Muthoot Capital Services Ltd

Filing Update

• Allotment approved for 100,000 NCDs aggregating ₹100 crore on private placement.
• Face value ₹10,000 per NCD; instrument: senior, secured, listed, redeemable.
• Coupon rate 9.25% per annum; monthly payment.
• Tenure 36 months; maturity on 24 August 2029.
• Deemed allotment date 24 August 2026; proposed listing on BSE.
• Asset cover pari passu with existing secured creditors; minimum 1.1x asset coverage.
• Coupon steps up up to 25 bps per notch downgrade; not below initial rate.
• Default interest 2% p.a. over coupon on default.
• Listing: Yes, on BSE Limited.

Timing & Committee

• Debenture Issue and Allotment Committee met 24 August 2026; meeting 10:00–10:45 AM.

Transaction details

• Asset-backed securitization via assignment of vehicle-finance receivables completed on Aug 19, 2026; third in FY 2026-27.

Financing figures

• Amount raised: ₹29,80,63,471; securitized pool: ₹33,11,81,634.

Pool characteristics

• Non-priority sector pool; RBI guidelines considered.

NCD issuance details

• Type of securities: Senior, secured, listed, rated non-convertible debentures (NCDs).
• Issuance type: Private Placement.
• Total number: 100,000 NCDs of ₹10,000 face value.
• Aggregate size: up to ₹100 crores.
• Listing: Listed on BSE Limited.
• Tenure: 36 months.
• Deemed allotment date: 24 August 2026.
• Deemed maturity date: 24 August 2029.
• Coupon: 9.25% per annum, monthly.
• Security: Secured with pari passu charge.
• Asset coverage: minimum 1.1x of outstanding amount.
• Special rights: Coupon steps up for downgrades; never below initial rate.
• Default interest: 2% p.a. over coupon.
• Redemption terms: as mutually agreed.

Debenture issue approval

• Debenture Issue and Allotment Committee met on August 18, 2026.
• Approved private placement of NCDs up to ₹100 crore.
• Securities: Senior, Secured, Rated, Listed, Redeemable NCDs.
• Issue size: 100,000 NCDs of ₹10,000 each.
• Listing: to be listed on BSE Limited.
• Tenor: 36 months; Deemed allotment: 24 Aug 2026.
• Deemed maturity: 24 Aug 2029.
• Coupon: 9.25% p.a.; monthly payments; bullet principal.
• Security: Pari Passu with existing secured creditors over assets; minimum 1.1x coverage.
• Coupon step-up: up to 25 bps for each downgrade notch.
• Coupon may reduce by 25 bps per notch upgrade; never below initial rate.
• Default interest: 2% p.a. over coupon on defaults.
• Redemption of preference shares per mutually agreed terms.

Financial performance

• Total income ₹63,252 lakh; up from ₹47,650 lakh in prior year.
• PAT ₹1,117 lakh; down from ₹4,575 lakh.
• PBT ₹1,561.8 lakh; down from ₹6,039.8 lakh.
• Basic EPS ₹6.79; ROE 1.86%.
• Net worth ₹67,042 lakh; up from ₹65,806 lakh.
• CRAR 22.02% (Tier I 21.87%, Tier II 0.15%); above minimum 15%.
• AUM crossed ₹3,400 crore; sustaining growth trajectory.
• Dividend declared/not declared: Board did not recommend a dividend for FY2025-26.

Capital & funding

• Total external borrowings ₹3,32,346 lakh; +14% YoY.
• NCDs raised ₹60,000 lakh; Green Bonds ₹15,000 lakh (₹150 crore).
• Ratings: long-term facilities upgraded to Crisil AA-/PPMLD AA-, CP rated A1+.
• Public deposits ₹8,221.54 lakh; securitisation outstanding ₹66,018.09 lakh.
• Authorized share capital ₹2,500 lakh; paid-up share capital ₹1,645 lakh.
• Debt instruments rated A+ by CRISIL and A+ by ICRA; CP ratings reaffirmed.
• GRP: Diversified funding mix; emphasis on ALM and liquidity management.

Asset quality & risk

• PCR on Stage 3 assets at 50%; overall portfolio PCR 3.55%.
• GNPA 6.96%; NNPA 4.12% (as of 31-03-2026).
• Excess provisioning vs regulator: total provisions ₹11,901 lakh vs regulatory ₹6,761 lakh.
• ICAAP framework in place; ALCO monitoring for capital adequacy.
• Impairment provisioning and overlays reflect cautious risk management.
• CRAR remains well above minimum regulatory requirement.

