Credit Rating- Revision

September 16, 2026 The National Stock Exchange of India Limited Department of Corporate Services/Listing Exchange Plaza, 5th Floor, BSE Limited Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East), Dalal Street, Fort, Mumbai – 400 051 Mumbai – 400 001 N SE Symbol: APOLLOPIPE S CRIP Code: 531761 Subject: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015- Upgrade in Credit Ratings Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CRISIL Ratings Limited (“CRISIL Ratings”) has upgraded the credit ratings assigned to the bank facilities of Apollo Pipes Limited (“Company”), as detailed below: Total Bank Facilities Rated Rs. 280 Crore Long Term Rating Crisil AA-/Stable (Upgraded from 'Crisil A') Short Term Rating Crisil A1+ (Upgraded from 'Crisil A1') CRISIL Ratings has removed its ratings on the bank facilities of Apollo Pipes Limited from ‘Rating Watch with Positive Implications’ and upgraded the ratings to ‘CRISIL AA-/CRISIL A1+’ from ‘CRISIL A/CRISIL A1’, while assigning a ‘Stable’ outlook to the long-term rating. A copy of the rating letter issued by CRISIL Ratings Limited is enclosed herewith. This information is also being uploaded on the website of the Company at www.apollopipes.com. You are requested to take the same on record. Thanking you. Yours faithfully, For Apollo Pipes Limited Gourab Kumar Nayak Company Secretary and Compliance Officer Encl: As above. 9/16/26, 6:55 PM Rating Rationale Rating Rationale September 16, 2026 | Mumbai Apollo Pipes Limited Ratings upgraded to ‘Crisil AA-/Stable/Crisil A1+’; Removed from ‘Watch Positive’ Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.280 Crore Instrument Crisil AA-/Stable (Upgraded from 'Crisil A'; Long Term Rating Removed from 'Rating Watch with Positive RBI Implications') Crisil A1+ (Upgraded from 'Crisil A1'; Removed Short Term Rating RBI from 'Rating Watch with Positive Implications') 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 removed its ratings on the bank facilities of Apollo Pipes Limited (APL) from ‘Rating Watch with Positive Implications’ and upgraded the ratings to ‘Crisil AA-/Crisil A1+’ from 'Crisil A/Crisil A1’ while assigning a ‘Stable' outlook to the long-term rating. The upgrade in ratings highlights the strong support from the Sudesh Gupta (SG) group, following appointment of Sanjay Gupta (Chairman and MD of APL Apollo Tubes Limited; ‘Crisil AA+/Stable/Crisil A1+’) as Chairman of APL. The upgrade also factors in the company's strong operational and managerial integration with the SG group and its ability to leverage the well-established APL Apollo brand. APL is expected to benefit from the group's established market position, extensive business relationships, and financial flexibility, which are likely to support its growth and expansion initiatives. Further, the promoters have formally articulated their commitment to provide operational and financial support to group entities including APL. APL’s performance was subdued, with revenue declining by ~6% to Rs 1,105 crore in fiscal 2026 impacted by lower polyvinyl chloride (PVC) resin-linked realisations and muted demand across key end-user segments, although volumes remained resilient with a 2% increase. Revenue improved by 7% on-year to Rs 295 crore in the first quarter of fiscal 2027, reflecting gradual demand recovery and benefits from capacity additions. With completion and ramp-up of the Varanasi facility, increasing geographic penetration and expansion in value-added product categories, yearly revenue growth of over 10% is expected over the medium term. Further, scale-up of Kisan Mouldings Limited (KML) and focus on government and infrastructure-linked projects will also support growth. The company's ability to timely ramp-up its capacity will remain a key rating sensitivity factor. Operating profitability moderated in fiscal 2026, with Ebitda margin declining to 6.0% from 8.3% in fiscal 2025, impacted by lower capacity utilisation, volatile PVC resin prices, aggressive pricing strategies and weak performance of KML. The margin further declined to around 1.0% in the first quarter of fiscal 2027 owing to inventory losses arising from a sharp correction in PVC resin prices, coupled with ramp-up costs associated with new capacities. Profitability is expected to recover over the medium term, driven by stabilisation of PVC resin prices, improved capacity utilisation, better fixed-cost absorption, increasing share of higher-margin products and benefits from operating leverage, supporting Ebitda margin of 7–8% The financial risk profile remains strong backed by robust capital structure, as reflected in the gearing of less than 1 time and healthy interest coverage ratio of more than 7 times in the past five fiscals. These ratios will likely remain healthy over the medium term as APL plans to fund its capital expenditure (capex) through equity or internal cash accrual. The company issued share warrants of Rs 259.6 crore in fiscals 2024 and 2025. It is raising Rs 110 crore in fiscal 2027 to fund greenfield capex through preferential allotment from Kitara Capital. Further, the company has announced plans to enter the tiles and ceramics segment through a new subsidiary, involving an estimated capex of ~Rs 300 crore, for which it has also obtained board approval to raise ~Rs 189 crore through preferential warrants. The ratings continue to reflect APL’s established market position in the PVC pipes industry, increasing geographical diversity and strong financial risk profile. These strengths are partially offset by exposure to intense competition and susceptibility to fluctuations in raw material prices and foreign exchange (forex) rates. Analytical Approach file:///C:/Users/compliance/Downloads/Rating Rationale.mhtml 1/8 9/16/26, 6:55 PM Rating Rationale Crisil Ratings has combined the business and financial risk profiles of APL and its wholly owned subsidiary, KML, on account of their operational and financial linkages. Crisil Ratings has also applied its group notch-up framework to factor in the business and financial support that APL receives from the SG group. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Strong parentage and demonstrated support from the SG group APL benefits from being a part of the SG group, a diversified group with aggregate revenue exceeding Rs 31,000 crore, strong networth and healthy financial flexibility. The company derives significant benefits through the established APL Apollo brand, management integration, common banking relationships, extensive distribution reach and customer access across group entities. Continued promoter commitment and articulated support from the group are expected to support APL's growth aspirations and strengthen its business and financial profile. Established market position and increasing geographical diversity The promoters have experience of around two decades in the PVC pipes industry. Their expertise has helped the company navigate business cycles and establish the APL Apollo brand, which it shares with the APL Apollo group and is used by the flagship company, APL Apollo Tubes Limited. APL has over 900 dealers and distributors across India. The product portfolio is diverse and includes column pipes, unplasticised PVC and chlorinated PVC plumbing pipes and f [Showing first 8,000 characters — download PDF for full document]