Credit Rating

Date: July 17, 2026 To, To, The Manager (CRD) The Manager - Listing Department BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 522215 Symbol : HLEGLAS SUB: Revised - Intimation of Credit Ratings for Fund based and Non-fund based facilities REF: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dear Sir/ Madam, Pursuant to Regulation 30 read with Part A of Para A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations), this is to inform you that ICRA - the Credit Rating Agency, vide their letter dated July 17, 2026 (copy enclosed) have reaffirmed/assigned for enhanced amount, their ratings as under: Instrument* Previous Current Rating Action Rated Rated Amount Amount (Rs. crore) (Rs. crore) Long-Term-Fund Based - Term loan 141.47 133.15 [ICRA]A (Stable); reaffirmed Long-Term-Fund Based - Cash credit 184.08 183.08 [ICRA]A (Stable); reaffirmed Short-Term - Non-Fund Based - Letter 107.00 112.00 [ICRA]A2+; reaffirmed of credit & Bank guarantee Short Term - Derivative Limits 2.00 2.00 [ICRA]A2+; reaffirmed Long-Term-Interchangeable Fund - Cash (60.00) (60.00) [ICRA]A (Stable); reaffirmed Credit Long-Term/Short-Term – Unallocated 82.95 87.27 [ICRA]A (Stable)/ Limits [ICRA]A2+; reaffirmed Total 517.50 517.50 Kindly take the above on records. Thanking you. Yours faithfully, For HLE Glascoat Limited ACHAL S. THAKKAR Company Secretary & Compliance Officer Encl: As above July 17, 2026 HLE Glascoat Limited: Ratings reaffirmed Summary of rating action Previous rated Current rated Financial sector Instrument* amount amount Rating action regulator# (Rs. crore) (Rs. crore) Long term - Fund based - Term loan 141.47 133.15 [ICRA]A (Stable); reaffirmed RBI Long term - Fund based - Cash credit 184.08 183.08 [ICRA]A (Stable); reaffirmed RBI Short term - Non-fund based – 107.00 112.00 [ICRA]A2+; reaffirmed RBI Letter of credit & bank guarantee Short term – Derivative limits 2.00 2.00 [ICRA]A2+; reaffirmed RBI Long term - Interchangeable - Cash (60.00) (60.00) [ICRA]A (Stable); reaffirmed RBI credit [ICRA]A (Stable)/ [ICRA]A2+; Long term/Short term – Unallocated 82.95 87.27 RBI reaffirmed Total 517.50 517.50 *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 reaffirmation of the ratings continues to favourably factor in HLE Glascoat Limited’s (HGL) established market position across the glass-lined equipment (GLE), filtration and drying (F&D), heat transfer equipment and process equipment segments, supported by its strong engineering capabilities, diversified product portfolio and long operating track record. Over the years, the company has significantly strengthened its business profile through a series of acquisitions, including Thaletec GmbH (Germany) in FY2022, Kinam Engineering Industries in FY2024 and Omeras Germany in FY2026, which have expanded its technological capabilities, product offerings and geographical reach. The acquisitions have enabled diversification into adjacent product categories such as heat transfer equipment, storage tanks, silos, biogas digesters and water infrastructure applications, while also increasing the exposure to international markets. The company reported strong revenue growth in FY2026, with the consolidated operating income increasing ~32% YoY to Rs. 1,353 crore from Rs. 1,028 crore in FY2025, supported by full-year contribution from Kinam, first-time consolidation of Omeras and healthy growth across the core GLE and F&D businesses. The company’s order book remained healthy at around Rs. 682 crore as on March 31, 2026, providing adequate revenue visibility over the near term. The management also indicated continued healthy order inflows from the pharma, specialty chemicals, oil & gas, water treatment and biogas-related sectors, which are expected to support growth in FY2027. The ratings also derive comfort from the company’s diversified customer profile, a strong market position in the domestic GLE and F&D segments, and its ability to benefit from cross-selling opportunities across acquired businesses. Kinam has strengthened HGL’s presence in the heat exchanger segment and provides access to new end-user industries such as oil & gas and petrochemicals, while Omeras has brought in exposure to water storage, renewable energy and infrastructure-related opportunities. Further, the company continues to possess adequate manufacturing flexibility with facilities across Anand, Maroli and Silvassa in India, besides the Thaletec facility in Germany, providing sufficient scope for future capacity augmentation. www.icra.in Sensitivity Label : Public Page The ratings also factor in the company’s comfortable capital structure, which was further supported by the total debt reducing to around Rs. 348 crore as on March 31, 2026 from Rs. 381 crore a year earlier and the gearing improving to 0.56 times. The company’s profitability moderated in FY2026, with the consolidated EBITDA margin declining to around 10.3% from 13.0% in FY2025, primarily due to losses in the recently acquired Omeras business, one-time integration and labour code-related costs, and pressure on the margins in the domestic GLE segment. Consequently, the debt protection metrics, while remaining comfortable, were impacted by the decline in profitability. However, the coverage indicators improved during FY2026, with the interest coverage increasing to 4.1 times from 3.7 times in FY2025 and the total debt/OPBDITA improving to 2.5 times from 2.8 times. Going forward, the profitability is expected to improve gradually, supported by recovery in demand, scale-up and turnaround of Omeras, healthy growth in Kinam and better absorption of fixed overheads, which is expected to strengthen the company’s debt protection metrics further. The ratings, however, remain constrained by the company’s working-capital-intensive operations arising from the inventory requirements associated with long manufacturing cycles and use of specialised raw materials. Although the working capital intensity improved materially with the NWC/OI reducing to 21% in FY2026 from 28% in FY2025, the receivables remain susceptible to elongated credit periods from large customers. The ratings are also constrained by the company’s exposure to the cyclicality in end-user industries such as chemicals and agrochemicals, competitive pressures in certain product categories and execution risks associated with the scaling up of the recently acquired Omeras business. Further, while diversification has strengthened the company’s business profile, a successful integration and stability in the profitability of acquired businesses will remain the key monitorables. Going forward, ICRA expects the company’s revenue growth to remain supported by its healthy order book, improving demand from pharmaceutical and specialty chemical customers, increasing opportunities in oil & gas through Kinam and the gradual ramp-up of the Omeras business. The company’s ability to sustain growth while improving the profitability, maintaining prudent leverage and successfully integrating its acquired businesses will remain the important rating sensitivities. The Stable outlook on the [ICRA]A rating reflects ICRA’s opinion that HGL will continue to benefit from its established position in the glass-lined, filtration and drying equipment industry and comfortable order book position, while maintaining its credit risk profile. Key rating drivers and their description Credit strengths Established market position supported by technologi [Showing first 8,000 characters — download PDF for full document]