Intimation of Upgradation of Credit Rating

K I C METALIKS LIMITED Om Tower ,32, J.L.Nehru Road, 3rd Floor, Room No. 304, Russel Street Kolkata – 700 071, West Bengal Phone : +91-33-3517 3005 Dated: September 16, 2026 BSE Limited Phiroze Jeejeebhoy Towers 25th Floor, Dalal Street Mumbai – 400 001 Sub : Intimation of Upgradation of Credit Rating under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Ref.: Corporate Announcement dated 12 September 2026 Dear Sir/Madam, With reference to the above-mentioned corporate announcement and pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby provide the additional details in respect of the revision in credit ratings assigned to the bank facilities of K I C Metaliks Limited by CARE Ratings Limited, as follows: Particulars Details Name of the Credit Rating Agency Care Ratings Limited Nature of Event Upgradation Facility Long Term/ Short Term Bank Facilities Amount 25.00 Crore Previous Rating CARE BBB;Stable /CARE A3 Revised Rating CARE BBB+; Stable /CARE A3+ Facility Long Term Bank Facility Amount 95.01 Crore Previous Rating CARE BBB; Stable Revised Rating CARE BBB+; Stable Reason for Revision The rating revision factors in, inter alia, improvement in capacity utilisation and financial risk profile of the Company, as stated by CARE Ratings Limited in its rating rationale. The detailed rating press release issued by CARE Ratings Limited is enclosed herewith for information and records. This disclosure is being submitted as a fresh corporate announcement pursuant to the clarification sought by BSE Limited, with reference to the Company's earlier announcement dated 12th September, 2026. Kindly take the above information on record. Thanking you Yours faithfully, CIN : L01409WB1986PLC041169 Factory: Village - Raturia, Angadpur, Durgapur - 713 215, Phone : +91 987 494 3345 Email: info@kicmetaliks.com, Website: www.kicmetaliks.com Press Release Press Release KIC Metaliks Limited September 09, 2026 Name of the Amount (₹ Facilities Ratings2 Rating Action Regulator1 crore) Long-term / Short-term bank CARE BBB+; Stable Upgraded from CARE BBB; RBI 25.00 facilities / CARE A3+ Stable / CARE A3 Upgraded from CARE BBB; Long-term bank facilities RBI 95.01 CARE BBB+; Stable Stable Details of facilities in Annexure-1. Rationale and key rating drivers Revision in the ratings assigned to bank facilities of KIC Metaliks Limited (KML) factors in the improvement in capacity utilisation and financial risk profile of the company. CARE Ratings also take comfort from the classification of Bengal Energy Limited (BEL; rated CARE A; Stable/ CARE A1) as its related party from FY26 (refers to April 1 to March 31) onwards, given reclassification of ultimate shareholding of BEL at promoter level wherein, Thermic Steel Company Pvt Ltd (TSCPL) is now the ultimate holding company for both KML and BEL. KML benefits from its strategic relationship with BEL, a group entity, where the increasing scale of transactions and complementary nature of BEL’s manufacturing operations, including supply of LAM coke and pig iron-related inputs, are expected to support supply chain efficiencies and improve the availability of critical raw materials for KML. During FY26, around 35% of KML’s purchases were sourced from BEL, highlighting the strategic significance of the relationship. The rating continues to derive strength from the experienced and resourceful promoters, improvement in capital structure and debt protection metrics, however, profitability margins continue to remain low given the company’s single-product profile. The rating, however, continues to be constrained by the cyclical nature of the steel industry, intense competition from the unorganised sector, concentration in a single product segment, exposure to commodity price fluctuations and exposure to increasing environmental compliance requirements. Rating sensitivities: Factors likely to lead to rating actions Positive factors  The ability of the company to increase its scale of operations and operating margin beyond 6% on a sustained basis.  Maintenance of overall gearing ratio below 0.4x with improvement in Total Debt (TD)/PBILDT ratio below 2x on a sustained basis. Negative factors  Moderation in the average sales realisation from the current levels, on a sustained basis, thereby deteriorating the financial performance of the company.  Any substantial debt funded capex resulting in deterioration in capital structure with overall gearing going above 1.00x on a sustained basis. Analytical approach: Standalone Outlook: Stable The stable outlook reflects that entity is likely to sustain its satisfactory financial risk profile backed by favourable demand scenario in the near to medium term. Detailed description of key rating drivers Key strengths Experienced and resourceful promoters 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 Radhey Shyam Jalan, CMD of KML, looks after the day-to-day affairs of the company, with support from a team of experienced professionals. He is a Chartered Accountant with more than a decade of experience in iron and coal sector. The other promoter of the company includes Om Jalan (brother of Radhey Shyam Jalan), who is also the promoter of BEL. The promoters have demonstrated fund support in the past as and when required and in FY26 also, the ultimate parent entity, ie TSCPL (majorly held by Om Jalan and his family members) has infused ₹5 crore in KML in the form of unsecured loans. Further, with the strategic operational linkages of the company with BEL, from which KML purchases around 35% of its total purchases, the company can benefit in terms of financial flexibility in the form of extended credit period. Improvement in capital structure and debt protection metrics supported by recovery in profitability The capital structure of the company remained satisfactory, with overall gearing ratio improving to 0.59x as on March 31, 2026, from 0.71x as on March 31, 2025, supported by an increase in net worth and moderation in total debt. The debt profile continues to majorly comprise of working capital borrowings. The company has successfully repaid/prepaid its entire term loan obligations during FY26, resulting in lower leverage and strengthening its overall financial risk profile. The debt protection metrics improved significantly in FY26, supported by a recovery in operating profitability. The interest coverage ratio improved to 2.59x in FY26 from 1.23x in FY25, driven by a substantial increase in PBILDT. Further, gross cash accruals (GCA) improved to ₹16.41 crore in FY26 from ₹3.25 crore in FY25, resulting in a significant improvement in Total debt/GCA to 6.25x as on March 31, 2026 from 38.15x as on March 31, 2025. The improvement in profitability continued in Q1FY27, with interest coverage improving further to 7.52x. Going forward, the company's debt protection metrics are expected to remain comfortable, supported by sustained improvement in profitability and cash accruals. Further, the company is contemplating a forward integration unit in near term, however the same is currently under discussion stage and nothing has been finalised as of now. Any significant debt funded capex undertaken by the company shall remain key rating monitorable. Presence of backward integration and process improvement measures While iron ore, coke and coal are the basic raw materials for KML, it does not have any captive mines for them. It, however, has facilities to manufacture intermediate feedstock namely sinters from the sinter plant (3,60,000 MTPA). KML has a 4.7 MW waste heat-based [Showing first 8,000 characters — download PDF for full document]