Credit Rating- New

k.Tripi Tamil Nadu Newsprint and Papers Limited (A Govt. of Tamil Nadu Enterprise) Office : Anna PhonR eeg d (9. 1) (044) 6 27 2, 350768Sa 2lai 23, 544Guin 15d y&, C 16h ,e n 2n 2a 30i - 0&3 2 97, Ta Wmi el bN :a www.du, In td ni pla. . com Corporate Identity Number : L22121TN1979PLC007799 22nd September, 2026 To To BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, 25th Floor, Dalal Street Plot No. C/1, G Block, Mumbai- 400001 Bandra Kurla Complex, BSE Scrip Code: 531426 Bandra (East), Mumbai – 400051 NSE Code: TNPL Dear Sir / Madam, Sub: Compliance under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 ------------------------------------------------------------------------------------------------------------------- The Company has received rating from CareEdge Ratings (CARE Ratings Ltd). A summary of the rated facilities is as under: Facilities/ Amount (Rs. crore) Rating Rating Action Instruments Long-term / Short- CARE A; Stable / 350.00 Reaffirmed term bank facilities CARE A1 Long-term bank 1,692.94 CARE A; Stable Reaffirmed facilities Short-term bank 1,725.00 CARE A1 Reaffirmed facilities This is for your information and record. Thanking you, For Tamil Nadu Newsprint and Papers Limited Anuradha Ponraj Company Secretary & Compliance Officer ICSI Membership No: F13594 Email Id: anuradha.p@tnpl.co.in Contact No: 044-22354417 Encl: a/a. Factory - Unit I : Unit II : Kagithapuram, Karur District - 639 136 Kagitha Nagar, Mondipatti, K.Periyapatti Post, Manapparai Taluk Tamil Nadu, India. Tiruchirappalli District - 621 306, Tamil Nadu, India. Phone : 04324-277001 t0 277010 Phone : 04332-261600 TNPL - MAKER OF BAGASSE BASED ECO-FRIENDLY PAPER Press Release Tamil Nadu Newsprint and Papers Limited September 21, 2026 Name of the Rating Facilities/Instruments Amount (₹ crore) Rating2 Regulator1 Action Long-term / Short-term bank CARE A; Stable / CARE RBI 350.00 Reaffirmed facilities A1 Long-term bank facilities RBI 1,692.94 CARE A; Stable Reaffirmed Short-term bank facilities 1,725.00 CARE A1 Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings assigned to bank facilities of Tamil Nadu Newsprint and Papers Limited (TNPL) factors in the improvement in the company's operating performance in FY26, characterised by growth in total operating income (TOI), supported by an increase in sales volumes and broadly stable sales realisations across key product segments, resulting in higher operating profitability. TOI increased to ~₹4,669 crore in FY26 from ₹4,515 crore in FY25, while profit before interest, lease rentals, depreciation and taxation (PBILDT) margin improved to 10.81% in FY26 from 9.93% in FY25. Ratings also factor in the improvement in cash flow generation and modest strengthening of the financial risk profile during the year. The positive operating trend continued in Q1FY27, with the PBILDT margin improving to 10.02% from 8.88% in Q1FY26 and the company reporting a profit after tax (PAT) of ₹5.74 crore against a loss of ₹7.41 crore in the corresponding period of the previous year. Ratings continue to derive strength from TNPL's established position as one of the largest integrated paper manufacturers in India, its diversified product portfolio, strong raw material sourcing capabilities, and well-established distribution network in the printing and writing paper (PWP) segment. Ratings also draw comfort from the company's demonstrated financial flexibility, reflected in its ability to raise long-term debt at competitive rates and maintain strong lender relationships. However, these strengths are tempered by TNPL's leveraged capital structure, susceptibility to fluctuations in raw material prices and paper realisations, exposure to foreign exchange fluctuations, and project execution and stabilisation risks associated with the tissue paper plant and steam and power system revamp project. While the tissue paper project is expected to support revenue diversification and growth from Q3FY27 onwards, the steam and power system revamp is envisaged to improve operational efficiency and cost competitiveness. Accordingly, successful stabilisation of tissue paper operations and realisation of the anticipated efficiency benefits from the steam and power system revamp project, and sustained improvement in profitability and debt coverage metrics, remain key rating monitorable. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Improvement in total debt to profit before interest, lease rentals, depreciation, and taxation (TD/PBILDT) below 2.75x on a continued basis. • Sustained growth in TOI above 5% while maintaining PBILDT levels of 15-17%. Negative factors • Moderation in profitability leading to lower accruals resulting in TD/PBILDT of above 5.5x on a continued basis. • Deterioration of total outside liabilities to tangible net worth (TOL/TNW) above 1.8x. Analytical approach: Standalone CARE Ratings Limited (CareEdge Ratings) has adopted a standalone approach for rating the facilities of TNPL. 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority 2Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Outlook: Stable The stable outlook reflects CareEdge Rating’s expectation that TNPL will maintain its established market position, supported by favourable demand-supply dynamics, while improving sales realisations, driving revenue growth, and achieving margin recovery. Detailed description of key rating drivers Key strengths Strong operational track record in PWP industry with integrated operations TNPL has been operational for over four decades and has emerged as one of the leading manufacturers of PWP in India. TNPL operates an integrated pulp and paper mill (Unit-I) at Karur, Tamil Nadu, with three paper machines aggregating to a total installed capacity of 4 lakh tonne per annum (LTPA). Unit-I and Unit-II together has a pulping capacity of 1,580 tonne per day (tpd) as on March 31, 2026, including hardwood pulping capacity of 730 tpd, chemical bagasse pulping capacity of 550 tpd, and deinking pulp plant with a capacity of 300 tpd. The company also developed captive power plants at its units and the plant at Unit I has a capacity of 103.62 MW as on March 31, 2026. Unit I is self-sufficient in terms of pulp and power requirements. The Unit I also has an in-house cement plant, which uses lime sludge waste and fly ash produced in the paper production to produce cement. The company also has wind farms with a capacity of 35.50 MW in Tirunelveli, Tamil Nadu. The company has significant presence in the domestic PWP market supported by network of dealers across India. Being one of the largest players in the domestic paper industry with long track record, TNPL has been able to establish strong relationship with its customers. TNPL also acts as a key supplier for paper for textbooks and other material to the Government of Tamil Nadu (GoTN), accounting for ~25% of the total sales. The PWP mill was 109% utilised in FY26. Currently, TNPL is focussed on high-margin products, such as copier paper, which is expected to support margin growth going forward. Optimisation of product mix and backward integration in paperboard segment TNPL has 2 lakh TPA capacity in paperboard segment. The company optimises its product mix based on the market requirement and production varies according to the demand. The paper boards segment (majorly folding box board [FBB] and solid bleached sulphate [SBS]) is predominantly end-user specified. These are used for p [Showing first 8,000 characters — download PDF for full document]