India’s corporate bond market has quietly become one of the largest pools of corporate financing in the country. Outstanding corporate bonds have grown from around ₹17.5 lakh crore back in FY15 to ₹59 lakh crore in FY26, at a compound annual growth rate of roughly 12%. Issuers raised about ₹9.1 lakh crore through bonds in FY26 alone, nearly twice as much as they did through equity markets in the same timeframe.
A handful of large, high-rated conglomerates dominate this market, with Tata, Bajaj, Aditya Birla, Mahindra, Reliance, and L&T consistently among the most active. If you’re thinking about buying corporate bonds or NCDs and wondering how these giants stack up against each other, this article should give you a good idea. We’ll walk through how each of these groups borrows cash, what kind of ratings and coupons they typically come with, and what that actually means for you when you’re reading a term sheet.
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Why These Six Groups Matter in India’s Bond Market
Nearly 85–90% of all bond issuances in India carry AAA or AA ratings, and about 70% of outstanding bonds come from financial sector entities, which limits options available for investors, especially since private placements dominate the primary market as well.
This is where the big players come in: Tata Capital, Bajaj Finance, Aditya Birla Capital, Mahindra Finance, and L&T Finance. These are all non-banking financial company (NBFC) arms of larger industrial groups, and all proudly sporting AAA ratings from CRISIL, ICRA, India Ratings, or CARE. Then there’s Reliance Industries, the odd one out: an operating conglomerate (energy, retail, telecom) and not an NBFC, so its debt profile is structured differently, more closely tied to capex cycles than loan-book growth.
Because these are largely private placements aimed at institutional investors, retail investors typically encounter them either through public NCD tranches, mutual funds holding this paper, or listed secondary-market bonds on NSE/BSE accessible via Online Bond Platform Providers (OBPPs).
How Each Issuer Has Been Borrowing Lately
Tata Capital has been a regular at the bond market this year. The board has approved a plan to raise up to ₹36,000 crore through privately placed NCDs (including green bonds) in 2026, to be executed in one or more tranches, subject to shareholder approval. Among its 2026 issuances, Tata Capital allotted a ₹505 crore fixed-rate NCD on May 12 at a 7.97% coupon, maturing in 2031, followed by a ₹2,030 crore fixed-rate NCD on June 11 at an 8.15% coupon, maturing in 2029. Both carried CRISIL AAA/Stable and ICRA AAA/Stable ratings.
Bajaj Finance, one of India’s largest NBFCs, has raised funds through multiple NCD tranches during 2026 rather than relying on a single large issuance. On September 8, 2026 [1], it allotted ₹2,050.03 crore of secured NCDs carrying an 8.07% coupon and maturing on March 25, 2030, with a tenure of 1,294 days. The NCDs were proposed to be listed on the BSE Wholesale Debt Market Segment. This was one of several private-placement NCD allotments by the company during the year.
Aditya Birla Capital has also accessed the NCD market repeatedly in 2026 [2], with multiple private-placement allotments during the year. These include ₹254 crore in January, ₹250 crore in February, ₹728 crore in May, ₹1,100 crore in June, ₹300 crore in September and a larger ₹2,335 crore multi-tranche issue on September 9. The pattern highlights ABCL’s use of multiple NCD issuances and tranche sizes to raise debt funding through the year, rather than relying on a single large issuance.
Mahindra Finance also accessed the NCD market through multiple issuances in May 2026 [3]. On May 12, it allotted ₹875 crore of secured NCDs carrying a fixed 7.90% coupon. A week later, on May 19, it allotted another ₹2,200 crore under Series AC2026 through a floating-rate structure linked to the 3-month T-Bill plus a 2.10% spread, with the NCDs maturing in May 2029.
Reliance Industries issues debt less frequently in the domestic public NCD market than the NBFCs above, with its financing mix also including private placements, external borrowings, and internal cash generation. In January 2026 [4], ICRA reaffirmed an AAA (Stable) rating on RIL’s ₹12,000 crore NCD program and an A1+ rating on its ₹10,000 crore commercial paper program. ICRA also reaffirmed and withdrew a separate ₹3,000 crore NCD rating. The ratings underline the strong credit quality assigned to RIL’s rated domestic debt instruments.
L&T Finance, like Mahindra Finance and Bajaj Finance, is a frequent AAA-rated NBFC borrower. On September 2, it allotted ₹500 crore of senior secured NCDs at a 7.8384% coupon, maturing in September 2029, followed by another ₹650 crore allotment on September 18 at the same coupon and maturity. Earlier in the year, it had also raised ₹1,500 crore in June, ₹1,000 crore in July, and ₹235 crore in August through NCD issuances.
