Press Release March 05, 2026 IBL FINANCE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB- | Stable | Assigned	-
Non Convertible Debentures (NCD)	50.00	ACUITE BBB- | Stable | Assigned	-
Total Outstanding	100.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 50.00 crore bank facilities of IBL Finance Limited (IBLFL). The outlook is 'Stable'. ­Acuité has assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 50.00 crore Non Convertible Debentures (NCD) of IBL Finance Limited (IBLFL). The outlook is 'Stable'. Rationale for the rating The rating assigned factors the healthy capital structure, moderate asset quality and growth in scale of operations. IBL Finance Limited (IBLFL) has a networth of Rs. 59.90 Cr. as on September 30, 2025. IBLFL is NSE (SME board) listed and raised Rs. 33.40 Cr. in Jan ’24 via IPO. The company’s gearing stood comfortable at 0.75 times as on March 31, 2025 as compared to 0.09 times as on March 31, 2024. The company’s AUM grew from Rs. 50.76 Cr. as on March 31, 2024 to Rs. 100.99 Cr. as on March 31, 2025; Rs. 94.13 Cr. as on September 30, 2025. This was fueled by disbursements to the tune of Rs. 115.84 Cr. during FY25 and Rs. 68.09 Cr. during FY24. The company is engaged in the business of lending to Financial Institutions (FI) and personal loans. The FI lending book has had no delinquency til September 30, 2025 and the entire GNPA is attributed to the personal loan book. The GNPA and NNPA stood at 2.54 percent and 1.99 percent respectively as on March 31, 2025 indicating moderate asset quality. The company registered a PAT of Rs.2.36 Cr. during FY25 and Rs. 2.28 Cr. during FY24. However, the rating is constrained by limited track record of operations and high concentration risk. The company was engaged in lending digital personal loans and commenced FI lending only from FY24 onwards. The company has 64 percent to 69 percent of the AUM concentrated in the top 20 borrowers as on March 31, 2025 and September 30, 2025. These constraints weigh on the credit profile of the company. Going forward, movement in asset quality, profitability metrics and any deterioration in capital structure or capitalization levels will be key credit indicators.

About the company

I­ncorporated in 2017, IBL Finance Limited registered in Surat. The directors include Mr. Piyush Mansukhbhai Patel, Mr. Manish Mansukhbhai Patel, Mr. Mansukhbhai Kunvarjibhai Patel, Mr. Ajaykumar Arvindbhai Baldha, Mr. Bipinkumar Hirpara and Ms. Hitisha Mehulkumar Chanchad. The company is a Non-Systemicaly Important (Non Deposit taking) Non-Banking Financial Company (“NBFC-ND”) and is in the business of lending with primary focus on lending to financial institutions (NBFCs) and personal loans.

Unsupported Rating

­Not Applicable.

Analytical Approach

­Acuité has adopted a standalone approach on IBLFL’s business and financial risk profile for arriving at the rating.

Key Rating Drivers

Strength

Healthy Capital Structure IBL Finance Limited (IBLFL) has a networth of Rs. 59.90 Cr. as on September 30, 2025. IBLFL is NSE (SME board) listed and raised Rs. 33.40 Cr. in Jan ’24 via IPO. The company’s gearing stood comfortable at 0.75 times as on March 31, 2025 as compared to 0.09 times as on March 31, 2024. The CRAR stands comfortable at 53.53 percent as on March 31, 2025. The company has a promoter shareholding is ~63 percent after the IPO and the rest is subscribed by the public. Moderated asset quality The company is engaged in the business of lending to Financial Institutions (FI) and personal loans. As of September 30, 2025, 90 percent of the company’s AUM comprised of FI lending (NBFCs) and the remaining to personal loans. The FI lending book has had no delinquency til September 30, 2025 and the entire GNPA is attributed to the personal loan book. The GNPA and NNPA stood at 2.54 percent and 1.99 percent respectively as on March 31, 2025 indicating moderate asset quality. The GNPA and NNPA as on March 31, 2024 stood at 2.52 percent and 1.90 percent respectively. The on-time portfolio of the company has been in the range of 92-97 percent in the past 2 years.

Weakness

­Limited track record of operations The company was established in 2017 and was listed on the stock in Jan ’24. The promoter of the company had a background of lending and financial services as a registered money lender since 2008. However, in order to scale the business IBLFL was incorporated. The company started its operation by lending to the MSME and personal loan segment. However, from FY24 onwards the company’s loan portfolio shifted to FI lending (loans to NBFCs). The company’s AUM grew from Rs. 50.76 Cr. as on March 31, 2024 to Rs. 100.99 Cr. as on March 31, 2025; Rs. 94.13 Cr. as on September 30, 2025. This was fuelled by disbursements to the tune of Rs. 115.84 Cr. during FY25 and Rs. 68.09 Cr. during FY24. Concentration risk The company has 64 percent to 69 percent of the AUM, concentrated in the top 20 borrowers as on March 31, 2025 and September 30, 2025. Additionally, of its exposure in the FI lending book as on March 31, 2025 and September 30, 2025, more than 50 percent of the NBFCs are engaged unsecured loans in the form of unsecured business loans, personal loans, MFI. These constraints weigh on the credit profile of the company.

Rating Sensitivity

­Movement in profitability metrics Movement in AUM and Disbursements Movement in collection efficiency and asset quality denoted by GNPA Timely infusion of capital and subsequent movement in capital structure Movement in liquidity buffers Changes in the regulatory environment

All Covenants

­­Currently not available, since these are proposed NCD limits.

Liquidity Position

Adequate

­IBLFL’s overall liquidity profile remains adequate. The company’s assets and liabilities are well matched with no deficit in any of the time buckets upto 5 years as on September 30, 2025. The company has maintained cash and cash equivalents of Rs. 2.83 Cr. as on March 31, 2025.

Outlook - Stable

­

Other Factors affecting Rating

­None.

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Actual) FY24 (Actual) Total Assets Rs. Cr. 112.87 66.35 Total Income* Rs. Cr. 9.66 13.77 PAT Rs. Cr. 2.36 2.28 Net Worth Rs. Cr. 58.66 56.30 Return on Average Assets (RoAA) (%) 2.63 5.16 Return on Average Net Worth (RoNW) (%) 4.10 5.93 Debt/Equity Times 0.75 0.09 Gross NPA (%) 2.54 2.52 Net NPA (%) 1.99 1.90 *Total income equals to Net interest income plus other income

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

­None

Any other information

­None.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.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 :

­Not Applicable.

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Assigned

Contacts

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

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.