Credit Rating

SH/SE/ 26.06.2026 BSE Limited National Stock Exchange of India Ltd Corporate Relationship Dept. Exchange Plaza, 5th Floor First Floor, New Trading Ring Plot No.C/1, G Block Rotunda Building Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street, Fort MUMBAI 400 051. MUMBAI 400 001. Scrip Code: 530005 Scrip Code: INDIACEM Dear Sirs, Sub.: Credit Rating for Bank Facilities - Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 This is to inform you that CARE Ratings Limited (“CARE”) has reaffirmed the ratings to our Bank Facilities / Commercial Paper as under: Facilities / Rating Amount (in Rs. Crore) Rating Instruments Action Long-term Bank 1,891.28 CARE AAA; Reaffirmed Facilities (Enhanced from 1,062.95) Stable 1,975.97 CARE AAA; Long-term / Short-term (Enhanced from Stable / Reaffirmed Bank Facilities 1,804.30) CARE A1+ Commercial Paper 250.00 CARE A1+ Reaffirmed (Carved out) The copy of the press release issued by CARE, in this connection, is attached. Thanking you, Yours faithfully, for THE INDIA CEMENTS LIMITED CHIEF FINANCIAL OFFICER Encl.: As above D:\G\C Backup 13082021\FORMATS\All-Stk\All Stk-DSC\Credit rating 25.06.2026 - SEs.docx Email:investor@indiacements.co.in The India Cements Limited June 25, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action 1,891.28 Long-term bank facilities CARE AAA; Stable Reaffirmed (Enhanced from 1,062.95) 1,975.97 Long-term / Short-term bank facilities CARE AAA; Stable / CARE A1+ Reaffirmed (Enhanced from 1,804.30) Commercial paper (Carved out)* 250.00* CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. * Carved out of the sanctioned working capital limits of the company The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-7. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has reaffirmed ratings on bank facilities and commercial paper (CP) of The India Cements Limited (ICL). Ratings continue to reflect the company’s strong parentage of UltraTech Cement Limited (UltraTech, rated ‘CARE AAA; Stable/ CARE A1+’) and ICL’s strategic importance to UltraTech. Being part of the group, ICL is expected to benefit from the operational synergies flowing through from its parent to ICL in the medium term. The company has installed cement capacities of 14.75 metric tonne per annum (MTPA) with 13.25 MTPA in South India, having an established market position in South India. This is critical to UltraTech, which has significantly increased its presence in South India by acquiring ICL. The company completed 100% migration of legacy India Cements brands to the UltraTech branding platform. Going forward, sales are now routed entirely through UltraTech, which leverages its own dealer network and distribution channels, with ICL supplying cement directly to UltraTech as its sole customer. ICL has integrated operations with presence of captive power plants and limestone reserves. The company’s capital structure has significantly improved in FY26 through debt reduction from cash flow generated from recoupment of loans and advances from group entities of erstwhile promoters sale of the Parlie grinding unit, reduction in capital advances, and sale of land and buildings and other non-core assets. However, CareEdge Ratings notes that ICL has been operating at moderate scale of operations with subdued profitability, partly because of the market-related dynamics and partly legacy issues in addressing operational inefficiencies under erstwhile promoters. UltraTech announced a capital expenditure plan of ~₹2,000-₹2050 crore to address operational efficiencies at ICL plants, which is expected to improve operating profitability in the medium term. Completion of the transition to the UltraTech brand is likely to result in better realisations from FY27 onwards, aided by stronger market positioning, supporting further margin expansion at these plants. ICL remains exposed to the cyclicality inherent in the cement industry and volatility in input costs and realisations with its presence in Southern India cement market which is characterised with overcapacity. Ongoing geopolitical tensions may lead to volatility in pet coke prices. The impact is partly mitigated by availability of raw material inventory sufficient for a quarter of operations. Prolonged input cost pressure could lead to higher operating costs and remains a key monitorable. Rating sensitivities: Factors likely to lead to rating actions Positive factors Not applicable Negative factors • Deterioration in credit risk profile of parent, UltraTech. • Reduction in strategic importance of ICL to UltraTech or lowering of ICL’s shareholding held by UltraTech where the controlling stake goes away, affecting its financial flexibility. Analytical approach: Consolidated CareEdge Ratings has taken a consolidated view of ICL and its subsidiaries owing to significant managerial and financial linkages between the ICL and its subsidiaries/associates. Entities consolidated are listed under Annexure-6. Ratings factor in strong 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. operational, management, and financial linkages with the parent entity (UltraTech) owing to ICL being a subsidiary of UltraTech with few common directors on board and operating in similar industry. Outlook: Stable The stable outlook for bank facilities of ICL reflects CareEdge Ratings’ belief that ICL shall continue to benefit from the strong linkages with the parent entity, UltraTech, while improving its business profile, particularly operational efficiency, in the medium- to-long term. Detailed description of key rating drivers: Key strengths Strategic importance to parent, UltraTech, unlocking operational synergies in the medium term UltraTech is the largest selling cement company in India supported by its 200.1 MTPA in India as on March 31, 2026. Including its overseas grey cement capacity of 5.4 MTPA in the United Arab Emirates (UAE), its overall grey cement capacity stands at 205.5 MTPA. ICL became a subsidiary of UltraTech on December 24, 2024, after UltraTech increased its stake to 55.49% and thereafter increased shareholding to 81.49% post open offer. Currently, UltraTech holds 75% stake in ICL after selling 6.49% stake in August 2025. Of the 11 members of ICL’s reconstituted board of directors, four are common directors between UltraTech and ICL boards, including K C Jhanwar, the managing director of UltraTech, ensuring effective oversight and managerial alignment. The acquisition positions UltraTech as a dominant player in the southern Indian cement market, increasing its regional market share from 15% as on March 31, 2024, to ~26% in capacity as on March 31, 2026. ICL with an installed cement capacity of 13.25 MTPA in South India, contributes ~29% of UltraTech’s southern capacity. UltraTech’s current capacity includes key acquired assets in the recent past including ICL – 14.75 MTPA, KIL’s cement division – 10.8 MTPA, Jaiprakash Associates Limited – 21.2 MTPA, cement business of Century Textiles and Industries Limited (Century) – 14.6 MTPA, and Binani Cement Limited (subsequently known as UltraTech Nathdwara Cement Limited and now merged with UltraTech) - 6.25 MTPA. There is track record of efficient integration of acquired cement units. CareEdge Ratings believes that UltraTech is likely to provide timely operational and financial support, if required. The planned capex programme of ~₹2,000–2,050 crore to improve operational efficiencies at ICL further reflects the group’s commitment, with UltraTech expected to support or facilitate funding for these investments as necessary. Significant improvement in capital structure alongside reduction in exposure to group entities As on [Showing first 8,000 characters — download PDF for full document]