Piramal Finance Limited has announced a significant credit rating upgrade from ICRA Limited, marking another positive development in the company's credit profile. The rating agency has upgraded the company's long-term rating to [ICRA]AA+ (Stable) from [ICRA]AA (Stable) across multiple financial instruments.

Rating Upgrade Details

The upgrade covers a comprehensive range of financial instruments totaling Rs. 43,508.78 crore. ICRA Limited has enhanced ratings across various categories while maintaining the stable outlook.

Short-Term Rating Reaffirmation

ICRA Limited has reaffirmed the company's short-term facilities rating at [ICRA]A1+, maintaining the highest short-term credit rating category. This reaffirmation demonstrates continued confidence in the company's liquidity management and short-term debt servicing capabilities.

Rationale Behind the Upgrade

According to the rating communication, the upgrade reflects the company's strong business, financial, and risk profile as an Upper Layer NBFC. This assessment indicates ICRA's positive view of Piramal Finance's operational performance and risk management frameworks.

Series of Rating Improvements

This ICRA upgrade continues a series of positive rating actions for Piramal Finance Limited. Earlier communications referenced upgrades from multiple rating agencies:

• CRISIL: Assignment of 'CRISIL AA+ / Stable' to Bank Loan Facilities and Non-Convertible Debentures
• S&P Global: Upgrade from 'BB- / Stable' to 'BB / Stable' for long-term issuer credit rating
• CARE Ratings Limited: Upgrade from 'CARE AA; Stable' to 'CARE AA+; Stable' for long-term facilities

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating communication will be made available on the company's website in accordance with regulatory requirements.

Unutilized Facilities

The rating covers both utilized and unutilized facilities, with significant headroom available across various instruments:

• NCDs: Rs. 4,109.47 crore unutilized and available for placement
• Retail NCDs: Rs. 3,663.04 crore unutilized and available for placement
• Subordinated Bonds: Rs. 1,000.00 crore unutilized and available for placement
• PP-MLD programme: Rs. 500.00 crore unutilized and available for placement

This comprehensive rating upgrade positions Piramal Finance Limited favorably in the credit markets and reflects the rating agencies' confidence in the company's financial strength and business prospects.

Piramal Finance Limited has received USD 148.099 million as deferred consideration from the divestment of Piramal Imaging SA, marking a significant milestone in the completion of a transaction that was initially announced in 2018. The payment was received on 10th March, 2026, through the company's subsidiary as part of the ongoing settlement from the sale of the step-down subsidiary to Alliance Medical Acquisitionco Limited.

Transaction Background

The divestment transaction was originally communicated to stock exchanges through intimations dated 26th June, 2018 and 13th January, 2025. At the time of the original transaction, Piramal Enterprises Limited, which has since merged with Piramal Finance Limited, had divested Piramal Imaging SA with provisions for deferred consideration contingent upon future profits.

Financial Details

The company has indicated that it may receive additional amounts in subsequent years from eligible profits and future earnouts relating to the Imaging Group. However, the total consideration is capped at USD 200 million, which includes the USD 148.099 million already received.

Strategic Impact

Piramal Finance Limited has stated that it will use the proceeds to further strengthen its balance sheet. This influx of capital provides the company with additional financial flexibility and supports its ongoing business operations and growth initiatives.

Corporate Structure

The communication was signed by Bipin Singh, Company Secretary of Piramal Finance Limited, formerly known as Piramal Capital & Housing Finance Limited. The company's registered office is located at Kurla (West), Mumbai, and it operates under CIN: L64910MH1984PLC032639.