Press Release April 14, 2026 SURJIT HIRE PURCHASE PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	35.00	ACUITE BB- | Stable | Assigned	-	RBI
Total Outstanding	0.00	35.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Rating Rationale

­Acuite has assigned the long term rating of 'ACUITE BB-' (read as ACUITE Double B Minus) on the Rs 35.00 Cr. bank loan facilities of Surjit Hire Purchase Private Limited. The Outlook is "Stable". Rationale for Rating The rating assigned to Surjit Hire Purchase Private Limited (SHPPL) reflects its moderate scale of operations, weak profitability, weak asset quality, and geographical concentration. The company’s assets under management including off book and on book remained modest at Rs.57.00 Cr. as on December 31, 2025. The rating also factors in SHPPL’s weak asset quality, with GNPA and NNPA increasing to 5.78 percent and 4.57 percent as on December 31, 2025, respectively, compared with 1.24 percent and 0.37 percent as on March 31, 2025. The capital structure is marked by a net worth of Rs. 32.75 Cr., CAR of 40.12 percent and moderate leverage, with a gearing of 1.43 times as on March 31, 2025. The rating is supported by the experience of the management . Going forward company’s resource raising ability, improvement in asset quality across different time buckets, improvement in profitability metrics and AUM while maintaining healthy Capitalization levels would be key rating sensitivities.

About the company

­Lucknow, Uttar Pradesh based, Surjit Hire Purchase Private Limited was incorporated in 1993. The Company is a Non-Banking Financial Company. The company is engaged in lending activity such as business loan, commercial vehicle loan, Micro loan against property for micro entrepreneurs and small businesses. Mr. Alok Kumar Singh, Mr. Shesh Dhar Singh, Mr. Shyam Dhar Singh, Mr. Adarsh Kumar Singh, Mr. Jai Shankar Singh, Mr. Varun Kumar Yadav are directors of the company.

Unsupported Rating

­Not applicable

Analytical Approach

Acuité has adopted a standalone approach while assessing the business and financial risk profile of Surjit Hire Purchase Private Limited.

Key Rating Drivers

Strength

Experienced management in financial sector SHPPL is managed by an experienced promoter group with long-standing presence in the financial services sector. The company is led by Mr. Sheshdhar Singh, Founder, Promoter Director and CEO, who has over 18 years of experience in NBFC operations, strategy formulation and risk management. The board is chaired by Mr. Shyamadhar Singh, Founder and Chairman, with over 25 years of industry experience, providing strategic direction and governance oversight. Mr. Jai Shankar Singh, Founder and Vice Chairman, also brings more than 25 years of experience in financial services and business development. The senior management is further supported by Mr. Alok Kumar Singh, Director & CFO, with over five years of experience in finance, accounts and compliance, and Mr. Adarsh Kumar Singh, Director & CTO, who oversees technology and systems with a background in engineering and over five years of industry experience.

Weakness

­Moderate scale of operations and geographically concentrated portfolio The business profile remains constrained by moderate scale and high concentration risks. The AUM (Off book & on book) increased to Rs. 73.20 Cr. in FY25 from Rs. 66.98 Cr. in FY24. And moderated at Rs. 57.00 Cr. as on December 31, 2025. SHPPL operates through 35 branches, of which the majority are in UP, with two branches in Rajasthan and one branch in Madhya Pradesh. As on March 31, 2025, Uttar Pradesh accounted for around 92 percent of the AUM, while Rajasthan and Madhya Pradesh contributed about 6 percent and 2 percent, respectively. The loan portfolio continues to be dominated by unsecured business loans, which accounted for over 60 percent of the AUM and secured EV loans accounted for remaining 40 percent. Company’s Net-worth increased to Rs.32.75 Cr. in FY25 from Rs.31.13 Cr. in FY24 and declined to Rs.27.38 Cr. in December 31, 2025. Weak profitability The profitability profile of SHPPL remains weak and volatile. The company reported a sharp decline in earnings during December 2025, with PAT turning negative at Rs. (5.36) Cr., compared to a PAT of Rs 0.80 Cr. in FY24 and Rs 0.81 Cr. in FY25. The significant deterioration in profitability during December 2025 was primarily on account of higher credit costs arising from write-offs amounting to Rs 5.89 Cr., undertaken to clean up the legacy stressed portfolio. While this has resulted in near-term pressure on earnings, it is expected to improve the quality of the remaining loan book over the medium term. The weakening profitability is also reflected in the return indicators. RoAA declined sharply from 1.09 percent in FY24 to 0.99 percent in FY25. Weak asset quality SHPPL’s asset quality profile has weakened over the past year. GNPA increased to 5.78 percent and NNPA to 4.57 percent as on December 31, 2025, compared to GNPA of around 1.24 percent and NNPA of 0.37 percent as on March 31, 2025. The deterioration was driven by higher slippages in the unsecured business loan segment and moderation in collection efficiencies. Further, during FY25, the company followed an NPA recognition norm of 150+ days past due. The recognition threshold was reduced to 120+ days in FY26 and is required to move to 90+ days from FY27 onwards, which is expected to exert additional pressure on the reported GNPA levels, given the still-unsecured nature of a meaningful portion of the loan book. Collection efficiency has remained moderate. As on December 2025, monthly collection efficiency stood at 84.70 percent.

Rating Sensitivity

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

Consistent growth in AUM and increasing geographical concentration Improvement in profitability, reflecting in RoAA above 2.00 percent.

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

Further decline in profitability. Reduction in asset quality

Liquidity Position

Adequate

The liquidity profile is adequate, supported by positive cumulative asset-liability mismatch across time buckets as of December 2025. Cash and bank balances stood at Rs. 8.32 Cr. as of March 2025. Borrowings are primarily in the form of long term loans and NCD, and total borrowings stood at Rs. 46.92 Cr. as of March 2025. Collection efficiency for the month of December 2025 stood at 84.70 percent.

Outlook:

­Stable

Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Actual) FY24 (Actual) Total Assets Rs. Cr. 81.63 81.16 Total Income* Rs. Cr. 16.66 21.96 PAT Rs. Cr. 0.81 0.80 Net Worth Rs. Cr. 32.75 31.13 Return on Average Assets (RoAA) (%) 0.99 1.09 Return on Average Net Worth (RoNW) (%) 2.52 3.12 Total Debt/Tangible Net worth (Gearing) Times 1.43 1.51 Gross NPA (%) 1.24 1.12 Net NPA (%) 0.37 0.39 ­*Total income equals to Net Interest Income plus other income  Ratios as per Acuite's calculations

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

CARE, vide its press release dated April 02, 2026 had denoted the rating of Surjit Hire Purchase Private Limited as 'CARE BB-; Stable; ISSUER NOT COOPERATING, Downgraded.

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

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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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