Please find enclosed credit rating received by the Company from India Ratings and Research Private Limited.
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India Ratings has assigned an initial IND BBB-/Stable rating to Purple Finance's bank loan facilities of INR 1,250 million and a proposed Non-Convertible Debenture of INR 500 million (yet to be issued). The rating acknowledges the company's adequate capitalisation with a Tier 1 capital adequacy ratio of 43.13% and successful capital raises of about INR 851 million through two rights issues. India Ratings cited strengths including experienced promoters, a growing franchise with AUM of INR 1,631 million (September 2025), and a focus on secured MSME lending. Key concerns include ongoing operating losses (loss of INR 16.2 million in 2QFY26), geographic concentration with Maharashtra accounting for 46% of AUM, an unseasoned loan portfolio, modest scale, and a concentrated funding base with three lenders making up 55% of borrowings.
This is Purple Finance's first formal credit rating, giving investors a benchmark for the company's debt. IND BBB- sits at the lower end of investment grade, and the Stable outlook signals near-term stability, but shareholders should note that profitability remains unproven with break-even only expected by FY27.