Credit Rating by ICRA Limited

September 3, 2026 BSE Limited National Stock Exchange of India Limited P. J. Towers, Listing Department Dalal Street, Fort, Exchange Plaza, 5th Floor, Mumbai – 400 001 Plot no. C/1, G- Block, Scrip Code: 511218 Bandra-Kurla Complex, Mumbai – 400 051 NSE Symbol: SHRIRAMFIN Dear Sir/Madam, Sub.: Intimation under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) and other applicable SEBI Regulations, if any – Credit Rating by ICRA Limited This is to inform you that the ICRA Limited (“ICRA Ratings”) vide its Rationale dated September 3, 2026 has assigned [ICRA]AAA; Stable rating to Rs.5,000 crores Non-Convertible Debenture Programme and reaffirmed the ratings of the various instruments of the Company as per the following: Instrument Rated Amount Rating Rating action (Rs. in crores) Non-Convertible Debenture 5,000.00 [ICRA]AAA; Stable Assigned Programme Non-Convertible Debenture 2,975.00 [ICRA]AAA; Stable Reaffirmed Programme Fixed Deposit Programme - [ICRA]AAA; Stable Reaffirmed ICRA’s Rating Rationale dated September 3, 2026 is enclosed. The intimation will be uploaded on the website of the Company (www.shriramfinance.in) as per Regulation 62(1)(i) of the Listing Regulations. This event/information occurred on September 3, 2026 at 02.30 p.m. This is in compliance with Regulation 30, Regulation 51(2) and other applicable Regulations of the Listing Regulations, other applicable SEBI Regulations, if any. We request you to take the same on record. Thanking you, Yours faithfully, For Shriram Finance Limited U Balasundararao Company Secretary & Chief Compliance Officer Encl.a/a Shriram Finance Limited Corporate Office: Wockhardt Towers, Level -III, West Wing, C-2, G-Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051, Maharashtra. Ph: +91 22 4095 9595 Registered Office. Sri Towers, Plot No.14A, South Phase, Industrial Estate, Guindy, Chennai – 600 032, Tamil Nadu, India. Tel: +91 44 485 24 666 Email: secretarial@shriramfinance.in I Website: www.shriramfinance.in I Corporate Identity Number (CIN) — L65191TN1979PLC007874 September 3, 2026 Shriram Finance Limited: [ICRA]AAA (Stable) assigned to Rs. 5,000-crore NCD programme; rating reaffirmed Summary of rating action Previous rated Current rated Financial sector Instrument* amount amount Rating action regulator# (Rs. crore) (Rs. crore) [ICRA]AAA (Stable); Fixed deposit programme - - RBI reaffirmed Non-convertible debenture [ICRA]AAA (Stable); 2,975.0 2,975.0 SEBI programme reaffirmed Non-convertible debenture [ICRA]AAA (Stable); - 5,000.0 SEBI programme assigned Total 2,975.0 7,975.0 *Instrument details are provided in Annexure I # The Securities and Exchange Board of India’s (SEBI) grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments that fall under the regulatory purview of financial sector regulators other than SEBI Rationale The rating factors in Shriram Finance Limited’s (SFL) leadership position in the preowned commercial vehicle (CV) financing segment with an established track record, brand, strong customer reach and granular retail loan book. SFL is India’s second largest non-banking financial company (NBFC) by assets under management (AUM) as of June 2026 with 74% of its AUM focussed on vehicle financing. The rating also considers the company’s track record of maintaining healthy profitability across cycles. The rating factors in SFL’s strong capitalisation profile with a capital-to-risk weighted assets ratio (CRAR) of 34.2% as on June 30, 2026 (20.4% as on March 31, 2026), supported by healthy internal accretion and the capital infusion of ~Rs. 39,618 crore in April 2026 by MUFG Bank Ltd1 (MUFG; 20% stake in the company as of June 2026). The capital infusion has significantly bolstered SFL’s capitalisation profile, providing sizeable buffer for growth and for managing volatility in its asset quality, given the target asset class/borrower profile. The company’s financial flexibility and earnings performance have also improved due to this equity infusion. With the gearing declining on account of the capital raise and the improvement in the cost of incremental borrowings, the net interest margin (NIM) rose further to 8.6%2 of average managed assets (AMA) in Q1 FY2027 (7.5% in FY2026) at the standalone level while the operating efficiency continues to improve gradually. Driven by higher margins, the company reported a rise in its return on average managed assets (RoMA) to 3.9% in Q1 FY2027 from 3.1% in FY2026 at the standalone level. On a consolidated basis, RoMA was estimated at 3.9% for Q1 FY2027 (3.1% in FY2026). The rating factors in SFL’s moderate asset quality, given the modest borrower profile. The standalone asset quality indicators remained largely stable with gross and net stage 3 assets of 4.6% and 2.3%, respectively, as on June 30, 2026 (4.6% and 2.3%, respectively, as on March 31, 2026). ICRA notes that credit costs remained under control at 1.7% of AMA in Q1 FY2027 (1.4% in FY2026). While ICRA takes comfort from SFL’s track record of managing credit costs through business cycles, the asset quality remains monitorable. The Stable outlook on the rating reflects ICRA’s expectation of SFL maintaining strong capitalisation and a healthy earnings profile while continuing to scale up its operations. 1 Rated A1/Stable by Moody’s Investors Service 2 9.04% and 8.38% in Q1 FY2027 and FY2026, respectively, as reported by the company in its quarterly investor presentation www.icra .in 1 Sensitivity Label : Public Page | Key rating drivers and their description Credit strengths Diversified product offerings with leadership position in preowned vehicle financing segment – SFL is one of the largest retail NBFCs with AUM of about Rs. 3,13,798 crore as on June 30, 2026. It is the largest player in the preowned CV financing segment in the country with a dominant market position. The company’s proven track record and well-established franchise (3,755 branches and rural centres as on June 30, 2026) result in strong customer reach and a granular retail loan book. Moreover, SFL’s product offering remains diversified; it includes CV financing (47%), passenger vehicle finance (22%), loans to micro, small and medium enterprises (13%), two-wheeler (2W) finance (6%), construction equipment (4%), personal loans (4%), farm equipment (2%) and gold loans on a standalone basis. While the share of other products in the AUM will increase over the medium term, SFL is expected to maintain its competitive position in the CV segment. Strong capitalisation profile – The equity infusion of Rs. 39,618 crore by MUFG has strengthened SFL’s capitalisation profile with sufficient headroom for growth over the medium term while providing a cushion against volatility in the asset quality, given the target asset class/borrower profile. Following the equity raise, the company’s managed gearing declined to 2.2 times as of June 2026. It had previously raised capital in FY2022 through the issuance of equity shares via a qualified institutional placement and a preferential issuance of shares to the promoters, aggregating Rs. 2,479 crore (net of issue expenses). Given the expected growth trajectory, the recent equity infusion and healthy internal capital generation, the capitalisation position shall remain strong with a healthy cushion in relation to the underlying risks in the target segments. Healthy profitability – SFL has reported healthy yields and lending spreads, commensurate with the underlying credit risk of its target borrower segment. With the gearing declining on account of the capital raise and the improvement in the cost of incremental borrowings, NIMs rose further to 8.6%3 of AMA in Q1 FY2027 (7.5% in FY2026) at the standalone level while the operating efficiency continues to improve gradually. SFL reported credit costs of 1.7% of AMA in Q1 FY2027 on a standalone bas [Showing first 8,000 characters — download PDF for full document]