Credit Rating

Dhampur Bio Organics Ltd. Date: September 05, 2026 The Manager – Listing The Manager – Listing Dept of Corp. Services, National Stock Exchange of India Ltd. BSE Limited Exchange plaza, Bandra Kurla Complex P.J. Towers, Dalal Street, Fort, Bandra East Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543593 Symbol: DBOL Dear Sir / Ma’am, Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CARE Ratings Limited (CARE Ratings) has reaffirmed the credit rating(s) of the following instrument(s) of the Company: Facilities Amount Rating Rating Action (Rs. in Crore) Long Term Bank 987.05 CARE BBB+ Reaffirmed Facilities (Reduced from 1,019.45) Positive (Outlook revised from Stable to Positive) Short Term Bank 75.00 CARE A2 Reaffirmed Facilities (Reduced from 115.00) The rating letter, containing the rationale for the rating, is enclosed for your reference. You are requested to take the same on record. Thanking You Yours sincerely, For Dhampur Bio Organics Limited Ashu Rawat Company Secretary & Compliance Officer Corp. Office: Second Floor, Plot No. 201, Okhla Industrial Estate, Phase III, New Delhi – 110 020, India, Tel: +91-11 – 6905 5200, Email: corporateoffice@dhampur.com, Website: www.dhampur.com Regd. Office: Sugar Mill Compound, Village & Post – Asmoli, Distt. Sambhal, Uttar Pradesh – 244304, Tel: +91-7302318313 CIN : L15100UP2020PLC136939 Press Release Dhampur Bio Organics Limited September 04, 2026 Name of the Facilities/Instruments Amount (₹ crore) Rating2 Rating Action Regulator1 987.05 CARE BBB+; Reaffirmed; Outlook revised Long-term bank facilities RBI (Reduced from Positive from Stable 1,019.45) 75.00 Short-term bank facilities RBI (Reduced from CARE A2 Reaffirmed 115.00) Details of instruments/facilities in Annexure-1. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has reaffirmed ratings assigned to bank facilities of Dhampur Bio Organics Limited (DBOL) at ‘CARE BBB+’ and ‘CARE A2’, while revised the outlook to ‘Positive’. Revision in the outlook reflects the likely improvement in financial risk profile with debt reduction by pre-payment of long-term loans aided by cashflows generated through slump sales of one of its sugar unit in Meerganj in June 2026. While this transaction is likely to reduce the scale of the entity given that Meerganj unit comprised 25%-30% of sugar crushing capacity of the company, CareEdge Ratings believes that it will aid improvement in profitability, as Meerganj is situated in Western UP, which was the most adversely affected by red-rot infestation and was a drag on the company’s overall operating efficiency. CareEdge Ratings notes that the company is adopting newer cane varieties to reduce infestation exposure and improve yield, which along with prevailing strong sugar prices and company’s focus to produce more of grain-based ethanol will aid profitability improvement over medium term. However, it remains monitorable given the possible increase in UP-state advised prices (SAP) for SS27 and strengthening of El Niño in later part of 2026, impacting cane availability. Ratings continue to derive strength from DBOL’s experienced promoters with long track record in the sugar industry, forward integrated nature of operations with presence into distillery and cogeneration. However, these rating strengths continue to remain constrained by the industry’s cyclical and regulated nature, demand-supply dynamics, exposure towards the agro-climatic conditions, and the working capital intensive operations. Rating sensitivities: Factors likely to lead to rating actions Positive factors • The company’s ability to report healthy growth in total operating income (TOI) with profit before interest, lease rentals, depreciation and taxation (PBILDT) margin above 8% backed by healthy recovery rates on a sustained basis. • Improvement in financial risk profile with net leverage (net debt to PBILDT) to remain below 4.2x on a sustained basis. Negative factors • Increasing overall gearing above 1.3x on a sustained basis. • Declining revenue and profitability margins from the existing level as marked by PBILDT margin below 6%. • Adversely changing government policies affecting the operations and cash flow of the entity. Analytical approach: Standalone Outlook: Positive Positive outlook reflects CareEdge Ratings’ expectation of improvement in DBOL’s financial profile with debt reduction and improvement in profitability supported by strong sugar prices, incrementally supporting the cash flows of the company. Detailed description of key rating drivers: Key strengths Experienced promoters and diversified revenue stream with forward-integrated operations 1SEBI: 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 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release DBOL is headed by Gautam Goel as the CEO. He has also been the President of Indian Sugar Mills Association and the Indian Sugar Export Corporation, and with over 30 years of experience in the sugar industry, he has spearheaded several technological innovations in the industry. Gautam Goel has been on the Board since 1994. He has focused on value-addition, which included pioneering the production of sulphur-less refined sugar in India. DBOL’s sugar division is fully integrated with forward integration into cogeneration unit of 76.5 megawatts (MW) and a molasses- based distillery of 312.5 kilo litres per day (KLPD) (including 100 KLPD of dual-feed distillery). In addition, the company also has 2,000 tonnes per day (TPD) sugar refinery capacity, 700 TPD pharma grade sugar capacity, 800 TPD low quality white (LQW) sugar capacity, 8 million cases per year Domestic Spirits capacity, and 80 TPD CO2 power capacity. DBOL’s forward integrated operations de-risk it by providing alternate revenue streams and acts as a cushion against the inherent cyclicality in core sugar business to a large extent. The company operated three plants in Asmoli, Mansurpur, and Meerganj (part of central Uttar Pradesh) till March 2026, but sold off its Meerganj unit in June 2026. Sugar remains the major revenue contributor with 75%-80% share, followed by bio fuels and spirit with 15%-20% contribution in last four years ending FY26. Sugar remained the highest contributor with 80%-85% share in earnings before interest and taxes (EBIT) over FY25-FY26. Strong sugar prices to aid profitability in FY27 After a weak sugar season (SS; runs from October to September) 2024-25, SS26 also remained weak for the entire industry as cane availability reduced due to erratic monsoon, and certain regional issues, such as red-rot in parts of Uttar Pradesh resulting in lower crushing. Crushing reduced by 6%yoy to 32.9 lakh tonne for DBOL in FY26, following a 15% yoy decline to 35 lakh tonne in FY25 (FY24: 41.4 lakh tonne). UP SAP had been increased by ₹30/quintal to ₹400/quintal in SS26, which raised the production cost. Despite this, the company recorded improved profitability in sugar segment supported by strong sugar prices and average realisation increased to ₹41/kg during the year (FY25: ₹39.3/kg). Given the expectation of inventory levels falling much lower than normative requirement at industry level in SS26, sugar prices soared and are prevailing at ~₹49-50/kg as of August 2026. The current price surge could be short-lived given that sugar availability will improve once crushing begins in October-November 2026 in new season and the government has allowed duty-free imports of 1 million tonne of raw sugar, first time in almost a deca [Showing first 8,000 characters — download PDF for full document]