CARE Ratings Upgrades Piramal Finance to CARE AA+; Stable
Filing Summary
Piramal Finance Limited announced an upgrade in its credit rating by CARE Ratings to CARE AA+; Stable from CARE AA; Stable. This follows a similar rating by CRISIL in January 2026. The upgrade reflects the company’s improved financial and risk profile, supported by a transition to a retail-led portfolio. Retail loans are projected to constitute 85% of total AUM by FY26. The company has raised significant funds through external commercial borrowings and multilateral funding, enhancing its financial flexibility and strategic stability.
Piramal Finance Limited has received an upgrade in its credit rating from CARE Ratings to CARE AA+; Stable, up from CARE AA; Stable. This rating change reflects the company’s enhanced financial and risk profile. The upgrade follows a similar rating action by CRISIL in January 2026, which also assigned an AA+/Stable rating. These ratings indicate the company’s business stability and credit strength.
The upgrade by CARE Ratings is based on expectations of improved business stability, driven by the company’s transition to a predominantly retail-led portfolio. Retail loans are projected to account for approximately 85% of total Assets Under Management (AUM) by the fiscal year 2026. The company has a total AUM exceeding ₹96,000 crore, with retail AUM growing at a compound annual growth rate of 40% over the past four years to approximately ₹86,000 crore. Piramal Finance has total outstanding borrowings of approximately ₹75,000 crore and has raised nearly ₹14,000 crore through External Commercial Borrowings (ECBs) across FY25 and FY26.
In January 2026, Piramal Finance secured USD 350 million in multilateral funding from the International Finance Corporation (IFC) and the Asian Development Bank (ADB) under its Sustainable Finance Framework. This marked the company’s first development finance institution borrowing, with discussions underway to scale this to USD 500 million. Additionally, in February 2026, S&P Global Ratings upgraded the company’s long-term issuer credit rating to BB from BB-, with a Stable outlook.
The company has further strengthened its funding base by raising USD 400 million through an external commercial borrowing facility from a consortium of global and domestic lenders, including Axis Bank, DBS Bank Ltd, Deutsche Bank AG, Far Eastern International Bank, and Sumitomo Mitsui Banking Corporation (SMBC). This diversification of funding sources supports Piramal Finance’s strategic stability and long-term growth.
Piramal Finance is classified by the Reserve Bank of India as an Upper Layer Non-Banking Financial Company (NBFC). It is one of the fastest-growing large NBFCs in India, with a focus on retail lending. The company offers various loan products, including home loans, loans against property, used car loans, personal loans, digital loans, and small business loans. It emphasizes metro-adjacent, semi-urban, and rural markets.
Piramal Finance Limited is a retail-led upper layer NBFC with a pan-India presence, serving over 5 million customers across 26 states. The company operates a distinctive phygital model, combining high-touch engagement with high-tech capabilities, including machine learning models and AI tools. It is committed to expanding access to affordable credit and driving inclusive growth across India.