Credit Rating

SEDEMAC Innovative Controls September 15, 2026 To, To, BSE Limited, National Stock Exchange of India Limited, Corporate Relations Department, Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G block, Bandra Kurla Complex, Mumbai – 400001 Bandra (East), Mumbai – 400051 Scrip code: 544723 NSE Symbol: SEDEMAC Dear Sir/Madam, Sub: Intimation – ICRA Limited, Ratings upgraded, outlook revised to Positive from Stable Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. We hereby inform you that ICRA Limited has upgraded and assigned the Company’s bank loan facilities rating as follows: Facilities Amounts Rating / Outlook Rating Action (INR Crores) Long Term / Short [ICRA]A (Positive) / [ICRA]A (Positive) / [ICRA]A1; Term- Fund based / [ICRA]A1 upgraded from [ICRA]A-(Stable)/ Non Fund-based 104.00 [ICRA]A2+/ assigned for Working Capital outlook revised to enhanced amount, outlook Facilities Positive from Stable revised to Positive from Stable [ICRA]A (Positive) [ICRA]A (Positive); upgraded Long Term- Fund from [ICRA]A-(Stable)/ assigned 110.95 based- Term Loans outlook revised to for enhanced amount, outlook Positive from Stable revised to Positive from Stable Enclosed herewith is the press release issued by ICRA Limited dated September 15, 2026. You are requested to kindly take note of the same. Thanking you, For SEDEMAC Mechatronics Limited Prasad Rajendra Chavan Company Secretary and Compliance Officer Membership No.: A49921 Encl: As above SEDEMAC Mechatronics Limited Registered Office, Technical Center & Corporate Office: Survey No. 270/1/A/2, Pallod Farms, Baner Road, Baner, Baner Gaon, Haveli, Pune - 411045, Maharashtra, India. Tel: +91 20 6715 7200 Mfg. Facility I: G-1, MIDC, Phase- III, Chakan Industrial Area, Nighoje, Pune 410501, MH, India. Tel: +91 2135 623 200 Mfg. Facility II: Survey No.64/5, Bhide Baug Industrial Estate, Wadgaon Budruk, Pune 411041, MH, India. Tel: +91 20 6750 2200 e-mail: cs@sedemac.com Website: www.sedemac.com CIN: L29253PN2007PLC246956 September 15, 2026 SEDEMAC Mechatronics Limited (erstwhile SEDEMAC Mechatronics Pvt Ltd): Ratings upgraded, outlook revised to Positive from Stable; rated amount enhanced Summary of rating action Previous Current rated Financial Sector Instrument* rated amount amount Rating action Regulator# (Rs. crore) (Rs. crore) [ICRA]A (Positive) / [ICRA]A1; upgraded Long Term / Short Term- Fund from [ICRA]A-(Stable)/ [ICRA]A2+/ based / Non Fund-based Working 64.00 104.00 RBI assigned for enhanced amount, outlook Capital Facilities revised to Positive from Stable [ICRA]A (Positive); upgraded from [ICRA]A- Long Term- Fund based- 49.50 110.95 (Stable)/ assigned for enhanced amount, RBI Term Loans outlook revised to Positive from Stable Total 113.50 214.95 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI. Rationale The rating upgrade along with revision in the outlook of the long-term rating of SEDEMAC Mechatronics Limited SEDEMAC/the company) favourably considers the significant increase in SEDEMAC’s scale of operations in FY2025 and FY2026 as reflected by a healthy 24% and 61% revenue growth in FY2025 and FY2026, respectively, and ICRA’s expectation that the revenue growth momentum would sustain, going forward. ICRA also notes the efforts undertaken by the company to gradually achieve higher product and customer diversification over the past two years, through rolling out of new products as well as onboarding of new clients, respectively. SEDEMAC has demonstrated a robust revenue growth momentum over the years (with its revenues demonstrating a compound annual growth rate (CAGR) of 34.5% over the period FY2021-FY2026), aided by increasing penetration of its flagship product – the sensor-less integrated starter generator (ISG) among the domestic two/three-wheeler (2/3W) original equipment manufacturers (OEMs). The company has also developed various other electronics-based products, such as electronic fuel injector (EFI), motor control unit (MCU), and genset controllers (GCU), offering diversification to its product portfolio. ICRA notes the presence of three prominent domestic 2/3W OEMs in SEDEMAC’s clientele, translating into a healthy industry presence for the company. With this, the revenue growth momentum is expected to remain healthy, going forward. Aided by the operating leverage benefits and cost optimisation measures undertaken by the company, its operating profit margin (OPM) rose to 21.5% in FY2026 from 19.4% in FY2025, with the expectation of the profitability to remain fairly comfortable (with OPM likely to remain 19-22% over the near to medium term), in line with the expanding scale of operations and widening product portfolio. The ratings continue to factor in the established presence of SEDEMAC in the niche segment of designing and manufacturing powertrain controllers. SEDEMAC’s promoters have a strong background with experience in electronic component designing and manufacturing that spans over 15 years. The deep-rooted business relations developed by the company with its key clients in addition to new client acquisitions, both from automotive and non-automotive sectors, have resulted in a steady ramp-up in the scale of operations over the years. As the company continues to onboard new clients across product categories and sectors, the revenue growth momentum is expected to remain healthy over the near-to-medium term. SEDEMAC’s principal product - sensor-less ISG, a device that controls the starting mechanism for small vehicles is one of the key product offerings from SEDEMAC. With the increasing adoption of this device in the automotive industry, particularly among 2W and three- wheeler (3W) OEMs, ICRA expects SEDEMAC to maintain the robust revenue growth momentum, going forward. Further, the www.icra .in 1 Sensitivity Label : Public Page | company has also been increasing its presence in other product verticals, such as EV controllers, power tools, ACM controllers genset controllers, battery chargers, actuators, etc., which is expected to provide further momentum to the expansion of revenue base, going forward. ICRA also notes the limited competition faced by SEDEMAC for its principal product in the sensor- less ISG technology, given the patented nature of its products in this category. SEDEMAC’s financial profile remains comfortable, aided by comfortable gross margins and healthy accrual generation. Timely equity infusion from promoters and investors in the past has provided support to the capital structure and leverage, with the company’s gearing and total debt/OPBITDA remaining healthy at 0.2 times and 0.3 times, respectively, as of March 31, 2026 (previous year [PY]: 0.2 times and 0.5 times, respectively). The ratings strengths are, however, partially offset by the high customer concentration risk exhibited by SEDEMAC. Its largest customer contributed 77% to revenues in FY2026 (80% in FY2025), exposing it to OEM-specific slowdown risks. The company’s active efforts to onboard other customers, from automotive as well as non-automotive sectors, are expected to reduce customer concentration over the medium term and thus provide some comfort against the said risk to an extent. While SEDEMAC’s flagship product – sensor-less ISG remains the key revenue contributor for the company, this results in a sizeable operational dependence over a single product. ICRA notes the other products (such as electronic fuel injector / EFI control units, ISG+EFI and EV controllers) being supplied by SEDEMAC. Ramp up in volumes of these products is likely to reduce the company’s dependence over its principal product ISGs in the medium term. With a sizeable (over 80% [Showing first 8,000 characters — download PDF for full document]