Credit Rating- Revision

July 07, 2026 To, To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Mumbai- 400001 Bandra (E), Mumbai - 400051 Scrip Code: 544530 Symbol: ARSSBL Dear Sir/ Madam, Subject: Intimation regarding re-affirmation / withdrawal of Credit Rating of the Company by CARE Ratings Limited Dear Sir/Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that at the request of the Company and based on the no-objection certificate received from the Bankers, CARE Ratings Limited (“CareEdge”), a Credit Rating Agency, vide its letter dated July 06, 2026 addressed to the Company, has re-affirmed / withdrawn the existing rating assigned to the long-term and short-term bank loan facilities and Commercial Paper of the Company, in accordance with CareEdge Rating’s withdrawal policy: Name of Instrument Rated Amount (Rs. Crore) Rating Action Long-term / Short-term bank Reaffirmed at CARE A; Stable / facilities CARE A1+ and Withdrawn Market-linked debentures - Withdrawn Commercial Paper 200.00 CARE A1+ (Rating Reaffirmed) We enclose herewith the re-affirmation / withdrawal letter issued by CARE Ratings Limited. We request you to kindly take the above on record. Thanking you. Yours faithfully, For Anand Rathi Share and Stock Brokers Limited Chetan Prajapati Company Secretary and Compliance Officer Membership No.: A39130 Enclosed: CARE Ratings Limited letter dated July 06, 2026 Anand Rathi Share and Stock Brokers Limited Registered & Corporate Office: Express Zone, A Wing, 10th Floor, Western Express Highway, Diagonally, Opp. Oberoi Mall, CIN : L67120MH1991PLC064106 Dindoshi, Goregaon (East) Mumbai 400 063, Maharashtra, India. Tel : +91 22 6281 7000  E-mail: secretarial@rathi.com Website: www.anandrathi.com Press Release Anand Rathi Share and Stock Brokers Limited July 06, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action Reaffirmed at CARE A; Stable / CARE A1+ Long-term / Short-term bank facilities - - and Withdrawn Market-linked debentures - - Withdrawn Commercial paper 200.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1.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 the names of respective FSRs has been disclosed under Annexure-6. Rationale and key rating drivers Reaffirmation of ratings at CARE A1+ assigned to the commercial paper of Anand Rathi Share and Stockbrokers Limited considers the company's experienced management team, established presence in the broking industry, its strategic importance within the Anand Rathi Group, and stability in its earnings profile. However, these strengths constrained by modest scale of broking operations relative to larger peers, inherent risks associated with capital market-linked businesses, competitive intensity in the core broking segment, and the evolving regulatory landscape. CareEdge Ratings has withdrawn outstanding ratings assigned to the market-linked debentures (MLDs) and bank facilities of ARSSBL with immediate effect. This action has been taken at the request of ARSSBL as the entire debt was proposed but not placed and based on the No Objection Certificate’ received from the bank(s) that have extended the facilities rated by CareEdge Ratings. this action is in accordance to CareEdge Rating’s withdrawal policy. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: • Improvement in the overall credit profile of the parent, Anand Rathi Financial Services Limited (ARFSL). • Significant improvement in the scale of operations and market position along with healthy profitability on a sustained basis. Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: • Deterioration in credit profile of the parent, ARFSL. • Material change in the ownership stake held by parent, ARFSL leading to moderation in support stance of the parent, ARFSL. • Deterioration in the market share impacting earnings profile and liquidity of the company. • Increase in gearing (including non-fund-based debt) beyond 3.5x. Analytical approach: Standalone CareEdge Ratings has taken a view based on the standalone financial profile of ARSSBL and factoring in its linkages with the ARFSL/Anand Rathi Group, as the company has shared brand name, board representation, managerial, and capital support. Outlook: Stable CareEdge Ratings believes ARSSBL will continue to demonstrate a stable business profile with the expectation of need-based timely support from the parent company, given the strategic importance, shared brand name, and management control. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers: Key strengths Group’s long track record in financial services domain and strategic importance of ARSSBL to the Anand Rathi group Established in 1994, ARSSBL has over three decades of experience in broking industry and forms a key pillar of the Anand Rathi Group’s capital market ecosystem. The company is led by experienced professionals, including its co-founder and Managing Director, Pradeep Gupta, who has over three decades of experience and has been instrumental in building the institutional broking and investment services franchise. ARSSBL is a subsidiary of ARFSL, the group’s holding company, which had a consolidated net worth of ₹5,285 crore (including unrealised gains of ~₹3,090 crore) as on March 31, 2025, compared to ₹4,671 crore as on March 31, 2024 (including unrealised gains of ~₹3,015 crore). The broader Anand Rathi Group, led by its founder and chairman Anand Rathi, operates through a well-diversified structure comprising broking and investment services (ARSSBL), wealth management (Anand Rathi Wealth Limited, with assets under management [AUM] of ₹93,037 crore as on March 31, 2026), insurance broking (Anand Rathi Insurance Brokers Limited, serving over 300 corporate clients), and lending through its non-banking financial company (NBFC) arm, Anand Rathi Global Finance Limited (ARGFL). ARGFL focuses on loan against securities, micro, small and medium enterprise (MSME) loan against property (LAP), construction finance, and inter-corporate lending, and recent exposure to financial institution group (FIG) lending. It plays a strategic role in complementing the group’s offerings, particularly for high- net worth clients, and acts as a funding channel through MLDs. The group’s integrated business model enables ARSSBL to cater to a diverse client base, including retail, high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), and institutional clients. Stable earnings profile and diversified income streams ARSSBL is a trading member across major stock exchanges, including the National Stock Exchange of India Limited (NSE), BSE, NCDEX, and MCX. The company offers a diversified suite of products and services, including broking across equity, derivatives, commodities, and currency segments, margin trading facility (MTF) lending, and distribution of third-party financial products such as mutual funds, bonds, corporate fixed deposits, initial public offerings (IPOs), and portfolio management services. In FY26, ARSSBL’s total income grew by 10.51% to ₹ 934 crore, primarily driven by higher interest income and brokerage income. Profit after tax (PAT) stood at ₹132 crore, translating into a PAT margin of 14.12%, reflecting an improvement of 183 basis points on a year-on-year basis. The margin expansion was supported by a marginal moderation in the cost-to-income ratio and healthy growth in the topline. Notwithstanding the improvem [Showing first 8,000 characters — download PDF for full document]