressable long-term funding market and is expected to support its plans to scale AUM to over Rs.1.5 lakh crore by FY28, while continued improvement in profitability.
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