Credit Rating

September 22, 2026 To, To, National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor no. 25, PJ Towers Bandra (E) Dalal Street Mumbai -400 051 Mumbai – 400 001 Trading Symbol: “SOLARINDS” Scrip Code: 532725 Through NEAPS Through BSE Listing Center Subject: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Credit Rating. Dear Sir/Madam, Pursuant to the captioned subject, we are pleased to inform you that the “CRISIL Ratings Limited” has placed its rating on the bank loan facilities and other debt Instruments of Solar Industries India Limited as follows: Type of Facility Amount in Rating Rating Action (Rs. Crores) Long term Bank Loan 1479.50 CRISIL AA+/ Watch (Placed on Rating Watch with Facilities Developing Developing Implications) Non-Convertible 35.00 CRISIL AA+/ Watch (Placed on Rating Watch with Debentures Developing Developing Implications) The rating rational letter received from CRISIL is enclosed herewith. This is for your information and record. Thanking You. Yours truly, For Solar Industries India Limited Khushboo Pasari Company Secretary & Compliance Officer 9/22/26, 3:00 PM Rating Rationale Rating Rationale September 22, 2026 | Mumbai Solar Industries India Limited Rating placed on 'Watch Developing' Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.1479.5 Crore Instrument Crisil AA+/Watch Developing (Placed on 'Rating Long Term Rating RBI Watch with Developing Implications') Rs.35 Crore Non Convertible Crisil AA+/Watch Developing (Placed on 'Rating SEBI Debentures Watch with Developing 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 placed its rating on the long-term bank facilities and non-convertible debentures (NCDs) of Solar Industries India Limited (SIIL; part of the Solar group) on 'Rating Watch with Developing Implications'. The rating action follows SIIL's announcement on September 14, 2026, of the proposed acquisition of Omnia Holdings Limited (Omnia), South Africa, for an enterprise value of ~$1.355 billion (Rs 12,951 crore). The transaction is subject to shareholder, regulatory, competition and other customary approvals and is expected to be completed in the first quarter of fiscal 2028. The Solar group’s management has indicated the acquisition represents the next strategic step in the Solar group’s Southern African Development Community (SADC) growth journey, significantly expanding its operational, manufacturing and distribution capabilities. The proposed acquisition is strategically significant as it would provide access to Omnia's mining explosives platform (BME), integrated nitric acid and ammonium nitrate manufacturing assets, agriculture business and well- established presence across African mining markets. The proposed acquisition is expected to be funded primarily through debt and internal accrual. Accordingly, post-acquisition, debt is expected to increase though the financial risk profile is expected to remain largely comfortable. The management expects the ratio of net debt to earnings before interest, taxes, depreciation and amortisation (Ebitda) to remain below 2 times at the end of fiscal 2028 (post-acquisition). Crisil Ratings will continue to engage with the Solar group’s management and monitor developments relating to transaction completion, receipt of requisite approvals, final deal structure and integration plans. The watch will be resolved upon completion of the transaction and clarity on the above aspects. SIIL has a strong business profile through significant growth in scale, increasing diversification and expansion across the defence and international businesses. Consolidated revenue increased to Rs 9,837 crore in fiscal 2026 from Rs 7,551 crore in fiscal 2025. Growth has been supported by strong execution in the defence business and continued expansion of international operations. The defence segment contributed around 27% to revenue in fiscal 2026 compared with around 5% in fiscal 2021, while international explosive operations accounted for around 39% of consolidated revenue. The business momentum remained strong in the first quarter of fiscal 2027, with revenue increasing by ~70% on-year to Rs 3,668 crore, supported by robust growth across the defence, international explosives and domestic explosives businesses. The consolidated order book remained robust at over Rs 21,350 crore as on June 30, 2026, including defence orders exceeding Rs 18,000 crore, providing strong medium-term revenue visibility. Supported by its leadership position in domestic explosives, growing international presence and healthy defence order pipeline, SIIL is likely to maintain healthy growth over the medium term. Operating profitability has improved materially, with the Ebitda margin increasing to 27.7% in the first quarter of fiscal 2027 from 24.8% in the corresponding quarter of the previous fiscal. The improvement was driven by the rising contribution of higher-margin defence products, improved profitability in international operations and ability to pass on fluctuations in key raw material prices. The margin is expected to remain healthy at 26–27% over the medium term. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/SolarIndustriesIndiaLimited_September 22_ 2026_RR_405540.html 1/11 9/22/26, 3:00 PM Rating Rationale The financial risk profile remains strong, supported by healthy cash accrual generation, robust profitability and prudent capital structure. Net cash accrual increased to Rs 1,872 crore in fiscal 2026 from Rs 1,393 crore in fiscal 2025. Networth improved to Rs 6,281 crore as on March 31, 2026, while gearing remained comfortable at 0.23 time despite capital expenditure (capex) of ~Rs 1,800 crore during the fiscal. Debt protection metrics remained strong with interest coverage of over 21 times and net cash accrual to adjusted debt ratios of 1.28 times for fiscal 2026. Liquidity remains comfortable, supported by cash and bank balances of Rs 602 crore as on March 31, 2026, healthy operating cash flow generation and adequate financial flexibility. Crisil Ratings also takes note of the past litigation involving the K C Nuwal group. The Supreme Court disposed of the civil appeal filed by SIIL on August 26, 2025, noting that the term of the concerned director had already expired. The litigation has not had any measurable adverse impact on SIIL's business operations, growth trajectory or financial performance over the years. Nevertheless, Crisil Ratings will continue to monitor developments, if any, and their impact on the company's operations and governance profile. The ratings continue to reflect SIIL's established leadership position in the explosives and detonators industry, rapidly growing defence business, increasing international diversification, strong operating profitability and healthy financial risk profile. These strengths are partially offset by exposure to regulatory risks and susceptibility to volatility in foreign exchange rates. Analytical Approach Crisil Ratings has combined the financial and business risk profiles of SIIL, its subsidiary, Solar Defence and Aerospace Ltd (‘Crisil AA+/Watch Developing/Crisil A1+’), and other subsidiaries and step-down subsidiaries. This is because all these entities, collectively referred to as the Solar group, have common management and significant business and financial linkages. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Robust market position in the explosive industry Wit [Showing first 8,000 characters — download PDF for full document]