CRISIL Assigns AA+/Stable Rating to Piramal Finance
Filing Summary
CRISIL Ratings has assigned a long-term rating of AA+/Stable to Piramal Finance Limited for its non-convertible debentures and bank debt. The company also received an A1+ rating for its commercial paper. Piramal Finance has total outstanding borrowings of approximately Rs. 75,000 crore and raised nearly Rs. 21,000 crore in long-term funding in FY25. The company’s assets under management (AUM) have grown at a 40% CAGR over the last four years, reaching Rs. 91,000 crore. The rating reflects improvements in asset quality, profitability, and risk management.
CRISIL Ratings has assigned a long-term rating of AA+/Stable to Piramal Finance Limited for its non-convertible debentures and bank debt. The rating agency also reaffirmed an A1+ rating for the company’s commercial paper. This rating assignment marks a significant development in Piramal Finance’s transformation into a diversified retail-focused lender. The company previously held an AA/Stable rating for its domestic long-term debt from ICRA and CARE Ratings.
Piramal Finance has total outstanding borrowings of approximately Rs. 75,000 crore. In FY25, the company raised nearly Rs. 21,000 crore in long-term funding. The company’s assets under management (AUM), excluding legacy business, have grown at a 40% compound annual growth rate (CAGR) over the last four years, reaching about Rs. 86,000 crore. The total AUM stands at Rs. 91,000 crore. The AA+/Stable rating is expected to expand Piramal Finance’s access to long-term funding markets.
The rating reflects sustained improvements in asset quality, a granular retail loan book, and strengthening profitability metrics. Piramal Finance has enhanced its operating model and balance sheet with strong capital buffers and prudent leverage. The company has improved its asset quality through a diversified and scaled retail portfolio. It has also strengthened its liability profile by accessing diversified and longer-tenor funding sources. Advanced risk management and underwriting capabilities, enabled by data analytics and AI-led decision frameworks, have been integral to these improvements.
Piramal Finance has made significant investments in technology and digital infrastructure. These investments have enhanced underwriting precision, early risk identification, and scalable execution across its lending businesses. The company’s strong promoter strength provides financial flexibility, strategic stability, and sustained support for long-term growth. The rating also signals growing institutional confidence in the company’s governance framework and risk management capabilities.
The company is classified by the Reserve Bank of India (RBI) as an Upper Layer Non-Banking Financial Company (NBFC). Piramal Finance is among the fastest-growing large NBFCs in India. The company aims to scale its AUM to over Rs. 1.5 lakh crore by FY28 while continuing to improve profitability.
Piramal Finance Limited, formerly known as Piramal Capital & Housing Finance Limited, is a rapidly growing Upper Layer NBFC in India. The company serves over 5 million customers across 26 states. Its business model combines high-touch engagement with high-tech solutions, including machine learning models and AI tools. Piramal Finance focuses on retail lending, offering home loans, loans against property, used car loans, personal loans, digital loans, and small business loans. The company also provides asset-backed, data-driven solutions in wholesale lending, focusing on mid-segment residential projects and capital solutions for mid-market corporates.