S&P Global Ratings Upgrades Piramal Finance to 'BB' with Stable Outlook
S&P Global Ratings upgraded Piramal Finance's long-term issuer credit rating to ‘BB’ from ‘BB-’ with a Stable outlook. This reflects stronger business stability and earnings resilience driven by a shift to a retail-focused portfolio, projected at 85% of AUM by FY26. The company secured ₹14,000 crore in ECBs and USD 750 million in multilateral and external funding.
A credit rating upgrade by a major agency like S&P Global Ratings can significantly enhance a company's borrowing capacity, reduce its cost of capital, and improve investor confidence, thus having a high impact on its financial operations and growth prospects.
The upgrade in credit rating by S&P Global Ratings to 'BB' with a stable outlook is a positive development for the company, indicating improved financial health and stability.
Piramal Finance Limited has announced that S&P Global Ratings has upgraded its long-term issuer credit rating to ‘BB’ from ‘BB-’, with a Stable outlook, while affirming its ‘B’ short-term issuer credit rating. This upgrade signifies a key milestone in the company's transformation into a diversified, retail-focused lending entity.
The upgrade by S&P Global Ratings is attributed to expectations of stronger business stability and earnings resilience at Piramal Finance. This is driven by the steady reduction of legacy exposures and a strategic shift towards a predominantly retail-focused portfolio, with retail loans projected to constitute about 85% of total Assets Under Management (AUM) by FY26. The rating also acknowledges the company’s robust promoter strength, which offers financial flexibility and sustained support for long-term growth.
Jairam Sridharan, MD & CEO of Piramal Finance, stated that the rating upgrade reflects the significant progress made in strengthening the balance sheet and building a resilient, diversified retail-focused franchise. He highlighted improvements in underwriting, governance, and the deeper integration of technology, leading to a more granular and scalable platform. The company aims to expand its reach across emerging consumer segments and broaden its secured retail product offerings, focusing on responsible credit delivery with strong asset quality and sustainable returns.
Piramal Finance has total outstanding borrowings of approximately ₹75,000 crore and has raised nearly ₹14,000 crore in External Commercial Borrowings (ECBs) across FY25 and FY26. In January 2026, the company secured a ‘AA+/Stable’ rating from CRISIL. Also 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, with plans to scale this to USD 500 million. Furthermore, the company recently raised USD 400 million through an ECB 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).
As an Upper Layer NBFC classified by the Reserve Bank of India, Piramal Finance is among the fastest-growing large NBFCs in India. Its retail AUM (excluding legacy business) has grown at a 40% CAGR over the past four years to approximately ₹86,000 crore, with total AUM exceeding ₹96,000 crore.
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