Piramal Finance Limited has notified stock exchanges regarding the receipt of a tax assessment order for Assessment Year 2024-25. The company informed BSE and NSE about this development under Regulations 30 and 51 of the SEBI Listing Regulations on March 26, 2026.

Tax Assessment Details

The company's case for AY 2024-25 was selected for scrutiny under Computer-Assisted Scrutiny Selection. Following the assessment proceedings, Piramal Finance received the order on March 25, 2026.

Cumulative Tax Loss Position

With the latest assessment order, the company's financial position regarding tax losses has been updated significantly.

Regulatory Compliance

The disclosure was made pursuant to multiple regulatory requirements:

• SEBI Listing Regulations 30 and 51
• SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026
• SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025
• Industry Standards Note on Regulation 30 of Listing Regulations

The company emphasized that this disclosure was made as a matter of abundant caution and requested the exchanges to take the information on record. The communication was signed by Company Secretary Bipin Singh and digitally authenticated on March 26, 2026.

Moody's Ratings has revised Piramal Finance Limited's outlook to positive from stable while affirming its Ba3 ratings, marking a significant milestone for the Mumbai-based financial services company. The rating agency announced this decision on March 23, 2026, reflecting improved confidence in the company's credit profile and business trajectory.

Rating Action Details

Moody's affirmed Piramal Finance's long-term Corporate Family Rating (CFR) and senior secured debt rating at Ba3, while also maintaining the (P)Ba3 rating for its senior secured medium-term note programme. The positive outlook indicates the agency's expectation of potential rating improvements over the next 12 months.

Financial Performance and Asset Quality

The positive outlook reflects Moody's expectation that Piramal Finance's asset quality and profitability will further improve over the next 12 months. The company's consolidated return on average assets improved significantly to 1.40% for nine months ending December 2025 from 0.60% in the fiscal year ended March 2025, driven by stronger net interest margins and improved operating efficiency.

Asset quality remained stable with stage 3 loans ratio at 2.50% of gross loans in December 2025 compared to 2.60% in March 2025. Notably, legacy real estate asset exposures declined to 5% of total assets under management from 9% over the same period.

Capital Strength and Strategic Direction

Capitalization remains a key credit strength for Piramal Finance. The company maintained a strong tangible common equity to tangible managed assets (TCE/TMA) ratio of 26.60% as of September 2025, with a consolidated regulatory capital adequacy ratio of 20.30% as of December 2025.

Moody's expects the company's twin strategy of increasing retail and mid-market exposures while reducing legacy lumpy real estate exposures will help granularize the loan book and reduce volatility in asset quality. This strategic shift positions the company for more stable performance going forward.

Rating Upgrade Potential

Given the positive outlook, Moody's could upgrade Piramal Finance's rating if the company sustains profitability with consolidated return on assets above 1.70% over the next few quarters, further reduces legacy real estate exposures while maintaining high capitalization and healthy asset quality.

This rating action follows a series of upgrades from other rating agencies, including CRISIL, S&P Global, CARE Ratings Limited, and ICRA Limited, demonstrating broad-based confidence in the company's improving credit profile across the rating community.

Source: None/Company/INE202B01038/67da5697-0c44-4d86-a624-2f742cc57184.pdf