Credit Rating

PILANI INVESTMENT AND INDUSTRIES CORPORATION LIMITED CIN : L24131WB1948PLC095302 REGD. OFFICE : BIRLA BUILDING, 9/1, R. N. MUKHERJEE ROAD, KOLKATA-700001 Email : pilani@pilaniinvestment.com, TELEPHONE : 033 4082 3700 / 2220 0600, Website : www.pilaniinvestment.com 24th September 2026 The Manager, The Manager (Listing) Listing Department BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers “Exchange Plaza”, Plot No. C/1, G Block Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai-400 001 Mumbai – 400 051 Sub: Intimation of Reaffirmation of Credit Rating Dear Sir/Madam, We wish to inform you that in accordance with Regulation 51 and 55 read with Part B Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Regulations”), that CARE Rating Limited (“Credit Rating Agency”) has reviewed and reaffirmed the credit rating assigned to the Non-Convertible Debentures and Commercial Papers issued by the Company as mentioned below: Rating Agency Instruments Existing Ratings Reaffirmed Ratings CARE AA+; Stable CARE AA+; Stable Non-Convertible Debentures (INR 1,000 Crs.) (INR 1,000 Crs.) CARE Ratings Limited CARE A1+ CARE A1+ Commercial paper (INR 2,000 Crs.) (INR 2,000 Crs.) The Press release is enclosed herewith as Annexure – A You are kindly requested to take the same on record. Thanking you, Yours faithfully, For Pilani Investment and Industries Corporation Limited Company Secretary Encl: As above Press Release Annexure - A Pilani Investment and Industries Corporation Limited September 23, 2026 Facilities/Instruments Name of the Regulator1 Amount (₹ crore) Rating2 Rating Action Non-convertible debentures SEBI 1,000.00 CARE AA+; Stable Reaffirmed Commercial paper RBI 2,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings assigned to the non-convertible debentures (NCDs) and commercial paper (CP) of Pilani Investment and Industries Corporation Limited (PIICL) continues to derive strength from its strategic importance as a core investment company (CIC) of the Aditya Birla group and its sizeable holdings in the group’s key operating entities. The investment portfolio comprises stakes in established companies, such as Grasim Industries Limited, UltraTech Cement Limited, Hindalco Industries Limited, Aditya Birla Real Estate Limited, Aditya Birla Capital Limited, Aditya Birla Fashion and Retail Limited, and Aditya Birla Lifestyle Brands Limited, among others, which have diversified operations, strong credit profiles and an established record of dividend distributions. Ratings are also supported by PIICL’s strong financial flexibility, underpinned by the substantial market value and liquidity of its listed investments. The market value of the investment portfolio stood at ₹25,189.71 crore as on June 30, 2026, providing healthy debt cover of 10.08x against external debt of ₹2,500 crore. The cover also remains adequate under the stress scenarios. The capital structure remains comfortable, with tangible net worth (TNW) of ₹15,037 crore and overall gearing of 0.16x as on March 31, 2026. CARE Ratings Limited (CareEdge Ratings) notes management’s intention to maintain external debt to ~₹3,000-3,500 crore. Ratings are constrained by exposure to volatility in the market value of listed investments, dependence on dividend and interest receipts from investee entities and refinancing risk. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Significant improvement in debt coverage, driven by the increased market value of holdings and/or reduction in external debt. • Improvement in the credit risk profiles of the group’s operating entities. Negative factors • Fall in cover of market value of investments in the Aditya Birla group entities over the external outstanding debt exposure of PIICL, including Contingent liabilities below 6.00x. • Deterioration in the credit profile of group entities of the Aditya Birla group entities, in which PIICL has equity holdings impacting PIICL’s credit profile. • Change in stance of support by the Aditya Birla group. Analytical approach: Standalone PIICL has been assessed on a standalone basis in accordance with CareEdge Ratings’ criteria for rating debt of investment holding companies. For the purpose of analysis, CareEdge Ratings has also factored in the debt of PIICL’s subsidiaries and guarantees, if any, extended to associates or other group companies. Outlook: Stable PIICL is expected to sustain comfortable debt coverage over the medium term, supported by the healthy value of its investments and strong financial flexibility arising from its position within the Aditya Birla Group. Detailed description of key rating drivers Key strengths Diversified business investments with strong parentage 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 The Aditya Birla group has a demonstrated and well-established management track record. With a simplified holding structure, PIICL has diversity in terms of investments in group companies. It holds equity shares in several flagship group companies, including Hindalco Industries Limited, Grasim Industries Limited, UltraTech Cement Limited, Aditya Birla Real Estate Limited, Aditya Birla Capital Limited, Aditya Birla Lifestyle Brands Limited, and Aditya Birla Fashion and Retail Limited, among others. The company also holds shares in certain unlisted companies of the group. CareEdge Ratings notes that the strong credit risk profile of the Aditya Birla group companies is expected to support dividend inflows for PIICL. Dividend income increased to ₹83.05 crore in FY26 from ₹79.21 crore in FY25. Strong financial flexibility, with expected sustenance of comfortable debt cover levels, supported by healthy value of investments in Aditya Birla group companies PIICL derives strong financial flexibility from its stake in listed and unlisted companies of the Aditya Birla group. Investments in listed companies translated into a market value of ₹25,189.71 crore as on June 30, 2026. Being an investment holding company, PIICL extends support to its group companies through equity investments, loans, and advances. The healthy debt cover of 10.08x as on June 30, 2026, considering external borrowings of ₹2,500 crore, provides the company with strong flexibility to refinance its existing debt exposure. CareEdge Ratings notes that the management intends to maintain external borrowings at ₹3,000-3,500 crore in the near-to- medium term. The company’s management has also articulated its aim to maintain net debt cover, defined as the ratio of the total market value of investments in listed companies to net external debt, at a minimum of 7x over the medium term. Any further debt availed by the company for investments or for extending loans and advances to group companies is expected to be supported by the market value of its investments and the strong financial flexibility derived as part of the Aditya Birla group. Comfortable financial risk profile PIICL’s financial risk profile is marked by steady dividend income and a comfortable capital structure, with overall gearing of 0.16x as on March 31, 2026, compared to 0.13x as on March 31, 2025. The company had a sizeable TNW of ₹15,037 crore as on March 31, 2026. Total debt increased to ₹2,391 crore as on March 31, 2026, from ₹1,937 crore as on March 31, 2025, primarily due to CP borrowings and the issuance of ₹500 crore of NCDs. The holding company derives income through dividends, interest income and sale of investments, given the predominance of investments in its [Showing first 8,000 characters — download PDF for full document]