Credit Rating- New

Date: 02-09-2026 National Stock Exchange of India Limited BSE Limited To, To, Exchange Plaza, 5 Floor, Plot No. C/1, Phiroze Jeejeebhoy Towers, G Block, Bandra-Kurla Complex, Bandra, Dalal Street, Mumbai- 400051. Mumbai – 400 001 SWARAJ 544861 Company Symbol: Scrip Code: Dear Sirs, Sub.: Disclosure about Credit Rating, pursuant to Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015, as amended Dear Sir/Madam, Pursuant to Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015, as amended, we wish to inform you that “Acuite Ratings & ResearchLimited” (Credit Rating Agency) has assigned the ratings to Swaraj Suiting Limited as per details given below: Facilities Amount (Rs. In Rating crore) Assigned Bank Loan Ratings 123.09 ACUITE A-(Minus)| Stable | The rating letter dt. September 02, 2026 is attached herewith. Kindly take the same on record. Thanking You, Yours Faithfully, For Swaraj Suiting Limited Rahul Kumar Verma Company Secretary & Compliance Of(cid:976)ice Encl- As above Press Release September 02, 2026 SWARAJ SUITI G LIMITED Rating Assigned Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By Bank Loan Ratings 0.00 123.09 ACUITE A- | Stable | Assigned - RBI Total Outstanding 0.00 123.09 - - - Total Withdrawn 0.00 0.00 - - - Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance /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 Acuite has assigned its long term rating of 'ACUITE A-' (read as ACUITE A minus) on the Rs. 123.09 Cr. bank facilities of Swaraj Suiting Limited (SSL). The outlook is 'Stable'. Rationale for Rating The assigned rating derives strength from the extensive experience of the promoters, who possess over two decades of industry expertise in the textile sector. Leveraging their erstwhile exclusive job- work model, the company commenced its own manufacturing operations in 2022 and has since established significant capabilities in the production of denim and cotton finished products. The rating further factors in the company's improving scale of operations and profitability margins over the years, supported by a strengthened financial risk profile following equity fund infusion and its strong liquidity position. The company has raised funds aggregating to around Rs. 263 crore through the issuance of warrants and preference shares towards funding its ongoing capital expenditure programme and working capital requirements. Of the total amount, approximately Rs. 132 crore has already been received in FY 26, while the balance is expected to be infused by March 2027. Acuite also notes the company's consistent capital expenditure initiatives over the past two to three years through addition of production lines, technology upgrades, modifications and backward integration measures. These investments have supported the company's growth trajectory, reflected in improved revenue levels and profitability margins. As part of its backward integration strategy, the company is currently setting up new spinning lines and expanding its spinning capacity. The proposed project entails a total cost of approximately Rs. 421.36 crore and is expected to be funded through a mix of external debt and internal accruals/equity contribution. The company has already incurred an expenditure of around Rs. 73.59 crore as on May 5, 2026, through fund infusion, while financial closure for the balance project cost remains pending. Timely financial closure and successful completion of the ongoing capital expenditure programme will remain a key monitorable over the medium term. The above strengths are, however, constrained by the company's working capital intensive nature of operations, as reflected in elevated GCA days of 273 days in FY 26 and profitability remains exposed to volatility in raw material prices. About the Company Rajasthan-based Swaraj Suiting Limited (SSL), incorporated in 2003, is engaged in the manufacturing and processing of premium denim, cotton and synthetic fabrics for both domestic and export markets. Promoted by Mr. Mohammed Sabir Khan, Ms. Samar Khan and Mr. Nasir Khan, the company was reconstituted from a private limited company to a public limited company in March 2022 and is listed on the National Stock Exchange. SSL operates two manufacturing facilities at Bhilwara (Rajasthan) and Neemuch (Madhya Pradesh). The company's operations are overseen by an experienced management team comprising Mr. Mohammed Sabir Khan, Ms. Samar Khan, Mr. Nasir Khan, Ms. Amreen Sheikh, Ms. Annie Zuberi and Ms. Anam Hamid as directors. Unsupported Rating Not Applicable. Analytical Approach Acuite has considered standalone business & financial risk profile of Swaraj Suiting Limited (SSL) to derive at the rating. Key Rating Drivers Strengths Extensive industry experience of the promoters The company draws strength from the extensive experience of the promoters, who collectively possess over two decades of experience in the textile industry. Their established understanding of industry dynamics, coupled with long-standing relationships with customers, suppliers and other stakeholders, has supported the company's operational performance and business growth over the years. The promoters bring significant expertise across key functional areas including production, marketing, finance and commercial management. Under their leadership, SSL has undertaken various strategic initiatives aimed at strengthening its presence across the textile value chain through backward and forward integration. Acuite believes that the promoters' extensive industry experience and demonstrated execution capabilities will support the timely completion of the ongoing capital expenditure, enable the company to derive the intended operational benefits from the investments, and help maintain strong relationships with customers and suppliers over the long term. Improving Scale of Operations & Profitability The company has demonstrated a strong growth trajectory over the last four years, with its operating income increasing at a CAGR of 38.20% from Rs. 219.79 crore in FY 23 to Rs. 581.44 crore in FY 26.During FY26, the company reported a significant increase in sales, with operating income rising by 39.2% to Rs. 581.44 crore in FY 26 from Rs. 418.38 crore in FY 25. The company's profitability has also improved materially over the years. EBITDA grew by 54.9% from Rs. 75.03 crore in FY 25 to Rs. 116.24 crore in FY 26, with EBITDA margin improving to 19.99% in FY26 from 17.93% in FY25. As a result, PAT margin improved to 9.01% in FY26 from 7.96% in FY25, reflecting the operating leverage benefits arising from the company's expanding scale of operations. The improvement in operating margins was driven by a favourable product mix, regular capex for upgradation & modification of the plant, higher contribution from value-added fabric sales, improved capacity utilization across the integrated textile chain, and better absorption of fixed costs. Further, the company booked net revenue of Rs. 183.37 Cr. with EBITDA of Rs. 35.52 Cr. and PAT of Rs. 16.22 Cr. during Q1 FY 27. Acuite believes that the company's integrated operations, continued focus on value-added products and ongoing capacity enhancement initiatives are likely to support its growth momentum and sustain healthy profitability levels over the medium term. Healthy Financial Risk Profile The financial risk profile of the company is healthy marked by high net worth, gearing below unity and comfortable debt coverage indicators. The tangible net worth of the company improved from Rs. 151.74 crores as on 31st March 2025 to Rs. 335.87 crores as on 31st March 2026. The improvement is mainly due to fresh infusion of funds through preferential allotment of equity shares & convertible wa [Showing first 8,000 characters — download PDF for full document]