Credit Rating- Others

'( Ch fit "s~l <01 etiH'f ~ Rashtriya Chemicals and fHfite:s lfiflHI$\ilfi Fertilizers Limited ('I'fR(f~q;r~ (A Government of India Undertaking) <:fj14qlet<:fj~ -m'i1 61# ~ ctr .31R Le+ ~ 8row-fo-g~ (fcfN~efitRT~ ~ "...- '~~', "Priyadarshini", Jai Bhagwan Sharma ~~~, Eastern Express Highway, Executive Director ~, ~ -400022 Sian, Mumbai -400022 (Legal & Company Secretary) CIN: L24110MH1978GOI020185 ~ I Tel. (Office): (022) 24045024 • t~1 E-mail: jbsharma@rcfltd.com • ~ijtll~e I Website: www.rcfltd.com RCF/CS/St ock Ex c h ange1 2026 cto be r 7,2 026 The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block, Dalal Street, Bandra Kurla Complex, Mumbai - 400001. Bandra(East), Mumbai- 400 051. Script Code: 524230 1 9758901 976867 Script Code: RCF EQ 977150 ISIN: I NE027A08028/1NE027A080361 INE027A08044 Dear Sir/Madam, Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR") Pursuant to Regulation 30 (6) of SEBI LODR, we hereby inform that CARE Ratings Limited has Re-affirmed the credit rating of companies Commercial Paper per the details given below: - Credit Rating Rated Date of Receipt Facilitiesl Sr Agency Amount of Press Release Instrument Rating action no. (Rs. in rated crore) CARE Ratings Commercial CAREA1+; October 6,2026 1. 3000 Limited Paper Reaffirmed This is for your kind information and record. Yours faithfully, For Rashtriya Chemicals and Fertilizers Limited J.B. Sharma Executive Director Legal and Company Secretary Press Release Rashtriya Chemicals and Fertilizers Limited October 06, 2026 Facilities/Instruments Name of the Regulator1 Amount (₹ crore) Rating2 Rating Action Commercial paper RBI 3,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers The rating assigned to the commercial paper (CP) issue of Rashtriya Chemicals and Fertilizers Limited (RCF) continues to derive strength from its established position in domestic fertilizer industry, diverse product portfolio (urea, complex fertilizers and industrial chemicals), operations of the plant at optimum capacity and at healthy efficiency, comfortable capital structure, and strong liquidity. The rating also favourably factors in RCF’s strategic position with controlling (75%) equity stake held by Government of India (GoI), which also imparts high financial flexibility. Rating strengths are offset by regulated nature of fertilizer industry with high reliance on subsidy budget of GoI, which can potentially result in an elongation of the operating cycle, and volatile raw material prices. The rating is also constrained by fluctuations in forex rates, cyclicality associated with industrial chemicals and its large-size capex plans, which are primarily debt funded. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Not applicable Negative factors: • Dilution in the equity stake of GoI below 51%. • Dilution in strategic importance of RCF to GoI. • Interest coverage deteriorating below 2x on a sustained basis. • Working capital borrowings exceeding 70% of subsidy receivables on a sustained basis. Analytical approach: Consolidated CARE Ratings Limited (CareEdge Ratings) has taken a consolidated approach. The rating also factors in substantial ownership by GoI and support it receives by virtue of its strategic importance to GoI. Accordingly, CareEdge Ratings has applied its government notch-up framework to arrive at the rating. Companies consolidated have been listed under Annexure-5. Detailed description of key rating drivers Key strengths Established position in the domestic fertilizer industry, and vertically integrated operations with diverse product offering RCF is the leading producer of urea in India in terms of manufacturing capacity. The company holds a market share of ~7% in the domestic urea production in the country. The company caters to the demand of ~24 states from its two manufacturing facilities in Maharashtra. The company’s operations are marked by high level of vertical integration across fertilizers and industrial chemical product divisions. Its diverse product profile with revenues consisting of fertilizers: urea, complex fertilizers and industrial chemicals imparts stability to its revenues. The company has an established countrywide dealer distributor network of over 3,500+ points of contacts, which helps in catering diverse geographies. Operating at optimum capacity with healthy energy efficiency RCF continues to maintain healthy operating efficiency at its Thal and Trombay urea plants, with capacity utilisation remaining healthy over the past few years. Overall capacity utilisation of its urea plant across the two units stood at 91% in FY26 (FY25: 89%), while it stood at 92% in FY26 (FY25: 88%) for complex fertilizers. Actual energy consumption continued to remain in line with the GoI norms, which lays emphasis on urea subsidy payment based upon energy-efficiency level of unit rather than feedstock used in manufacturing and vintage of manufacturing units. In FY26, energy consumption at Thal and Trombay units stood at 5.85 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 the ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release giga calorie (Gcal)/MT and 6.40 Gcal/MT, respectively, against norms of 5.984 Gcal/MT (revised) and 6.50 Gcal/MT. In July 2026, the Department of Fertilizers revised the energy norm under the Urea Pricing Policy for the Thal unit to 5.984 Gcal/MT from 6.20 Gcal/MT, with retrospective effect from April 1, 2025, while there is no change in the norms of Trombay unit. This resulted in an adverse impact of ~₹172 crore, including ~₹133 crore for FY26 and ~₹39 crore for Q1FY27. Energy consumption stood at 5.85 Gcal/MT at Thal and 6.33 Gcal/MT at Trombay, compared to 6.17 Gcal/MT and 6.89 Gcal/MT, respectively, in Q1FY26. The company has undertaken capex towards energy efficiency, which has led to improvement in the energy efficiency. With company currently operating its Thal unit at ~5.7 Gcal/MT the company continues to maintain its energy efficiency. Accordingly, revision in energy norms of is unlikely to impact the operating performance of the company. The company is undertaking a large capex towards ammonia revamp for improving its energy efficiency, which is expected to be incurred over the years till FY30. This is expected to further result in reduction in energy efficiency over the medium term. Improvement in operating performance in FY26 and Q1FY27 RCF's operating performance improved in FY26, with revenue increasing 9.4% YoY to ₹18,406 crore, driven by strong growth of 27% yoy in the fertilizer trading business. PBILDT margin improved to 4.43% in FY26 from 3.16% in FY25, supported by improved energy efficiency, better realisations in the complex fertilizer segment, and higher profitability from fertilizer trading operations partially offset by lower margin in industrial chemicals segments, though it continued to remain healthy. Segment margin in the fertiliser manufacturing business improved to 2.8% in FY26 from 1.1% in FY25, while segment margin in trading business witnessed a sharp improvement to 4.0% from 1.7% supported by better realisation the complex fertilisers. Industrial chemical segment margin continued to remain healthy at 19.3% against 21.7%. Fertiliser trading business accounted for ~32% of the total revenue in FY26 (FY25: 32%). The improvement continued in Q1FY27, with revenue rising 6.4% YoY to ₹3,586 crore, aided by higher subsidy realis [Showing first 8,000 characters — download PDF for full document]