Credit Rating

September 10, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot no. C/1, G Block, Listing Operation Department, Bandra Kurla Complex, Bandra (E), 20th Floor, P.J. Towers, Dalal Street, Mumbai - 400 051 Mumbai – 400 001 NSE Code: KALPATARU BSE Code: 544423 Subject: Revision/ New in Credit Rating Reference: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI Listing Regulations, 2015, read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January 2026, we would like to inform you that Crisil Ratings Limited (“CRISIL”), a credit rating agency, has revised/assigned the ratings on the Company’s specific credit facilities from banks/financial institutions as per the details set out below: Credit Bank /Financial Bank/Term Loan Existing Rating Revised/New Rating Ratings institution Facilities Rated Agency Rs. (in Crores) Crisil HDFC Bank 742.94 Crisil BBB+/Stable Crisil BBB/Stable Ratings Limited Limited Indian Bank 500 NA Crisil BBB/Stable PNB Housing 120 NA Crisil BBB/Stable Finance Limited The Rating Rationale issued by CRISIL for the revision in the rating, with the necessary details is enclosed herewith. The Rating Rationale was received by the Company at 05:27 p.m. (IST). This information is also simultaneously disseminated on the website of the Company at Kalpataru | Investor Corner. You are requested to kindly take the above information on record. Thanking You, Yours faithfully, For Kalpataru Limited Gajendra Mewara Company Secretary & Compliance Officer Encl: - Rating Rationale issued by CRISIL KALPATARU LIMITED CIN No.: L45200MH1988PLC050144 91, Kalpataru Synergy, Opposite Grand Hyatt, Santacruz (E), Mumbai 400 055. India. Tel +91 22 3064 5000 ◼ www.kalpataru.com ◼ investor.cs@kalpataru.com Rating Rationale September 10, 2026 | Mumbai Kalpataru Limited Rating downgraded to 'Crisil BBB / Stable'; Rated amount enhanced for Bank Debt Rating Action Rs.1362.94 Crore (Enhanced from Rs.1126.3 Regulator Of Total Bank Loan Facilities Rated Crore and Rs.383.36 Crore Withdrawn) Instrument Crisil BBB/Stable (Downgraded from 'Crisil Long Term Rating RBI BBB+/Stable') Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has downgraded its rating on the long-term bank facility of Kalpataru Limited (KL) to 'Crisil BBB/Stable’ from 'Crisil BBB+/Stable'. Also, Crisil Ratings has withdrawn its rating on the bank facilities of Rs 383.36 crore at the company’s request and on receipt of supporting documents (confirmation of latest debt outstanding from the lender). This is in line with the Crisil Ratings policy on withdrawal of ratings. The downgrade reflects the slower-than-anticipated improvement in the company's financial risk profile driven by delayed scaling up of collections and cash accrual, which will result in continued elevated debt to cash flow from operations (CFO) levels over the medium term. While sales bookings and collections for fiscal 2026 increased by 17% and 34%, respectively, year-on-year, to Rs 5,280 crore and Rs 4,960 crore basis 100% economic interest (Collections of Rs 3,768 Crore basis economic interest), they remained below the estimated levels. The shortfall was primarily due to delays in environmental approvals for key projects, delays in receipt of previously expected milestones in few projects and weaker demand in certain developments, resulting in lower-than-expected sales and collections. The rating continues to reflect the established market position and track record of KL in the Mumbai Metropolitan Region (MMR), sizeable project portfolio and refinancing initiatives. As on June 30, 2026, the company had completed 85 projects aggregating 24.5 million square feet (msf), with around 23.6 msf under development and 19.0 msf of forthcoming projects. These strengths are partially offset by geographical concentration in operations and susceptibility to cyclicality in the real estate sector. The company has seen significant capital inflow over the past two fiscals through equity infusion by the promoters and proceeds of the initial public offer (IPO). Residential debt reduced to ~Rs 8,000 crore as on March 31, 2026, from ~Rs 9,200 crore a year earlier, supported by promoter infusion and utilisation of IPO proceeds towards debt repayment over the past two fiscals. However, the pace of deleveraging has been slower than envisaged and debt-to-CFO is expected to remain above 3.5 times through fiscal 2028. The saleability of KL’s projects has improved with sales booking increasing by ~17% to Rs 5,280 crore in fiscal 2026. The company has a healthy mix of projects in early, mid and late stages of construction, and plans to launch 10–12 msf of saleable area over the next three years. Sales booking is expected to increase to Rs 6,000–7,500 crore over fiscals 2027 and 2028. With healthy saleability and improved pace of construction, collections increased by 34% in fiscal 2026 to Rs 4,960 Crore basis 100% economic interest (Rs 3,768 Crore basis economic interest), and are expected to strengthen to Rs 6,000–7,000 crore over fiscals 2027 and 2028. KL is expected to continue its asset-light business model. With no major land acquisition envisaged on outright basis in the medium term, the company is expected to focus on growth through society redevelopment projects, joint development /joint venture arrangements and launches of its existing land bank. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of all ongoing and planned projects of KL, its subsidiaries and associate companies. All the entities, collectively referred to as the Kalpataru group, are in the same business, have common promoters and share significant operational, managerial and financial linkages. Unsecured loans from promoters and promoter group are treated as debt as they are interest bearing. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Established market position in MMR: KL is a prominent developer in MMR, with a healthy track record of over five decades in the real estate business. As on June 30, 2026, the company had completed 85 projects aggregating 24.5 msf, with around 23.6 msf under development and 19.0 msf of forthcoming projects. The strong market position is evident from the company’s established brand and healthy market share (among the top five developers in Mumbai) in the organised residential real estate market in Mumbai, considering the high fragmentation in the real estate industry. Improving saleability and collections led by increased pace of construction: The company benefits from its sizeable and diversified portfolio comprising ongoing and forthcoming projects across residential segments. Although sales bookings and collections in fiscal 2026 remained below expectations due to approval-related delays and slower demand in select projects, operating performance is expected to improve over the medium term. The saleability of KL’s projects has improved with sales booking increasing by ~17% to Rs 5,280 crore in fiscal 2026. With a healthy mix of projects in early, mid and late stages of construction, and the company planning to launch 10–12 msf of saleable area over the next three years, the sales booking is expected to increase to Rs 6,000–7,500 crore over fiscals 2027 and 2028. With healthy saleability and improved pace of construction, collections increased by ~34% in fiscal 2026 to Rs 4,960 Crore basis [Showing first 8,000 characters — download PDF for full document]