Press Release September 02, 2026 MAG FINSERV COMPANY LIMITED Rating Assigned and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	125.00	ACUITE BBB+ | Stable | Upgraded	-	RBI
Non Convertible Debentures (NCD)	100.00	0.00	ACUITE BBB+ | Stable | Upgraded	-	SEBI
Commercial Paper (CP)	0.00	50.00	-	ACUITE A2 | Assigned	RBI
Total Outstanding	100.00	175.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) to 'ACUITE BBB+’ (read as ACUITE triple B Plus) on the Rs. 125.00 crore proposed bank facilities of MAG Finserv Company Limited (MFCL). The outlook is ‘Stable’. Acuité has upgraded the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) to 'ACUITE BBB+’ (read as ACUITE triple B Plus) on the Rs. 100.00 crore proposed Non Convertible Debentures facilities of MAG Finserv Company Limited (MFCL). The outlook is ‘Stable’. Acuité has also assigned the short-term rating of ‘ACUITE A2’ (read as ACUITE A Two) on the Rs. 50.00 crore proposed Commercial Paper of MAG Finserv Company Limited (MFCL). Rationale for rating Acuite, vide its press release 24th August 2026, had reaffirmed the rating of MFCL against which the issuer had appealed and provided further information and clarification, particularly with respect to borrowing profile and gearing ratio. Upon receipt of further clarity on these factors, Acuite notes that improved gearing from 4.05 times in FY25 to 3.57 times in FY26 along with replacing co-operative borrowings with NCD will help to improve the finance cost and financial flexibility. The rating upgrade is on account of continuous improvement in scale of operation and earning profile as reflected in MFCL’s AUM which stood at Rs. 370.09 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 331.57 Cr. as on March 31, 2025 (Rs. 275.58 Cr. as on March 31, 2024).The total disbursements (on book + off book) for FY2026 stood at Rs. 911.99 Cr. MFCL's PAT improved to Rs. 15.47 Cr. in FY2026 from Rs. 10.84 Cr in FY2025 (Rs. 7.63 Cr. in FY2024). The rating also derives strength from healthy asset quality marked by on time portfolio at 98.69 percent and GNPA (90+dpd) at 0.67 percent as on March 31, 2026 (Prov.).  The rating further takes into consideration gradual shift in the company’s lending profile towards secured gold loans. During FY2026 (Prov.), gold loans comprised 98.82 percent of total disbursals vis a vis 95.32 percent during FY25. The rating is however, constrained by geographical concentration, limited financial flexibility and highly competitive business of lending against gold. Going forward, the company’s ability to raise capital, profitably scale-up its loan portfolio while maintaining the asset quality will be a key monitorable.

About the company

Maharashtra based MAG Finserv Company Limited commenced its operations as a NBFC from 2005. The Company was started by acquiring a NBFC registered with RBI that belonged to Bhosale Group. The Company offers asset backed financing (over 90% of AUM) in terms of gold loans, two wheeler loans and secured loans (LAP or equipment financing) and unsecured loans that comprise of Microfinance (less than 10% of AUM). The on book AUM stood at Rs. 370.09 Cr. as on March 31, 2026 (Prov.)

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone financial and business risk profile of MFCL to arrive at the rating.

Key Rating Drivers

Strength

­Experienced Management MFCL, a Maharashtra based NBFC is promoted by Mr. Ananta G. Mohotkar (Chairman). He has more than three decades of experience in the NBFC. He looks after the strategic planning and operations of the company. The Mohotkar Family held around 46.84 percent stake in the company as on March 31, 2026. Mr. Ananta G. Mohotkar is supported at board level by Mrs. Sunita A Mohotkar (Director) is engaged in women empower activities from over two decades, she looks after the operations of SHG segment in MFCL. Mr. Ameya Tambekar (Director) is a chartered account by qualification, he has more than 14 years of experience in BFSI sector, in MFCL he heads the compliance and finance department. Miss. Shalaka Ananta Mohotkar has been joined as the Associate Director. Acuité believes that MFCL will continue to benefit from its established presence and experience of the promoters in the gold loan segment. Healthy Asset Quality MFCL's AUM stood at Rs. 370.09 Cr. as on March 31, 2026 (Prov.) compared to Rs. 331.57 Cr. as on March 31, 2025. Asset quality remained healthy with on-time portfolio at 98.69 percent as on March 31, 2026 (Prov.) against 98.82 percent as on March 31, 2025. On time dpd profile has remained in the range of 89 98 percent since FY2020 till YTD. Gross NPA improved to 0.67 percent with NNPA of 0.02 percent as on March 31, 2026 (Prov.) as against GNPA of 0.70 percent and NNPA of 0.06 percent as on March 31, 2025. Further, the 90+ dpd portfolio improved marginally to 0.68 percent as on March 31, 2026 (Prov.) from 0.70 percent as on March 31, 2025. Provision coverage strengthened to 97.29 percent as on March 31, 2026 (Prov.) compared to 91.42 percent as on March 31, 2025. Going forward, as the company scales up its business operations, asset quality will remain a key monitorable. Secured Nature of Portfolio MFCL commenced its lending operations in 2005. The NBFC is engaged in providing Gold Loans, Two-Wheeler Loans, MFI Loans and Smal Business Loans. As on March 31, 2026, gold loans constituted the major portion of the AUM at around 96 percent compared to around 90 percent as on March 31, 2025. Over the years, the company has consciously increased its focus on secured gold loans while reducing exposure to unsecured and relatively riskier segments. The higher share of gold loans has strengthened the secured nature of the portfolio and supported asset quality. In order to enable speedier expansion, the company has implemented an asset-light franchise model for its gold loan portfolio from 2023. Additional ly, MFCL has a co lending arrangement with Central Bank of India wherein both entities lend jointly. The co-lending model supports portfolio growth while reducing the requirement for balance sheet leverage. Acuité believes that the increasing focus on secured gold loans is likely to support the company's risk profile over the medium term.

