Press Release

Press Release

September 10, 2026

KHUSH HOUSING FINANCE PRIVATE LIMITED
Rating Upgraded and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	47.68	ACUITE BB+ \| Stable \| Upgraded	-	RBI
Bank Loan Ratings	0.00	61.38	Not Applicable \| Withdrawn	-	RBI
Total Outstanding	0.00	47.68	-	-	-
Total Withdrawn	0.00	61.38	-	-	-

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 upgraded the long-term rating from ‘ACUITE BB’ (read as ACUITE double B) to ‘ACUITE BB+’ (read as ACUITE double B plus) on the Rs.47.68 Cr. bank loan facilities of Khush Housing Finance Private Limited (KHFPL). The outlook is 'Stable'

Acuité has withdrawn the long-term rating on the Rs.61.38 Cr. proposed bank loan facilities of Khush Housing Finance Private Limited (KHFPL) without assigning any rating as it is a proposed facility. The withdrawal is on account of request received from issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating.

The company has migrated from the status of ‘Issuer Not Cooperating’. The rating upgrade factor in the company's comfortable capitalization and low leverage profile, with tangible net worth at Rs.154.64 Cr. as on March 31, 2026 (Prov.) and a healthy CRAR of 125.64% as on FY26(Prov.). The company maintained a low gearing of 0.15 times as on FY26 (Prov.) and witnessed an improvement in asset quality, with GNPA declining to 2.28% as on March 31, 2026 (Prov.) from 3.46% as on March 31, 2025. The rating is further supported by the company's stable operating performance, with Net Interest Income improving to Rs.13.89 Cr. in FY2026 (Prov.) from Rs.13.22 Cr. in FY2025 and total income increasing to Rs.14.40 Cr. as on FY26(Prov.) from Rs.13.74 Cr. as on FY25. The company reported PAT of Rs.3.23 Cr. in FY2026 (Prov.) as against Rs.4.05 Cr. in FY2025, impacted by higher provisioning expenses. The rating, however, remains constrained by the company's modest scale of operations, with a loan portfolio of Rs.155.10 Cr., and its exposure to asset quality and credit cost risks. Acuité believes that the ability of the company to raise fresh debt and achieve steady and sustainable growth in AUM while maintaining profitability & asset quality and comfortable liquidity profile will be key monitorable.

About the company

Incorporated in the year 2011, Khush Housing Finance Private Limited is a Mumbai based housing finance company registered with National Housing Bank (NHB) under National Housing Bank Act, 1987. The company commenced business in 2015 and is engaged in providing home loans and loans against property to salaried and non-salaried individuals, mainly mid/low-income customer segment and economically weaker section of the society which fall under credit linked subsidy scheme (CLSS). Mr. Geoffrey Ross Bazzan, Mr. Prakash Mallya, Mr. Amit Kirit Magia, Mr. Kiran Amit Magia and Mr. Abhishek Subhashchander Pacheria are the Present directors of the company.

Unsupported Rating

Not applicable.

Analytical Approach

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

Key Rating Drivers

Strength

Experienced Management.
KHFPL is promoted by Mr. Amit Magia, who also looks after the operations of the company as Managing Director and Chief Executive Officer (MD & CEO). Mr. Amit Magia together with family members and trusts holds entire stake in the company. Mr. Magia has more than 25 years of experience in the field of Finance, Banking, Treasury Management, Real Estate Investments, and Liaising with Regulatory bodies. The company also benefits from the experience of eminent professionals on its board namely Mr. Prakash Mallya, a career banker having over 45 years of experience and Mr. Geoffrey Ross Bazzan,a senior financial markets executive with over 20 years of experience in managing portfolios and analysing companies across the Asia Pacific ex-Japan region. Further, Mr. Magia is assisted by seasoned and experienced professionals in managing the operations of the company. Acuité believes that extensive experience of the promoter will be central to support the business profile of KHFPL in the near to medium term.

Comfortable capitalisation & gearing levels.
KHFPL had healthy capitalization levels as on March 31, 2026 (Prov.) as reflected in Capital Adequacy Ratio (CAR) of 125.64 percent (Tier I: 125.3 percent) as on March 31, 2026 (Prov.). The same stood at 137.93 percent (Tier I: 136.68 percent) as on March 31, 2025 led by healthy accretion of profits. The gearing of the company has seen a significant improvement in its gearing from its peak gearing levels 1.37 times as on March 31, 2022. The gearing of the company improved to 0.15 times as on March 31, 2026 (Prov.) as against 0.20 times as on March 31, 2025 led by increased accretion of profits to reserves coupled with prepayment of its existing debt.

Weakness

Modest scale of operations and limited portfolio growth

The company's credit profile remains constrained by its modest scale of operations, with a loan portfolio of Rs.155.10 crore as on March 31, 2026 (Prov.), largely unchanged from Rs.155.56 crore as on March 31, 2025. The relatively small scale limits operating efficiencies and could constrain the company's competitive positioning and ability to absorb external business or economic shocks.

