Credit Rating

*a srl No. CAlC omplia nce/ Cr.P.atingl 2026 3rd September, 2026 The General Manager (MO) The Assistant. Vice President Bombay Stock Exchange National Stock Exchange of India Ltd. Throueh BSE Listing Centre Through Neaps Sub: Disclosure under Resulation 30 of SEBI GODR). 2015 - Revision and Dear Sir, In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that India Ratings and Research, pursuant to Regulation 84(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has reviewed, affrrmed, upgraded and withdrawn the following ratings of SAIL: ITND Bank loan facilities 22;000 l hee t+ *l stable/lNO fu pgraded/Affrrmed Bond t$D [withdrawn Commercial paper 8.000 [No e t+ leffirmed Public deposit 1,000 ltND AA+/Stable fUpgraded Issuer Rating 0 frNoee+tstable lUpgraded The Rationale of Ratings is enclosed at Annexure-I. Thanking You, Yours faithfully, For Steei Authority of India Limited (M.B. Balakrishnan) ED(F&A) & Company Secretary Encl: As Above rA"d oreffta ds yFsql ftft&, gsn rr+c, dti irs. d ft.d rro oo3, ({flrr : 011-24367481-86, 6tr : 011-2436701s, Wa www.sait.co.in Steel Authority of lndia Limited, lspat Bhawan, Lodhi Road, New Delhi-110 003, Phone : 011-24367481-86, Far( : 24367015, website : www.sail.co.in AAACS7052F SAIL PAN No. SAIL Corporate ldentity Number : 127109D11973GO1006454 rrElsai&l<d*gE gsne +" There's o little bit of SAIL in everybody's life India R.rtirres Lo \-t :t (('\ ('.) f(- l(I I 11 A t'a,: Ci.ii ii)l,ri.r.t Title lndia Ratings upgrades steel Authority of tndia and its Debt rnstruments to 'tND AA+'/stable; Affirms cps at ,tND 41+, Brief lndia Ratings and Research (lnd Ra) has upgraded SteelAuthority of lndia timited's (SAtL) Long-Term tssuer Rating and debt instruments to 'lND AA+' with a Stable outlook from 'lNo AA'. rhe instrument-wise reting actions are as follows: Details of lnstruments lnsttument ReSulalol Dat€ ot Coupon Maturity Size of Ratint Aisitned Ratint Actlon Desc.iption ol lssuance Rate Oate lSsue alont with lnstrument (%) (rNR Watch/Outlook million) Bank loan RBI 220,OOO IND AA+/Stable/lND Long term rating facilities A1l uptrade & short term rating affirmed Bonds* Refer lSlN 140 WD Withdrawn@ annexure Commercial RBI up to 80,000 IND A1+ Affirmed paper 365 days Public RBI 10,000 lN0 AA+/Stable Upgraded deposits lssuer # IND AA+/Stable Upgraded rating WD - Rating Withdrawn # There is no instaument beinB rated and hence, ReBulator of the lnstrument is not applicable. The rating scale and definitaons are being followcd as stipulated in SEBI Master Circular for CRAs. *Details in Annexure @Paid in full AnaVtical Approach lnd-Ra continues to fully consolidate sAtL's 5!o!i!!!!i9!: sAtL Refractory company Limited (100% stake owned by sAtL) and M/s chattisgarh Meta Steel Limited (74%); associate company, Almora Ma8nesite Ltd and 14 ioint control entities while factoring in the availability of support to the company from the government of tndia (Gol). Detailed Rationale ofthe Ratint Action The upgrade reflects an improvement in SAIL's operational performance over Fy26,1eFy27, supported by improved sales volume and reduced cost of production, due to it5 ability to manage raw material consumption through improved coke rate, blast furnace productivity end captive iron ore consumption. Furthermore, the consolidated net adjusted leverage (net adiusted debt/EBITDA including lease liabilities and letter of c.edit {Lc) acceptances) improved over Fi26-1ety27, lacked by a reduction in net debt, following lower workint capital requirements aaded by better inventory manaeement, a recovery of receivables and repayment of lon8-term debt The ratin$ rcflect low but stable EBTTDA per tonne (t) in Fy26, on accouni of operating efficiencies following its modernisation initiatives and a moderation in raw material prices despite a fall in realisations. rhe EBITDA/I improved an 1QFY27 and is likely to remain elevated from historical levels, supported by its cost reduction initiatives. Furthermore, the