Piramal Finance Rated BBB Stable by JCR and R&I
Piramal Finance Limited received "BBB, Stable" ratings from JCR and R&I. The company's AUM reached ₹1 trillion by FY2026, with 85% in retail loans. FY2026 operating income was ₹120.3 billion and net profit was ₹15.1 billion. Capital adequacy stands at 19.8%.
Credit ratings are crucial for a financial institution as they impact borrowing costs, investor confidence, and overall market perception.
The company received stable credit ratings from two major agencies, reflecting its strong financial profile and successful business model transition.
Piramal Finance Limited (PFL) has received credit ratings from Japan Credit Rating Agency, Ltd. (JCR) and Rating and Investment Information, Inc. (R&I). JCR assigned a Foreign and Local Currency Long-term Issuer Rating of "BBB, Stable", while R&I assigned Foreign and Domestic Currency Issuer Ratings of "BBB, Stable".
These ratings reflect PFL's strong business, financial, and risk profile as an Upper Layer NBFC. The company has successfully transitioned to a retail-focused model, with its Assets Under Management (AUM) reaching ₹1 trillion (approximately $12 billion) by the end of FY2026. The retail segment now constitutes 85% of its portfolio, with legacy wholesale exposure reduced to 2.8%. PFL's loan portfolio is diversified, with housing loans at 31.5% and loans against property at 25.7%, and secured loans forming 82% of the total. The gross NPA ratio stands at 2.3%, with retail NPAs at 1.9%.
In FY2026, PFL reported operating income of ₹120.3 billion (approximately $1.44 billion) and net profit of ₹15.1 billion (approximately $181 million), though this included a one-off gain and legacy asset provisioning. The company's capital adequacy ratio was 19.8%, exceeding the regulatory requirement of 15%, and its liquidity coverage ratio was over 900%.
Both rating agencies noted the strong growth potential of the Indian market, alongside associated risks. They highlighted PFL's robust franchise, expanded customer base, and nationwide distribution network, achieved through a "High Tech & High Touch" approach. While profit levels are considered modest due to legacy asset write-offs, there is potential for improvement through cost efficiency and reduced funding costs. The agencies will monitor PFL's ability to strengthen its market position and earning capacity amidst increasing competition.
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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 high impact, which is the band that most often changes something.
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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.