S&P Global Ratings Upgrades Piramal Finance Limited to `BB` with Stable Outlook
S&P Global Ratings has upgraded Piramal Finance Limited’s long-term issuer credit rating to ‘BB’ from ‘BB-’, with a Stable outlook, while affirming its ‘B’ short-term issuer credit rating. This upgrade marks a significant milestone in Piramal Finance’s multi-year transformation into a scaled, diversified, retail-focused lending franchise.
S&P Global Ratings’ upgrade reflects its expectation of stronger business stability and earnings resilience at Piramal Finance, driven by the steady run-down of legacy exposures and the transition to a predominantly retail-focused portfolio. Retail loans are projected to account for about 85% of total AUM by FY26. The rating also factors in the company’s strong promoter strength, which provides financial flexibility, strategic stability, and sustained support for long-term growth.
Jairam Sridharan, MD & CEO, Piramal Finance, said, “The rating upgrade reflects the significant progress Piramal Finance has made in strengthening its balance sheet and building a resilient, diversified retail-focused franchise. Over the past few years, we have sharpened our underwriting, strengthened governance, and embedded technology deeper into our operating model, resulting in a more granular and scalable platform. As we expand our reach across emerging consumer segments and broaden our suite of secured retail products, our focus remains on delivering responsible credit with strong asset quality and sustainable returns. The upgrade further enhances our ability to access diversified, cost-efficient funding and supports our long-term ambition of building a high-quality, growth-oriented retail lending institution.”
Piramal Finance has total outstanding borrowings of approximately Rs75,000 crore and raised nearly Rs14,000 crore in External Commercial borrowings (ECBs) across FY 25 and FY 26, underscoring its diversified funding profile. In January 2026, the company secured a ‘AA+/Stable’ rating from CRISIL, reinforcing confidence in its strengthened credit profile. During the same month, 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 up to USD 500 million, marking a key step in diversifying its liability base.
Additionally, the company recently raised USD 400 million through an external commercial borrowing facility from a consortium of leading global and domestic lenders - Axis Bank, DBS Bank Ltd, Deutsche Bank AG, Far Eastern International Bank and Sumitomo Mitsui Banking Corporation (SMBC) - further strengthening its liability profile and supporting its growth strategy. Classified by the Reserve Bank of India as an Upper Layer NBFC, the company is among the fastest-growing large NBFCs in India, with retail AUM (excluding legacy business) growing at a 40% CAGR over the past four years to approximately ?86,000 crore and total AUM of over Rs 96,000 crore.
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