Credit Rating

11th September 2026 BSE Limited National Stock Exchange of India Limited 1st Floor, New Trading Wing, Exchange Plaza, 5th Floor, Rotunda Building, P.J. Towers, Plot No. C/1, G - Block, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 BSE Scrip Code: 544597 NSE Symbol: PIRAMALFIN Dear Sir / Madam, Sub.: Intimation under Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘SEBI Listing Regulations’) – Update on Credit Rating by Moody’s Ratings This is to inform you that the Company has received communication from Moody’s Ratings intimating the following credit rating action: - Long-term Corporate Family Rating (CFR) and Senior Secured Debt Rating from Ba3 to Ba2; - Senior Secured Medium-term Note Programme from (P)Ba3 to (P)Ba2; and - The outlook has been revised from ‘Positive’ to ‘Stable’ The rating action reflects the Company’s strong business, financial, and risk profile as an Upper Layer NBFC. A copy of the rating communication received from Moody’s Ratings is enclosed herewith. The aforesaid intimation will also be made available on the website of the Company in accordance with Regulations 46(2)(r) and 62(1)(i) of the SEBI Listing Regulations. We request you to take the same on record. Thanking you. Yours faithfully, For Piramal Finance Limited (Formerly known as Piramal Capital & Housing Finance Limited) Bipin Singh Company Secretary Encl.: As above. Rating Action: Moody's Ratings upgrades Piramal Finance's rating to Ba2 from Ba3; outlook stable 11 Sep 2026 Singapore, September 11, 2026 -- Moody's Ratings (Moody's) has today upgraded Piramal Finance Limited's (PFL) long-term corporate family rating (CFR) and foreign-currency (FC) senior secured debt rating to Ba2 from Ba3. We have also upgraded the company's local-currency (LC) and FC senior secured medium-term note (MTN) program rating to (P)Ba2 from (P)Ba3. At the same time, we have changed PFL's rating outlook, where applicable, to stable from positive. RATINGS RATIONALE The upgrade of PFL's rating reflects the substantial reduction in its legacy assets, strong capitalization and our expectation that its profitability will further improve over the next two years due to operating leverage and lower funding costs. Asset quality has improved as the company continues to resolve legacy exposures. As of June 2026, total stressed assets, comprising Stage 3 loans, purchased or originated credit-impaired assets related to the erstwhile Dewan Housing Finance Corporation, and other legacy assets, declined to 4.7% from 5.1% as of March 2026 and 11.3% as of March 2025. We expect residual risks from these legacy assets to continue to diminish as resolution efforts progress. The company's rapid loan growth and increasing exposure to unsecured lending could increase asset risk over time. However, India's strong economic momentum and the company's loan loss buffers will help to mitigate such risks. We expect profitability to improve further over the next two years, supported by lower credit costs and a decline in funding costs as the company's credit profile strengthens. In the fiscal year ended 31 March 2026, the company's consolidated return on total assets (ROA) improved to 1.4% from 0.5% a year earlier, and increased further to an annualized 1.7% in the quarter ended 30 June 2026. We expect PFL to stay well capitalized, supported by our expectation that it will raise capital as needed to support growth. At the end of August 2026, the company raised new equity capital and warrants, which will convert over the next 2 years. Assuming full conversion of the warrants, the capital raise would increase its tangible common equity to total managed assets ratio by about 3.5 percentage points to 28.5% as of March 2026, although the capital will moderate due to balance sheet growth. Meanwhile, we expect the company's regulatory capital adequacy ratio to remain broadly stable in the range between 18% and 20% over the next 12 to 18 months, as compared to 18.9% as of June 2026, despite the steady growth in the business. PFL has a diversified funding structure across instruments and lender types. The company's improving credit profile has helped lower his funding costs and broadened access to funding sources. The on-balance- sheet liquidity relative to debt repayments is modest, in line with other Indian peers. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable outlook on PFL's rating reflects our view that the company's credit fundamentals will remain broadly stable over the next 12 to 18 months. We could upgrade PFL's ratings if the company substantially strengthens and sustains its franchise such that its (a) total stressed assets ratio remains below 2%, b) its ROA improves to above 3.5%, and (c) its funding profile improves, as reflected from a material improvement in funding costs. We could downgrade PFL's ratings if the company's asset quality weakens and total stressed assets rising above 5% on a sustained basis, resulting in higher credit costs and ROA declining below 1%. Deterioration in funding access, as reflected from persistent increase in cost of funds or increased concentration in its funding structure will also be negative for the company's ratings. Piramal Finance Limited is headquartered in Mumbai and reported consolidated assets of INR1.11 trillion as of 30 June 2026. The principal methodology used in these ratings was Finance Companies published in July 2024 and available at https://ratings.moodys.com/rmc-documents/425167. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. REGULATORY DISCLOSURES For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions. For any affected securities or rated entities receiving direct credit support/credit substitution from another entity or entities subject to a credit rating action (the supporting entity), and whose ratings may change as a result of a credit rating action as to the supporting entity, the associated regulatory disclosures will relate to the supporting entity. Exceptions to this approach may be applicable in certain jurisdictions. For ratings issued on a program, series, category/class of debt or security, certain regulatory disclosures applicable to each rating of a subsequently issued bond or note of the same series, category/class of debt, or security, or pursuant to a program for which the ratings are derived exclusively from existing ratings, in accordance with Moody's rating practices, can be found in the most recent Credit Rating Announcement related to the same class of Credit Rating. For provisional ratings, the Credit Rating Announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. Moody's does not always publish a separate Credit Rating Announcement for each Credit Rating assigned in the Anticipated Ratings Process or Subsequent Ratings Process. These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com. Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the re [Showing first 8,000 characters — download PDF for full document]