Credit Rating- Revision

Ref: NEPHROPLUS/SE/86 September 18, 2026 To To BSE Limited National Stock Exchange of India Limited P.J. Towers, Dalal Street, 5th Floor, Exchange Plaza, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 544647 Scrip Symbol: NEPHROPLUS Through: BSE Listing Centre Through: NEAPS Sub: Update of Credit Ratings - Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") Dear Sir/Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations, we hereby inform the below update received on the credit ratings of the Company from India Ratings and Research Private Limited (“India Ratings”), Credit Rating Agency vide its letter dated September 18, 2026: Particulars Amount in Rs. Current Rating / Previous rating / Rating Action Millions outlook outlook Bank Loan Facilities 68.90 IND AA-/Stable IND A+/Positive Upgraded - Long-term Bank Loan Facilities 2,700.00 IND AA-/Stable IND A+/Positive / Upgraded/ - Short-term / IND A1+ IND A1+ Reaffirmed The detailed rating report issued by India Ratings in this regard is enclosed herewith. The aforesaid information is also being made available on the Company's website at www.nephroplus.com For Nephrocare Health Services Limited (Formerly Nephrocare Health Services Private Limited) Kishore Kathri Company Secretary & Head Legal ICSI M. No. F9895 Encl: a/a India Ratings Upgrades Nephrocare Health Services’s Bank Loan Facilities to ‘IND AA-’/Stable; Affirms Short-Term Rating at ‘IND A1+’; Rates Additional Limits Sep 18, 2026 | Nephrocare Health Services Limited (Formerly Nephrocare Health Services Private Limited) | Healthcare Service Provider India Ratings and Research (Ind-Ra) has upgraded Nephrocare Health Services Limited’s (NHSL) bank loan facilities’ long- term rating to ‘IND AA-’ from IND A+, with a Stable Outlook, and affirmed short-term rating to ‘IND A1+’. The detailed rating actions are as follows: Details of Instruments Size of Rating Assigned Regulator of Date of Coupon Maturity Rating Instrument Type Issue (INR with Instrument Issuance Rate Date Action million) Outlook/Watch Long-term rating Bank loan upgraded; RBI - - - 2,262.27 AA-/Stable/IND facilities short-term rating affirmed Bank loan RBI - - - 506.63 AA-/Stable/IND Assigned facilities Analytical Approach Ind-Ra continues to take a fully consolidated view of NHSL and its subsidiaries, while arriving at the ratings. The agency has also factored in the strong operational, legal and strategic linkages among the group entities, common branding under the NephroPlus platform and the integrated management oversight across geographies. Detailed Rationale of the Rating Action The upgrade reflects Ind-Ra’s expectation of sustained strengthening of Nephrocare Health Services Limited's (NHSL) business and financial profiles, supported by its leading position in the organised dialysis market, diversified operating profile, recurring demand characteristics and healthy profitability. The ratings continue to benefit from NHSL's established operating track record, scalable business model, increasing contribution from international operations and demonstrated execution capabilities across captive and public-private partnership (PPP) formats. Geographic diversification, along with long-tenured contracts of seven years to 15 years, and scale benefits, translate into healthy clinic economics, resulting in a healthy return on capital employed, which aligns with category medians. The upgrade also factors in the strengthening of NHSL's financial profile, following the equity raise in December 2025, resulting in improved financial flexibility and a net cash position at FYE26. Ind-Ra expects NHSL to continue benefiting from favourable industry fundamentals, increasing dialysis penetration, expansion across domestic and international markets, and growing contribution from mature overseas operations, particularly in the Philippines and Uzbekistan. The Stable Outlook reflect Ind-Ra's expectation that NHSL will maintain healthy operating performance, comfortable credit metrics and adequate liquidity, while pursuing its growth strategy over the medium term. List of Key Rating Drivers Strengths Strong business profile; diversified operations Scaling global footprint with focused investments Strong operating performance and healthy profitability; likely to sustain over medium term Strong financial profile and financial flexibility; likely to be sustained Weaknesses Working capital-intensive business model Growth-oriented expansion strategy Execution risks in new international markets Forex and geopolitical risks Detailed Description of Key Rating Drivers Strong Business Profile; Diversified Operations: NHSL is among the leading organised dialysis service providers in India, supported by the well-established NephroPlus brand, a diversified operating model and a strong market position across captive, PPP and standalone centre formats. The business benefits from the recurring and non-discretionary nature of dialysis treatments, resulting in stable demand and revenue visibility. NHSL's geographical diversification has strengthened over the last three years, with international operations contributing about 42% to the consolidated revenue in FY26 (FY25: 32%; FY24: 25%). Ind-Ra expects the company's scale, diversified presence and recurring demand profile to continue supporting its business risk profile over the medium term. As per the company’s FY26 annual report, NHSL holds more than 50% share in the organized Indian dialysis market. As on 31 March 2026, NHSL’s asset-light model spans the following three clinic formats: captive (272 clinics), PPP (182 clinics) and standalone (70 clinics), with approximately 52% of clinics operating under revenue-sharing arrangements that limit the upfront capital requirement. Captive arrangements typically carry tenures of seven to 15 years, providing revenue visibility, and contract renewal rates have historically exceeded more than 95%. Ind- Ra notes that approximately 73% of revenue is generated from Tier II and Tier III cities and towns, with approximately 79% of its clinics in India located outside the top metros. Scaling Global Footprint with Focused Investments: International operations have become a meaningful contributor to NHSL's consolidated profitability profile, with their share in overall profitability witnessing a consistent increase from FY24 to FY26. The Philippines remains a key growth market, driven by favourable industry dynamics and consolidation opportunities, while Uzbekistan provides stable revenue through long-term PPP arrangements. NHSL has also established platforms in Saudi Arabia and Kazakhstan to support future growth. Ind-Ra expects international operations to continue enhancing revenue diversification and profitability, although profitability ramp-up and funding requirements in newer markets remain monitorable. Strong Operating Performance and Healthy Profitability; Likely to Sustain Over Medium Term: NHSL's operating performance strengthened during FY24-FY26, supported by growth in treatment volumes, increasing contribution from PPP centres and scale-up of international operations. The company’s consolidated revenue increased to INR10.0 billion in FY26 (FY25: INR7.6 billion; FY24: INR5.7 billion), while EBITDA grew to INR2.3 billion (INR1.7 billion; INR1.0 billion). The EBITDA margins improved to 22.7% in FY26 (FY25: 22.0%; FY24: 17.6%). The healthy momentum continued in 1QFY27, with revenue increasing to INR2.8 billion (1QFY26: INR2.3 billion) and adjusted EBITDA to INR0.7 billion (INR0.5 billion). Ind-Ra expects profitability to remain supported by its operating leverage, utilisation improvement and increasing contribution from mature international operations. Strong Financial Profile and Financial Flexibility; Likely to be Sustained: NHSL's financial profile strengthened materially in FY26, following the equity raise and co [Showing first 8,000 characters — download PDF for full document]