CRISIL Ratings has assigned a long-term rating of AA+/Stable to Piramal Finance Limited, marking a significant milestone in the company’s multi-year transformation into a scaled and diversified retail-focused lender. Piramal Finance is currently rated AA/Stable on its domestic long-term debt by ICRA and CARE Ratings.The AA+/Stable rating reflects sustained improvements in asset quality, a more granular retail loan book, strengthening profitability metrics, robust capitalisation and a conservative liquidity position. It also factors in the company’s strong promoter backing, which provides financial flexibility, strategic stability and ongoing support for long-term growth. The rating signals increasing institutional confidence in Piramal Finance’s governance standards and risk management framework.Over the past four to five years, the company has strengthened its operating model and balance sheet through strong capital buffers and prudent leverage, supported by promoter commitment. Asset quality has improved alongside the scaling up of a diversified retail portfolio, while the liability profile has been reinforced with access to longer-tenor and diversified funding sources. CRISIL also highlighted the company’s advanced risk management and underwriting capabilities, enabled by data analytics and AI-led decision frameworks across loan origination, monitoring and collections.Piramal Finance has made significant investments in technology and digital infrastructure, enhancing underwriting precision, early risk identification and scalable execution across its lending businesses.Jairam Sridharan, MD & CEO, Piramal Finance, said, “The CRISIL AA+/Stable rating reinforces the progress Piramal Finance has made in building a resilient and diversified lending franchise. It reflects our disciplined approach to risk management, governance, and technology-led execution.”Classified by the Reserve Bank of India as an Upper Layer NBFC, Piramal Finance has total outstanding borrowings of around Rs 750 billion and raised nearly Rs 210 billion in long-term funding in FY25. Its assets under management, excluding legacy business, have grown at a 40 per cent CAGR over the past four years to about Rs 860 billion, with total AUM at Rs 910 billion. The upgraded rating is expected to support the company’s plans to scale AUM beyond Rs 1.5 trillion by FY28 while continuing to improve profitability.