Intimation under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015

September 4, 2026 To, To, N ational Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor no.25, PJ Towers B andra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Trading Symbol: “SOLARINDS EQ” Scrip Code: 532725 Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, In accordance with the Regulation 30 read with Para A of part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we wish to inform you that “ICRA Limited” has reaffirmed the rating on the commercial paper of Solar Industries India Limited as below: Instrument Rated Amount (Rs. Crores) Rating Action Commercial Paper 500.00 [ICRA]A1+; reaffirmed; Total 500.00 You are requested to take the same on record. Thanking You Yours truly, For Solar Industries India Limited Khushboo Pasari Company Secretary & Compliance Officer September 04, 2026 Solar Industries India Limited: Rating reaffirmed Summary of rating action Previous rated amount Current rated amount Instrument* Rating action Financial sector regulator# (Rs. crore) (Rs. crore) Commercial paper 500.00 500.00 [ICRA]A1+ ; reaffirmed RBI Total 500.00 500.00 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments that fall under the regulatory purview of financial sector regulators other than SEBI. Rationale While arriving at the rating for the commercial paper programme of Solar Industries India Limited (SIIL/the company), ICRA has taken a consolidated view of SIIL and its wholly-owned subsidiary, Solar Defence and Aerospace Limited (SDAL, rated [ICRA]A1+). SIIL, along with this subsidiaries, associates and JVs, is being referred to as the Solar Group/the Group. The rating factors in the strong market position of the Solar Group in the commercial explosives segment and its growing presence in the defence sector. The Group is a major supplier of commercial explosives to Coal India Limited and its subsidiaries, Singareni Collieries Company Limited (SCCL) and other housing and infrastructure companies. It is also a major exporter of commercial explosives. In the defence sector, the Group has strengthened its position through the supply of ammunition, explosives and other products in the domestic as well as international markets. Further, the Government of India’s (GoI) focus on reducing import dependence for defence products and increasing indigenous procurement has supported a ramp-up of the defence supplies of the Solar Group. The Solar Group has a defence order book of more than Rs. 21,000 crore as on March 31, 2026, including a Rs. 6,084-crore order for the supply of Pinaka rockets. The Group is also expanding its footprint in defence exports with a sizeable orderbook to be executed over the next few years. The strong orderbook position provides revenue visibility for the near to medium term. The Group has a strong operational profile with an extensive manufacturing footprint across India and backward integration to manufacture emulsifiers, detonators shells, PETN (pentaerythritol tetranitrate), TNT (trinitrotoluene) and RDX (research department explosive). This has helped improve the operating margins over the years. The Group has also set up bulk explosive manufacturing facilities in the vicinity of mining regions for efficient logistics and timely supply of orders. In the defence segment, the Group has been developing products jointly with various government bodies. The ongoing development of new products is expected to strengthen its portfolio and support incremental orders. The rating favourably factors in a healthy revenue growth of 30% in FY2026 at Rs. 9,837.7 crore and the growth momentum is expected to sustain in FY2027, driven by a strong defence order book and visibility on the offtake by CIL and SCCL. The company’s operating profit margin (OPM) improved to around ~26% in FY2025 and FY2026, supported by the rising share of defence and export orders/international revenues which have higher margins. ICRA expects the margins to remain healthy in the range of 22-25%, going forward. The credit profile is robust with the total debt/OPBDITA remaining around 0.6x in FY2026 and 0.8x in FY2025. The interest coverage ratio remains comfortable at around 19.6x in FY2026 and 17.2x in FY2025. Notwithstanding the sizeable capex outgo and growing working capital requirements, the expanding operating profits and cash accruals would continue to support healthy debt coverage metrics. The rating, however, remains constrained by the vulnerability of SIIL’s consolidated margins to any fluctuation in the prices of its key raw material i.e. ammonium nitrate. ICRA notes that the company has a price escalation clause in its agreements with its key clients that protects the margins against input cost volatility to an extent even as the pass-through may be with a lag. SIIL’s profitability remains vulnerable to the volatility in foreign currency exchange rates, given the sizeable revenue contribution from exports and the overseas sector. However, a partial natural hedge from exports, USD billing in select markets and www .icra.in S ensitivity Label : Public Page borrowings in local currency for overseas subsidiaries provide some cushion to the company’s profitability metrics against the fluctuations in foreign currency exchange rates. ICRA also notes the highly regulated nature of the explosive manufacturing industry with the need for licensing of various products. The company’s operations, therefore,remain vulnerable to any changes in the regulatory framework. The rating also takes note of the ongoing legal proceedings regarding the vacation of office by Mr. Kailash Chandra Nuwal as the executive director of the company. The matter remains pending before the National Company Law Tribunal (NCLT) after the Supreme Court disposed of the civil appeal filed by SIIL, noting that the term of the director had already expired. While the management doesn’t anticipate any material impact on the business operations of SIIL on account of the ongoing proceedings under the NCLT, the outcome of the matter would remain a key rating monitorable. Key rating drivers and their description Credit strengths Strong market position in commercial explosives and defence products - The Solar Group has been manufacturing explosives for over 25 years with SIIL being the flagship company of the Solar Group. SIIL is a leading player in the industrial explosives sector with its major clients being CIL and SCCL. The order book from CIL and SCCL stood at Rs. 3,500 crore as on March 31, 2026, apart from regular orders from other major players in the housing and infrastructure sectors. The Solar Group is also a major player in the domestic defence manufacturing industry. The group has major commercial orders for Pinaka Multi-Barrel Rocket Launcher System (MLRS), Nagastra-I (loitering munition) and 155-mm artillery shells. In addition, several indigenously developed platforms, including the Rudrastra unmanned aerial vehicles (UAV) and the Bhargavastra anti-drone systems are in various stages of trials and are expected to be scaled up over the medium term for commercial production. The revenue from the defence sector increased to ~27% of the consolidated revenue in FY2026, compared with 18% in FY2025 and 9% in FY2024. Given a robust defence order book of Rs. 17,794 crore as on March 31, 2026, the segment’s contribution is expected to increase, going forward. Strong operational profile with healthy backward integration – SIIL has a diversified operational profile with presence across the mining, housing & infrastructure and defence sectors. It has a strong client profile, comprising CIL, SCCL, the Indian Navy and the Indian Army. The company’s healthy track record in developing defence produc [Showing first 8,000 characters — download PDF for full document]