S&P Global Ratings Upgrades Piramal Finance Limited to 'BB' with Stable Outlook
S&P Global Ratings upgraded Piramal Finance Limited's long-term issuer credit rating to 'BB' from 'BB-' with stable outlook, reflecting stronger business stability and retail-focused transformation. The company has total outstanding borrowings of ₹75,000 crore and raised ₹14,000 crore in ECBs across FY 25 and FY 26. With retail loans projected to account for 85% of total AUM by FY26, the upgrade supports the company's diversified funding strategy and growth ambitions as an upper layer NBFC serving over 5 million customers.
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S&P Global Ratings has upgraded Piramal Finance Limited's long-term issuer credit rating to 'BB' from 'BB-' with a stable outlook, marking a significant milestone in the company's multi-year transformation into a scaled, diversified, retail-focused lending franchise. The rating agency also affirmed the company's 'B' short-term issuer credit rating.
Rating Upgrade Details
The upgrade reflects S&P Global Ratings' expectation of stronger business stability and earnings resilience at Piramal Finance, driven by the steady run-down of legacy exposures and transition to a predominantly retail-focused portfolio. The rating agency projects that retail loans will account for about 85% of total AUM by FY26.
| Rating Component: | Previous | Current |
|---|---|---|
| Long-term Issuer Rating: | BB- | BB |
| Short-term Issuer Rating: | B | B (Affirmed) |
| Outlook: | - | Stable |
Management Commentary
Jairam Sridharan, MD & CEO of Piramal Finance, emphasized that the rating upgrade reflects significant progress in strengthening the balance sheet and building a resilient, diversified retail-focused franchise. He highlighted the company's focus on sharpened underwriting, strengthened governance, and deeper technology integration, resulting in a more granular and scalable platform.
Financial Position and Funding Profile
Piramal Finance demonstrates strong financial positioning with diversified funding sources:
| Financial Metric: | Amount |
|---|---|
| Total Outstanding Borrowings: | ₹75,000 crore |
| External Commercial Borrowings (ECBs): | ₹14,000 crore |
| ECB Period: | FY 25 and FY 26 |
| Total AUM: | ₹96,000 crore |
| Retail AUM (excluding legacy): | ₹86,000 crore |
Recent Funding Initiatives
The company has undertaken several significant funding initiatives to strengthen its liability profile:
- January 2026: Secured USD 350 million in multilateral funding from the International Finance Corporation (IFC) and Asian Development Bank (ADB) under its Sustainable Finance Framework
- Recent: Raised USD 400 million through external commercial borrowing facility from a consortium including Axis Bank, DBS Bank Ltd, Deutsche Bank AG, Far Eastern International Bank, and Sumitomo Mitsui Banking Corporation (SMBC)
- January 2026: Obtained 'AA+/Stable' rating from CRISIL
Business Profile and Growth
Piramal Finance operates as a retail-led upper layer NBFC with pan-India presence, having served over 5 million customers across 26 states. The company is classified by the Reserve Bank of India as an Upper Layer NBFC and ranks among the fastest-growing large NBFCs in India, with retail AUM (excluding legacy business) growing at a 40% CAGR over the past four years.
The company operates through a distinctive phygital model, combining high-touch engagement across 13,000+ pin codes with advanced technology capabilities including machine learning models, agentic AI tools, and real-time dashboards. Its product portfolio spans home loans, loans against property, used car loans, personal loans, digital loans, and small business loans, with strong focus on metro-adjacent, semi-urban, and rural markets.
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