Weakness

­H?igh geographical concentration MFCL operates in only two states, Maharashtra and Karnataka, with a branch network of 63 branches as on March 31, 2026 (Prov.). The company's loan portfolio remains concentrated in Maharashtra, which accounted for around 81 percent of the AUM as on March 31, 2026 (Prov.), although this has improved from around 85 percent concentration reported earlier. The company's operations are expected to remain largely concentrated in Maharashtra and Karnataka over the medium term. Acuité believes that geographical concentration will continue to weigh on the company’s credit profile. Limited financial flexibility The capital structure of MFCL is supported by Networth of Rs. 86.71 Cr. and a total Debt of Rs. 309.22 Cr. resulting into a gearing of 3.57 times as on March 31, 2026 (Prov.), however there was infusion of Rs. 8.91 Cr. during FY25 in the form of Compulsory Convertible Debentures (CCD). MFCL has borrowing profile consist of a mix of NBFC/FI and banks. The company has raised these loans at interest rates in the range of 10-12 percent. MFCL is in the process of replacing co-operative society borrowings with the NCD, which will result in lower cost of borrowing.  Acuite believes that the ability of the company to mobilize additional funding through debt/equity will be critical.

Rating Sensitivity

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

Sustained improvement in the scale of operations while maintaining healthy asset quality metrics. Consistent improvement in profitability; RoAA above 4.50 Percent

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

­Significant deterioration in asset quality. Decline in profitability parameters making RoAA below 1.00 percent

Liquidity Position

Adequate

­The liquidity profile of MAG Finserv Company Limited (MFCL) remains adequate, supported by positive cumulative ALM mismatches across al maturity buckets. MFCL repayment obligations (total outflows) stood at Rs. 309.83 Cr. over a one-year period, against receivable (total inflows) of Rs. 366.74 Cr. over the same period resulting in positive mismatch of Rs. 56.91 Cr. as per the ALM statement dated March 31, 2026 (Prov.). The company also maintained cash and bank balances of around Rs. 16.79 Cr. as on March 31, 2026 (Prov.).

Outlook:

­Stable

Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY26 (Provisional) FY25 (Actual) Total Assets** Rs. Cr. 409.91 378.81 Total Income* Rs. Cr. 39.36 33.87 PAT Rs. Cr. 15.47 10.84 Net Worth Rs. Cr. 86.71 72.40 Return on Average Assets (RoAA) (%) 3.92 3.13 Return on Average Net Worth (RoNW) (%) 19.44 17.18 Debt/Equity Times 3.57 4.05 Gross NPA (%) 0.67 0.70 Net NPA (%) 0.02 0.06 *Total income equals to Net Interest Income plus other income **Total assets adjusted to Deferred Tax liabilities

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 • Commercial Paper: https://www.acuite.in/view-rating-criteria-54.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 24 Aug 2026 Proposed Long Term Bank Facility Long Term 107.40 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 17.60 ACUITE BBB | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 100.00 ACUITE BBB | Stable (Reaffirmed) 31 Jul 2026 Proposed Long Term Bank Facility Long Term 107.40 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 17.60 ACUITE BBB | Stable (Reaffirmed) Proposed Non Convertible Debentures Long Term 100.00 ACUITE BBB | Stable (Assigned) 24 Dec 2025 Proposed Long Term Bank Facility Long Term 101.68 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 17.60 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 5.72 ACUITE BBB | Stable (Reaffirmed) 25 Sep 2024 Term Loan Long Term 6.51 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 5.72 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 101.68 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 11.09 ACUITE BBB | Stable (Reaffirmed) 29 Jun 2023 Secured Overdraft Long Term 3.00 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 86.60 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 11.09 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 15.52 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 0.47 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 8.32 ACUITE BBB | Stable (Reaffirmed)

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Contacts

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

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