Credit Rating- Revision

SEC/1009/2026 By E-Filing September 10, 2026 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Corporate Relationship Department, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai – 400 051. Mumbai - 400 001. Scrip Symbol : APARINDS Scrip Code : 532259 Kind Attn.: Listing Department Kind Attn. : Corporate Relationship Department Sub. : Intimation of Revision in Credit Rating Ref.: Regulation 30 read with Schedule III of Part A and all other applicable regulations, if any, of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD- POD2/I/3762/2026 dated January 30, 2026. Dear Sir / Madam, Pursuant to the subject referred regulation and SEBI Master Circular, we would like to inform the Exchanges about revision in credit ratings of Long Term Bank Facilities & Short Term Bank Facilities as communicated by CARE Ratings Limited vide their Press Release dated September 9, 2026 (copy enclosed). Please find below the details of the credit ratings based on the FY 2026 (Audited) and Q1FY27 (Un-audited) financial performances of the Company: Name of the Credit Facilities Rating Rating Action Company Rating Agency Upgraded from CARE APAR Industries Long Term Bank Facilities CARE AA; Stable AA-; Stable Limited CARE LT rating upgraded Ratings (ISIN – Long Term / Short Term CARE AA; Stable / from CARE AA-; Limited INE372A01015) Bank Facilities CARE A1+ Stable and ST rating reaffirmed The above information will also be made available on the website of the Company at www.apar.com We request you to take the same on record and disseminate. Thanking you. Yours Faithfully, For APAR Industries Limited (Sanjaya Kunder) Company Secretary Encl. : As above APAR Industries Limited Corporate Office : APAR House, Corporate Park, V. N. Purav Marg, Chembur, Mumbai - 400 071, India +91 22 4957 2100/6780 0400 corporate@apar.com www.apar.com Regd. Office: 301/306, Panorama Complex, R. C. Dutt Road, Alkapuri, Vadodara - 390007, India +91 265 6178 740 apar.baroda@apar.com www.apar.com CIN: L91110GJ1989PLC012802 Press Release Apar Industries Limited September 09, 2026 Facilities/ Name of the Amount (₹ crore) Rating2 Rating Action Instruments Regulator1 Long-term / Short- 11,306.97 CARE AA; Stable LT rating upgraded from CARE AA- term bank facilities (Enhanced from 8,567.00) / CARE A1+ ; Stable and ST rating reaffirmed Long-term bank 1,652.78 RBI CARE AA; Stable Upgraded from CARE AA-; Stable facilities (Reduced from 1,765.32) Details of instruments/facilities in Annexure-1. Rationale and key rating drivers The rating upgrade factors in APAR’s strengthening of business profile, reflected in sustained growth in scale of operations and improving profitability across its conductors, cables and speciality oils businesses. The company reported healthy growth in operating income, which increased by 23.2% to ₹22,902 crore in FY26 and by 29.1% year-on-year to ₹6,591 crore in Q1FY27. profit before interest, lease rentals, depreciation and taxation (PBILDT) increased by 21.1% to ₹1,922 crore in FY26, while operating margins improved to 11.50% in Q1FY27 from 8.86% in Q1FY26, supported by increasing contribution from premium products and healthy performance across business segments. APAR’s established market position, diversified product portfolio and healthy order book, comprising conductor orders of ₹10,190 crore and cable orders of ₹1,925 crore as on June 30, 2026, provide strong revenue visibility in the medium term. The rating upgrade also factors in significant strengthening of the company’s capital structure following the successful completion of the ₹2,500-crore qualified institutions placement (QIP) in August 2026. Resultant increase in net worth is expected to support APAR’s working-capital requirements and reduce its reliance on letter of credit (LC) acceptances and other short-term borrowings. Accordingly, the company’s leverage profile is expected to improve materially, with total outside liabilities to tangible net worth (TOL/TNW) projected to improve to below unity as on March 31, 2027, from 1.54x as on March 31, 2026. Ratings continue to derive strength from APAR’s leadership position in conductors and speciality oils, diversified product and geographical presence, promoters’ extensive industry experience, strong liquidity position and comfortable debt protection metrics. These rating strengths are tempered by APAR’s working-capital-intensive operations and historically high reliance on LC acceptances, although deployment of the QIP proceeds is expected to partly reduce such dependence. Ratings also remain constrained by the sizeable capex programme and exposure to volatility in raw-material prices, foreign-exchange rates and freight costs, apart from competition, export tariffs and project-execution risks. The ability to maintain working-capital discipline and healthy leverage while executing capex programme remains a key rating monitorable. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Sustained growth in scale accompanied by stable profitability, stronger cash-flow generation and maintenance of a comfortable capital structure. • Improvement in TOL/TNW towards 0.50x on a sustained basis. Negative factors • Decline in return on capital employed (ROCE, including acceptances) below 15% on a sustained basis. • Deterioration in TOL/TNW to 1.25x or above on a sustained basis. Analytical approach: Consolidated CARE Ratings Limited (CareEdge Ratings) has considered APAR’s consolidated financials owing to strong operational and financial linkages among the consolidated entities. Entities considered in consolidation are listed under Annexure-5. 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 and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Outlook: Stable The Stable outlook reflects CareEdge Ratings’ expectation that APAR will sustain its healthy scale of operations and operating performance, supported by its strong market position, diversified business profile, increasing share of premium products and healthy order-book position. Favourable demand prospects in power transmission, renewable energy and infrastructure are expected to support growth in the near-to-medium term. Strengthened capital base following QIP is expected to keep leverage and liquidity comfortable despite sizeable capex programme and working-capital requirements. Detailed description of key rating drivers Key strengths Long-standing experience of promoters and professional management APAR was established in 1958 by Late Dharmsinh D. Desai and has an operating track record of over six decades. The operations are currently led by the third generation of the promoter family, comprising Kushal N. Desai, Chairman and Managing Director, and Chaitanya N. Desai, Managing Director, who have extensive industry experience. The promoter-directors are supported by an experienced professional management team and established business heads across conductors, cables, speciality oils and key functional areas. The company’s long operating track record demonstrated ability to scale operations and absence of history of debt default support the assessment of management quality. Established market position across diversified business segments APAR has an established position across its three principal business segments, conductors, transformer and speciality oils, and cables. The company is India’s largest conductor manufacturer by FY26 sales, India’s largest private-sector manufacturer of speciality oils by installed capacity and [Showing first 8,000 characters — download PDF for full document]