Credit Rating

Date: 07-10-2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G Listing Department Bandra Kurla Complex, Dalal Street, Bandra East, Mumbai-400051 Mumbai-400001 Scrip Code: MUKKA Scrip Code: 544135 Dear Sir/Madam, Subject: Intimation of Credit Rating - Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 we would like to inform you that CARE Ratings Limited has, vide its letter dated 7th October 2026, provided the ratings in respect of the Company’s loan facilities as per the details below: Credit Rating Facilities Amount Credit Rating Rating Action Agency (₹ crore) CARE Ratings Long Trem / Short Term 480.00 CARE BBB-; Stable / Reaffirmed; Outlook Limited Bank Facilities CARE A3 revised from Negative CARE Ratings Long Term Bank 15.00 CARE BBB-; Stable Reaffirmed; Outlook Limited Facilities revised from Negative Press release issued by the Credit Rating Agency is attached herewith. This is for your information and further dissemination. Thanking you, For Mukka Proteins Limited Mehaboobsab Mahmadgous Chalyal Company Secretary & Compliance Officer Membership No.: A67502 Encl: as above. Press Release Mukka Proteins Limited October 07, 2026 Name of the Amount Facilities/Instruments Rating2 Rating Action Regulator1 (₹ crore) Long-term / Short-term bank CARE BBB-; Stable / Reaffirmed; Outlook revised RBI 480.00 facilities CARE A3 from Negative Reaffirmed; Outlook revised Long-term bank facilities RBI 15.00 CARE BBB-; Stable from Negative Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings and revision in the outlook to Stable from Negative reflects the improvement in Mukka Proteins Limited’s (MPL’s) operating performance in Q1FY27, backed by rising global fish meal prices and steady demand, and CARE Ratings Limited’s (CareEdge Ratings’) expectations of sustained performance over the coming quarters translating into reduction in inventory holding and improvement in liquidity position. The company’s revenue from operations grew by ~187% year-over-year (y-o-y) to ₹490 crore in Q1FY27 considering ~93% y-o-y increase in average realisations amid rising global fish meal prices and ~49% y- o-y increase in sales volumes indicating sustained demand with profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin sustaining above 9%. The steady sales momentum translated into ~7% reduction in consolidated inventory to ~₹800 crore as on August 30, 2026 from ₹867 crore as on March 31, 2026, with ~24% reduction in inventory volume in the same period. While reaffirming the ratings, CareEdge Ratings notes the equity fund raise by the company in September 2026 through a preferential issue of convertible equity share warrants aggregating to ~₹47 crore, of which ₹11.75 crore representing the 25% upfront consideration upon subscription received by the company and the balance being receivable by March 2028, which is expected to provide liquidity cushion and improve leverage. The company is setting up a fish meal production facility in Oman, which is expected to commence operations in H2FY27. While CareEdge Ratings expects MPL to benefit from rising global fish meal prices, established customer relationships and healthy demand in export market, as indicated by the adequate unexecuted order book, the company’s ability to further normalise its inventory levels and consequently ease pressure on liquidity and coverage metrics remains a key monitorable. Ratings derive comfort from MPL’s established track record and healthy market position in the fish meal industry with an established customer base and track record of repeat orders from key customers and healthy revenue visibility. Ratings also factor in its geographically diversified production facilities and heathy proportion of exports in revenue mix. MPL’s financial risk profile remains satisfactory, despite moderation in recent quarters, with overall gearing of 1.50x as on June 30, 2026 and PBILDT interest cover of 2.92x in Q1FY27. However, ratings remain constrained by MPL’s working capital intensive operations driven substantial elongation in operating cycle in FY26 owing to higher inventory stocking. The company also remains exposed to volatility in raw fish and fish meal prices and forex exchange rates. Ratings also consider the inherent seasonality of business and exposure to regulatory risks. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Substantial increase in scale of operations and PBILDT margin leading to better cash accruals. • Improvement in total outside liabilities to tangible net worth (TOL/TNW) below 1.5x and PBILDT interest cover above 3.0x on a sustained basis. • Reduction in average inventory holding period below 150 days on a sustained basis. Negative factors • Significant decline in scale of operation or PBILDT margin leading to decline in cash accruals. • Elevated inventory holding and/or investment in group entities resulting in deterioration in adjusted overall gearing above 1.6x on a sustained basis. • Continued elevated inventory holding above 200 days. Analytical approach: Consolidated 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 Consolidated financials have been considered due to presence of common management, brand name, and operational linkages with subsidiaries/associates/joint ventures (JV). Consolidated entities are listed under Annexure-5. Outlook: Stable Revision in the outlook to Stable reflects the improvement in MPL’s operating performance in Q1FY27, backed by rising global fish meal prices and steady demand, and CareEdge Ratings’ expectations of sustained performance over the coming quarters translating into reduction in inventory holding and improvement in liquidity position. MPL is expected to continue to maintain adequate liquidity and debt coverage metrics over the coming quarters while benefitting from its established market position and repeat orders from reputed customer base amidst rising global fish meal prices. Detailed description of key rating drivers Key strengths Established presence in the fish meal industry MPL is a dominant player in the fish meal and fish oil industry and has a long track record of over five decades in the business. Experience of its promoters has helped the company develop established relationships with its customers, ensuring repeat orders. Location of its manufacturing plants across multiple coastlines secures timely availability of raw fish in sufficient quantity and ensures better product quality due to lower transportation time. Long-established relationships with suppliers also ensure availability of raw fish with no major interruptions. The company has also commenced export of frozen marine products, which is likely to support business growth over the medium term. Geographically diversified and strategically located facilities MPL has five strategically located manufacturing facilities within India and two manufacturing facilities in Oman, which is in proximity to the landing sites and fish catchments. It also has five other manufacturing plants in partnership firms (group entities), providing sizeable processing capacity to meet peak requirements. MPL also has four blending facilities and 14 storage facilities along the western coastline of India. MPL has also entered contractual arrangement with seven third-party manufacturing units increasing presence across the western coastline of India, for supply of fish meal [Showing first 8,000 characters — download PDF for full document]