Moderation in profitability and exposure to asset quality risks

While the company has maintained stable operating income, its profitability witnessed moderation with PAT declining to Rs.3.23 crore in FY2026 (Prov.) from Rs.4.05 crore in FY2025. The decline was primarily driven by elevated credit costs, with provisioning expenses increasing to Rs.2.51 crore as on FY26(Prov.) from Rs.0.49 crore as on FY25. Going forward, the company's profitability remains susceptible to any deterioration in asset quality and consequent increase in provisioning requirements.

Rating Sensitivity

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

Significant growth in AUM and disbursements.
Significant improvements in profitability metrics & ROAA above 4 percent.

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

Deterioration in asset quality metrics, collection efficiency,
GNPA greater than 4 percent

Liquidity Position

Adequate

The liquidity position of the company remains adequate, supported by positive cumulative ALM mismatches across all maturity buckets. As per the ALM statement dated March 31, 2026, KHFPL repayment obligations (total outflows) during FY2026-27 stood at Rs.16.35 Cr. over a one-year period, against receivable (total inflows) of Rs.70.53 Cr. over the same period resulting in positive mismatch of Rs.54.18 Cr. as per the ALM statement dated March 31, 2026. The company has cash and bank balances of around Rs.3.61 Cr. as on March 31, 2026.

Outlook - Stable

Other Factors affecting Rating

None.

Key Financials - Standalone / Originator

Particulars	Unit	FY26 (Provisional)	FY25 (Actual)
Total Assets	Rs. Cr.	194.78	197.96
Total Income*	Rs. Cr.	14.40	13.74
PAT	Rs. Cr.	3.23	4.05
Net Worth	Rs. Cr.	154.64	151.40
Return on Average Assets (RoAA)	(%)	1.20	1.43
Return on Average Net Worth (RoNW)	(%)	1.54	1.90
Debt/Equity	Times	0.15	0.20
Gross NPA	(%)	2.28	3.46
Net NPA	(%)	0	0

*Total income equals 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
• 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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
21 Apr 2026	Term Loan	Long Term	9.06	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Proposed Term Loan	Long Term	57.60	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	12.20	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	2.55	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	2.54	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	12.20	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	4.63	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
	Term Loan	Long Term	8.28	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
28 Jan 2025	Term Loan	Long Term	9.06	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	12.20	ACUITE BB+ \| Stable (Reaffirmed)
	Proposed Term Loan	Long Term	57.60	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2.55	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2.54	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	12.20	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	4.63	ACUITE BB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	8.28	ACUITE BB+ \| Stable (Reaffirmed)
26 Dec 2024	Term Loan	Long Term	12.20	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Proposed Term Loan	Long Term	57.60	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	2.55	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	2.54	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	12.20	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	4.63	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	8.28	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	9.06	ACUITE BB+ \| Negative (Downgraded from ACUITE BBB- \| Negative)
	Term Loan	Long Term	9.00	ACUITE Not Applicable (Withdrawn)
	Term Loan	Long Term	0.93	ACUITE Not Applicable (Withdrawn)
	Secured Overdraft	Long Term	0.10	ACUITE Not Applicable (Withdrawn)
	Bank Guarantee (BLR)	Long Term	5.50	ACUITE Not Applicable (Withdrawn)
	Proposed Long Term Bank Facility	Long Term	125.41	ACUITE Not Applicable (Withdrawn)
05 Oct 2023	Term Loan	Long Term	9.00	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	9.06	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	0.93	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Term Loan	Long Term	51.77	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Proposed Term Loan	Long Term	173.64	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Secured Overdraft	Long Term	0.10	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)
	Bank Guarantee (BLR)	Long Term	5.50	ACUITE BBB- \| Negative (Downgraded from ACUITE BBB \| Negative)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
Not Applicable	Not avl. / Not appl.	Proposed Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	61.38	Simple	ACUITE Not Applicable \| Withdrawn
NATIONAL HOUSING BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	28 Mar 2018	Not avl. / Not appl.	31 Jan 2033	1.88	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
NATIONAL HOUSING BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	27 Dec 2018	Not avl. / Not appl.	01 Oct 2033	1.86	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
NATIONAL HOUSING BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	14 Feb 2020	Not avl. / Not appl.	01 Jan 2030	8.04	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
NATIONAL HOUSING BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Mar 2021	Not avl. / Not appl.	01 Jan 2028	3.80	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	09 Feb 2023	9.06	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )
NATIONAL HOUSING BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	13 Mar 2020	Not avl. / Not appl.	01 Jan 2030	8.04	Simple	ACUITE BB+ \| Stable \| Upgraded ( from ACUITE BB )

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

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 ⁶	RBI
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 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
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 ⁶	RBI
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) ⁷	+
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

¹Includes 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.
³The 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.
⁴ 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.
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.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

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 ⁸	Not applicable

⁸ 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.