operationalisatjon of ]'asra and Rowghat mines over Fy27-Fy28 would support the availability of raw materials and support profitability from sale of surplus iron ore. The company would ramp up the capacities over [Y27 FY31, f!rther improving its sales volume. Any delay in the operationali5ation of the same would remain a key rating monitorablP The ratings remain constrained by increased capex over FY27-FY31, leading to negative free cash flow. The high capex is likelY to increase net adjusted levera8e in the near term but remain bclow 3.ox over Fy27 which could increase to 3.Sx-4.0x during the peak capex phase over FY28_FY3O and deleverage thereafter. F!rthermore, SAlt,s tBITDA/I remained around Ii*':*i:l*' lNR6,0o0 over FY24-FY26, due to low proportion of high value'added product and weak operating parameters which are likely to improve over Fy27-Fy29, on the back of an increase in sales volume from hither value ad;ed product with higher profitability and continued cost optimisation measures, which wourd remain a key rating monitorabre. ts rA al cL p l ra en cs t ro a on fc u ur c da ep re sx ea nn dd nd ge b ro et lt ale tn ive ec k ti on E np nr oo uie nc cts do f a lar no su n ad l dN R lnl d,o Roo 'sb i elli xo pn co tv ae tr F ny s2 7 t- hF ey3 1 p. ow poh sile dt h ce pc eo xm ip sa n liky eh lya s commensurate with the increase in the cash flows. However, any meaningfully lower cash teneration with high capex outflow can adverselY affect its credit ratios and remain a key rating monitorable. lnd-Ra will continue to monitor the terms of incremental capex debt and the availability of moratorium and the resultant capital structure. Any additional staetch in its working capital cycle or a reduction in steel spreads will aemaln a key ratint monitorable. The ratings continue to reflect SAII's strong business profile, sustained revenue and moderate credit profile. list of XeV Rating Drivers Strengths Volume growth to improve over Fy27-Fy28 Continued Gol support Strong business profile lmproving techno economic parameters Moderation in working capital requirement, resulting in reduction in debt weaknesres Debt-funded capex Low but stable EBTTDA/I; tikely to improve over Fy27,ty28 lndustry risks Regulatory risks Detailed Oesc,iption o, Key Rating Drivers volume Growth to lmprove over FY27-FY28: sAlL operates at near full capacity over Fy25-Fy26, with healthy scale of operations, supported by robust demand in the domestic market. The company,s sales volumes improved to around 19.9 million tonnes per annum (MTpA) in Fy26 (fy25: 17.9 MTPA; fy24: t7 MTpA; ty23: 16.2 MTPA). tn 1eFy27, its sates volumes remained broadly stable at 4.2 mallion metric tonnes (MMT; 1QrY25: 4.6 MMT) with revenue of lNR262 billion (tNR259 billion). The revenue increased 8% in FY26 to lNR1,1o8 billion (FY2sr tNR1,o25 biltion; ty24: tNR1,o54 bilion), supponed by the increase in the sales volumes, on account of management'5 effon to improve marketinE and channet ,"tei inventory which is likely to sustain in the near term. lnd_Ra expects the revenue to improve in FY27, supported by an uptick in volumes from various debottlenecking proiects amid robust domestic demand fundamentals. Furthermore, the operationalisation ofthe Tasra mines from December 2027 and Rowghat mines from FY28, would support the raw material availability and requirement for the enhanced production continued Gol support: sAlt is a Maharatna public sector entity and the Gol owned a 65% stake in the company as of March 2026' Hence, sAlt continues to be a sthtegically important entity for the Gol and has been receiving support from the latter, lartely through policy initaatives. There has been a visible track record of tamely policy interventions on occasions when the company has faced sectoral issues such as imposition of safeguard duty on imponed alloy and non-alloy steel flat products of 12% in December 2025; mi [Showing first 8,000 characters — download PDF for full document]