Intimation of Credit Rating

MCSL/SEC/26-27/164 August 07, 2026 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited Dalal Street, Exchange Plaza, C-1, Block G, Mumbai - 400 001, Maharashtra Bandra Kurla Complex, Bandra (E), Scrip Code (Equity) - 511766 Mumbai - 400 051, Maharashtra Scrip Code (Debenture and CP) - 975282, Trading Symbol - MUTHOOTCAP 975513, 975662, 976146, 976183, 976213, 976233, 976363, 976458, 976806, 976898, 976933, 976965, 729732, 729733 and 730251 Dear Sir / Ma’am, Sub: Intimation of Credit Rating Pursuant to Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that Brickwork Ratings has assigned “BWR AA/Stable” Rating for the Bank Loan Facilities of Rs. 3,500 crores of the Company. Further details are as given below: Facilities / Instruments Amount Tenure Rating Actions Bank Loan Facilities (Fund-based) ₹ 3,500 Crores Long Term BWR AA / Stable (Assignment) The Rating Rationale dated August 07, 2026, issued by Brickwork Ratings is attached herewith. This is for your kind information and records. Thanking You Yours faithfully, For Muthoot Capital Services Limited Deepa G Company Secretary & Compliance Officer Membership No.: A68790 Encl: As above Muthoot Capital Services Ltd, Registered Office: 3rd Floor, Muthoot Towers, M.G. Road, Kochi - 682 035, Kerala, India P: +91-484-6619600, Email: secretarial@muthootcap.com, www.muthootcap.com CIN: L67120KL1994PLC007726 RATING RATIONALE 7 Aug 2026 Muthoot Capital Services Limited Brickwork Ratings assigns the rating for the Bank Loan Facilities of Rs. 3,500.00 crores of Muthoot Capital Services Ltd. (MCSL) Particulars: Amount Facilities* Tenure Rating# Regulator (Rs Crs) Bank Loan facilities BWR AA/Stable 3,500.00 Long Term RBI (Fund-Based) (Assignment) Total 3,500.00 Rupees Three Thousand Five Hundred Crores Only *Note - Of the total bank loan facilities of Rs 3500 crores, the current sanctioned limit is approximately Rs 2800 crores, while the balance amount is the proposed bank loan facility. Details of rated facilities are shared at Annexure I to IV # For the definition of rating, please refer to www.brickworkratings.com RATING ACTION/OUTLOOK: ASSIGNMENT/STABLE Brickwork Ratings assigns the rating for the Bank Loan facilities amounting to Rs. 3500.00 crores of Muthoot Capital Services Ltd., at BWR AA/Stable, as tabulated above. The rating assignment for the bank loan facilities of Muthoot Capital Services Ltd (MCSL or the Company) primarily factors in the implicit support of Muthoot Pappachan Group, the strong members of its independent board of directors, the experienced management team of the company, and the standalone performance of the company. BWR, in its analysis for rating MCSL’s bank loan facilities, has derived comfort from the extensive implicit support of the Muthoot Pappachan Group (MPG) and the standalone financials of MCSL. It has relied upon the audited financials of the company for the last 3 years and the estimates/projections for the ensuing two years, information/ clarification provided by the company. Muthoot Capital Services Ltd, established in 1994, is registered with the Reserve Bank of India as a Deposit-taking Non-Banking Financial Company (NBFC -D). Muthoot Capital Services Ltd is one of India’s leading vehicle finance companies. It is one of the key entities (flagship entity being Muthoot Fincorp Ltd., rated BWR AA+/Stable as of July 2026) of the renowned Muthoot Pappachan Group, falling under the family of Muthoot Blue. MCSL’s equity shares are publicly traded on the Bombay Stock Exchange and the National Stock Exchange of India. Driven by a mission to empower individuals and broaden their horizons, it offers customized financial solutions to retail, corporate, and institutional customers through an extensive network of branches and partners. It also offers a wide range of vehicle finance products, including but not limited to: Two-Wheeler Loans, Car Loans, Commercial Vehicle Financing, Loyalty Loans, and Fixed Deposits. ABOUT THE GROUP: For over 138 years, Muthoot Pappachan Group—famously known as Muthoot Blue—has been a symbol of trust and financial empowerment. Rooted in the vision of Shri Pappachan Muthoot, it has dedicated itself to uplifting communities through accessible financial solutions. With a vast network of over 5600+ branches across 25 states & UTs in India, Muthoot Pappachan Group offers a wide range of services, including Gold loans, Two-wheeler loans, Small business loans, Home Loans, Loan against property, and a host of other financial products. Its commitment remains strong to make financial inclusion a reality for millions, ensuring stability and growth for every individual it serves. Today, the group has transformed into a Financial Conglomerate in the Indian business scene. Rooted in the age-old philosophy that "A journey of a thousand miles begins with a single step," it has forayed into a myriad of sectors comprising Financial services, Healthcare, IT, automotive, Realty, and Precious metals. As of 31 March 2026, the Muthoot Pappachan group’s total AUM stood at Rs. 76,886 Crores (FY25: 50,021 Crores), from its 5644 branches/offices spread across the country. It has an active customer base of 69.5 lakh and a supportive employee base of 47000+, as of March 31, 2026. During FY26, the total disbursements were Rs. 1,70,823 Crores (FY25: 78,775 Crores) and earned a profit after tax of Rs. 1858 Crores (FY25: Rs. 653 Crores). The rating of MSCL factors in the financial, operational, and managerial linkages/support from the MPG, whose flagship company is MFL. The rating also factors in the company’s strong capital position and the experience of the management team in the vehicle finance business. These strengths are partially offset by modest, though improving, asset quality, moderation in earnings profile, and the company’s efforts to reduce its geographical concentration in the southern Indian states. The company’s overall assets under management (AUM) grew by 12.5% to Rs 3443.36 crore as on March 31, 2026 (from Rs 3060.43 crore as on March 31, 2025), as compared to 52% growth in 2025 over 2024. The AUM stood at Rs. 3379 crores as on June 30, 2026. The moderation in the pace of growth is on account of the company’s strategy to reduce the co-lending exposure, align with the regulatory norms, and increase the earnings on its own book. Further, the company’s plans to increase focus on other vehicle segments, the AUM composition also underwent revision with the proportion of two-wheelers at 86%, cars at 5%, and commercial vehicles at 7% as of March 31, 2026, as compared to two-wheelers contributing to 98.3% of the portfolio, as on fiscal 2024. The company proposes to enhance its focus on the non-two-wheeler segment portfolio going ahead. In terms of asset quality, the company recalibrated its underwriting and strengthened its collections mechanism. This enabled improvement in gross non-performing assets (GNPA) to less than 7% in the last two fiscals compared to GNPA of over 12% between fiscals 2021 and 2023. However, as compared to 4.9% as of March 31, 2025, GNPAs increased to 6.9% as of March 31, 2026, due to the spillover of the microfinance stress and slippage in one corporate loan. GNPA and NNPA ratios have since then improved and stood at 3.94% and 2.36%, respectively, as on June 30, 2026, as compared to 6.96% and 4.12% as on March 31, 2026. Overall, asset quality continues to be modest and monitorable. The decline in Stage 2 assets, with simultaneous improvement in Stage 1 assets, shall be the key monitorable, with lower slippages to the Stage 3 book. The company’s ability to manage the collections from the harder delinquency buckets and improve asset quality will be a key monitorable. KEY COVENANTS OF THE INSTRUMENT/FACILITY RATED: The terms of sanction of the rated facilities include standard covenants normally stipulated for such [Showing first 8,000 characters — download PDF for full document]