Press Release May 05, 2026 REAL GROWTH SECURITIES PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	45.00	ACUITE A- | CE | Stable | Reaffirmed	-	RBI
Total Outstanding	0.00	45.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

­Acuité has reaffirmed its long-term rating of ‘ACUITE A-(CE)’ (read as ACUITE A minus (Credit Enhancement)) on the Rs. 45.00 crore bank facility of Real Growth Securities Private Limited (RGSPL). The outlook is ‘Stable’.   Rationale for Rating The rating factors in the extensive experience of the promoters in the bond market trade, long track record of operations and adequate liquidity buffers.  The rating also favourably factors in the comfortable capital structure marked by gearing of 1.49 times as on March 31, 2025 as compared to 2.21 times as on March 31, 2024. RGSPL's business performance is linked to the level of activity in the bond markets which in turn is linked to the overall economic activity. The rating further factors in the benefits arising from the strength of the structure and the underlying pledge of highly liquid securities while arriving at the rating. Though, RGSPL reported an improvement in PAT, which stood at Rs.1.26 Cr. in FY25 as against Rs.0.73 Cr. in FY24. The rating however remains constrained by modest profitability and inherent risks in the capital market and overall economic environment.

About the company

­Delhi Based, Real Growth Securities Private Limited (RGSPL) which was incorporated in 1992, is involved in trading of high rated government securities and bonds. Initially, in 2009, the company was registered as a Category I merchant banker and was mainly engaged in primary debt placement, debt syndication and trading in secondary debt market instruments.  However, with the introduction of Electronic Bidding platform (EBP) vide 2018 SEBI circular, the role of arrangers was limited, which impacted RGSPL’s business of primary debt placement. The company revised its strategy and is now mainly involved in running a proprietary trading book for trading in sovereign, state government, bank, public sector and private sector corporate bonds.

Unsupported Rating

­­ACUITE BB+/Stable

Analytical Approach

­Acuité has considered standalone business and financial risk profile of RGSPL to arrive at the standalone rating and has further factored in the benefits arising from the strong structure while arriving at the rating. The suffix (CE) indicates credit enhancement arising from the strength of the structure and the underlying pledge of highly liquid securities. The strength of the underlying structure and continued adherence to the same is central to the rating.

Key Rating Drivers

Strength

­Long track record of operations and experienced management The company has a long operational track record of around one and a half decade in the financial services industry. Further, the promoter, Mr. Rajesh Gupta has more than two decades of experience in the securities investment and debt markets. Albeit modest scale of operations, with the long operational track record of the company and the experienced management, the company has built an established relationship with investors (pension funds, family offices, etc), issuers (corporates and PSUs) and other intermediaries in the industry. Acuité believes that RGSPL’s presence in the domestic capital market and established relationships with clients and investors should support its business risk profile over the near to medium term. Strength of underlying structure  The structure being assessed envisages an aggregate borrowing limit of Rs. 45 Cr. in the form of cash credit and overdraft facilities from the banks secured by pledge of underlying bonds and securities. The underlying securities will be government securities and corporate bonds rated AA and above within overall limit of Rs. 45.00 Cr. The bank has also stipulated differential margin for different category of securities to be purchased under this arrangement. The government securities purchased by the company will be held in a designated Constituent Subsidiary General Ledger (CSGL) Account and a joint depository participant account for corporate bonds, which will be duly pledged to the bank. The limits as sanctioned by the Federal Bank stipulates purchase of only Government securities and corporate bonds rated AA and above. The limits as sanctioned by SBM Bank's sanction letter does not stipulate any minimum rated bonds for pleading. The bank stipulates margin requirement in the range of 5.00 percent to 20.00 percent (depending on the nature of the security i.e. lowest margin for risk-free securities like G-Sec). The stipulations also include the options available to the lender in case of a margin shortfall. The securities pledged against which funding would be provided is restricted to Government securities and corporate bonds rated AA and above and requires its inclusion in the lenders bank pre-approved list thus providing an effective mitigation of credit risk at the initial stage of selecting securities for trade purposes.  Acuité believes that the structure sanctioned by the lender provides for adequate covenants to safeguard the interest of the lenders. The lenders have adequate buffers available to initiate corrective action and mitigate the risk arising out of any adverse market movements. The strict adherence to the sanctioned terms and conditions is central to the rating.

