Credit Rating

30th September 2026 National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot no. C/1 G Block, Bandra- Kurla Complex, Bandra (E) Mumbai – 400051 Trading Symbol: SERVOTECH Sub.: Intimation of Credit Rating as per Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir /Madam, Pursuant to the above-referred regulation, we hereby inform that Infomerics Valuation and Rating Ltd., a credit rating agency, has upgraded the credit rating of the Company for availing credit facilities vide its press release dated 29th September, 2026. Details of the upgraded Credit Ratings are presented as below: Sl. Instrument Current Ratings Previous Ratings Rating Action No. / Facility Long Term IVR BBB+/ Positive IVR BBB+/Stable Rating reaffirmed and 1. Bank Facilities [IVR Triple B Plus with [IVR Triple B Plus outlook revised from IVR BBB+/Stable to IVR Positive outlook] with Stable outlook] BBB+/Positive Outlook Short Term IVR A2 IVR A2 Rating reaffirmed Bank Facilities [IVR A Two] [IVR A Two] The above information will also be available on the website of the Company at https://www.servotech.in/ Kindly take the same on record and acknowledge. Thanking You, Yours Faithfully, FOR SERVOTECH RENEWABLE POWER SYSTEM LIMITED (FORMERLY KNOWN AS SERVOTECH POWER SYSTEMS LIMITED) RUPINDER KAUR Company Secretary & Compliance Officer ICSI M. No.: A38697 Press Release Servotech Renewable Power System Limited September 29, 2026 Rating Action Total Bank Loan Facilities Rs. 451.84 Crore (enhanced from Rs. 298.86 Regulator^ Rated crore) Long Term Rating IVR BBB+/ Positive (Rating reaffirmed; Outlook RBI revised to Positive from Stable) Short Term Rating IVR A2 (Rating reaffirmed) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale Infomerics Ratings has reaffirmed its rating assigned to the bank facilities for the long-term facilities to IVR BBB+ with a revision in outlook from Stable to Positive and short term facilities to IVR A2 of Servotech Renewable Power System Limited (SRPSL). The rating reaffirmation reflects the company’s robust growth in its scale of operations and improving profitability, comfortable capital structure and healthy debt protection metrics, along with the experienced promoters and established presence in the EV charging and renewable energy segments. These strengths are, however, partially constrained by the competitive and evolving nature of the EV charging industry, working-capital intensity, and the company’s susceptibility to intense competition, regulatory changes and technology-related risks. Outlook: Positive The revision in outlook to ‘Positive’ reflects the growing scale of operations and improvement in the company’s performance on a year-on-year basis, with further improvement expected over the projected period. The outlook also factors in the favourable growth prospects of the electric vehicle (EV) industry, which are expected to support the company’s business prospects and overall performance. Page | 1 www.infomerics.com Press Release Analytical Approach Approach Comments Consolidation/ Standalone Standalone Parent/ Group Support Not applicable List of companies considered for consolidation/combined analysis is given at Annexure 4. Key Rating Drivers with Detailed Description Strengths • Experienced promoters and established presence in the EV charging and renewable energy segment The company benefits from the extensive experience of its promoters and management in the renewable energy and EV charging segments. The company has an established presence in the manufacturing and supply of EV charging solutions and renewable energy products. The company has also witnessed significant growth in its scale of operations, with operating income increasing from Rs. 305.69 crore in FY2024 to Rs. 636.73 crore in FY2026. • Robust growth in scale of operations and improving profitability The total operating income of the company has grown significantly at (CAGR) of 36.72% during the past three years ended as on March 31, 2026, further, y-o-y the company has registered a increase of 8.41% in the Total Operating Income and stood at Rs. 636.73 crore in FY26 compared to 587.30 crore in FY25, primarily on account of increase in sale of solar inverters and gadgets and AC chargers. With increase in topline, the EBITDA margin of the company also improved by 120 bps and stood healthy at 10.88% in FY26 compared to 9.68% in FY25 mainly on account of percentage decline in raw material consumption cost. However, the PAT margin of the company remained stagnant at 5.65% in FY26 compared to 5.68% in FY25 on account of increase in depreciation and interest and finance cost. • Comfortable capital structure and healthy debt coverage indicators The improved EBITDA margin supported the company's debt protection metrics. Interest coverage remained comfortable at around 5.76 times in FY2026, while total debt/EBITDA stood at around 2.86 times. The capital structure of the company stood comfortable at 0.89x as on March 31, 2026, though deteriorated from 0.37x as on March 31, 2025, primarily on account of increased debt. The total indebtedness of the company as reflected by the TOL/TNW stood moderate at 1.60x as on March 31, 2026, improved from 0.73x as on March 31, 2025, on account of significant increase in creditors Page | 2 www.infomerics.com Press Release Weaknesses • Competitive and evolving nature of the EV charging industry with working-capital pressures The EV charging and renewable energy industry is characterised by intense competition, evolving technology and regulatory requirements, and dependence on continued investments in charging infrastructure. The competitive environment can exert pressure on margins and working-capital requirements. This is reflected in company’s working-capital-intensive operations, with trade receivables increasing to around Rs. 240.00 crore as on March 31, 2026, and negative cash flow from operations in FY2026, resulting in higher reliance on external working capital funding. • Susceptibility to intense competition, regulatory changes and technology-related risks The company operates in the rapidly evolving solar and EV segments, which are characterised by intense competition, technological advancements and evolving regulatory frameworks. Changes in government policies, incentives and regulatory support could impact demand and industry dynamics. Further, dependence on specialised components and evolving technologies exposes the company to supply-chain disruptions and technology obsolescence risks, which could exert pressure on margins and profitability. Liquidity – Adequate The liquidity profile of the company is expected to remain adequate in the near to medium term on the back of its expected sufficient cash flow from operations vis-vised its debt repayment obligations of Rs. 10.42 crore – Rs. 21.94 Crore during FY2027-FY2029. The average utilisation of fund-based limits remained moderate at 63.52% during the last twelve months ended June 2026 indicating a sufficient cushion. However, the company had unencumbered cash and cash equivalent of Rs.0.63 crore as on March 31, 2026. Rating Sensitivities Upward Factors • Sustained improvement in working capital cycle. • Substantial and sustained improvement in scale of operations and profitability Page | 3 www.infomerics.com Press Release • Total debt to EBITDA below 1.5 times on sustained [Showing first 8,000 characters — download PDF for full document]