Credit Rating

September 28, 2026 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department The Listing Department, 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra- Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. BSE Scrip Code: 524000 NSE Symbol: POONAWALLA Dear Sir / Madam, Subject: Intimation of credit rating of Poonawalla Fincorp Limited (“the Company”) under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This has reference to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (“SEBI Listing Regulations”). In accordance with the said SEBI Listing Regulations, we are pleased to inform that CARE Ratings Limited (“CARE”), has re-affirmed/assigned rating on the Company’s instrument(s) as per details given below: Facilities/Instruments Amount (Rs. In Crore) Rating1 Rating Action Long-term / Short-term 100.00 CARE AAA; Stable / CARE A1+ bank facilities Reaffirmed Long-term bank facilities 40,020.00 CARE AAA; Stable Reaffirmed (Enhanced from 27,520.00) Short-term bank facilities 200.00 CARE A1+ Reaffirmed Perpetual Debt 1,579.10 CARE AA+; Stable Reaffirmed Subordinate debt 1,860.00 CARE AAA; Stable Reaffirmed Market linked debentures 250.00 CARE PP-MLD AAA; Stable Reaffirmed Non-convertible debentures 13,740.90 CARE AAA; Stable Reaffirmed Commercial paper 7,500.00 CARE A1+ Reaffirmed Subordinated debt 600.00 CARE AAA; Stable Assigned Rating Rationale dated September 28, 2026, issued by CARE Ratings Limited in this behalf is attached herewith. Kindly take the above intimation on record. Thanking You, Yours faithfully, For Poonawalla Fincorp Limited Shabnum Zaman Company Secretary ACS-13918 Encl: as above 1Complete definitions of the ratings assigned are available at www.careedge.in and in other CARE Ratings Limited’s publications. Classification | INTERNAL Press Release Poonawalla Fincorp Limited September 28, 2026 Name of the Rating Facilities/Instruments Amount (₹ crore) Rating2 Regulator1 Action Long-term / Short-term bank CARE AAA; Stable / RBI 100.00 Reaffirmed facilities CARE A1+ 40,020.00 Long-term bank facilities RBI CARE AAA; Stable Reaffirmed (Enhanced from 27,520.00) Short-term bank facilities RBI 200.00 CARE A1+ Reaffirmed Perpetual debt SEBI 1,579.10 CARE AA+; Stable Reaffirmed Subordinated debt SEBI 1,860.00 CARE AAA; Stable Reaffirmed CARE PP-MLD AAA; Market-linked debentures SEBI 250.00 Reaffirmed Stable Non-convertible debentures SEBI 13,740.90 CARE AAA; Stable Reaffirmed Commercial paper RBI 7,500.00 CARE A1+ Reaffirmed Subordinated debt SEBI 600.00 CARE AAA; Stable Assigned Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings assigned to debt instruments and bank facilities, and assignment of a rating to subordinated debt of Poonawalla Fincorp Limited (PFL) factor in the expectation of strong support from the Cyrus Poonawalla group, having healthy financial flexibility. The Cyrus Poonawalla group holds 59.02% stake (as on June 30, 2026) in PFL through their Investment Holding Company – Rising Sun Holdings Private Limited (RSHPL, rated ‘CARE AAA; Stable / CARE A1+’), with Adar Poonawalla as the chairman of PFL’s Board. RSHPL has infused capital in PFL in the past (latest being ₹1,500 crore in September 2025), which reflects timely need-based financial support and the strategic importance of the financial services business to the group. The Cyrus Poonawalla group is one of the leading players in the pharmaceuticals and biotechnology segment. The group’s flagship company, Serum Institute of India Private Limited (SIIPL; rated ‘CARE AAA; Stable/CARE A1+’), is one of the world’s largest manufacturers of measles and Diphtheria, Tetanus and Pertussis (DTP) vaccines. SIIPL has diverse product offerings in the vaccine segment, including the COVID-19 vaccine ‘Covishield’. Ratings also factor in experienced senior management team led by of Arvind Kapil as the company’s managing director (MD) and chief executive officer (CEO) and other seasoned professionals, and revised product strategy post the change in management. Ratings continue to factor in the company’s diversified product approach in the retail and MSME segments and the company’s foray in six new products under its offerings viz., gold loans, consumer durable loans, prime personal loans, shopkeeper loans, education loans, and commercial vehicle financing. Ratings factor in the healthy capitalisation and improvement in the overall resource base. CARE Ratings Limited (CareEdge Ratings) has taken note of the improvement in the company’s absolute profitability, with profit after tax (PAT) increasing to ₹542 crore in FY26 from a loss of ₹98 crore in the previous fiscal. Nevertheless, profitability remained moderate, as reflected in a return on average managed assets (RoMA) of 1.08% in FY26 (FY25: -0.32% and FY24: 4.64%). The 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release profitability profile in FY26 remained constrained by compressed margins, elevated operating expenses arising from business expansion, and credit costs which, although lower than the previous year, also remained elevated. CareEdge Ratings has also noted a gradual quarter-on-quarter improvement in earnings profile of the company. CareEdge Ratings also takes note of the capital raise made by the company in Q1FY27, wherein it has raised ₹2,500 crores through Qualified Institutional Placement (QIP). This capital raise is expected to further strengthen the company’s capitalisation profile and support the growth in loan book. Ratings also factor in the company’s improving scale of operations and strengthened market position, supported by an asset under management (AUM) of ₹67,054 crore (standalone) as of June 30, 2026. Given the large proportion of the portfolio has been built over last couple of years, including launch of new products over last 15 months, the book remains relatively unseasoned. Accordingly, the company’s ability to profitably scale up these product lines while maintaining asset quality will remain a key rating monitorable. CareEdge Ratings has withdrawn ratings assigned to the non-convertible debentures bearing ISIN INE511C07813, INE511C07797 and INE511C07904 and perpetual debt bearing ISIN INE511C08951 and INE511C08969 considering redemption of the said instrument and post receiving the payment confirmation. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: • Not applicable Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: • Weakening of the linkages with the parent group, promoter group or promoter family. • Overall gearing exceeding 5.5x on a sustained basis. • Deterioration in the asset quality parameters such that the net non-performing assets (NNPA) remain above 2% on a sustained basis. • Any deterioration in profitability on a sustained basis. Analytical approach: Standalone CareEdge Ratings has evaluated the standalone credit risk profile of PFL factoring in linkages with the parent, RSHPL (rated ‘CARE AAA; Stable / CARE A1+’). Ratings continue to factor in the expectation of need-based timely support to PFL from the Cyrus Poonawalla group, whose flagship company is SIIPL (rated; ‘CARE AAA; Stable / CARE A1+’). Outlook: Stable CareEdge Ratings believes PFL will continue to demonstrate a stable business profile with the expectation of need-based timely support from the Cyrus Poonawalla group, whose [Showing first 8,000 characters — download PDF for full document]