Revision in Credit Rating.

JAI BALAJI INDUSTRIES LIMITED Ref : JBIL/SE/2026-27 Date: 23" September, 2026 To To The Manager The Manager, Listing Department, Dept. of Corporate Services National Stock Exchange of India Limited BSE Limited “EXCHANGE PLAZA”", C-1, Block G Phiroze Jeejeebhoy Towers Bandra—Kurla Complex, Bandra (E) Dalal Street, Mu i — 40 M i — 4 (Company’s Scrip Code: JAIBALAII) (Company’s Scrip Code: 532976) Dear Sir/Madam, Sub : Intimation under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations’) — Credit Rating In reference to the intimation dated 21% September, 2026 filed by the Company w.r.t. credit rating, please find below the details as required under SEBI Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 (updated SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated 30th January, 2026): CRISIL has revised the ratings on the Bank Loan facilities availed by the Company as detailed below:- Total Bank Loan | Rs. 995 Crores Facilities Rated Long Term Rating Crisil BBB/Stable (Downgraded from 'Crisil BBB+/ Stable’) Short Term Rating Crisil A3+ (Downgraded from 'Crisil A2") The reason given by the rating agency for revision in rating is duly mentioned in the rating rationale provided by the agency, which is duly enclosed with this letter. However, the financial health of the Company remains sound. The Company has demonstrated improvement across all key financial parameters and continues to operate with a prudent debt position. Its total outstanding debt is less than its revenue generated in a single month, reflecting a relatively low level of financial leverage. We request you to kindly take the same on record. Thanking you, Yours faithfully, For Jai Balaji Industries Limited Ajay Kumar Tantia Company Secretary Regd. Office | 5. Bentinck Steeet, 1t Floor Kolkata - 700 001 Corporate Office | LM Compiex, Phone - +91-33-2248 3604, 2248 (238 | 15C, Hemanta Basu Sacani, £-mail info@jaibalajigroup.com 4th Fioor, Kolkata - 700 001 Website - ww jaibaiajigroup.com Phone - +91-33-2248 8173, 2248 9808 CIN - L27102WB1999PLCO8IT55 Crisil Ratings Rating Rationale September 21, 2026 | Mumbai Jai Balaji Industries Limited Ratings downgraded to ‘Crisil BBB / Stable / Crisil A3+ ' Rating Action Total Bank Loan Facilities Rated Rs.995 Crore Regulator Of Instrument Crisil BBB/Stable (Downgraded from "Crisil Long Term Rating RBI BBB+/Stable’) Short Term Rating Crisil A3+ (Downgraded from ‘Crisil A2') RBI Note: None of the Directors on Crisil Ratings Limited's Board are meimbers of rating committee and thus do not participate in discussion or assignment of any rafings. The Board of Directors also does not discuss arny ratings at its meefings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has downgraded its ratings on the bank facilities of Jai Balaji Industries Limited (JBIL) to ‘Crisil BBB/Stable/Crisil A3+’ from ‘Crisil BBB+/Stable/Crisil A2". The rating action factors in weaker-than-expected operating performance of JBIL in fiscal 2026. Operating margin, though seen improving in the first quarter of fiscal 2027, remains lower than expected. Revenue has declined by 8% on-year to Rs 5,786 crore in fiscal 2026, due to a slowdown in government-led water infrastructure projects, including the Jal Jeevan Mission (JUM) and Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which led to weak demand for ductile iron (DI) pipes. Demand for thermo-mechanically treated (TMT) bars and allied products was also subdued during fiscal 2026, amid muted activity in the construction and infrastructure sectors. However, the impact of lower sales volume in the DI pipe and TMT segments was partly offset by relatively better performance of the ferro alloys business. Capacity utilisation in the DI pipe segment moderated sharply to ~30% from 80% in fiscal 2025. A similar trend was visible during the first quarter of fiscal 2027, with revenue of Rs 1,683 crore and capacity utilisation of DI pipes remaining low at around 30%, although improved realisations in the TMT bars, allied products and ferro alloys segments provided some support to earnings. Lower contribution from the relatively higher-margin DI pipe segment, along with weaker realisations in sale of other products and lower-than-expected savings from the captive power plant, led to a 764-basis point contraction in the earnings before interest, tax, depreciation and amortisation (Ebitda) margin to 6% in fiscal 2026 from 14% in the previous fiscal. As a result, return on capital employed (RoCE) declined to 8.8%, from over 20% in each of the preceding three fiscals. However, improved realisations in the TMT bars, allied products and ferro alloys businesses helped the Ebitda margin improve to 9% in the first quarter of fiscal 2027. Low internal accrual and elevated working capital requirement in the DI pipe business, led to higher-than-expected reliance on short-term debt to fund the working capital and ongoing capital expenditure (capex) in fiscal 2026. Although cash flow from operations was adequate to service debt obligations during the fiscal, sustained recovery in scale, sales volume, Ebitda margin and RoCE will be critical to strengthen the company's financial flexibility, particularly given the sizeable debt obligation in fiscal 2027. Hence, sustained improvement in these parameters remains a key rating sensitivity factor. The ratings continue to reflect the extensive experience of the promoters in the iron and steel industry and healthy market position of the company. These strengths are partially offset by its moderate financial flexibility and susceptibility to demand and price risks. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of JBIL. Key Rating Drivers - Strengths Extensive experience of the promoters: The promoters have more than two decades of experience in the iron and steel industry and are supported by a well-qualified and experienced management team. Over the years, they have gained a strong understanding of market dynamics and built healthy relationships with customers, suppliers and other stakeholders. These factors have helped the company ramp-up its scale, with semi-integrated operations across five units—four in West Bengal and one in Chhattisgarh—and a diverse portfolio of value-added products of special-grade ferroalloys and DI pipe, including basic steel products such as DRI (sponge iron), pig iron, mild steel billet, reinforcement steel TMT bars and wire rods. Thus, the healthy market position has enabled JBIL to penetrate further into the value chain. Furthermore, captive power plants and railway sidings have helped control the cost of production. Healthy market position in the iron and steel industry: JBIL has a healthy market share in DI pipes and special-grade ferroalloy segments, backed by its ability to manufacture higher grades and value-added products. The company manufactures DI pipes and specialised chrome-based ferro alloys (used in superior grade stainless steel in the aerospace and aviation defence sectors among others). It has DI pipes capacity of 5.5 lakh tonne per annum (TPA), forming ~30% share in east India, and the company plans to add capacity of 0.5 lakh TPA in fiscal 2027. For ferroalloys, JBIL has increased capacity to 1.66 lakh TPA and plans to add 0.3 lakh TPA in fiscal 2027. This reflects the company’s improved market position in terms of installed capacity. Revenue of Rs 5,786-6,418 crore has been recorded over the three fiscals through March 2026. However, subdued demand for DI pipes has led to lower-than-expected capacity utilisation and sales growth. Key Rating Drivers - Weaknesses Moderate financial flexibility: Networth stood at Rs 2,253 crore as of March 31, 2026, while capital structure was comfortable, with gearing and [Showing first 8,000 characters — download PDF for full document]