Credit Rating

Regd. Office: Jain Plastic Park, P.O.Box: 72, N.H.No. 53, Jalgaon – 425 001. India. Tel: +91-257-2258011; Fax: +91-257-2258111; E-mail: jisl@jains.com; Visit us at: www.jains.com CIN: L29120MH1986PLC042028 JISL/SEC/2026/09/B-2/B-6 September 17, 2026 To, To, BSE Ltd., National Stock Exchange of India Ltd., Corporate Relationship Department, Exchange Plaza, C-1, Block G, 1st Floor, New Trading Wing, Rotunda Bandra Kurla Complex, Building, P. J. Tower, Dalal Street, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Email: corp.relations@bseindia.com Email : cc@nse.co.in Ref: Code No. 500219 (BSE) & JISLJALEQS (NSE) for Ordinary Equity shares Code No. 570004 (BSE) & JISLDVREQS (NSE) for DVR Equity Shares Sub: Intimation regarding Credit Rating under Regulation 30 of SEBI (LODR) Regulations, 2015 - Bank Loan Facilities & Non-Convertible Debentures Dear Sir/Ma’am, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we wish to inform you that CRISIL Ratings Limited (“CRISIL”), vide its Rating Rationale dated September 16, 2026, has reaffirmed the credit ratings assigned to the Bank Loan Facilities and Non-Convertible Debentures of Jain Irrigation Systems Limited (“the Company”). The details of the ratings assigned are as under: Rating Action: Rs.2711.07 Crore (Reduced from Rs.2930 Total Bank Loan Facilities Rated Crore) Long Term Rating Crisil BBB-/Negative (Reaffirmed) Short Term Rating Crisil A3 (Reaffirmed) Rs.785.63 Crore Non-Convertible Crisil BBB-/Negative (Reaffirmed) Debentures The total Bank Loan Facilities rated stand reduced to ₹2,711.07 crore from ₹2,930.00 crore, following withdrawal of ratings on facilities aggregating to ₹218.93 crore consequent to receipt of no-dues certificate and lenders confirmation. The Rating Rationale issued by CRISIL Ratings Limited is enclosed herewith for your reference and records. You are requested to kindly take the above information on record. Thanking you, Yours faithfully, For Jain Irrigation Systems Limited, A V Ghodgaonkar Company Secretary Encl: a/a Rating Rationale September 16, 2026 | Mumbai Jain Irrigation Systems Limited Ratings reaffirmed at ‘Crisil BBB-/Negative/Crisil A3’ Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.2711.07 Crore (Reduced from Rs.2930 Crore) Instrument Long Term Rating Crisil BBB-/Negative (Reaffirmed) RBI Short Term Rating Crisil A3 (Reaffirmed) RBI Rs.785.63 Crore Non Convertible Crisil BBB-/Negative (Reaffirmed) MCA Debentures 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 reaffirmed its ‘Crisil BBB-/Negative/Crisil A3’ ratings on the bank facilities and non convertible debentures of Jain Irrigation Systems Limited (JISL). The rating on bank facilities worth Rs 218.93 crore has been withdrawn at the company’s request and upon receipt of the no-dues certificate and an independent confirmation from the lenders, in line with the Crisil Ratings policy on withdrawal of ratings. The ratings continue to reflect JISL’s established market position in the domestic micro-irrigation systems (MIS) segment, its diversified presence across the agricultural value chain, experienced promoters and extensive dealer network. These strengths are offset by exposure to volatility in raw material prices, moderate financial risk profile and high debt obligations requiring refinancing, as well as the working capital-intensive nature of operations. The Negative outlook continues to reflect the elevated refinancing risk arising from sizeable repayment of around Rs 624 crore in fiscal 2027. The outstanding debt obligation of ~Rs 624 crore in fiscal 2027 significantly exceeds the expected cash accrual of Rs 200–220 crore. The company has repaid a major amount of the amount availed under the Reserve Bank of India’s (RBI’s) trade relief facility. The outlook also factors in slower-than-expected progress on other identified liquidity avenues such as asset monetisation, receipt of incentives from the Government of Maharashtra, and recovery of identified overdue receivables (IOR), which stood at ~Rs 162 crore as on July 31, 2026 and project receivables of around Rs 880 crore as on March 31, 2026. Timely refinancing, availability of additional bank limits, recovery of receivables and improvement in operating performance will remain key rating sensitivity factors. JISL has made some progress to improve liquidity. The company has availed a working capital facility of Rs 100 crore from JDCC Bank in the first week of September 2026 and has also recovered ~Rs 90 crore through business collections in the first 10 days of the month. As on September 12, 2026, liquidity was ~Rs 100 crore, comprising unutilised cash credit limit of Rs 72.91 crore and trust and retention account (TRA) balance of Rs 27.11 crore. Following partial repayments, the outstanding obligation towards non- convertible debentures (NCDs) and External Commercial Borrowings (ECB2) due on September 30, 2026 is ~Rs 164 crore, of which the company expects to repay ~Rs 120 crore by September 19, 2026, and will fund the balance via business collections by September 26, 2026. Interest obligations of Rs 14–15 crore is also likely to be serviced from the available working capital limits. While JISL is also pursuing other avenues, including receipt of up to Rs 50 crore of incentives from the Government of Maharashtra in the near term and Rs 80 crore from the first tranche of the proposed land sale, progress on these avenues has remained slow and remains monitorable. The company has also received a signed term sheet from a potential lender to refinance up to Rs 800 crore, primarily to service the NCD and ECB2 repayment of ~Rs 450 crore due in March 2027 and subsequent obligations. Refinancing remains subject to approvals from existing lenders and NCD holders, legal documentation and creation of security, and will remain monitorable. Operating performance had improved in fiscal 2026, with standalone revenue growing 9.0% to Rs 3,519 crore and operating margin rising by ~110 basis points (bps) to 14.7%. Revenue growth was driven by the hi-tech segment, which grew by ~21% on-year, while domestic plastics revenue declined by ~10% on-year. Revenue, including the international plastics division, grew ~12% to Rs 4,324 crore and operating margin improved to 13.9%. However, operating performance has moderated in the first quarter of fiscal 2027, because of delayed monsoon, volatility in raw material prices on account of the West Asia conflict and lower project billing. Standalone revenue declined around ~24% on-year to Rs 699 crore, while operating profitability declined ~32% to Rs 84 crore, while operating margin contracted by ~130 bps to 12.1%. Growth in the international plastics division partly cushioned the decline. JISL’s performance is expected to recover from the second quarter, supported by better rainfall coverage and stable commodity prices. While revenue growth is expected to be modest his fiscal, it is expected to grow by 7–9% over the medium term. Operating margin is projected to be in the range of 12–14%. The financial risk profile remains modest, with total debt of around Rs 2,499 crore as on June 30, 2026, including ~Rs 831 crore of 0.01% NCDs and ECB2. Adjusted networth was healthy at around Rs 5,071 crore as on March 31, 2026. However, debt protection metrics remain moderate, and the standalone interest coverage ratio weakened in the first quarter of fiscal 2027 on account of lower profitability. The working capital cycle has improved, following tighter credit policies, although elevated receivables and high bank limit utilisation continue to c [Showing first 8,000 characters — download PDF for full document]