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

Piramal Finance Limited has scheduled a Board of Directors meeting for March 27, 2026, to consider fund raising through the issuance of Non-Convertible Debentures (NCDs) on a private placement basis. The announcement was made through an official communication to stock exchanges on March 20, 2026.

Board Meeting Details

The company has formally notified both the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) about the upcoming board meeting in compliance with regulatory requirements.

Regulatory Framework

The board meeting has been convened pursuant to Regulations 29 and 50 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. These regulations mandate proper disclosure and approval processes for fund raising activities by listed companies.

Company Information

Piramal Finance Limited, formerly known as Piramal Capital & Housing Finance Limited, trades on both major Indian stock exchanges. The company maintains its listing on BSE with scrip code 544597 and on NSE under the symbol PIRAMALFIN.

The official communication was signed by Bipin Singh, Company Secretary, and digitally authenticated on March 20, 2026. The notification serves to keep stakeholders informed about the company's capital raising initiatives and ensures compliance with stock exchange disclosure requirements.