Credit Rating

To, To, Sr. General Manager, The Manager Listing Department Corporate Relationship Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 544547 Trading Symbol: JKIPL Subject: Intimation under Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that CRISIL Ratings Limited, vide its Rating Rationale dated September 22, 2026, has reaffirmed the below credit ratings to Jinkushal Industries Limited (“the Company”). The details of the rating action are as follows: Particulars Rating Action Long-Term Rating CRISIL BBB / Negative – Reaffirmed Short-Term Rating CRISIL A3+ – Reaffirmed The said rationale was published by CRISIL Ratings Limited on their website i.e. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/JinkushalIndustriesLi mited_September%2022_%202026_RR_405559.html The said ratings/rationale was received by the Company on September 22, 2026 and is also available on the website of the Company i.e., https://www.jkipl.in The detailed Rating Rationale issued by CRISIL Ratings Limited is enclosed herewith for your information and records. Thanking you, Yours Sincerely For Jinkushal Industries Limited (Formerly Known as Jinkushal Industries Private Limited) Manish Tarachand Pande Company Secretary and Compliance Officer Membership No.: A48185 9/22/26, 7:24 PM Rating Rationale Rating Rationale September 22, 2026 | Mumbai Jinkushal Industries Limited Ratings reaffirmed at 'Crisil BBB / Negative / Crisil A3+ '; Rated amount enhanced for Bank Debt Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.250 Crore (Enhanced from Rs.156 Crore) Instrument Long Term Rating Crisil BBB/Negative (Reaffirmed) RBI Short Term Rating Crisil A3+ (Reaffirmed) RBI 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 of Jinkushal Industries Limited (JKIL). The ratings continue to reflect the extensive experience of the promoters in the heavy construction equipment industry and comfortable financial risk profile of the company. These strengths are partially offset by the exposure to cyclicality in the end-user industries and large working capital requirement. Analytical approach Crisil Ratings has consolidated the business and financial risk profiles of JKIL with its 80%-owned subsidiary—Hexco Global FZCO—and step-down subsidiary—Hexco Global USA LLC. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key rating drivers - Strengths Extensive experience of the promoters The promoters—Anil Jain and Abhinav Jain—have more than three decades of experience in the heavy construction and mining equipment industry through their contract mining operations. Leveraging their technical expertise as mechanical engineers, they have established a wide nationwide network for sourcing and supplying this equipment. Since commencing export of refurbished construction equipment in 2017, the company has demonstrated a strong ramp-up in operations—with consolidated revenue exceeding Rs 350 crore during the two fiscals through 2026. Although consolidated revenue remained subdued at Rs 57 crore during the first quarter of fiscal 2027 owing to logistical disruptions and geopolitical headwinds, it still marked an approximate 16% on-year growth. Revenue growth is expected to remain healthy, supported by the company's increasing focus on developing its proprietary HexL brand and continued geographical expansion into new markets. Comfortable financial risk profile The financial risk profile has been moderate, with stable capital structure and comfortable debt protection metrics. Aided by an equity infusion of Rs 104 crore from its initial public offering, networth stood robust at around Rs 200 crore and gearing healthy at 0.5 time. Debt protection metrics were strong, with interest coverage ratio of 4 times in fiscal 2026. The financial risk profile may remain comfortable over the medium term as well, in the absence of any major term debt and improvement in the working capital cycle. Key rating drivers - Weaknesses Exposure to cyclicality in the end-user industries JKIL caters to the highly cyclical construction, mining and infrastructure industries. As most of its revenue is generated from export destinations such as Mexico, the UAE and South Africa, the business performance is likely to remain constrained by cross-border regulations. Consequently, revenue dropped by 40% in the third quarter of fiscal 2026 (as compared to the second quarter of the fiscal) partially due to temporary tax clarifications in Mexico. Furthermore, recent geopolitical tensions in West Asia and the resultant volatility in logistics costs have adversely impacted profitability. This volatility, coupled with higher operating spends towards the development of the Hexl brand and international expansion initiatives, led to a sharp moderation in consolidated earnings before interest, tax, depreciation and amortisation margin to around 2% in the first quarter of fiscal 2027, from ~6.8% in the fourth quarter of fiscal 2026 and 10.7% in the first quarter of fiscal 2026. Profitability remains susceptible to industry cyclicality, freight cost volatility and global trade-related risks, all of which will continue to be closely monitored. Large working capital requirement https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/JinkushalIndustriesLimited_September 22_ 2026_RR_405559.html 1/7 9/22/26, 7:24 PM Rating Rationale Gross current assets (GCAs) increased significantly to 290 days as on March 31, 2026 (from 120 days as on March 31, 2024) and remained high in the first quarter of fiscal 2027 as well. This sharp rise was driven by a strategic shift towards retail and direct sales to expand market presence. As this new business model involves extended credit periods, longer lead time and an inventory-led growth strategy, operations are expected to remain working capital intensive. Hence, debtors are projected at 120–150 days over the medium term. Liquidity Adequate Bank limit utilisation was about 57% for the two months through July 2026. In the absence of any yearly maturing debt over the medium term, the cash accrual—expected at Rs 15–20 crore per annum—will act as a cushion to liquidity. Outlook Negative The business performance of JKIL is likely to remain under pressure on account of ongoing industry challenges. Elevated working capital requirement arising from longer lead times and higher logistics costs are expected to significantly constrain profitability. Rating sensitivity factors Upward factors Steady revenue growth while ensuring healthy operating margin of over 6% Improvement in the working capital cycle Downward factors Decline in revenue or operating margin Continued stretch in receivables and inventory, with GCAs more than 300 days About the company Incorporated in 2007 at Raipur, Chhattisgarh, JKIL was founded by Anil Jain and is managed alonside his son, Abhinav Jain. While the company initially focussed on mining contracts, rentals and warehousing business, it began exporting customised, refurbised and proprietory branded construction and mining equipment globally from 2017. Key financials (consolidated numbers) As on/for the perio [Showing first 8,000 characters — download PDF for full document]