Intimation of Credit Rating for Credit Facilities.

INDIAN ACRYLICS LIMITED CIN: L24301PB1986PLC006715 Head Office : ISO 9001-2008 Certified SCO 49-50-51, Sector 26, Madhya Marg, Chandigarh – 160019 (INDIA) Tel : +91-172-2792385 / 2793112 Fax : +91-172-2794834 / 2790887 Website : www.indianacrylics.com IAL/2026/ September 28, 2026 THE DY. MANAGER DEPTT. OF CORPORATE SERVICES BSE LIMITED PHIROZE JEEJEEBHOY TOWERS, DALAL STREET, MUMBAI - 400 001. BSE Scrip Code- 514165 Sub: Regulation 30 of SEBI (LODR) Regulations, 2015 Intimation of Credit Rating for Credit Facilities Dear Sir/ Madam, This is with reference to intimation under Regulation 30 read with Part A of Schedule III of the SEBI (LODR) Regulations, 2015, (‘Listing Regulations’), we wish to inform that Brickwork Ratings India Private Limited has revised the credit rating for the credit facilities of Rs.99 crore availed by the Company for the Long-term Rating from BWR D to BWR BB- Stable/Upgrade and for Short-term Rating from BWR D to BWR A4/Upgrade on Bank loans and facilities of Indian Acrylics Limited. The aforesaid information is also being placed on the website of the Company at www.indianacrylics.com. You are requested to kindly take the above information on record and disseminate. Thanking you, Yours faithfully, for INDIAN ACRYLICS LIMITED (BHAVNESH K GUPTA) COMPANY SECRETARY & COMPLIANCE OFFICER FCS-3255 Encl.: as above Works & Regd. Office : Village Harkishanpura, Patiala - Sangrur Highway, Distt. Sangrur - 148 026 (Pb.) Tel.: +91 (1672) 278106, 278104, Fax: +91 (1672) 278110 Delhi Office : S-2, Second Floor, Vasant Square Mall, Community Center, Pocket V , Plot No. A, Sector B, Vasant Kunj, New Delhi - 110 070, Phone-011-40000378, 377, 376 Rating Rationale 23 September 2026 Indian Acrylics Ltd SUMMARY OF RATING ACTION Facilities** Amount (Rs.Crs.) Tenure Rating Rating Regulatory Previous Present Previous Present (09 July 2026 ) Term Loan Sanctioned * 0.00 0.00 GECL - sanctioned * 0.00 0.00 Withdrawal Withdrawal Cash Credit - Sanctioned 27.89 27.89 Sub- limit (EPC)- Sanctioned (5.60) (5.60) Sub- limit (CC)- Sanctioned (0.50) (0.50) Long Term BWR D BWR Sub-Limit (FOB LC / FOOT (3.00) (3.00) Reaffirmation BB-/Stable /Upgrade NLC) -Sanctioned Sub-Limit (working capital (3.00) (3.00) demand loan ) -Sanctioned Sub-Limit (export credit) (3.00) (3.00) RBI -Sanctioned Sub-Limit (Buyer's credit) of (70.61) (70.61) BWR D BWR Short Term ILC/FLC -Sanctioned Reaffirmation A4/ Upgrade Sub Total 27.89 27.89 Non-Fund Based Letter of Credit -Sanctioned 0.00 0.00 BWR BWR D Sub-Limit (Packing credit) (5.00) (5.00) Long Term BB-/Stable/Upgrade Reaffirmation -Sanctioned Inland Letter of Guarantee 0.50 0.50 BWR D -Sanctioned Short Term BWR A4 /Upgrade Reaffirmation ILC/FLC -Sanctioned 70.61 70.61 Sub Total 71.11 71.11 Grand Total 99.00 99.00 (Rupees Ninety Nine Crores Only) *Please refer to BWR website www.brickworkratings.com/ for definition of the ratings ** Details of Bank Loan facilities are provided in Annexure-I RATING ACTION / OUTLOOK Brickwork Ratings has upgraded the rating to BWR BB-/Stable for the long-term ratings & BWR A4/Upgraded for the short term for the bank loan facilities of the Company, aggregating to Rs. 99.00 Crs. The upgrade of the ratings is due to the fact that the company has repaid the entire term loan of Rs 50 crs, & The latest quarterly performance shows that the company is moving towards financial recovery, with Improved revenue and operating profit, along with a substantial reduction in net loss. However, continued losses and financial obligations remain key concerns, and sustained improvement is required to achieve stable profitability. The Company has complied with the “Brickwork Ratings Default Recognition & Post-default Curing Period Policy” Brickwork Ratings (BWR) has essentially relied upon the audited financial statements of the company up to FY25(A), relevant data to the extent available for FY26(A), projected financials for FY27 and FY28, as well as information/clarifications