Growth & operating initiatives

• AUM cross ₹3,400 crore; self-sourced growth in two-wheeler, used car, and CV finance.
• 100% e-NACH for new loan originations; 83% digital collections.
• Digital onboarding at 100%; MFLO app downloads exceed 70,000.
• Expanded product suite to include Used Car, CV, Construction Equipment finance.
• IRDAI corporate agency license obtained Jan 2025 for insurance distribution.
• Strategic objective: 40% disbursement via alternate products by 2028; cross-sell to 10% customer base.
• Strong emphasis on digital platforms, data analytics, and AI-driven underwriting.

ESG, CSR & sustainability

• ESG Impact Rating 74; CRISIL/ICRA ESG scores flagged.
• Green Bonds: ₹150 crore used for EV portfolio; 19,167 EVs financed.
• HEEL framework: Health, Education, Environment, Livelihood; CSR spend ₹227.24 lakh.
• CSR compliance: 2% of average net profit; obligation ₹222.36 lakh; excess ₹4.88 lakh.
• 72 new houses completed under Livelihood/Resilience programs; focus on vulnerable communities.
• CSR Committee active with 7 directors; policy aligned with Schedule VII.

Governance & controls

• Board size seven; four Independent Directors; two women Independent Directors.
• Thomas Mathew resigned July 7, 2026; Ms. Manimekhalai A appointed Independent Director from July 16, 2026.
• AGM 32nd scheduled for Aug 31, 2026 via VC/OAVM; dividend nil for FY26.
• Statutory auditors: Sundaram & Srinivasan; secretarial auditors: S. Sandeep & Associates (MR-3).
• Internal controls robust; ISO 27001:2022 certification; RBIA framework in place.

AGM Details

• Thirty-Second AGM on August 31, 2026 at 11:00 AM IST via VC/OAVM.
• Notice of the AGM enclosed with Annual Report.

Access to AR

• Annual Report and AGM notice available on the company website.
• Physical copy available on request via secretarial@muthootcap.com.

E-voting

• Members may vote electronically on all AGM resolutions.
• Remote e-voting window: Aug 27, 2026, 9:00 AM to Aug 30, 2026, 5:00 PM.

Eligibility & Rights

• Cut-off date for voting eligibility: August 24, 2026.
• Voting rights are proportional to paid-up equity share capital.

Platform & Provider

• VC/OAVM facility provided by Central Depository Services (India) Limited (CDSL).

RTA & Registrar

• RTA: Integrated Registry Management Services Private Limited.

Communication to Members

• Intimation will be sent to members without registered e-mails.
• Web link and QR code provided to access Annual Report.
• Intimation will include the exact path to access the Annual Report.

Market Info

• NSE trading symbol: MUTHOOTCAP.

Shareholder Contact

• Email secretarial@muthootcap.com for copies or queries.

Rating Action

• Brickwork Ratings assigns BWR AA/Stable to Rs 3,500 crore bank loan facilities of MCSL.

Instruments/Facilities Rated

• Bank Loan Facilities (Fund-Based) ₹3,500 crore, Long Term, rated BWR AA/Stable.

Rating Agency

• Agency: Brickwork Ratings (BWR).

Outlook

• Outlook: Stable.

Strengths

• Implicit MPG support and experienced management cited as strengths.

Capital & Leverage

• CRAR 22.07% (Tier I 22.06%); Debt-to-Equity ~4.88x as of 30 Jun 2026.

Asset Quality

• GNPA 3.94%; NNPA 2.36% as of 30 Jun 2026; PCR ~50%.

Liquidity

• Liquidity buffers ₹443.3 crore; 1.3x 1-month liquidity coverage; rollover anticipated.

Geographic/Portfolio Risk

• Geographic concentration in South; Kerala 15.5% of loans as of Mar 31 2026.

Rating Sensitivities

• Upgrade possible on scale growth and improved asset quality with CRAR above 25%.

Meeting Details

• Date: July 17, 2026; Time: not disclosed.
• Meeting type and mode: Earnings conference call; virtual listen-only.
• Organizer: Elara Securities (moderator).
• Event: Q1 FY27 Earnings Conference Call.

Participants

• Key company participants: Chief Executive Officer; Chief Financial Officer.

Purpose

• Discuss unaudited quarterly results for the quarter ended June 30, 2026.

Additional Notes

• Transcript enclosed; available on the company website.
• Conference call was recorded.