Credit Rating

30th June, 2026 The Manager - Listing, The Manager - Listing, BSE Limited, National Stock Exchange of India Limited, Rotunda Building, Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 543276 Stock Code: CRAFTSMAN Dear Sir/ Madam, Sub: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating Actions for the Company and DR Axion India Limited and Sunbeam Lightweighting Solutions Limited (Wholly Owned Subsidiaries); Pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that Crisil Ratings Limited (“Crisil”), the Credit Rating Agency vide its letters dated 29th June, 2026 has: 1. Reaffirmed the Credit Ratings assisgned to the Long-Term and Short-Term Bank Facilities of the Company and DR Axion India Limired (formerly, DR Axion India Private Limited) (“DR Axion”) a Wholly Owned Subsidary (WOS) and revised the outlook on the Long-Term Bank Facilities of the Company and DR Axion from 'Stable' to 'Positive'. 2. The Credit Ratings assigned to the Long-Term and Short-Term Bank Facilities of Sunbeam Lightweighting Solutions Limited (formerly, Sunbeam Lightweighting Solutions Private Limited), a WOS, Continues on ‘Rating Watch with Positive Implications’. The details of the rating actions are as follows: Rating Action – Craftsman Automation Limited: S.No Loan Facilities Rated Existing Rating Rating Action 1. Long Term Rating Crisil AA-/Positive Rating Reaffirmed. Outlook revised from ‘Stable’ to ‘Positive’ 2. Short Term Rating Crisil A1+ Reaffirmed Craftsman Automation Limited Registered Office: Corporate Office: 123/4, Sangothipalayam Road, No.1087, 4th & 5th Floor, Krishna Towers, Tel + 91 422 71 610 00 Arasur Post, Coimbatore – 641 407 Avinashi Road, Coimbatore - 641037 fax + 91 422 71 612 34 Tamil Nadu, India Tamil Nadu, India info@craftsmanautomation.co CIN NO: L28991TZ1986PLCO01816 www.craftsmanautomation.co GST NO: 33AABCC2461K1ZW Rating Action – DR Axion India Limited: S.No Loan Facilities Rated Existing Rating Rating Action 1. Long Term Rating Crisil AA-/Positive Rating Reaffirmed. Outlook revised from ‘Stable’ to ‘Positive’ 2. Short Term Rating Crisil A1+ Reaffirmed Rating Action – Sunbeam Lightweighting Solutions Limited: S.No Loan Facilities Rated Existing Rating Rating Action 1. Long Term Rating Crisil BBB+/ Continues on 'Rating Watch with Positive Watch Positive Implications' 2. Short Term Rating Crisil A2/ Continues on 'Rating Watch with Positive Watch Positive Implications' The rating rationales are enclosed for your reference. Kindly take the same into your records. Thanking you. Yours faithfully, for CRAFTSMAN AUTOMATION LIMITED Shainshad Aduvanni Company Secretary & Compliance Officer Encl: As above Craftsman Automation Limited Registered Office: Corporate Office: 123/4, Sangothipalayam Road, No.1087, 4th & 5th Floor, Krishna Towers, Tel + 91 422 71 610 00 Arasur Post, Coimbatore – 641 407 Avinashi Road, Coimbatore - 641037 fax + 91 422 71 612 34 Tamil Nadu, India Tamil Nadu, India info@craftsmanautomation.co CIN NO: L28991TZ1986PLCO01816 www.craftsmanautomation.co GST NO: 33AABCC2461K1ZW 6/30/26, 8:43 AM Rating Rationale Rating Rationale June 29, 2026 | Mumbai Craftsman Automation Limited Rating outlook revised to 'Positive'; Ratings Reaffirmed Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.3950 Crore Instrument Crisil AA-/Positive (Outlook revised from 'Stable'; Long Term Rating RBI Rating Reaffirmed) Short Term Rating Crisil A1+ (Reaffirmed) RBI 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 revised its outlook on the long-term bank facilities of Craftsman Automation Limited (CAL) to ‘Positive’ from ‘Stable’ while reaffirming the rating at ‘Crisil AA-’ and has reaffirmed its ‘Crisil A1+’ rating on the short- term bank facilities. The revision in outlook reflects the sustained improvement in CAL's business risk profile, driven by the successful ramp-up of its newly commenced facilities, which has enhanced the company’s market position in the automotive (auto) segment (contributing more than 75% to revenue). The company's dominance in aluminium products manufacturing within this segment has grown significantly, fueled by customer additions, robust end-user demand, a favourable product mix, and diversification into new businesses. While debt is expected to remain high due to continued capital expenditure (capex), improved operating profit and strong cash generation, as well as proceeds from the recent qualified institutional placement (QIP) of Rs 2,000 crore, are likely to facilitate material debt reduction in fiscal 2027, benefitting the financial risk profile, especially debt protection metrics. Furthermore, successful monetisation of land at the Gurugram facility of subsidiary Sunbeam Lightweighting Solutions Ltd (SLSL; ‘Crisil BBB+/Crisil A2/Watch Positive’) could lead to further improvement in debt metrics, strengthening CAL's financial risk profile. On June 18, 2026, CAL intimated stock exchanges that it has successfully completed its second round of fundraising through a QIP, raising Rs 2,000 crore. Of the proceeds, Rs 1,500 crore has been earmarked for debt reduction, and the remaining will be utilised for general corporate purposes. It may be noted that CAL had also raised Rs 1,200 crore through QIP in June 2024. As of March 31, 2026, CAL’s consolidated total debt stood at Rs 3,623 crore, comprising long-term debt of Rs 2,723 crore, short-term debt of Rs 618 crore, and lease liabilities of Rs 283 crore. However, short-term debt at standalone level increased to Rs 920 crore in May 2026 due to higher input costs on account of the West Asia crisis, which necessitated inventory build-up and reduction in creditor days and may stretch the working capital cycle. On March 11, 2026, CAL intimated the exchanges that its Board of Directors had approved the scheme of consolidating its aluminum business by merging its subsidiaries, DR Axion India Ltd (DRAIL; ‘Crisil AA-/Positive/Crisil A1+’) and SLSL, effective April 1, 2026. SLSL and DRAIL has obtained approval from the majority of its creditors & shareholders and filed an application with the National Company Law Tribunal (NCLT), Chandigarh and Chennai, respectively. Subsequently, the case has been transferred to NCLT, Chandigarh, being jurisdiction of the transferee company. The merger is expected to be completed by the end of fiscal 2027. Upon successful completion of the merger with SLSL, DRAIL will cease to exist and its debt facilities will move to SLSL. The scheme is not expected to have any materially impact on the credit profile of CAL, which will continue to be supported by its strong business risk profile and healthy financial risk profile. CAL’s consolidated operating revenue increased to Rs 8,082 crore during fiscal 2026 from Rs 5,693 crore in the previous fiscal, driven by strong growth in the aluminium segment supported by revenue offtake from the recently commissioned facilities and strong demand growth from existing customers. Besides this, revenue addition was also supported by contribution from SLSL and Craftsman Germany GmbH (Craftsman Germany), which was acquired by CAL in the second half of fiscal 2026. CAL’s other subsidiary, DRAIL, saw revenue grow ~23% in fiscal 2026 driven by continued demand from existing customers and increased exports. On a consolidated basis, the aluminum segment contributed over ~59% to revenue durin [Showing first 8,000 characters — download PDF for full document]