Credit Rating

Date: September 7, 2026 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, BKC, Dalal Street, Mumbai- 400001 Bandra (East), Mumbai- 400051 Scrip Code: 544718 Symbol: PNGSREVA Subject: Intimation under Regulation 30 of the SEBI (LODR) Regulations, 2015. Dear Sir/ Madam, Pursuant to Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we wish to inform you that, CARE Ratings Limited, has assigned the following credit rating to the Company’s Long Term/ Short Term Bank Facilities. Facility Amount (Rupees in Rating Rating Action Crores) Long Term/ Short 280.00 CARE BBB+; Reaffirmed Term Bank Facilities Positive / CARE A2 The Credit Rating Report issued by CARE Ratings Limited on September 7, 2026 is enclosed herewith for your records. The report is being made available on the Company’s website – www.revabypng.com Kindly take this on your records please. Thanking you, For PNGS Reva Diamond Jewellery Limited Kirti Vaidya Company Secretary & Compliance Officer Membership No.: A31430 Press Release PNGS Reva Diamond Jewellery Limited September 07, 2026 Name of the Facilities/Instruments Rating2 Rating Action Regulator1 crore) 280.00 Long-term / Short-term bank CARE BBB+; Reaffirmed; Outlook RBI (Enhanced from facilities Positive / CARE A2 revised from Stable 190.00) Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Ratings assigned to bank facilities of PNGS Reva Diamonds Jewellery Limited (PRDJL) continue to derive strength from extensive experience of promoters and the management team in the retail jewellery sector and its strong regional brand recall . Ratings continue to factor in the benefits derived by PRDJL from its linkages with P. N. Gadgil and Sons Limited (PNGS; rated CARE A+; Stable/ CARE A1) in the form of franchise agreement for retail diamond jewellery sales in PNGS stores for 10 years. Ratings and significant strengthening of net worth base, following the initial public offering (IPO) in February 2026 and healthy profitability, comfortable capital structure and debt coverage indicators and adequate liquidity position. yet-to- establish a track record. The profitability may be impacted in the near term, given the typical gestation period associated with setting up and stabilising new retail stores. Ratings are also constrained by working capital intensive operations, exposure of profitability to volatile gold and diamond prices, and the highly competitive and fragmented nature of the jewellery industry. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: Total operating income (TOI) profit before interest, lease rentals, depreciation and taxation (PBILDT) margin of over 20% on a sustained basis. Track record of profitable operations of new showrooms. Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: Lower-than- Any adverse change in the terms of franchise agreement with PNGS. Overall gearing above 1.5x and/ or total debt/PBILDT above 3.5x on a sustained basis. Analytical approach: Standalone, while factoring linkages with PNGS. Outlook: Positive Revision materialise or profitability moderates materially. Detailed description of key rating drivers Key strengths Experienced and linkages with PNGS establish as PNGS. 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 ratings assigned are available at www.careratings.com 1 CARE Ratings Ltd. Press Release PNGS transferred its diamond jewellery business to PRDJL on a going concern basis. PRDJL is spearheaded by Govind Gadgil, a fifth-generation entrepreneur with over four decades of experience in the industry, in the capacity of Chairperson and Non- Executive Director. Promoters are supported by a qualified and experienced management team, led by Amit Modak, Whole-time Director and CEO. PRDJL entered a 10-year franchise agreement with PNGS, covering 34 stores 33 under the franchise-owned company-operated (FOCO) model and one under the franchise-owned franchise-operated (FOFO) model. Under the agreed terms, PRDJL will operate from premises owned or leased by PNGS and will pay a commission, based on net sales. After the IPO, the company is opening new stores under company-owned company-operated (COCO) model and create brand awareness through marketing and promotional activities. -established brand equity, infrastructure, and customer footfall, while continuing to operate under its distinct brand identity. CareEdge Ratings believes that the company is well-positioned to benefit from its experienced leadership, linkages with PNGS providing revenue visibility and profitable operations. Strong regional brand recall PRDJL is strategically associated with PNGS, which has a legacy of over 150 years in the gems and jewellery sector. The brand holds a leading position in the gold jewellery market in Maharashtra. Growing scale of operations PRDJL was formed following conversion of the partnership firm Gadgil Metals & Commodities (GMC; engaged in trading securities and commodities) and later acquired the diamond business of PNGS through a slump sale in January 2025. In FY25 (refers to April 01 to March 31), this diamond jewellery business (includes 10 months of operations in PNGS and two months of operations under PRDJL). , registering a growth of ~70%. In Q1FY27 (refers to April 0 compared . As part of its growth strategy to enhance geographical presence and scale of operations, the company is planning to expand its store network in new markets. Healthy profitability The company operates on an asset-light business model with a predominantly variable cost structure, providing operational flexibility and limiting fixed costs. Raw material remains the major cost component, followed by selling commissions paid to PNGS and other operating expenses. Despite moderation from the previous year, profitability remained healthy in FY26, with PBILDT and PAT margins of 21.83% and 14.73%, respectively, compared to 31.02% and 23.04% in FY25. The moderation was primarily due to the full-year impact of commission paid to PNGS, compared to only two months in FY25, and expansion in operations. Going forward, planned launch of exclusive stores is expected to increase the fixed cost base and may exert some pressure on margins; however, profitability is expected to remain healthy in the medium term. Comfortable capital structure and debt coverage indicators improving to 0.33x as on March 31, 2026, from 0.91x as on PO undertaken in February 2026, and accretion to reserves. PRDJL does not have long-term debt, and total debt primarily comprises working capital borrowings and minimal finance lease liabilities. Debt protection metrics also remain comfortable with total debt to gross cash accruals (TD/GCA) at 2.60x and an interest coverage ratio of 8.92x in FY26, compared to 1.53x and 42.93x respectively in FY25. The company had cash and bank balance of 324.43 crore as on March 31, 2026, earmarked for expansion and incremental working capital requirements. Going forward, capital structure and debt coverage indicators are expected to remain satisfactory, as the company does not plan to rely on term debt to fund its store expansion. 2 CARE Ratings Ltd. Press Release Key weaknesses Plans to expand presence though exclusive stores Currently Going forward, the company plans to set up its exclusive stores. tores and ramp up of sales would remain a key rating monitorable. Presence in a highly competitive and fragmented industry The Indian G&J industry remains highly fragmented, characterised by the presence of numerous unorganised parti [Showing first 8,000 characters — download PDF for full document]