Disclosure on Credit Rating.

Vimta Labs Limited Registered Office 142, IDA Phase II, Cherlapally Hyderabad-500 051 ,Telangana, India T: +91 4027264141 F : +91 40 2726 3657 Driven by Quality. Inspired by Science. VLL\SE\041 \2026-27 Date: 02 September 2026 BSE Limited, National Stock Exchange of India Limited, P J Towers, Dalal Street, "Exchange Plaza", Bandra, Kurla Complex, Mumbai -400001. Bandra (E), Mumbai -400051. Scrip Code : 524394 Trading Symbol: VJMTALABS Dear Sir/Madam, Sub: Disclosure on Credit Rating Ref: Reg 30 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 With reference to the subject cited above, this is to inform you that CARE Ratings Limited ("Credit Rating Agency" has Reaffirmed the ratings to bank facilities of Vimta Labs Lted as under: Press Release dated 02 September 2026, issued by the Credit Rating Agency is attached herewith. This is for your information and necessary records. Thanking you, For VIMTA LABS LIMITED Sujani Vasireddi Company Secretary & Compliance Officer Life Sciences Campus, # 5, Neovantage Science & Technology Park, Genome Valley, Shamirpet, Medchal-Malkajgiri District. Hyderabad -500101, Telangana, India. 1: +91 4067404040 E : mdoffice@vimta.com URL : www.vimta.com CIN: L24110TG1990PLC011977 Press Release Vimta Labs Limited September 02, 2026 Name of the Rating Facilities/Instruments Amount (₹ crore) Rating2 Regulator1 Action Long-term / Short-term bank CARE A; Stable / RBI 34.00 Reaffirmed facilities CARE A1 25.50 (Reduced from Long-term bank facilities RBI CARE A; Stable Reaffirmed 37.67) Short-term bank facilities RBI 1.78 CARE A1 Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Ratings for Vimta Labs Limited’s (Vimta’s) bank facilities continue to reflect the company's established position in the contract research and testing organisation (CRTO) industry, backed by a seasoned management team with over four decades of industry experience. Vimta benefits from a diversified service portfolio spanning pharmaceutical analytical testing and research, pre-clinical and clinical research, food and environmental testing, and electrical and electronic testing, supported by long-standing relationships with a broad client base. The company reported an improved financial performance in FY26, driven by robust growth in its pharmaceutical research and testing business and improved operational efficiencies. Consequently, Vimta achieved a profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin of 35.26% and a profit after taxation (PAT) margin of 18.86% during the year. Ratings are further supported by the company's healthy capital structure, strong debt protection metrics, negligible reliance on external borrowings, and comfortable liquidity position, evidenced by nil utilisation of working capital limits and cash and cash equivalents of ₹69 crore as on March 31, 2026. However, these rating strengths are partly offset by Vimta's relatively moderate scale of operations and its exposure to regulatory and compliance requirements associated with Good Practice (GXP) standards, including Good Manufacturing Practice (GMP), Good Clinical Practice (GCP), and Good Laboratory Practice (GLP). Compliance with these standards necessitates periodic investments in technology upgrades and laboratory infrastructure. The company has undertaken significant investments in its Biologics segment, which remains in the development phase and is expected to commence meaningful revenue generation by FY27-end. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Substantial growth in turnover and maintenance of asset turnover above 1.0x on a sustained basis. • Improved revenue visibility and increasing contribution from the biologics segment. Negative factors • Significantly declining total operating income (TOI) or PBILDT margins, falling below 20% on a sustained basis. • Declining overall gearing above 0.35x or considerable weakening of liquidity profile. • Unforeseen regulatory hurdles adversely affecting business operations. Analytical approach: Standalone Outlook: Stable The Stable outlook reflects CARE Ratings Limited's (CareEdge Ratings’) expectation that Vimta will benefit from its established industry presence, healthy profitability, and conservative capital structure, while completed lab expansion and ongoing biologics investments support future growth in scale. 1 SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority. 2 Complete definitions of ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers Key strengths Long track record of operation and experienced management in the business and high net worth base The management is well experienced in the contract research industry, and the company has an established track record of over four decades. Vimta has an established market position, with a network of 10 laboratories spread across the country, including multiple branch laboratories for food testing. The company has expanded its electronic testing business unit to take advantage of the growing electrical and electronics industry. It has also forayed in biologics segment, which is expected to commercialise in FY27. Established track record of operation in analytical, preclinical, and clinical research and testing domain with accredited labs Vimta is into CRTO services with over four decades of established track record. It offers specialised services, such as pharma analytical, clinical research and pre-clinical (drug development and discovery services) at its two central laboratories at Hyderabad. It also provides services in food testing, environment testing, and electrical and electronic testing, diversifying its services portfolio. Vimta has been inspected by regulatory authorities, such as - United States Food and Drug Administration (USFDA), European Medicines Agency (EMA), World Health Organization (WHO), National Good Clinical Manufacturing Authority (NGCMA), Drugs Controller General of India (DCGI-India), and Drug Regulatory Agencies of several other countries. Vimta is the first company in Asia to be pre-qualified by WHO in 2008. It is the only lab in India to be approved by the European Union (the EU) for Guar gum testing. Vimta operates the National Food Lab at Jawaharlal Nehru Port Authority (JNPA), Navi Mumbai for Food Safety and Standards Authority of India (FSSAI) under Public-Private Partnership mode (PPP) model, and its Hyderabad Lab has been notified by FSSAI as National Reference Laboratory. Over the years, Vimta has employed skilled man- power resources to ensure smooth functioning and successful completion of the projects undertaken. Established relationship with reputed clientele and diversified customer base Vimta has maintained a well-diversified customer base across key sectors, including pharmaceuticals, CRTO services, and food testing services. This broad industry presence not only supports revenue stability but also positions the company to benefit from growth opportunities in multiple verticals. Steady growth with strong profit margin and satisfactory returns ratio Vimta has diversified revenue streams, which protects from inevitable ebbs and flows in the industry. The steady growth in TOI is driven by increased demand in pharmaceutical CRTO services, and food testing services. The company improved operational efficiency through technology deployments and capacity expansion at its Hyderabad facility. Export revenues also grew steadily driven largely by increased demand for pharma-related services, such as preclinical studies, and cGMP analytical services. The company's margin is also determined by complexity of projec [Showing first 8,000 characters — download PDF for full document]