Credit Rating

Rajputana Stainless Limited Rajputana Stainless Limited CIN: L27 1O9cJ 199 1PLCO 1533 1 Date:- 0810912026 To, To, Department of Corporate Services Listing Compliance Department, BSE Limited. National Stock Exchange of India Limited, Floor 1, Rotunda Building Exchange Plaza, C-1, BLOCK G, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Mumbai - 400001 Mumbai - 400051 Scrip Code: 544731 Symbol: RSL ISIN: INE313L01016 Subject: Intimation of Credit Rating under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ("SEBI Listing Regulations") Dear Sir/Madam, Pursuant to Regulation 30 read with para-A, part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,20l5 ("Listing Regulations"), this is to inform you that CARE Ratings Limited has assigned the credit ratings as under to the bank loan facilities of the Company vide its communication dated September 07,2026. Faci liti es/Instruments Amount Rating Rating Action ({ Crore) Long-term/Short-term bank 130.00 CARE A-: Stable/CARE A2+ Assigned facilities Lons-term bank facilities 30.00 CARE A-; Stable Assiened The said information was published by the CARE Ratings Limited in their website. The above information will be made available on the website of the Company Kindly take the above on your record. Thanking You Yours Faithfully, For Rajputana Stainless Limited Richa Sanjeev Prashar Company Secretary & Compliance Officer Press Release Rajputana Stainless Limited September 07, 2026 Name of the Amount Rating Facilities/Instruments Rating2 Regulator1 (₹ crore) Action Long-term / Short-term bank facilities RBI 130.00 CARE A-; Stable / CARE A2+ Assigned Long-term bank facilities RBI 30.00 CARE A-; Stable Assigned Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Ratings assigned to bank facilities of Rajputana Stainless Limited (RSL) derive strength from the extensive experience of its promoters in the steel industry, moderate scale of operations and profitability supported by integrated operations, comfortable financial risk profile aided by funds raised via Initial Public Offering (IPO) proceeds in March 2026, and adequate liquidity. Rating strengths are partially offset by RSL’s working capital intensive operations, cyclical nature of the steel industry, and profitability susceptible to raw material price, power cost, and foreign exchange rate volatility. Ratings also take cognisance of planned partly debt-funded capex in FY27 (FY refers to April 01 to March 31). Rating sensitivities: Factors likely to lead to rating actions Positive factors • Improvement in scale of operations above ₹1,800 crore with sustained operating margin aided by product diversification. • Sustenance of comfortable capital structure with overall gearing below 0.3x. • Improvement in operating cycle leading to improvement in liquidity. Negative factors • Significant decline in scale of operations with profit before interest, lease rentals, depreciation and taxation (PBILDT) margin less than 6.50% on a sustained basis. • Stretch in working capital cycle above 110 days on a sustained basis, impacting the liquidity profile and increased reliance on working capital borrowings. • Moderation in debt coverage indicators with net debt to PBILDT ratio above 1.5x on a sustained basis. Analytical approach: Standalone Outlook: Stable CARE Ratings Limited (CareEdge Ratings) expects RSL will benefit from the extensive experience of its promoter in the stainless steel industry and integrated operations, which will enable it to sustain its operational and financial risk profile over medium term. Detailed description of key rating drivers Key strengths Moderate scale of operations and profitability RSL operates on a moderate scale with total operating income (TOI) of ₹1,008 crore in FY26. In FY26, TOI increased by 8% y-o- y primarily driven by growth in sales volume of 8%, while sales realisation remained largely stable. The growth continued in Q1FY27, with the company reporting TOI of ₹307 crore. The company caters to end-user industries, primarily pipes, forging, automobiles, and utensils, among others. RSL operated at full capacity in FY26 reflecting healthy demand. The company is currently undertaking capacity expansion in bright bars. Timely completion and stabilisation of this project shall remain crucial for RSL’s growth prospects. The company's profitability is supported by integrated nature of its operations, and it has gradually improved from 6.70% in FY24 to 9.18% in FY26 supported by increased sales of bright bars and better absorption of overheads. 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 2 Complete 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 Comfortable capital structure and debt protection metrics In March 2026, RSL raised ₹178.73 crore through IPO and got listed on Bombay Stock Exchange and National Stock Exchange. The IPO proceeds strengthened its net worth to ₹363.23 crore as on March 31, 2026, from ₹151.88 crore as on March 31, 2025. Consequently, capital structure improved, with overall gearing of 0.39x (PY: 0.99x) and total outside liabilities to total net worth (TOL/TNW) of 0.64x (PY: 1.72x) as on March 31, 2026. Debt protection metrics remained moderate, with PBILDT interest coverage of 4.60x (PY: 4.85x) and total debt to gross cash accruals (TD/GCA) of 2.45x (PY: 3.07x) in FY26. In Q1FY27, RSL prepaid its term loan (in entirety) and working capital borrowings from IPO proceeds. With this, PBILDT interest coverage strengthened to 16.70x in Q1FY27 (UA). The company is planning to undertake partly debt-funded capex for capacity expansion in bright bars, setting up of seamless pipes unit and other initiatives. The total outlay is expected to be funded by a mix of debt, IPO proceeds and internal accruals. Financial risk profile of RSL even after considering this debt, is expected to remain comfortable. Extensive experience of promoters in the steel industry The company’s operations are led by directors, Shankarlal Deepchand Mehta, Babulal D. Mehta, and Jayesh Natvarlal Pithva, who have an experience of over two decades in the steel industry. Yash Mehta, Promoter and Chief Executive Officer, also has around a decade of industry experience. Key weaknesses Working capital intensive nature of operations The company's operations remain inherently working capital intensive, as reflected by gross current asset days of 137 days as on March 31, 2026 (PY: 134 days). The gross current asset days were primarily due to inventory holding period of 62 days and collection period of 52 days. The company sources large part of its raw material against confirmed orders, mitigating the raw material price fluctuation risk to certain extent. Cyclical nature of the steel industry The company's operating performance remains exposed to the inherently cyclical nature of the stainless steel industry. Demand for stainless steel products is closely linked to the performance of key end-user sectors such as construction, infrastructure, automobiles, engineering, and capital goods. Consequently, slowdown in economic activity, reduction in infrastructure spending, or weakness in industrial and automotive demand can adversely impact steel consumption and product realisations. Susceptibility of profitability to raw material and forex volatility The company's profitability remains vulnerable to fluctuations in raw material prices and foreign exchange rates. Raw materials, primarily stainless steel scrap, constituted ~82% of the total cost of sales in FY26, exposing [Showing first 8,000 characters — download PDF for full document]