Credit Rating

BHARAT SEATS LIMITED Plot No.1, Maruti Udyog Joint Venture Complex, Gurugram-122015 (Haryana) India Phones : +91-9643339870-74 E-mail:seats@bharatseats.net CIN: L34300DL1986PLC023540 WEBSITE: www.bharatseats.com September 25, 2026 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, G-Block Bandra PJ Towers, 25th Floor, Dalal Street, Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 523229 Trading Symbol: BHARATSE Sub: Intimation for upgradation of Credit Rating under Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ICRA Ltd., (credit rating agency) has upgraded the following Credit Rating for the below mentioned instruments on 25th September 2026: S. Instrument Rating Action 1 Long-term Fund-based – Term [ICRA]A+(Stable); Upgraded from [ICRA]A(Stable) loan and rating assigned for enhanced limit 2 Long-term– Fund-based working [ICRA]A+(Stable); Upgraded from [ICRA]A(Stable) capital 3 Short-term – non-fund based [ICRA]A1; Rating Reaffirmed/Assigned for working capital enhanced amount The rating by ICRA is enclosed. Kindly take the same on your record. Thanking You, Yours faithfully, For BHARAT SEATS LIMITED RITU BAKSHI COMPANY SECRETARY AND COMPLIANCE OFFICER MEM. NO.: F3401 Encl: As above Regd.Office:1, Nelson Mandela Road, Vasant Kunj, New Delhi-110070 Phone: 09810808631 ICRA/Bharat Seats Limited/25092026/1 Date: September 25, 2026 Mr. Vinod Kumar Goyal Chief Financial Officer Bharat Seats Limited Plot No. 1, Maruti Suzuki Joint Venture Complex Gurgaon-122002 Dear Sir, Re: Bharat Seats Limited following rating actions for the mentioned instruments of your company. Rated Amount Financial Sector Instrument Rating Action1 (Rs. crore) Regulator# [ICRA]A+ (Stable); Rating Long-term Fund-based Upgraded from [ICRA]A 83.76 RBI Term loan (Stable) and rating assigned for enhanced limit [ICRA]A+ (Stable); Rating Long-term Fund-based 35.20 Upgraded from [ICRA]A RBI working capital (Stable) [ICRA]A1; Rating Short-term Non-fund 70.00 Reaffirmed/Assigned for RBI based working capital enhanced amount Total 188.96 be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI. The aforesaid rating(s) will become due for surveillance within one year from the date of rating communication letter. However, ICRA reserves the right to review and/or, revise the above rating(s) at any time based on new information becoming available, or the required information not being available, or other circumstances that ICRA believes could have an impact on the rating(s). Therefore, request the lenders and investors to visit ICRAwebsiteatwww.icra.in for latest rating(s) of the company. The rating(s) are specific to the terms and conditions of the instruments as indicated to us by you, and any change in the terms or size of the same would require a review of the rating(s) by us. In case there is any change in the terms and conditions or the size of the rated instrument, the same must be brought to our notice before the instrument is used by you. In the event such changes occur after the rating(s) have been assigned by us and their use has been confirmed by you, the rating(s) would be subject to our review, following which there could be a change in the rating(s) previously assigned. Notwithstanding the foregoing, any change in the over-all limit of the instrument from that specified in this letter, would constitute an enhancement that wouldnot be covered by or under the said Rating Agreement. The rating(s) assigned must be understood solely as an opinion and should not be treated, or cause to be treated, as recommendation to buy, sell, or hold the rated instrument availed/issued by your company. You are also requested to forthwith inform us about any default or delay in repayment of interest or principal amount of the instrument rated, as above, or any other debt instruments/ borrowing and keep us informed of any other developments which may have a direct or indirect impact on the debt servicing capability of the company including any proposal for re- schedulement or postponement of the repayment programmes of the dues/ debts of the company with any lender(s) / 1Complete definitions of the ratings assigned are available at www.icra.in. ICRA Limited Registered Office: B-710, Statesman House, 148, Barakhamba Road, New Delhi 110001. Tel. +91-11-23357940-41 Building No. 8, 2nd floor, Tower A, DLF Cyber City, Phase II, Gurugram-122002 www.icra.in info@icraindia.com +91-93547-38909 +0124-4545300 CIN: L74999DL1991PLC042749 investor(s), or occurrence of any significant development that could impact the ability of the company to raise funds such as restriction imposed by any authority from raising funds through issuance of debt securities through electronic bidding system. Further, you are requested to inform us immediately as and when the borrowing limit for the instrument rated, as above, or as prescribed by the regulatory authority(ies) is exceeded. We look forward to your communication and assure you of our best services. With kind regards, Yours sincerely, For ICRA Limited K Srikumar Senior Vice President ksrikumar@icraindia.com Sensitivity Label : Internal Annexure *yet to be sanctioned September 24, 2026 Bharat Seats Limited: Long-term rating upgraded to [ICRA]A+ (Stable); short-term rating reaffirmed; rated amount enhanced Summary of rating action Previous Current rated rated Financial Sector Instrument* amount Rating action amount Regulator# (Rs. crore) (Rs. crore) [ICRA]A+ (Stable); Rating Upgraded Long-term Fund-based – Term 69.12 83.76 from [ICRA]A (Stable) and rating RBI loan assigned for enhanced limit Long-term– Fund-based working [ICRA]A+ (Stable); Rating Upgraded 35.20 35.20 RBI capital from [ICRA]A (Stable) Short-term – Non-fund based [ICRA]A1; Rating Reaffirmed/Assigned 30.00 70.00 RBI working capital for enhanced amount Total 134.32 188.96 *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 The rating action considers Bharat Seats Limited’s (BSL) improved credit profile marked by healthy growth in scale of operations on the back of strong growth in content per vehicle (CPV) and increasing share of business (SOB) with its customers, Maruti Suzuki India Ltd (MSIL) and Suzuki Motorcycle India Private Limited (SMIPL), resulting in improved debt metrics. BSL is one of the two suppliers of seat sets to Maruti Suzuki India Ltd (MSIL) and leading supplier of seats to Suzuki Motorcycle India Private Limited (SMIPL); it is also engaged in wheel assembly business for SMIPL. The company’s revenue grew by 51% in FY2026, driven by sales growth of 33% in car seat sales to MSIL, which accounted for 70% of total revenue, given the strong growth in CPV on the back of premiumization initiatives such as seat-mounted airbags, powered seats, improved seat fabric. Moreover, while two-wheeler (2W) seat business grew by 16% on the back of volume growth, 2W wheel assembly business ramped up sharply, albeit on a lower scale. Revenue growth is estimated to remain strong at 30-35% in FY2027, driven by gradual improvement in SoB with MSIL and material gains in SoB with SMIPL in the wheel assembly segment. The company is expanding its capacity at Kharkhoda (Haryana) and Naviyani (Gujarat) plants an estimated cost of Rs. 130-140 crore, which would largely be incurred in FY2027, and funded by a mix of debt and internal accruals. Healthy demand, increasing SoB, and improved capacity will aid revenue growth over the medium term. Strong growt [Showing first 8,000 characters — download PDF for full document]