Credit Rating

October 8, 2026 BSE Limited National Stock Exchange of India Ltd. Listing Department, Listing Department, P. J. Towers, 1st Floor, Exchange Plaza, Plot No. C/1, ‘G’ Block, Dalal Street, Mumbai – 400 001. Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051. Scrip Code: 524200 NSE Symbol: VINATIORGA / Series: EQ Dear Sir/Madam, Subject: Intimation of Credit Rating under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 Pursuant to Regulation 30(6) read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform that CARE Ratings Limited has reviewed and reaffirmed the credit ratings on the bank facilities of the Company. Please find below the details of the rating of the bank facilities as under: Facilities/Instruments Amount (₹ Rating Rating Action crore) Long-term/Short-term bank facilities 237.00 CARE AA+; Stable / CARE A1+ Reaffirmed A copy of the press release and rationale issued by the rating agency is enclosed herewith. This intimation is being also uploaded on website of the Company at www.vinatiorganics.com. Kindly take the above on your record. Thanking you, Yours faithfully, For Vinati Organics Limited Milind Wagh Sr. Vice President – Company Secretary ICSI Membership No. FCS: 7125 Encl: As above Press Release Vinati Organics Limited October 08, 2026 Name of the Amount (₹ Rating Facilities/Instruments Rating2 Regulator1 crore) Action Long-term / Short-term bank CARE AA+; Stable / RBI 237.00 Reaffirmed facilities CARE A1+ Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings assigned to bank facilities of Vinati Organics Limited (VOL) continues to derive strength from its strong market position in 2-acrylamido-2-methylpropane sulfonic acid (ATBS) and isobutyl benzene (IBB) globally. CARE Ratings Limited (CareEdge Ratings) believes that VOL’s competitive advantage in both segments is likely to be sustained in the medium term, as manufacturing processes are complex and act as significant entry barriers for new players. Ratings also reflect the long track record and extensive experience of promoters in the specialty organic chemical industry. These strengths, together with an increasingly diversified product portfolio, wide geographic reach and backward-integrated operations, support strong business profile reflected from healthy profitability, and strong cashflow generation. Ratings also factor in promoters’ extensive experience in the specialty chemicals industry and VOL’s strong financial risk profile, characterised by negligible leverage and strong liquidity, which provides substantial headroom to undertake its planned capex and diversification initiatives without materially increasing financial risk. However, ratings remain constrained by VOL’s exposure to volatility in raw-material prices and foreign exchange rates, moderation in demand for certain key products, and execution and commercialisation risks associated with its ongoing capacity expansion and diversification capex. Given the relatively stable revenue base from the established ATBS and IBB businesses, ongoing capacity expansion and diversification initiatives, including scale-up of operations at subsidiary Veeral Organic Private Limited(VOPL), are expected to be key growth drivers in the medium term. Consequently, timely stabilisation and ramp-up of these capacities, achievement of envisaged utilisation levels and generation of commensurate returns from the sizeable investments remain key monitorables. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Significantly growth in total operating income (TOI), considering increased demand from existing products and effective diversification in product profile while maintaining healthy operating margin. • Improvement in return on capital employed (ROCE) to above 25% on a sustained basis. Negative factors • Significant debt-funded organic or inorganic expansion undertaken by the company that will adversely impact its capital structure marked by an overall gearing higher than 0.3x. • Weakening of its ROCE below 15%, having an adverse impact on its debt coverage indicators. Analytical approach: Consolidated CareEdge Ratings has adopted a consolidated approach, considering operational linkages between the parent company and its subsidiaries. List of entities consolidated with VOL is mentioned under Annexure-5. Outlook: Stable Stable outlook reflects expectation of sustained business and financial risk profiles, supported by healthy cash flow generation and absence of large debt-funded capex or acquisitions in the medium term. 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 ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers Key strengths Vast experience of promoters in the specialty chemical business VOL is promoted by Vinod Saraf, a first-generation entrepreneur with over five decades of experience in the chemical industry. The company’s day-to-day operations are managed by a team of qualified and experienced professionals. Under his leadership, VOL has consistently expanded its manufacturing capacities and product portfolio, emerging as the world’s largest manufacturer and supplier of IBB and ATBS, with a significant share in both products. His daughter, Vinati Saraf Mutreja, also plays an active role in managing the business as the Managing Director and Chief Executive Officer (CEO). Established global market position with a strong and well-diversified business & product profile VOL has an established global presence across its key product segments, supported by market leadership in ATBS and IBB, a diversified product portfolio and long-standing relationships with leading global customers. The company has further strengthened its business profile through diversification into butyl phenols and antioxidants (AO). VOL is also expanding into new chemistries through its wholly owned subsidiary, Veeral Organics Private Limited (VOPL), including anisole, 4-MAP, TAA, and PTAP, catering to applications across polymerisation inhibitors, resins, fragrances, and other specialty chemicals. The company benefits from long-standing relationships and contracts for IBB and ATBS with global customers, such as Chemtall, BASF, Mitsubishi, SNF and Dow, while exports contribute ~56% of revenue across over 40 countries, including the United States (the US), Europe, Japan and China. The recent US tariffs had negligible impact on VOL’s business, considering the exemption available for ATBS and the limited substitutability or availability of alternate markets for the residual product portfolio. Healthy operating performance and integrated operations In FY26, VOL’s TOI remained broadly stable due to lower ATBS demand and the delayed commissioning and ramp-up of VOPL. Profit before interest, lease rentals, depreciation and taxation (PBILDT) increased by 15.59%, with the margin improving to 30.67%, supported by lower raw-material costs, backward integration, and operating efficiencies. Going forward, TOI is expected to recover with improvement in ATBS demand and the gradual ramp-up of VOPL, while the PBILDT margin is expected to normalise and remain healthy at ~26% to 27%. Along with that VOL’s robust backward integration, including in-house Isobutylene (IB) production and the recent addition of butyl phenols, ensures security of critical raw materials. VAPL’s merger further enhances synergies in AO production, improving cost efficiency, operational resilience, and supporting downstream specialty chemical [Showing first 8,000 characters — download PDF for full document]