CARE assigns/reaffirms ratings of the Company

September 29, 2026 BSE Limited Listing Department, P. J. Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 500365 Dear Sir/Madam, Sub: CARE assigns/reaffirms rating of (CARE AA-;Stable, CARE A1+) for the Company’s Long Term/Short Term Bank Facilities and Commercial Paper (CARE A1+) Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform that CARE Ratings Limited (CARE) assigns/reaffirms the following credit ratings to the Company's banking facilities and Commercial Paper: Facilities Amount (₹ Crore) Rating Action Long Term / Short Term Bank 235.00 CARE AA-; Stable / CARE A1+ Assigned Facilities Long Term Bank Facilities 65.00 CARE AA-; Stable Assigned Commercial Paper 50.00 CARE A1+ Reaffirmed CARE has withdrawn the ratings of ‘CARE AA+ (CE); Stable/CARE A1+ (CE)’ and the unsupported ratings of ‘CARE AA-/CARE A1+’ assigned to the bank facilities of Company and have simultaneously assigned ‘CARE AA-; Stable/CARE A1+’, pursuant to the release of the unconditional and irrevocable corporate guarantee extended by Welspun Corp Limited (WCL; rated ‘CARE AA+; Stable/CARE A1+’). Further, the stable outlook reflects that Company is likely to maintain its market position, which, coupled with the favorable demand scenario, along with the optimum capacity utilisation of the added capacity, will enable it to sustain its healthy business risk profile over the medium to long term. The rating rationale received from CARE is enclosed herewith. This is for your information and record. Thanking you. Yours faithfully, For Welspun Specialty Solutions Limited Dipti Modi Company Secretary and Compliance Officer Encl.: as above Press Release Welspun Specialty Solutions Limited September 28, 2026 Name of the Amount Rating Facilities/Instruments Rating2 Regulator1 (₹ crore) Action Long-term / Short-term bank facilities RBI 235.00 CARE AA-; Stable / CARE A1+ Assigned Long-term / Short-term bank facilities RBI - - Withdrawn Long-term bank facilities RBI 65.00 CARE AA-; Stable Assigned Short-term bank facilities RBI - - Withdrawn Commercial paper RBI 50.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Unsupported rating Withdrawn Note: Unsupported rating does not factor in the explicit credit enhancement. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has withdrawn ratings of ‘CARE AA+ (CE); Stable/CARE A1+ (CE)’ and unsupported ratings of ‘CARE AA-/CARE A1+’ assigned to bank facilities of Welspun Specialty Solution Limited (WSSL) and have simultaneously assigned ‘CARE AA-; Stable/CARE A1+’, pursuant to the release of the unconditional and irrevocable corporate guarantee extended by Welspun Corp Limited (WCL; rated ‘CARE AA+; Stable/CARE A1+’). Ratings assigned to bank facilities and instruments of WSSL derive strength from its strategic importance to its parent, WCL, and strong operational, managerial and financial linkages. WCL holds a 55.17% stake in WSSL, and the entities share a common brand, management oversight, treasury functions, customer base and distribution network. WCL has also demonstrated support through equity infusion and funding arrangements. Ratings also factor in WSSL’s steady growth in sales volume. Total operating income (TOI) increased by ~20% in FY26, driven by a 37% growth in sales volume. Ratings also factor in comfortable leverage and debt coverage indicators. The company’s liquidity remains strong, backed by sizeable liquid investments, low utilisation of fund-based working-capital limits and absence of term-debt. These strengths are partially offset by moderate and volatile profitability and low-capacity utilisation, which constrain operating efficiencies. Timely stabilisation and ramp-up of enhanced bright-bar facility remain key rating monitorable. Ratings further remain constrained by moderate order-book position, customer concentration and exposure to inherent cyclicality in the steel-industry. Profitability also remains susceptible to volatility in scrap, nickel, ferroalloys, natural-gas prices and foreign-exchange rates, geopolitical uncertainties and export-related restrictions. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Increase in scale of operations supported by improvement in capacity utilisation above 50%, and improvement in profit before interest, lease rentals, depreciation and taxation (PBILDT) margin above 8% on a sustained basis. • Improvement in the credit profile of WCL or strengthening operational and financial linkages with the parent. Negative factors • Low demand for stainless steel (SS) and seamless pipes, resulting in lower-than-expected revenues and margin. • Deterioration in credit metrics due to higher than anticipated debt-funded capex. • Deterioration in the credit profile and/or weakening linkages with WCL. Analytical approach: Standalone Standalone; operational, financial, and management linkages with WCL have been considered while arriving at ratings. CareEdge Ratings has applied parent notching framework for arriving at ratings. 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 ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Outlook: Stable The stable outlook reflects that the rated entity is likely to maintain its market position, which, coupled with the favourable demand scenario, with the optimum capacity utilisation of the added capacity, will enable it to sustain its healthy business risk profile in the medium-to-long term. Detailed description of key rating drivers Key strengths Strategic importance to WCL through product diversification and operational linkages Since WCL is already involved in carbon steel pipes, the SS pipe range offered by WSSL provides WCL with the advantage of product diversification. Moreover, SS pipes typically achieve higher selling prices due to their greater value addition compared to carbon steel pipes sold by WCL. As a result, WSSL has maintained strong PBILDT per tonne. Carbon steel pipes (from WCL) and SS pipes (from WSSL) are widely used in sectors such as oil and gas and thermal power, where WCL already has a solid presence. This overlap in customer base and end-use industries creates operational synergies between WSSL and its parent company. Sustained improvement in TOI, despite moderation in profitability The company’s operating performance improved in the last few years, driven by a sustained increase in sales volume. The company’s sales volume increased from 10,928 metric tonnes (MT) in FY23 to 32,481 MT in FY26, registering a compound annual growth rate (CAGR) of ~44%. Consequently, TOI increased from ₹431 crore in FY23 to ₹895 crore in FY26. TOI grew by around 20% in FY26 over FY25 despite moderation in blended sales realisation from ₹3.03 lakh per MT in FY25 to ₹2.68 lakh per MT in FY26, driven by 37% increase in sales volume. Despite improvement in operating scale, PBILDT margin moderated from 7.15% in FY25 to 6.30% in FY26. PBILDT per tonne also declined from ₹22,543 in FY25 to ₹17,373 in FY26. This decline reflects moderation in blended sales realisation, changes in product mix and lag in the pass-through of increase in raw-material and energy costs. In Q1FY27, TOI remained largely stable at ₹194 crore as compared to ₹201 crore in Q1FY26. Blended sales realisation improved to ₹3.00 lakh per MT from ₹2.03 lakh per MT, while PBILDT per tonne improved to ₹22,642 from ₹20,549. However, the PBILDT margin moderated to 7.40% in Q1FY27 from 8.05% in Q1FY26. The company increased bright bar capacity from 24,000 MT to 84,000 MT, which is under stabilisation. The low-value added black bars will be further processed into br [Showing first 8,000 characters — download PDF for full document]