Credit Rating- New

15th July 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 Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (‘SEBI Listing Regulations’) This is to inform you that the Company has received letter(s) from Japan Credit Rating Agency, Ltd. (‘JCR’) and Rating and Investment Information, Inc. (‘R&I’), intimating the following credit rating assigned to the Company: 1. JCR has assigned a Foreign and Local Currency Long-term Issuer Rating of “BBB, Stable”; and 2. R&I has assigned a Foreign and Domestic Currency Issuer Rating of “BBB, Stable”. The rating action reflects the Company’s strong business, financial, and risk profile as an Upper Layer NBFC. Also, kindly note that the long-term sovereign credit rating assigned to India by both the agencies is BBB+ (Stable). A copy of the rating communication(s) received from JCR and R&I are 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. 26-I-0039 July 15, 2026 Japan Credit Rating Agency, Ltd. (JCR) announces the following credit rating. Piramal Finance Limited (security code: -) <Assignment> Foreign Currency Long-term Issuer Rating: BBB Outlook: Stable Local Currency Long-term Issuer Rating: BBB Outlook: Stable Rationale (1) Piramal Finance Limited (PFL) is a leading private non-banking financial company (NBFC) in India. It is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Since 2021, PFL has shifted its business model toward a retail-focused franchise centered on individual housing loans and loans against property. At the end of FY2026, its AUM reached INR1 trillion, one of the largest among NBFCs in India. The share of legacy wholesale exposure to real estate developers has declined to 2.8%, indicating that its transition to a retail-oriented model has been largely completed. The ratings reflect its strong customer base across India, solid competitive position in the loan-against-property market, and robust capital levels. However, constraints include profitability that is still improving due to the relatively recent business model transition and a limited track record in retail credit underwriting. (2) The principal shareholder of PFL is the Piramal Group, which held a 46.2% stake at the end of FY2026. The group entered financial services in 2012, when its core business consisted of large-ticket lending to real estate development projects. However, a deterioration in the financial condition of real estate developers led to significant weakening of asset quality. To accelerate its transition to retail lending, it acquired Dewan Housing Finance Corporation Limited (DHFL) in September 2021, thereby gaining a housing loan portfolio and a nationwide branch network, which laid the foundation for its retail business. In September 2022, the group spun off its pharmaceuticals business, and in September 2025, a reverse merger resulted in the current structure of PFL. (3) The Indian economy continues to grow strongly, registering a 7.7% real GDP growth rate in FY2026. Demand for retail credit remains robust, and the consumer lending market in India has been expanding at a double-digit pace annually. The housing loan market has also continued to grow at an annual rate exceeding 10%. (4) At the end of FY2026, PFL’s loan assets increased by 25% year-on-year. The portfolio composition was 85% for retail and 15% for wholesale, indicating that the transition to a retail-focused model has been largely completed. Legacy loans are being run down, while new developer lending is defined as Wholesale 2.0. The asset total was broken down into housing loans (31.5%), loans against property (25.7%), used car loans (5.5%), salaried personal loans (7.6%), business loans (7.4%), digital loans (4.4%), others (2.8%), Wholesale 2.0 (12.4%), and legacy (2.8%). Secured loans accounted for 82% of the total portfolio, and loan-to-value ratios are conservative. The gross nonperforming asset (NPA) ratio was 2.3%, while retail NPAs were 1.9%, and no NPAs were observed in Wholesale 2.0. (5) PFL reported INR120.3 billion in operating income and INR15.1 billion in net profit in FY2026. Earnings included a one-off gain of INR15.1 billion, while losses of INR12.9 billion were recorded due to provisioning for legacy assets. PFL’s adjusted normalized earnings are estimated at approximately INR12.9 billion. Net interest margin improved to 6.5% in the fourth quarter of FY2026. The branch network expanded from 301 branches in September 2021 to 701 branches at the end of FY2026. Newly opened branches typically have lower profitability, while branches operating for more than four years demonstrate higher profitability. JCR will monitor whether newly established branches can steadily contribute to earnings. (6) PFL has diversified its funding sources, including bank borrowings, bonds, external commercial borrowings, and securitization, establishing a stable funding base. Capitalization remains strong, with its capital adequacy ratio standing at 19.8% at the end of FY2026, well above the regulatory requirement of 15%. Asset-liability management is appropriate, with a liquidity coverage ratio exceeding 900%, indicating ample liquidity. Kiichi Sugiura, Shintaro Ito 1 / 2 Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved. Rating Issuer: Piramal Finance Limited <Assignment> Foreign Currency Long-term Issuer Rating: BBB Outlook: Stable Local Currency Long-term Issuer Rating: BBB Outlook: Stable Rating Assignment Date: July 15, 2026 The assumptions for the credit ratings and the definitions of the rating symbols are published as "Types of Credit Ratings and Definitions of Rating Symbols" (January 6, 2014) in Information about JCR Ratings on JCR's website (https://www.jcr.co.jp/en/). Outline of the rating methodology is shown as "JCR's Rating Methodology" (October 1, 2024) and "Consumer Finance" (June 21, 2022) in Information about JCR Ratings on JCR's website (https://www.jcr.co.jp/en/). The rating stakeholder participated in the rating process of the aforementioned credit ratings. Japan Credit Rating Agency, Ltd. Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan Tel. +81 3 3544 7013, Fax. +81 3 3544 7026 Information herein has been obtained by JCR from the issuers and other sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error as well as other factors, JCR makes no representation or warranty, express or implied, as to accuracy, results, adequacy, timeliness, completeness or merchantability, or fitness for any particular purpose, with respect to any such information, and is not responsible for any errors or omissions, or for results obtained from the use of such information. Under no circumstances will JCR be liable for any special, indirect, incidental or consequential damages of any kind caused by the use of any such information, including but not limited to, lost opportunity or lost money, whether in contract, tort, strict liability or otherwise, and whether such damages are foreseeable or unforeseeable. JCR's ratings and credit assessments are statements of JCR's current and comprehensive opinion regarding redemption possibility, etc. of financial obligations assumed by the issuers or financial products, and not statements of opinion regard [Showing first 8,000 characters — download PDF for full document]