Credit Rating- Revision

September 19, 2026 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Mumbai – 400001 Plot No. C/1, “G” Block BSE Symbol: INDOFARM Bandra-Kurla Complex BSE Scrip Code: 544328 Bandra (E), Mumbai – 400 051 NSE Symbol: INDOFARM Subject: Intimation of Credit Rating under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dear Sir/Ma’am, Pursuant to Regulation 30(6) read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Regulation”), we would like to inform that “Infomerics Valuation and Rating Private Limited, a credit rating agency, has upgraded company ratings after taking into account all the relevant recent developments including operational and financial performance of the Company. In accordance with the Regulation, please find below the details of the upgraded rating for the Company: Instrument/Facility Rating Assigned Rating Action Long Term Bank facilities IVR A/Stable Rating Upgraded Short Term Bank facilities IVR A1 Rating Upgraded Copy of the Credit Rating is enclosed as an Annexure to this letter. The above information will also be available on the website of the Company at www.indofarm.com. You are requested to kindly take the above on your records. Thanking you, Yours faithfully, For Indo Farm Equipment Limited Navpreet Kaur Company Secretary & Compliance Officer Membership No F8353 Encl: As above Press Release Indo Farm Equipment Limited September 18, 2026 Rating Action Total Bank Loan Facilities Rs. 103.70 Crore (reduced from Rs. Regulator^ Rated 104.34 Crore) Long Term Rating IVR A/Stable (Rating Upgraded) RBI Short Term Rating IVR A1 (Rating Upgraded) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics 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. Rationale The rating upgrade reflects the sustained improvement in Indo Farm Equipment Limited’s (IFEL’s) financial risk profile and debt-protection metrics, supported by deleveraging, strengthening of its adjusted tangible net worth (ATNW) and a structural reduction in IFEL’s financial exposure to its wholly owned subsidiary, Barota Finance Limited (BFL). The ratings also factor in the 14.39% growth in IFEL’s total operating income during FY2026, led by higher tractor volumes, along with continued year-on-year revenue growth in Q1FY2027. The agency takes note of the reduction in IFEL’s financial exposure to BFL through recovery of inter-corporate loans and a reduction in corporate guarantees. Any material increase in financial support to BFL beyond the currently envisaged level remains a key rating sensitivity. The rating further derives comfort from the fact that the ongoing capex towards expanding crane capacity is being funded through equity raised during IPO as well as internal accruals, thereby limiting incremental reliance on external debt. The expanded facility is expected to commence commercial operations in the second half of FY2027. The rating continues to be supported by IFEL’s established operating track record, experienced management and widespread dealer network. Page | 1 www.infomerics.com Press Release The rating strengths are partially offset by moderation in profitability margins, an elongated working capital cycle, risks associated with the implementation and ramp-up of the ongoing crane capacity expansion. The rating also remains constrained by intense competition and the cyclical nature of the tractor and crane industries. IVR has also withdrawn the rating of TL’s (refer Annexure I) from Federal Bank, based on No Due Certificate. The withdrawal of rating for these limits is as per IVR policy. IVR has principally relied on the standalone audited financial results of the company up to 31 March 2026, (i.e. review period from 1st April 2025 to 31st March 2026), Q1FY27 (unaudited), projected financials of FY2027-FY2029 and publicly available information/ clarifications provided by the company’s management. Outlook: Stable The ‘Stable’ outlook reflects Infomerics’ expectation that IFEL will sustain its current scale and leverage profile over the medium term, supported by its established market position, healthy capital structure and adequate liquidity despite industry cyclicality and ongoing capacity augmentation. Analytical Approach Approach Comments Consolidation/ Standalone Standalone For arriving at the rating, IVR has considered Standalone financials of IFEL. Parent/ Group Support Not Applicable List of companies considered for consolidation analysis is given at Annexure 4 Key Rating Drivers with Detailed Description Strengths • Improved debt protection metrics and financial risk profile The capital structure is comfortable and continued to strengthen in FY2026. Total debt reduced by 10.91% to Rs 84.94 crore in FY2026 from Rs 95.34 crore in FY2025, principally through repayment of term borrowings, and finance costs fell 29.02% to Page | 2 www.infomerics.com Press Release Rs 10.15 crore in FY2026 from Rs 14.30 crore in FY2025. In terms of the debt coverage indicators, the interest service coverage ratio (ISCR) and debt service coverage ratio (DSCR) improved to 4.76x and 2.06x respectively in FY2026 as compared to 3.30x and 1.74x respectively in FY2025. Overall adjusted gearing improved to 0.18x in FY2026 from 0.22x in FY2025 and TOL/ATNW to 0.31x in FY2026 from 0.33x in FY2025 due to reduction in debt. • Improving scale of operations Total operating income grew 14.39% to Rs 419.54 crore in FY2026 from Rs 366.77 crore in FY2025, following growth of 4.06% in FY2025. Growth was volume-led and concentrated in tractors, where overall volumes recovered and segment revenue rose 42.87% to Rs 201.47 crore. Crane revenue was broadly flat at Rs. 218.09 crore, a 9.9% improvement in realisation offsetting a 7.73% volume decline. The recovery has continued into FY2027, with Q1FY27 TOI of Rs 104.93 crore, 14.98% above Q1FY26. • Strong distribution network The dealer network expanded to 250 from 200 during FY2026 through 15 regional offices and is a well-recognized brand in the industry. Distribution is supported by the group’s captive financing arm, BFL, whose loan portfolio of Rs 136.93 crore provides retail credit to purchasers of the company’s equipment which in turns supports volume of IFEL. • Established track record of operations and experienced management It has a successful track record of more than two decades in the existing line of business. Overall activities of IFEL are managed by three directors with Mr. Ranbir Singh Khadwalia being the Chairman cum Managing Director. He has experience of more than 3 decades in the tractor and crane manufacturing business. He is ably supported by other directors namely, Mr. Anshul Khadwalia and Mr. Amit Kumar who have experience in tractor marketing and crane manufacturing respectively as well as supported by qualified and well experienced management team. Page | 3 www.infomerics.com Press Release Weaknesses • Decline in profitability margins EBITDA margin contracted 132 basis points to 11.52% and PAT margin 97 basis points to 5.15%, with profit after tax declining 3.27% in absolute terms to Rs 21.87 crore. Q1FY27 provides limited early support, with EBITDA margin of 11.61% against 11.50% in Q1FY26. Sustained improvement in operating margins, supported by the pass-through of the BS-V-related price increase, shall remain a key monitorable. • Elongated working capital cycle The company’s operating c [Showing first 8,000 characters — download PDF for full document]