CARE Ratings Upgrades Piramal Finance to CARE AA+; Stable
CARE Ratings upgraded Piramal Finance's Long-Term Bank Facilities and Debentures rating to ‘CARE AA+; Stable’. This follows a similar upgrade by CRISIL. The upgrade reflects improved business stability and a transition to a retail-led portfolio, projected at 85% of AUM by FY26. Retail AUM stands at ₹86,000 crore.
A credit rating upgrade by a major agency like CARE is significant for a financial institution as it can improve borrowing costs and investor confidence, impacting its ability to raise capital and grow. However, the core business operations and profitability are not directly altered by this rating action itself, hence the medium impact.
The company's credit ratings have been upgraded by CARE Ratings, indicating improved financial health and market confidence, which is a positive development.
Piramal Finance Limited announced that CARE Ratings has upgraded its Long-Term Bank Facilities and Debentures rating to ‘CARE AA+; Stable’ from ‘CARE AA; Stable’. This upgrade reflects the continued strengthening of the company’s financial and risk profile, following a similar upgrade by CRISIL in January 2026.
The CARE upgrade is attributed to expectations of improved business stability, supported by the steady run-down of legacy exposures and the company’s transition to a predominantly retail-led portfolio, which is projected to account for approximately 85% of total AUM by FY26. The rating also factors in strong promoter backing.
Jairam Sridharan, Managing Director & CEO, Piramal Finance, stated that the upgrade endorses the progress in strengthening the balance sheet, diversifying the portfolio, and enhancing operational resilience. He highlighted that receiving AA+ ratings from two domestic agencies reflects market confidence in their strategic direction and enhances their ability to access capital at competitive costs.
Piramal Finance, an Upper Layer NBFC, has seen retail AUM grow at a CAGR of 40% over the past four years to approximately ₹86,000 crore, with total AUM exceeding ₹96,000 crore. The company has total outstanding borrowings of approximately ₹75,000 crore and raised nearly ₹14,000 crore through ECBs across FY25 and FY26.
In January 2026, the company secured USD 350 million in multilateral funding from IFC and ADB. In February 2026, S&P Global Ratings upgraded Piramal Finance’s long-term issuer credit rating to ‘BB’ from ‘BB-’. Additionally, the company recently raised USD 400 million through an external commercial borrowing facility from a consortium of global and domestic lenders.
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Piramal Finance Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Piramal Finance Limited. Read the original for the full detail.