Credit Rating- Revision

No.CA/CompIiance/Cr.Rating/2026 7"' October, 2026 The General Manager( MO) The Assistant. Vice President Bombay Stock Exchange National Stock Exchange of India Ltd. Through BSE Listing Centre Through Neaps Sub: Disclosure under Refuilatinn of SEBI CLODR), 2015 — Revision/ Dear Sir, It is hereby informed that in tei^s of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, CareEdge has, pursuant to Regulation 84(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has revised/ reaffirmed the following ratings of SAIL: Amount (Rs. Rating Rating Action Facilities Crore) , Long Term Bank 14,850.00 CARE AA; Positive Reaffirmed; Outlook revised Facilities from Stable Short Term Bank 48,250.00 CARE A1+ Reaffirmed Facilities Bonds - - Withdrawn Commercial 8,000.00 CARE A1+ Reaffirmed Paper The Rationale of Ratings is enclosed. Thanking You, Yours faithfully. For Steel Authority of India Limited (Mohit Malpani) ED (F(&A)& Company Secretary End: As Above wr, no 003, : Oll-24367481-86, : 011-24367015, www.sail.co.in Steei Authority of India Limited, ispat Bhawan, Lodhi Road, New Delhi-110 003, Phone:0 11-24367481-86, Fax: 24367015, Website: vyww.saii.co.in SAiL PAN No. AAACS7062F SAIL Corporate identity Number: L271C9DL1973GOI006454 ^ §?r |3fr ^ There's a little bit ofS AIL in everybody's life Press Release RATINGS Authority of India Limited October 06, 2026 Name of the Amount Facilities/Instruments '" Rating- ', Rating Action Regulator' (? crore) Reaffirmed; Outlook revised Long-term bank facilities RBI 14,850.00 CARE AA; Positive from Stable Short-term bank facilities RBI 48,250.00 CAREA1+ Reaffirmed Bonds SEBI Withdrawn Commercial paper RBI 8,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Revision In the outlook from 'Stable' to 'Positive'f or the long-term rating of Steel Authority of India Limited (SAIL or the Company) factors in CARE Ratings LImlted's (CareEdge Ratings') expectations of sustained scale of operations with likely Improvement in profitability in the short-to-medlum-term period. Profit before Interest, lease, depreciation and tax per tonne (PBILDT/Tonne) has witnessed improvement from ^6,998 per tonne In Q1FY26 to ?9,974 In Q1FY27 and Is expected to remain healthy on account of significant measures undertaken by the company over the last two fiscals. The reafflrmation of ratings assigned to bank facilities and Instruments of SAIL continues to derive strength from Its 'Maharatna' status and continued strong support from the Government of India (Gol), which holds a 65% stake as on June 30, 2026. These linkages support financial and operational flexibility, access to sizeable banking lines and the ability to raise funds at competitive rates. The ratings further derive comfort from SAIL being one of the largest integrated steel manufacturers domestically. Its established madcet position and serving as a critical supplier for speciality steels required In government projects, Indian Railways, defence projects and other critical projects of the government. SAIL continues to benefit from complete Iron-ore security through captive mines in Jharkhand, Odisha, and Chhattisgarh. The compan/s sizeable reserves are expected to support Its planned capacity expansion from existing crude steel capacity of ~20 million tonne per annum (MTPA) to <^35 mtpa by the end of FY32. Strong demand In the domestic market has resulted Into healthy scale of operations, leading the company to operate at near full capacity. The company's business operations also remained healthy as the sales volumes of saleable steel continues to witness an upward trajectory on year-on-year basis. In FY26( FY refers to period April 01 to March 31), the company witnessed ^5% increase in sales volume, while the profitability also remained stable above ^6,000 per tonne. The financial risk profile improved In FY26, with total debt declining to ^35,788 crore from ^41,740 crore backed by strong cashflow from operations, resulting in an Improvement In overall gearing to 0.63x as on March 31, 2026 from 0.77x as on March 31, 2025. While SAIL Is completely self-sufficient In Its iron ore requirements, the company continues to import large part of its coking coal with negligible share from Its captive coking coal mines (~2% to '^5%), which further exposes Its profitability to fluctuation In International coal prices, freight, and foreign exchange. However, this risk is partially offset through a shared procurement mechanism with SAIL, RINL, and NMDC steel plant, led by the SAIL team, ensuring coordinated supply management. It also maintains a diverse portfolio of suppliers, which helps manage price, quantity, and quality variations. Additionally, proposed commencement of the Tasra coal mine and overseas sourcing through lO/L Mozambique are expected to Improve supply diversification and cost competitiveness.* The rating strengths are tempered by the compan/s presence In a highly cyclical steel Industry and working capital Intensive operations, relatively high employee costs compared to peers despite Improvement, capital blocked in sizeable sub-grade iron- ore fines Inventory, and material contingent liabilities. Going forward, while raw material prices are expected to continue to remain volatile, CareEdge Ratings believes that domestic steel players are better placed to partially pass on any Increase In the raw material prices while being protected by way of safeguard duty. SAIL plans to expand crude-steel capacity to '^35 MTPA by FY31-FY32 at an estimated cost of ^1-1.20 lakh crore. Management expects debt level to increase gradually with peak debt expected at '^^80,000-90,000 crore In FY30-FY31. Historically, SAIL's actual capex deployment has remained lower than announced plans and largely aligned with its internal cash generation. CareEdge ratings expect the company to continue calibrating the pace of capex In line with internal accruals and funding availability, providing flexibility to stagger or defer projects In case of lower-than-envlsaged cash accruals. Accordingly, progress of the capex programme, generation of envisaged cash accruals and the resultant leverage will remain a key monitorable. >SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IROAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority 'Complete definitions of the ratings assigned are available at www.c3reratlngs.com and in other CARE Ratings Umlted's publications. CARE Ratings Ltd. RATINGS CARE Ratings Limited (CareEdge Ratings) has withdrawn the rating assigned to the Secured Redeemable Non-Convertible Bonds (ISIN: INE114A07638) based on the no-dues certificate. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Growth in sales volume with sustained improvement In operating performance, with PBILDT per tonne above ^9,000. Negative factors • S ignificant increase In project costs, matenai delays in commissioning or famp-up of planned capacity expansion projects, or deterioration in credit metrics leading to overall gearing above 1.25x on a sustained basis. • T he Gpl diluting its controlling stake In tee cornpany. • Net debt( Including acceptances)/PBILDT above 3.00x on a sustained basis. Analytical approach: standalone factoring government support. CareEdge Ratings has considered standalone approach. The operational subsidiaries and joint ventures (JVs) are largely Into different lines of business operations and hence not consolidated. CareEdge Ratings has also applied its goverriment noteh up framework as per ^reEdge Ratings' criteria on ^Factoring Linkages Government support. Outlook: Positive 'Positive' outlook reflects" the Improvement witnessed in PBILDT per tonne to ~^10,0d0 in Q1FY27 from ~?7,000 in Q1FY26. CareEdge Ratings expects the Improv [Showing first 8,000 characters — download PDF for full document]