S&P Upgrades Piramal Finance to ‘BB’ with Stable Outlook
Filing Summary
On February 17, 2026, S&P Global Ratings upgraded the long-term issuer credit rating of Piramal Finance Limited from ‘BB-‘ to ‘BB’, maintaining a Stable outlook. The short-term issuer credit rating remains at ‘B’. Piramal Finance’s outstanding External Commercial Borrowings (ECBs) total approximately ₹14,000 crore. The company has a diversified funding profile, with total borrowings around ₹75,000 crore. Recent funding includes USD 350 million from IFC and ADB. Piramal Finance’s retail Assets Under Management (AUM) have grown at a 40% CAGR over four years, reaching approximately ₹86,000 crore.
S&P Global Ratings has upgraded the long-term issuer credit rating of Piramal Finance Limited from ‘BB-‘ to ‘BB’, with a Stable outlook. The short-term issuer credit rating is affirmed at ‘B’. This upgrade is part of Piramal Finance’s ongoing transformation into a diversified, retail-focused lending franchise. The company has been transitioning to a predominantly retail-focused portfolio, with retail loans projected to account for about 85% of total AUM by FY26.
Piramal Finance has total outstanding borrowings of approximately ₹75,000 crore. The company has raised nearly ₹14,000 crore in External Commercial Borrowings (ECBs) across FY25 and FY26. In January 2026, Piramal Finance secured a ‘AA+/Stable’ rating from CRISIL. Additionally, the company received USD 350 million in multilateral funding from the International Finance Corporation (IFC) and the Asian Development Bank (ADB) under its Sustainable Finance Framework. Discussions are ongoing to increase this funding to USD 500 million.
The company’s funding strategy includes a recent USD 400 million external commercial borrowing facility from a consortium of lenders, including Axis Bank, DBS Bank Ltd, Deutsche Bank AG, Far Eastern International Bank, and Sumitomo Mitsui Banking Corporation (SMBC). This funding supports Piramal Finance’s growth strategy and strengthens its liability profile. Classified by the Reserve Bank of India as an Upper Layer NBFC, Piramal Finance is one of the fastest-growing large NBFCs in India.
Piramal Finance’s retail Assets Under Management (AUM), excluding legacy business, have grown at a 40% compound annual growth rate (CAGR) over the past four years, reaching approximately ₹86,000 crore. The total AUM is over ₹96,000 crore. The company’s strategic focus includes expanding its reach across emerging consumer segments and broadening its suite of secured retail products.
The upgrade by S&P Global Ratings reflects expectations of sustained improvement in profitability and asset quality, supported by strong capitalization and steady market share gains over the next 12–24 months. The company’s strong promoter strength provides financial flexibility and strategic stability, supporting long-term growth.
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 manages Assets Under Management (AUM) of over ₹96,000 crore and operates a distinctive phygital model, combining high-touch engagement with high-tech capabilities. In retail lending, Piramal Finance offers various loan products, focusing on metro-adjacent, semi-urban, and rural markets. The company is committed to expanding access to affordable credit and driving inclusive growth across India.