Credit Rating

MFSL/SEC/EQ/2026/52 June 29, 2026 To, To, The Manager, General Manager BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block Mumbai – 400001 Bandra-Kurla Complex Bandra (East) Mumbai – 400051 Scrip Code: 540749, 947381 Trading Symbol: MASFIN Dear Sir, Subject: Intimation of Credit Rating given by Care Ratings Limited With reference to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; we are pleased to inform that CARE Ratings Limited (‘CARE’) has assigned, re-affirmed and withdrawn* Credit Rating of Company’s Non-convertible debentures. Press release issued by CARE is enclosed for reference. *CARE has withdrawn the rating of non-convertible debentures (NCDs; ISIN INE348L07217 and ISIN INE348L07225), considering full redemption of facilities. You are requested to take the same on record please. Thanking you, Yours faithfully, For, MAS Financial Services Limited Riddhi Bhayani Company Secretary and Chief Compliance Officer Membership No.: A41206 Encl. as above Press Release Mas Financial Services Limited June 26, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action Long-term bank facilities 8,600.00 CARE AA-; Stable Reaffirmed Non-convertible debentures 500.00 CARE AA-; Stable Assigned 125.00 Non-convertible debentures CARE AA-; Stable Reaffirmed (Reduced from 275.00) 455.00 Non-convertible debentures CARE AA-; Stable Reaffirmed (Reduced from 555.00) Non-convertible debentures 350.00 CARE AA-; Stable Reaffirmed Non-convertible debentures 350.00 CARE AA-; Stable Reaffirmed Non-convertible debentures 500.00 CARE AA-; Stable Reaffirmed Non-convertible debentures 400.00 CARE AA-; Stable Reaffirmed Subordinated 100.00 CARE AA-; Stable Reaffirmed Subordinated 100.00 CARE AA-; Stable Reaffirmed Subordinated 200.00 CARE AA-; Stable Reaffirmed Commercial paper 250.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with names of respective FSRs has been disclosed under Annexure-7. Rationale and key rating drivers Reaffirmation of ratings for MAS Financial Services Limited’s (MFSL) long- and short-term instruments reflects its strong business growth, supported by a diversified portfolio and comfortable capitalisation levels. Ratings also consider MFSL’s established track record in lending, and expertise of its promoters and senior management team. CARE Ratings Limited (CareEdge Ratings) highlights the company’s diversified funding profile and its use of direct assignment (DA) transactions, which have enabled it to expand its assets under management (AUM) on a relatively lower net worth base while maintaining adequate liquidity. However, these strengths are partially mitigated by MFSL’s moderately concentrated customer base and geographic footprint, with exposure to relatively higher-risk segments. Ratings are further constrained by moderate gearing levels and relatively lower seasoning of its personal loan’s portfolio. CareEdge Ratings has withdrawn the rating of non-convertible debentures (NCDs; ISIN INE348L07217 and INE348L07225), considering full redemption of facilities. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: • Significant and consistent scale-up of operations while improving geographical diversification and maintaining healthy asset quality. • Improving financial performance with consolidated return on total assets (ROTA) remaining above ~3.0% on a sustained basis. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: • Weakening asset quality, with consolidated net stage 3 (NS3) of above 2% on a sustained basis. • Overall consolidated gearing exceeding 4.5x or AUM (including co-lending and assignments) to net worth exceeding 6.5x on a sustained basis. • Significant decline in profitability with consolidated ROTA remaining below 1.0% on a sustained basis. Analytical approach: Consolidated CareEdge Ratings has considered the consolidated financials of MFSL, including its subsidiary, MAS Rural Housing and Mortgage Finance Limited (MRHMFL), in which MFSL holds 63.74% shareholding as on March 31, 2026. Consolidated approach is considering common promoter and managerial support, business linkages and operational linkages such as shared branding. Consolidated companies are listed under Annexure-6. Outlook: Stable The ‘Stable’ outlook reflects CareEdge Ratings’ expectation of consistent and profitable business growth in the near-to-medium term while keeping asset quality parameters under control. Detailed description of key rating drivers: Key strengths Long-standing track record of promoters and experienced senior management team MFSL’s promoters have an established track record of over two decades in the lending business. MFSL initially started its lending activities in Gujarat and currently has its footprint in 13 states. As on March 31, 2026, the company’s network included 208 branches at a standalone level and 103 branches of its housing finance company (HFC) subsidiary in addition to 224 non-banking financial company (NBFC) partnerships. The company’s operations are headed by Kamlesh C Gandhi, Chairman and Managing Director, with 31 years of experience in financial services sector. Promoters’ shareholding stood at 66.65% as on March 31, 2026. MFSL’s senior management team comprises experienced professionals who have been in the lending business and have been associated with the company since its inception. Comfortable capitalisation with diversified resource base The company has consistently maintained comfortable capital adequacy levels over the years, supported by steady profit accretion (with an average three-year return on net worth [RONW] of 14.25%) and its ability to raise capital periodically. As of March 31, 2026, the company reported a capital adequacy ratio (CAR) of 22.84%, including a tier-I CAR of 21.50%, compared to a CAR of 24.72% and tier-I CAR of 22.58% as of March 31, 2025. CareEdge Ratings expects the overall capitalisation to remain adequate in the medium term, aided by the company’s ability to securitise its portfolio. MFSL has consistently assigned a portion of its loan portfolio (with off-book assets comprising ~21% of AUM as of March 31, 2026), which, and internal accruals, has supported resource mobilisation and AUM growth while maintaining a relatively lower net worth base. The company’s consolidated gearing and AUM-to-net worth ratio stood at 3.43x and 5.09x, respectively, as of March 31, 2026 (March 2025: 3.47x and 4.88x). CareEdge Ratings expects consolidated gearing to remain below 4.5x and the AUM-to-net worth ratio below 6.5x on a steady-state basis. Over time, MFSL has developed a fairly diversified funding profile, maintaining relationships with over 45 banks, non-banking financial companies (NBFCs), and other financial institutions. Its borrowing mix includes term loans (62.66% as of March 2026), cash credit & overdraft (14.28%), pass-through certificates or PTCs (0.47%), capital market instruments (22.59%). This diversified funding base enables the company to raise funds in a timely manner and at competitive rates, providing significant financial flexibility. Diversified loan portfolio MFSL reported relatively moderated portfolio growth of 19% in FY26 and 20% in FY25, compared to a three-year compounded annual growth rate (CAGR) of 24% from FY21-24, reflecting a cautious stance on disbursements amid softening asset quality trends. As on March 31, 2026, the company’s consolidated AUM stood at ₹15, [Showing first 8,000 characters — download PDF for full document]