Piramal Finance Limited has received a major credit rating upgrade, with CRISIL Ratings assigning a long-term rating of AA+/Stable to the company’s non-convertible debentures and bank debt, marking a key milestone in its multi-year transformation into a diversified, retail-focused lender .
In addition, CRISIL has reaffirmed the A1+ rating on Piramal Finance’s commercial paper, reflecting strong short-term liquidity and funding access. The rating upgrade comes at a time when the company has total outstanding borrowings of around Rs 75,000 crore, underscoring the significance of improved credit strength for its cost of funds and market access .
According to CRISIL, the AA+/Stable rating reflects sustained improvement in asset quality, a granular and well-diversified retail loan book, strengthening profitability metrics, robust capitalisation, and a conservative liquidity position. The agency also highlighted the company’s strong promoter support, governance framework, and enhanced risk management capabilities as key positives .
Over the past four to five years, Piramal Finance has strengthened its operating model through prudent leverage, diversified long-tenor funding, and advanced underwriting and monitoring systems supported by data analytics and AI-led frameworks. The company has also invested significantly in technology and digital infrastructure to improve underwriting precision and early risk identification across lending businesses .
Commenting on the development, Managing Director and CEO Jairam Sridharan said the rating upgrade reinforces the company’s disciplined approach to risk management, governance, and technology-led execution, while enhancing its ability to access competitive long-term funding .
Piramal Finance, classified by the RBI as an Upper Layer NBFC, has an AUM of about Rs 91,000 crore and raised nearly Rs 21,000 crore in long-term funding in FY25. The AA+/Stable rating is expected to expand its addressable funding market and support its plans to scale AUM beyond Rs 1.5 lakh crore by FY28, alongside continued improvement in profitability .
