Credit Rating

July 1, 2026 The Manager, The Manager, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, 25th Floor, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051 Mumbai-400001 Symbol: SATIN Scrip Code: 539404 Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, as amended (“SEBI Listing Regulations”) – Credit Rating Dear Sir/Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations, we wish to inform you that Infomerics Valuation and Rating Limited (“Infomerics”) has reassigned IVR A/ Stable (IVR Single A with stable outlook) rating for the Company’s proposed Non-Convertible Debentures of INR 750 Crore (Indian Rupees Seven Hundred and Fifty Crore Only). Infomerics stated that instruments with this rating are considered to have the adequate degree of safety regarding timely servicing of financial obligations & such instruments carry low credit risk. Copy of the press release received from Infomerics is enclosed herewith. This is for your information and record. Thanking you. For Satin Creditcare Network Limited Vikas Gupta Company Secretary & Chief Compliance Officer Encl - a/a Press Release Satin Creditcare Network Limited June 30, 2026 Rating Action Instrument Amount Ratings Rating Action Regulator^ (Rs. crore) NCD 750.00 IVR A/Stable Rating Reaffirmed SEBI Total 750.00 (Rupees Seven Hundred and Fifty Crore Only) ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale The reaffirmation of the ratings of Satin Creditcare Network Limited (SCNL) factors in the comfortable capitalisation, healthy growth in AUM along with recovery in profitability, diversified resource funding profile, strong business profile with growing diversification. The rating is however constrained by average asset quality, though showing signs of stabilisation and exposure to regulatory & socio-political risks inherent in the industry. Outlook: Stable The Stable outlook reflects Infomerics expectation that SCNL's financial and operating profile will remain broadly stable over the medium term, supported by its established market position in the microfinance segment, adequate capitalisation buffers, and continued lender confidence. Additionally, the gradual improvement in MFI sector operating conditions is expected to support portfolio expansion, progressive stabilisation of asset quality, moderation in credit costs from elevated levels, and a sustainable improvement in profitability metrics. Analytical Approach Approach Comments Consolidation/ Standalone Consolidation Parent/ Group Support Not Applicable List of companies considered for consolidation/combined analysis is given at Annexure 4. Page | 1 www.infomerics.com Press Release Key Rating Drivers with Detailed Description Strengths - Comfortable Capitalisation SCNL continued to maintain a comfortable capitalisation profile considering healthy business growth during FY26. On a standalone basis, tangible net worth increased to ~Rs. 3,128 crore as on March 31, 2026 from ~Rs. 2,843 crore as on March 31, 2025, supported by internal accruals and profit retention. The company's CRAR remained comfortable at 25.40% in FY26 (FY25: 25.85%), with the marginal moderation attributable to growth in risk-weighted assets. Overall gearing increased to 3.05x from 2.74x in FY25 due to higher borrowings undertaken to support portfolio expansion. The subsidiaries also maintained adequate capitalisation levels, with Satin Housing Finance Limited (SHFL) and Satin Finserv Limited (SFL) continuing to operate with comfortable capital buffers relative to their growth plans. On a consolidated basis, in FY26 tangible net worth improved to ~Rs. 2,825 crore from ~Rs. 2,509 crore in FY25, while gearing increased to 3.89x from 3.50x respectively owing to growth in the loan portfolio. Going forward, Infomeric’s expects SCNL's capitalisation profile to remain adequate to support its growth plans while providing a cushion against potential asset quality pressures. - Healthy growth in AUM along with recovery in profitability During FY26, SCNL reported healthy business growth with consolidated AUM increasing by 18.7% to Rs. 15,175 crore from Rs. 12,784 crore in FY25, supported by improved disbursements, stabilization in collections and continued diversification towards housing finance and MSME lending. Profitability improved significantly, led by higher business volumes, improvement in gross yield to 22.61% from 20.94%, and expansion in NIM to 13.23% from 12.42%, which more than offset the increase in borrowing cost to 9.38% from 8.51%, primarily due to higher forex-related funding and hedging costs. Operating expenses remained elevated on account of aggressive branch expansion (2,015 branches as against 1,568 branches in FY25), resulting in a higher operating expense ratio of 6.59% (FY25: 6.30%). However, stronger operating income led to an improvement in the cost- to-income ratio to 49.80% from 50.72%. Further, moderation in credit costs, supported by improved collections, lower fresh slippages and strengthening asset quality, resulted in a decline in loan loss ratio to 3.55% from 4.21%. Consequently, PPOP improved by 23% to Rs. 928 crore, while consolidated PAT increased by 79% to Rs. 332 crore from Rs. 186 Page | 2 www.infomerics.com Press Release crore in FY25. RoA and RoE also improved to 2.56% and 12.28%, respectively, reflecting a broad-based strengthening in the company's earnings profile. Going forward, profitability is expected to remain supported by steady AUM growth, diversified product mix, healthy yields, stable NIMs, operating leverage benefits from scale, and normalized credit costs, although margins may remain sensitive to funding cost movements and branch expansion-related expenses. - Diversified Resource Profile SCNL continues to benefit from a diversified funding profile supported by long-standing relationships with banks, financial institutions, and capital market participants. The company maintains a well-diversified borrowing mix comprising term loans, direct assignment transactions, PTCs, NCDs, ECBs, and other market borrowings, reducing reliance on any single funding source. The company's ability to raise incremental funding across various instruments demonstrates continued lender confidence despite sectoral challenges and supports adequate liquidity and financial flexibility. Going forward, it is expected that SCNL's funding profile to remain diversified, supported by its established lender relationships and access to multiple funding channels - Strong business profile with growing diversification SCNL benefits from an established operating track record of over three decades in the financial inclusion segment. The group has gradually diversified beyond microfinance through its subsidiaries. During FY26, the subsidiaries witnessed healthy growth, resulting in the contribution of non-microfinance businesses increasing to 17.5% of consolidated AUM from 14.0% in FY25. This gradual diversification is credit positive as it reduces concentration on the unsecured microfinance segment and broadens the group's revenue streams. The group also strengthened its distribution network, expanding its presence to 32 States/UTs, 577 districts, and 2015 branches as on March 31, 2026, providing significant geographical diversification and supporting future growth prospects. Weaknesses - Average asset qual [Showing first 8,000 characters — download PDF for full document]