Piramal Finance Limited announced that it has received favorable credit rating updates from CRISIL Ratings Limited across multiple financial instruments. The rating agency has assigned new ratings and reaffirmed existing ones, strengthening the company's credit profile in the market and marking a key milestone in the company's multi-year transformation into a scaled, diversified retail-focused lender.

CRISIL Rating Actions Overview

CRISIL Ratings Limited has taken comprehensive rating actions on Piramal Finance's various debt instruments and facilities. The rating agency assigned long-term credit ratings of CRISIL AA+/Stable to both the company's bank loan facilities and Non-Convertible Debentures, while reaffirming the existing A1+ rating on Commercial Papers.

Regulatory Compliance and Documentation

Piramal Finance has fulfilled its regulatory obligations by formally notifying both BSE Limited and National Stock Exchange of India Limited about the credit rating updates. The company submitted the required intimation under Regulation 30 and 51 of the SEBI Listing Regulations, with Company Secretary Bipin Singh signing the formal communication dated January 4, 2026. The notification includes copies of all rating letters received from CRISIL and confirms that the information will be made available on the company's website as per regulatory requirements.

CRISIL Rating Letters and Validation

CRISIL has issued separate rating letters for each instrument class, with specific validity periods and conditions. The bank loan facilities rating letter is signed by Associate Director Rounak Agarwal and Director Nivedita Shibu, requiring fresh revalidation if facilities are not availed within 180 days. The Non-Convertible Debentures rating carries similar validity conditions, while the Commercial Paper rating reaffirmation is valid for 60 calendar days for issuance purposes.

Company Performance and Growth Metrics

Piramal Finance has demonstrated strong operational performance with total outstanding borrowings of approximately ₹75,000 crore. The company raised nearly ₹21,000 crore in long-term funding and has achieved significant growth in its Assets Under Management (AUM), excluding legacy business, growing at a 40% CAGR over the last four years to about ₹86,000 crore. The total AUM stands at ₹91,000 crore.

Rating Significance and Strategic Impact

The CRISIL AA+/Stable rating indicates that securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk. The stable outlook suggests that the rating is unlikely to change in the near term. According to Jairam Sridharan, MD & CEO, Piramal Finance, the rating "reinforces the progress Piramal Finance has made in building a resilient and diversified lending franchise" and "reflects our disciplined approach to risk management, governance, and technology-led execution."

Upper Layer NBFC Status and Business Model

Classified by the Reserve Bank of India (RBI) as an Upper Layer NBFC, Piramal Finance is among the fastest-growing large NBFCs. The company has served over 5 million customers across 26 states with a distinctive Phygital model that blends high-touch engagement across 13,000+ pin codes with high-tech solutions including machine learning models, agentic AI tools, and real-time dashboards. The rating reflects sustained improvements in asset quality, a granular retail loan book, strengthening profitability metrics, robust capitalisation, and a conservative liquidity position. 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 ₹1.50 lakh crore by FY28, while continuing improvement in profitability.

Piramal Finance Limited has executed amended and restated trust deeds dated December 30, 2025, establishing two reconstituted employee benefit trusts following its corporate merger with Piramal Enterprises Limited. The restructuring creates comprehensive employee welfare and stock option schemes designed to provide incentives and benefits to the company's workforce.

Trust Reconstitution Details

The company established two distinct trusts through separate amended trust deeds executed on December 30, 2025. The restructuring follows a composite scheme of arrangement between Piramal Enterprises Limited and Piramal Finance Limited that became effective on September 16, 2025, after approval from the National Company Law Tribunal, Mumbai Bench on September 10, 2025.

Trustee Appointments

The company appointed new trustees for both trusts to oversee their administration and implementation. For the Senior Employees Welfare Trust, Shri Bharat Mehra and Shri Nandan Damani were appointed as trustees. The PFL Employee ESOP Trust will be managed by Shri Arvind Agarwal and Shri Suresh Tapuriah as trustees.

Trust Objectives and Structure

Both trusts are designed to provide comprehensive employee benefits and stock ownership opportunities. The trusts will operate employee stock option schemes in compliance with Securities and Exchange Board of India regulations, allowing eligible employees to participate in the company's equity ownership.

Key objectives of the trusts include:

• Providing welfare benefits for employees and their families
• Operating stock option schemes for employee motivation and performance incentives
• Acquiring and holding company shares for employee benefit
• Advancing loans and financial assistance to employees for share acquisition
• Distributing income and corpus among beneficiaries as determined by the Compensation Committee

Employee Eligibility and Benefits

The trusts define eligible employees as permanent staff working in India or abroad, directors (excluding independent directors), and employees of group companies including subsidiaries and associates. However, promoters and directors holding more than 10.00% equity stakes are excluded from participation.

Beneficiaries will have specific rights including inspection of trust documents and receiving shares upon exercise of stock options. The trusts will acquire company shares through subscription or secondary market purchases, subject to regulatory compliance, and transfer these shares to employees upon option exercise.

Trust Duration and Distribution

The trusts will continue for 18 years from the death of the last beneficiary existing on the execution date, or until the company's winding up or unanimous trustee decision for earlier distribution. The Compensation Committee will determine the proportion of trust fund distribution among beneficiaries at the designated distribution date.