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Side-by-Side Comparison
| Issuer | Core Entity | Typical Rating | Recent Debt Example | Coupon/Yield | Tenor |
| Tata | Tata Capital | AAA (CRISIL/ICRA) | ₹2,030 cr NCD, Jun 2026 | 8.15% fixed | ~3 years |
| Bajaj | Bajaj Finance | AAA (CRISIL/ICRA) | ₹2,050.03 cr NCD, Sep 2026 | 8.07% | ~3.5 years |
| Aditya Birla | Aditya Birla Capital | AAA (Stable) | ₹2,335 cr NCD, Sep 2026 | 8.10% / 7.98% + zero-coupon tranches | Multi-tenor |
| Mahindra | M&M Financial Services | AAA (CRISIL/India Ratings/CARE) | ₹2,200 cr floating-rate NCD, May 2026 | 3M T-Bill + 2.10% | ~3 years |
| Reliance | Reliance Industries Ltd | AAA (ICRA) | ₹12,000 cr NCD program, reaffirmed Jan 2026 | Programme-level | Varies |
| L&T | L&T Finance | AAA | ₹650 cr NCD, Sep 2026 | 7.8384% | ~3.2 years |
Note: Figures reflect specific tranches allotted through 2026 and can change with each new issuance. Always check the live terms of the specific ISIN before investing.
What This Means If You’re Evaluating These Bonds
A few practical points worth keeping in mind:
- AAA doesn’t necessarily mean identical risk. All six of these are highly rated, but the reasons behind their ratings differ significantly. For instance, Reliance’s rating is rooted in its diversified operating cash flows, whereas the NBFCs’ ratings are more about the quality of their loan books, capital adequacy, and parent group support.
- Coupon differences often reflect tenor and structure, not just credit risk. A zero-coupon tranche, a floating-rate note, and a plain fixed-rate NCD from the same issuer aren’t directly comparable without adjusting for duration and payout structure.
- Private placement is the norm, not the exception. Over the past five years, nearly 99% of corporate bond issuance in India has been through private placements, which means retail investors typically access these bonds secondhand through listed NCDs, mutual funds, or OBPPs.
- Liquidity varies. Even AAA bonds from these issuers can trade pretty thinly in the secondary market, so if you need to sell before maturity, there’s no guarantee you’ll get the exit price you expect.
The Bigger Picture
SEBI has noted that while the Indian bond market is sizable, it is not sufficiently diverse, featuring only AAA/AA bonds, financial sector issuers, and low retail involvement. This has been part of the reason behind NITI Aayog introducing changes to deepen the Indian market to ₹100–120 lakh crore by 2030 by aligning regulations at SEBI, RBI, and MCA, along with standardized disclosure standards. The market’s growth trajectory so far backs that ambition: from ₹17.5 lakh crore in FY15 to around ₹60 lakh crore in FY26 so far (roughly 12% annual growth). This shows that reform-led deepening could plausibly get it there.
For now, Tata, Bajaj, Aditya Birla, Mahindra, Reliance, and L&T remain useful reference points precisely because they’re so active; their issuance patterns are a fair proxy for where India’s top-rated corporate debt market is heading.
Corporate Debt Issuers Frequently Asked Questions
No. An AAA rating indicates the rating agency’s assessment of very strong credit quality, but it does not eliminate interest-rate, liquidity, reinvestment, or market-price risks.
The issuer and the specific instrument matter more for analyzing a particular bond. A well-known parent name does not automatically transfer the same credit characteristics to every subsidiary or debt security.
Yes. Ratings can differ because the instruments may have different seniority, guarantees, structures, or repayment characteristics. For example, Aditya Birla Capital’s April 2026 rating disclosure showed AAA/Stable ratings for NCDs, while its perpetual debt was rated AA+/Stable.
Yes. Large corporate and financial-sector issuers can access debt markets through different routes, including public issues and private placements. Recent 2026 market data, for example, records Bajaj Finance and L&T Finance private-placement issuances.
Yes. A financial company, infrastructure company, manufacturing business, and diversified conglomerate can have very different revenue models, leverage profiles, and sensitivity to economic conditions. Sector analysis therefore complements the credit rating.
Not automatically. Check whether the parent provides a guarantee or other credit support. Without such support, the subsidiary’s own ability to repay remains central to the investment analysis.
Sources
- BSE — Bajaj Finance, September 8, 2026 allotment filing
- Aditya Birla Capital — SEBI Disclosures
- Mahindra Finance — Debt Information
- ICRA — Reliance Industries Limited: Ratings reaffirmed for NCDs and commercial paper programme
Disclaimer
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