Credit Rating

June 26, 2026 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, Dalal Street, G Block, Bandra – Kurla Complex, Mumbai 400 001 Bandra (East), Scrip Code: 507779 Mumbai 400 051 Scrip Symbol: KANPRPLA Sub.: Intimation Under Regulation 30(1) (Listing Obligation and Disclosure Requirements) Regulations 2015 – Credit Rating Dear Sir, Pursuant to Regulation 30(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CRISIL Ratings Limited (“CRISIL”) has reaffirmed the following credit ratings assigned to the Company for its credit facilities:  Long Term Rating: CRISIL BBB+/Stable (Reaffirmed)  Short Term Rating: CRISIL A2 (Reaffirmed) A copy of the detailed Rating Rationale received from CRISIL Ratings Limited is attached herewith for your reference. The Company received the credit rating communication from CRISIL today i.e. June 26, 2026, via email. Kindly take this on record and oblige. Thanking you, Yours Faithfully, For KANPUR PLASTIPACK LTD. (Ankur Srivastava) Company Secretary Encl: A/a Manufacturers & Exporters: Flexible Intermediate Bulk Container (FIBC) I PP Multifilament Yarn I UV Master Batches I Fabrics I CPP Films CIN: L25209UP1971PLC003444 D-19,20 Panki Industrial Area, +91 (512)2691113-116 info@kanplas.com www.kanplas.com Kanpur-208022, India Kanpur Plastipack Limited Ratings reaffirmed at 'Crisil BBB+ / Stable / Crisil A2 '; rated amount enhanced for Bank Debt Rating Action Total Bank Loan Facilities Rs.305 Crore (Enhanced from Rs.225 Crore) Rated Long Term Rating Crisil BBB+/Stable (Reaffirmed) Short Term Rating Crisil A2 (Reaffirmed) Note: None of the Directors on Crisil Ratings Limited’s 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. 1 crore = 10 million Refer to annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil BBB+/Stable/Crisl A2’ rating to the bank facilities of Kanpur Plastipack Ltd (KPL). The rating continues to reflects KPL's established market position and extensive experience of its promoter in the packaging business. The rating also factors in the company’s comfortable financial risk profile. These strengths are partially offset by susceptibility of the operating margin to volatility in raw material prices and limited diversification of revenue. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of KPL and its subsidiary, Bright Choice Ventures Pvt Ltd and Kanplas Earning Solutions Pvt Ltd. Key Rating Drivers - Strengths Extensive experience of the promoters and established customer relationships The promoters’ experience of over five decades in the polypropylene (PP) bags manufacturing industry, in-depth understanding of industry dynamics and healthy relationships with both customers and suppliers should continue to support the business. Overall revenue has grown by around 10% to Rs 718.76 crore in fiscal 2026 and is expected to grow to more than Rs 770 crore in FY 27 marked by growth in volume and realisations. KPL caters to a diversified end-user industry base, which includes agriculture, chemicals, food processing, pharmaceuticals and construction with exports forming over 65% of revenue. KPL’s expansion into the non-woven technical textile segment is a key strategic initiative, offering exposure to less commoditized and higher-value markets than traditional packaging. The company is targeting diverse end-use sectors, including automotive fabrics, carpets, shoe linings, and geotextiles, to drive future growth. Sustained improvement in the scale with new product contribution will remain the key monitorable Healthy financial risk profile: Networth increased to Rs 268 crore as on March 31, 2026, aided by steady accretion to reserves. Gearing and total outside liabilities to adjusted networth ratio has improved by around 0.43 time and 1.01 time, respectively, as on the March 2026 (1.2 time and 1.6 time, respectively, as on March, 2025). Debt protection metrics were robust, with interest coverage and net cash accrual to adjusted networth ratios of 5.75 times and 0.45 time, respectively, for fiscal 2026 . The company is going for a capex of Rs 108 crores which will be funded through a term loan of Rs 40 crores and rest through internal accruals of the company. This capex is done to improve the existing capacity of FIBC and further value addition. Moreover, the company was doing capex for its non- woven segment which will further help in improving the market position and margins. The financial risk profile should remain steady over the medium term, despite the ongoing debt- funded capital expenditure (capex). Key Rating Drivers - Weaknesses Susceptibility to volatility in raw material prices: Raw material cost forms 60-65% of the cost of sales, and any adverse movement in input prices could constrain the operating margin term. The group is exposed to volatility in raw material prices as it maintains an inventory of 30-35 days as per business requirements and market conditions. The ability to manage inventory in case of any sharp price volatility remains a key rating sensitivity factor. Moreover, as bulk of revenue comes from the international market, any sharp fluctuation in forex rates also affects realisations and accrual. Thus, the operating margin remains exposed to fluctuations in raw material cost and forex rates. Out of 25-30 players in the domestic FIBC segment, only 10 have large capacities. In addition to competing between themselves, these players also face competition from Turkey. Turkey benefits from proximity to the European Union and continues to be one of the largest exporters to Europe Limited Diversification of Revenue The product portfolio comprises FIBC, fabrics and multi-filament yarn. FIBC accounted for 55-60% of revenue in fiscal 2026. Exports alone formed around 68% of revenue. The top 10 customers contributed to around 35% of total revenue. Further, sales to clients in Europe accounted for 45-50% of revenue, while that to customers in North and South America accounted for 25-30%% of revenue. The company currently diversifying into non-woven segment targeting diverse end-use sectors, including automotive fabrics, carpets, shoe linings, and geotextiles, to drive future growth. Healthy demand from the non- woven textile business will remain a key monitorable. Liquidity:Adequate Bank limit utilisation is moderate at around 64.43 percent for the past twelve months ended March 2026. Cash accrual are expected to be over Rs 50 crore which are sufficient against term debt obligation of Rs 6-7 crore over the medium term. In addition, it will be act as cushion to the liquidity of the company. Current ratio are moderate at 1.74 times on March 31, 2026. Outlook Stable Crisil Ratings believes KPL will continue to benefit from the extensive experience of its promoter in the packaging business and the established relationships with clients. Rating sensitivity factors Upward factors • Sustained growth in revenue (by 20%) and steady operating margin of 10-11%, leading to higher cash accrual • Sustained improvement in working capital cycle and financial risk profile Downward factors • Decline in revenue or operating margin below 6%, leading to lower-than-expected net cash accrual • Any large debt-funded capital expenditure weakening the capital structure About the Group KPL was incorporated in July 1971 by Mr Mahesh Swarup Agarwal. It began operations by manufacturing high-density polyethylene woven fabric and sacks and plastic packaging material; installed capacity was 130 tonne per annum. In fiscal 2004, KPL shifted focus to the FIBC segment from woven fabric and sacks. The company now manufactures FIBCs, PP MFY and woven fabrics and UV masterbatches. It also trades in [Showing first 8,000 characters — download PDF for full document]