provided by the company’s management and its bankers, to arrive at the present ratings. ANALYTICAL APPROACH & APPLICABLE RATING CRITERIA Analytical Approach Comments ● General Criteria ● Default Recognition ● Short-Term Debt Applicable Rating Criteria ● Approach to financial ratios ● Manufacturing Company ● Withdrawal Policy Parent/Group/Government Support Analytical Approach (Consolidation/Standalone) Standalone approach KEY RATING DRIVERS Credit Risk: ● Intense competition in the industry : The acrylic fibre industry faces significant competition from more affordable substitutes like polyester and the dumping of fibre by foreign producers. In fiscal 2024 and the first half of fiscal 2025, the domestic market also experienced heightened competition from international exporters. Additionally, the industry contends with import pressures driven by demand-supply imbalances and capacity constraints. ● Weak Financial position : The company reported a net loss of Rs. 30.86 crore in FY25 and is further projected to incur a loss of Rs. 24.09 crore in FY26, reflecting continued weak profitability, though with gradual improvement in operating performance. The net worth is also in negative territory; Improving Operating Performance – EBITDA projected to increase from ₹1.72 Cr to ₹14.51 Cr. Reduction in Interest Burden – Interest cost projected to reduce from ₹17.28 Cr to ₹6.05 Cr. Improving Liquidity – Current Ratio projected to improve from 1.05x to 1.35x. Credit Risk: ● High Leverage – Total Debt/TNW expected to remain at a very high level ● Weak Debt Servicing Capacity – DSCR expected to remain very low in FY27 ● Weak Net Worth – TNW was negative at ₹12.98 Cr in FY26 and remains low even after projected improvement. ANALYTICAL APPROACH - Standalone For arriving at its ratings, BWR has considered the standalone performance of Indian Acrylics Ltd.. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale). RATING SENSITIVITIES Going forward, the ability of the company to improve its revenue and financial risk profile would remain the key rating sensitivities. Positive : ● Sustained improvement in operating performance – achievement of projected revenue of Rs. 400.00 Crs and EBITDA of Rs.15.00 Crs ● Improvement in debt servicing capacity – sustained improvement in ISCR and DSCR. ● Strengthening of financial risk profile – improvement in TNW to Rs. 5.00 Crs and reduction in leverage/debt. Negative : ● Lower-than-expected business performance – failure to sustain the current levels of revenue and profitability. ● Further weakening of capital structure – increase in debt, negative/weak TNW or continued liquidity stress. LIQUIDITY INDICATORS - Stretched Current ratio is improving from 1.05x to 1.35x and 1.43x, showing that the company’s ability to meet short-term liabilities is improving. The ratio remains low at 0.065x–0.086x, indicating that the company has limited cash available for immediate payments.ISCR improves from 0.10x in FY26 to 2.40x in FY27 and 3.33x in FY28, showing that the company’s ability to pay interest is improving significantly.DSCR is 0.11x in FY26 and projected at 0.95x in FY27 and 0.60x in FY28. It remains below 1x, indicating weak debt repayment capacity. Cash and bank balance is ₹9.03 Cr in FY26, projected to increase to ₹10.53 Cr in FY27, but decline to ₹8.91 Cr in FY28. This indicates a limited cash cushion for immediate obligations. Macroeconomic Indicator Sector Industry Basic Industry Commodities Chemicals Chemicals & Petrochemicals Petrochemicals ABOUT THE ENTITY Indian Acrylics Limited is a manufacturer of Acrylic Fibre having a capacity of 45,000 MT of acrylic fibre production in India and has been running since 1993. The company is also producing large volumes of acrylic yarn and has 54000 spindles installed and running. We are selling the product into the domestic market as well as into major export markets of acrylic fibre and yarn. The Factories are located [Showing first 8,000 characters — download PDF for full document]