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Bond Market News
Piramal Finance Upgraded to BB by S&P
February 19, 2026
Piramal Finance was upgraded by a notch to BB from BB- by S&P. The upgrade reflects improved business stability due to a reduction in the legacy loan book, diversified lending, and an increased share of retail loans. Since 2020, Piramal Finance has restructured operations, significantly run down older loans, and shifted toward retail lending. Retail loans are expected to form about 85% of total AUM by FY2026, improving portfolio granularity and earnings stability. The company is projected to reach approximately INR1.5tn ($16.5bn) in AUM by FY2028, supporting market-share gains and growth. Profitability is also expected to improve. Return on assets (ROA) is forecasted to rise to 2.3–2.8% in FY2026, aided by normalization of credit losses and one-off gains from stake sales. Capitalization and liquidity remain its key rating strengths. A promoter-related letter of support, while not a formal guarantee, is expected to improve funding access and resilience. S&P expects credit costs to decline to 1.5–1.7% over the next two years from about 6% in FY2024 as legacy exposures shrink. However, risks remain due to real-estate exposure, relatively weaker borrower profiles, and reliance on wholesale funding.
It’s 7.8% 2028s traded stable at 103.1, yielding 6.06%
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