Weakness

­ Modest earning profile albeit improving Though the trading income of the company has improved in FY25, it still stood modest at Rs.6.17 Cr. in FY25 as against Rs.4.33 Cr. in FY24. The company is engaged in the purchase and sale of government securities and bonds. The company’s earning is susceptible to any adverse interest rate movements, though the volatility is relatively limited as the exposure is entirely to debt securities. Furthermore, the arranger’s fee stood increased at Rs.1.43 Cr. in FY25 as against Rs.1.13 Cr. in FY24. The monoline nature of business with income from the debt market primarily in the form of trading income restricts the company to scale up its operations. RGSPL reported a PAT of Rs.1.26 Cr in FY25 as against Rs.0.73 Cr. in FY24. However, the ROAA has improved to 2.72 per cent in FY25 as against 1.84 per cent in FY24. The profitability is largely derived from trading income, which is volatile and depends on the company’s ability to find favourable opportunities. It also remains vulnerable to interest rate movements. Real Growth Securities Private Limited’s (RGSPL) business performance is linked to the level of activity in the bond markets which in turn is linked to the overall economic activity. The total transactional value (buy and sale) of securities increased to Rs.1058.24 Cr. in FY25 as against Rs 744.45 Cr. in FY24. This is further improved to Rs 1330.06 Cr. for FY26 ( Provisional) Acuité believes that RGSPL earning profile, its business operations would remain susceptible to inherent risks in capital market and overall economic environment. Susceptibility to operating performance to volume and level of activity in capital markets   Real Growth Securities Private Limited’s business performance is linked to the level of activity in the bond markets, which in turn is linked to the overall economic activity. The volumes in the debt capital market are influenced by economic cyclicality and other macroeconomic factors such as GDP, growth rate, inflation, movement in interest rates and policy actions adopted by RBI. RGSPL generally engages in buy and sale transactions on behalf of its clients, which comprises of provident and pension funds, mutual funds, banks, family offices etc. Most of the purchases of the securities are simultaneously sold to its clients. As a prudent strategy, RGSPL prefers to minimize the holding period in respect of any securities, which significantly mitigates the associated credit risk and market risk. However, this approach doesn't eliminate vulnerabilities. The practice, though prudent, is not always perfectly matched. As a result, RGSPL occasionally maintains an inventory of securities. This residual inventory, even if minimal, exposes the company to market risks. Such exposure, though reduced compared to conventional trading strategies, remains a point of concern.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

The structure provides for adequate covenants to safeguard the interest of the lenders and has adequate buffers available to initiate timely corrective action and effectively mitigate the risk arising out of any adverse market movements.

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

­ Improved profitability, broader income diversification, and expanded operating scale. Sustained RoAA of >3.0% for a consecutive period, driven by core trading profitability.

Potential triggers (individual or collective) for a downward rating action:

­ Weaker financial profile due to reduced profitability and/or a material rise in credit risk in the trading book. Sustained decline in trading income Gearing exceeding 3.00 times Changes in Credit Quality of any securities in the investment portfolio. Changes in Regulatory environment.

All Covenants

­The following financial covenants will be calculated on annual basis while the facility is outstanding based on the financials of the borrower: 1. Company should not incur PAT loss in any financial year 2. TOL/TNW should not exceed 3x 3. TNW of at least Rs. 14.50 Cr. Other covenants: 1. Borrower shall not avail financing from Federal Bank for the transaction (if any) between related parties of the company or promoters, the facility should be strictly be utilised for transaction with non-related market participants only, any violation may result in freezing of the limit. 2. Existing promoter shareholding shall be maintained in the borrower company.

Liquidity Position

Adequate

­Currently the company has cash credit limit of Rs. 20.00 Cr. against the pledge of highly rated bonds and securities acceptable to the bank. The networth of the company as on March 31, 2025 stood at Rs.16.42 Cr. providing adequate buffer to meet any requirements in case of any credit events.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Actual) FY24 (Actual) Total Assets Rs. Cr. 42.55 50.19 Total Income* Rs. Cr. 6.44 4.79 PAT Rs. Cr. 1.26 0.73 Net Worth Rs. Cr. 16.42 15.15 Return on Average Assets (RoAA) (%) 2.72 1.84 Return on Average Net Worth (RoNW) (%) 8.00 4.95 Debt/Equity Times 1.49 2.21 Gross NPA (%) NA NA Net NPA (%) NA NA *Total income equals to Net Interest Income plus other income.

Status of non-cooperation with previous CRA (if applicable):

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 04 Feb 2025 Secured Overdraft Long Term 20.00 ACUITE A- (CE) | Stable (Reaffirmed) Cash Credit Long Term 25.00 ACUITE A- (CE) | Stable (Reaffirmed) 07 Nov 2023 Secured Overdraft Long Term 20.00 ACUITE A- (CE) | Stable (Assigned) Cash Credit Long Term 25.00 ACUITE A- (CE) | Stable (Assigned)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nattasha Venkatesh Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below: A. Rating Activity:   Sr. No. Instrument / activity Name Regulator of the instrument 1 Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities) SEBI 2 Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) MCA 3 Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)1 SEBI 4 Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)1 SEBI 5 Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)1 RBI 6 Listed Commercial Paper and NCDs with original maturity less than 1 year RBI 7 Unlisted Commercial Paper and NCDs with original maturity less than 1 year RBI 8 Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs 2 RBI 9 External Commercial Borrowings and other similar borrowings RBI 10 Certificates of Deposit RBI 11 Fixed Deposits raised by NBFCs, Banks, HFCs, FIs RBI 12 Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs MCA 13 Inter Corporate Deposits/Loans extended by Corporates MCA 14 Borrowing programme 3 - 15 Issuer Ratings 4 - 16 Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) SEBI 17 Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs SEBI 18 Listed Security Receipts SEBI 19 Unlisted Security Receipts RBI 20 Independent Credit Evaluation (ICE) RBI 21 Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) RBI 22 Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities)) SEBI 23 Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities)) MCA 24 Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1 Investor-side Regulator such as IRDAI, PFRDA 5   1 Includes securitisation transactions involving assignee payout, acquirer's payout. 2 Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. 3 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 4 The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.   B. Other activities:   Sr. No. Activity Name Regulator of the activity 1 Monitoring Agency SEBI 2 Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 Not applicable 6 permitted by SEBI vide SEBI Master Circular for CRAs. Disclosure on instruments / activities and names of regulators: A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference: https://acuite.in/Activities-and-Regulators.html   About Acuité Ratings & Research­ Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.