Credit Rating

September 23, 2026 To, To, N ational Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor no.25, PJ Towers B andra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Trading Symbol: “SOLARINDS EQ” Scrip Code: 532725 Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, In accordance with the Regulation 30 read with Para A of part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we wish to inform you that “ICRA Limited” has given the rating on the commercial paper of Solar Industries India Limited as below: Instrument Rated Amount (Rs. In Crores) Rating Action Commercial Paper 500.00 [ICRA]A1+; outstanding; Total 500.00 You are requested to take the same on record. Thanking You Yours truly, For Solar Industries India Limited Khushboo Pasari Company Secretary & Compliance Officer September 23, 2026 Solar Industries India Limited: Update on material event Summary of rating action Previous rated Current rated Instrument* amount amount Rating outstanding Financial sector regulator# (Rs. crore) (Rs. crore) Commercial paper 500.00 500.00 [ICRA]A1+; outstanding RBI Total 500.00 500.00 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI. Rationale While arriving at the rating for the commercial paper programme of Solar Industries India Limited (SIIL/the company), ICRA has taken a consolidated view of SIIL and its wholly-owned subsidiary, Solar Defence and Aerospace Limited (SDAL, rated [ICRA]A1+). SIIL, along with this subsidiaries, associates and JVs, is being referred to as the Solar Group/the Group. Material Event On September 14, 2026, SIIL announced that its wholly-owned step-down subsidiary, Solar SA Investments Proprietary Limited, had entered into definitive agreements to acquire the entire shareholding of South Africa-based Omnia Holdings Limited (Omnia) for a consideration of around $1.35 billion. The proposed transaction remains subject to the receipt of requisite regulatory and shareholder approvals and the fulfilment of customary closing conditions. Impact of Material Event Omnia is an established diversified chemicals group with operations across the mining, agriculture and chemicals sectors and a presence across multiple countries. Its mining business includes capabilities across bulk explosives, electronic initiation systems, digital blasting solutions and mining chemicals. The proposed acquisition is expected to significantly enhance the Solar Group’s international scale and geographical diversification, particularly in the mining explosives business. Omnia’s integrated ammonium nitrate and nitric acid manufacturing facilities are also expected to strengthen the Group’s backward integration, raw material security and cost competitiveness. The acquisition is proposed to be funded through a mix of debt and internal accruals of the group however, the final funding structure is yet to be finalised. ICRA will evaluate the impact of the transaction on the company’s credit profile once greater clarity emerges on the amount and terms of the acquisition debt. Although no acquisition-related borrowings are currently proposed at SIIL’s standalone level, the transaction is expected to involve financial commitments and corporate guarantees from entities within the Group. Besides enhancing the Solar Group’s consolidated scale of operations, profitability and diversification, the proposed acquisition is expected to result in a significant increase in the Group’s consolidated debt levels (including Omnia Holdings). ICRA takes note of the management’s stated intent to maintain the consolidated net debt/OPBDITA below 2.0 times, supported by the combined operating cash flows of SIIL and Omnia. Nevertheless, the ability of the combined entity to achieve the anticipated earnings, generate adequate cash accruals and progressively deleverage, while maintaining an adequate liquidity position, will remain a key monitorable. The transaction is expected to close after the receipt of the requisite statutory and shareholder approvals, and greater clarity on the final funding structure and the resultant credit metrics is expected to emerge closer to its completion which is expected in H1 of CY2027. www.icra.in 1 Sensitivity Label : Public Page | The acquisition is expected to provide strategic benefits through an enlarged geographical presence, a broader product portfolio, increased scale in the international mining explosives business and potential operating synergies. However, the benefits from the combined scale and operational integration are expected to accrue over the medium term and will remain subject to the timely completion of the transaction and successful integration of Omnia’s operations. The final financing structure, the extent of financial commitments and guarantees from the Solar Group, the resultant consolidated leverage and coverage metrics and the pace of deleveraging will remain the key monitorables. The outstanding rating continues to factor in the Solar Group’s established market position in the domestic industrial explosives industry, its diversified geographical presence, strong operating performance and the increasing contribution from the defence business. The Group benefits from its large manufacturing infrastructure, integrated operations, established relationships with customers across the mining and infrastructure sectors and healthy order book. The rating also factors in the Group’s strong liquidity position and financial flexibility. ICRA will continue to monitor the developments relating to the proposed acquisition and its impact on the business and financial risk profiles of the Solar Group. Please refer to the following link for the previous detailed rationale that captures key rating drivers and their description, liquidity position, rating sensitivities, key financial indicators Click here. Analytical approach Analytical Approach Comments Corporate Credit Rating Methodology Applicable rating methodologies Chemicals Parent/Group support Not Applicable For arriving at the ratings, ICRA has taken a consolidated view of SIIL and SDAL. ICRA has considered the consolidated financials of SIIL; as on March 31, 2026, the company had 8 Consolidation/Standalone direct wholly-owned subsidiaries, 28 step-down subsidiaries, 3 associate companies and 2 joint ventures, the details of which are provided in Annexure II About the company Solar Industries India Limited (SIIL) is the flagship company of the Solar Group, promoted and headed by Mr. Satyanarayan Nuwal. The company started with the trading of explosives in 1983 and ventured into explosives manufacturing in 1996. SIIL, along with its subsidiaries, manufactures bulk explosives, packaged explosives and initiating systems, which find application in the mining, infrastructure and construction industries. The Group forayed into the defence sector in 2010 and diversified into the manufacturing of propellants for missiles and rockets, warheads and warhead explosives. At present, the Group has over 40 manufacturing locations across domestic and international markets, with new facilities in Zimbabwe and Kazakhstan, along with the expansion in Nigeria. The company has also established a centre of excellence for the life assessment of explosives and ammunition. The Group’s head office is in Nagpur, Maharashtra. Status of non-cooperation with previous CRA: Not applicable Any other information: None www.icra.in 2 Sensitivity Label : Public Page | Rating history for past three years Current (FY2027) Chronology of rating history for the past 3 years FY2027 FY2026 FY2025 FY2024 Amount Sep 23, Instrument Type rate [Showing first 8,000 characters — download PDF for full document]