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This is the second domestic rating action at the AA+ level, following CRISIL's assignment of AA+/Stable in January 2026, reinforcing confidence in Piramal Finance's business stability, earnings resilience, and overall credit strength.
S&P Global Ratings has upgraded Piramal Finance's long-term issuer credit rating to ‘BB' from ‘BB-', with a Stable outlook, while affirming its ‘B' short-term issuer credit rating. This upgrade marks a significant milestone in Piramal Finance's multi-year transformation into a scaled, diversified, retail-focused lending franchise.
S&P Global Ratings' upgrade reflects its expectation of stronger business stability and earnings resilience at Piramal Finance, driven by the steady run-down of legacy exposures and the transition to a predominantly retail-focused portfolio. Retail loans are projected to account for about 85% of total AUM by FY26. The rating also factors in the company's strong promoter strength, which provides financial flexibility, strategic stability, and sustained support for long-term growth.
Piramal Finance has total outstanding borrowings of approximately Rs 75,000 crore and raised nearly Rs 14,000 crore in External Commercial borrowings (ECBs) across FY 25 and FY 26, underscoring its diversified funding profile. In January 2026, the company secured a ‘AA+/Stable' rating from CRISIL, reinforcing confidence in its strengthened credit profile. During the same month, the company secured USD 350 million in multilateral funding from the International Finance Corporation (IFC) and the Asian Development Bank (ADB) under its Sustainable Finance Framework — its first development finance institution borrowing — with discussions underway to scale this up to USD 500 million, marking a key step in diversifying its liability base.
Additionally, the company recently raised USD 400 million through an external commercial borrowing facility from a consortium of leading global and domestic lenders - Axis Bank, DBS Bank, Deutsche Bank AG, Far Eastern International Bank and Sumitomo Mitsui Banking Corporation (SMBC) - further strengthening its liability profile and supporting its growth strategy. Classified by the Reserve Bank of India as an Upper Layer NBFC, the company is among the fastest-growing large NBFCs in India, with retail AUM (excluding legacy business) growing at a 40% CAGR over the past four years to approximately Rs 86,000 crore and total AUM of over ₹96,000 crore.
Net interest income jumped 31% to Rs 1,227 crore in the December’25 quarter from Rs 940 crore recorded in the December’24 quarter. NIM expanded by 51 bps YoY during the quarter to 6.3%.
Total income increased by 29% YoY to Rs 1,480 crore in Q3 FY26.
Operating expenses for the period under review added up to Rs 821 crore, up 4% YoY.
Accordingly, operating profit was Rs 659 crore for Q3 FY26, up 84% YoY.
The NBFC has recorded 36% increase in provisions to Rs 370 crore in Q3 FY26 from Rs 272 crore in Q3 FY25.
Profit before tax for Q3 FY26 was Rs 328 crore as against Rs 91 crore in Q3 FY25.
The company said that its asset quality remained stable, with GNPA at 2.6% and NNPA at 1.9% as on 31 December 2025.
Total assets under management (AUM) grew by 23% YoY to Rs 96,690 crore as on 31 December 2025.
The company’s networth at the end of December’25 period was Rs 27,872 crore, with cash and liquid investments of Rs 7,504 crore.
Anand Piramal, chairman, Piramal Finance, said: “Q3 was another strong quarter, and it capped a very solid nine-month performance in FY26.
We have also recently achieved a few important milestones. Earlier this month, we received a CRISIL AA+ rating for our long-term debt, which strengthens our ability to scale up responsibly and profitably.
We also secured our inaugural DFI funding of $350 million from IFC and ADB — an important validation of our business model, governance and long-term direction. This partnership also diversifies our funding sources and supports our growth plans. Alongside growth, we remain focused on strengthening our balance sheet.
We recently monetised our stake in Shriram Life Insurance for Rs 600crore, expected to close in Q4.
The consistency we have seen across the last several quarters gives us confidence in our direction and our ability to deliver sustained growth and profitability.”
Piramal Finance is a retail-led upper layer NBFC with a pan-India presence, having served over 5 million customers across 26 states. In retail lending, the company offers home loans, loans against property, used car loans, personal loans, digital loans and small business loans. In wholesale lending, the company provides asset-backed, data-driven solutions across real estate and select non-real estate sectors.
The scrip had declined 1.53% to end at Rs 1792.95 on the BSE on Friday.
Piramal Finance has total outstanding borrowings of approximately Rs 75,000 crore and raised nearly Rs 21,000 crore in long-term funding in FY25. Classified by the Reserve Bank of India (RBI) as an Upper Layer NBFC, the company is among the fastest-growing large NBFCs, the company's AUM (excluding legacy business) growing at a 40% CAGR over the last four years to about Rs 86,000 crore. The total AUM at Rs 91,000 crore. The AA+/Stable rating significantly expands Piramal Finance's addressable long-term funding market and is expected to support its plans to scale AUM to over Rs 1.5 lakh crore by FY28, while continued improvement in profitability.
PEL shares last traded at Rs 1,124.60 on 22 September 2025, before being suspended ahead of the merger record date. Shareholders of PEL received equity shares of Piramal Finance in a 1:1 ratio.
The merger combines the operations of PEL and its erstwhile subsidiary, Piramal Capital & Housing Finance, under a single platform. All PEL debt securities have been transferred to Piramal Finance.
The integration aims to streamline operations and create a stronger, more diversified non-banking financial company (NBFC) under the Piramal brand.
In a media interview, managing director and CEO Jairam Sridharan described the merger as the beginning of 'Piramal 2.0,' positioning the firm as a fast-growing, technology-led retail lender focused on semi-urban India. He said the company is targeting a Return on Assets (RoA) of 3% in the coming years, supported by efficiency gains and AI adoption.
For Q1 FY26, Piramal Enterprises reported a 22% year-on-year rise in consolidated total AUM to Rs 85,756 crore, with net profit up 52% to Rs 276 crore. The company operates 517 branches across 26 states and maintained retail 90+ DPD (Days Past Due) at 0.8%, reflecting strong asset quality.