Intimation of Credit Rating

Ref: ACG: S&L: October 9, 2026 BSE Limited First Floor, New Trading Ring Rotunda Building, P J Towers, Dalal Street, Fort, Mumbai 400 001 Ref: ISIN: INE451C01013 Script Code: 505036 Dear Sir/ Madam, Sub: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Reaffirmation of Credit Rating. Pursuant to Regulations 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘the Regulation’), please find below the details of the reaffirmation of credit rating issued by CARE Ratings Limited vide its press release dated October 8, 2026: Name of the Company Type of Credit Rating Previous Rating Revised Rating Fund-based - LT-Cash CARE AA-; CARE AA-; Credit Stable Stable/CARE A+1 Automobile Corporation of Goa Limited Non-fund-based - ST- CARE AA-; CARE A1+ BG/LC Stable/CARE A+1 This is for your information and records. Thanking you, Yours faithfully, For Automobile Corporation of Goa Ltd. Santhosh Shadadal Company Secretary Automobile Corporation of Goa Limited Honda, Sattari, Goa-403 530 (India) CIN - L35911GA1980PLC000400 Tel.: (+91) 9607945399 | Website: www.acglgoa.com Press Release Automobile Corporation of Goa Limited October 08, 2026 Name of the Amount (₹ Facilities/Instruments Rating2 Rating Action Regulator1 crore) LT rating and Stable outlook Long-term / Short-term bank CARE AA-; Stable RBI 8.00 assigned and ST rating facilities / CARE A1+ reaffirmed 32.00 Long-term / Short-term bank CARE AA-; Stable LT rating reaffirmed and ST RBI (Enhanced facilities / CARE A1+ rating assigned from 5.00) Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of ratings assigned to bank facilities of Automobile Corporation of Goa Limited (ACGL) reflects consistent improvements in its operating and financial performance, supported by healthy growth in volumes, improved realisations and profitability. Ratings also factor in strong operational and managerial linkages with Tata Motors Limited (TML; rated CARE AA+; Stable/CARE A1+), which holds 48.98% stake in ACGL as on September 03, 2026. ACGL remains a strategic supplier to TML, catering to 1/3rd of its bus body requirements, leading to a significant portion of ACGL’s revenue being sourced from TML. The company has enhanced its installed bus-manufacturing capacity to 12,000 (PY:10,000). However, ratings remain constrained by delays in the timely pass-through of input-cost changes, cyclicality in commercial vehicles industry, and competition from global players in the bus segment. TML’s demerger will have no impact on ACGL’s operations, as the company’s business will continue seamlessly under TML’s commercial vehicle business segment post-demerger. Rating sensitivities: Factors likely to lead to rating actions Positive factors: • Significant improvement in revenues and operating margins ~10% on a sustained basis. • Strengthening of credit profile or linkages with TML. Negative factors: • Weakening of credit profile or weakening of linkages with TML. • Large debt-funded capital expenditure deteriorating its overall gearing ratio over 0.50x on a sustained basis. Analytical approach: Factoring strong operational and managerial linkages with TML. For arriving at ratings, CARE Ratings Limited (CareEdge Ratings) has used its notch-up framework, considering the support derived from being part of TML. Outlook: Stable CareEdge Ratings has assigned a Stable outlook to ACGL’s facilities, supported by its strong operational and managerial linkages with TML, sustained business growth, and a healthy financial profile. The company’s scale is expected to further improve, driven by higher bus demand from TML. Detailed description of key rating drivers Key strengths Strong linkages with Tata Motors Limited (TML) ACGL maintains strong operational linkages with TML, serving as one of its key suppliers for bus body requirements and catering to 1/3rd of TML’s Internal Combustion Engine (ICE) bus body needs. Girish Wagh, Managing Director and Chief Executive Officer (MD and CEO) of TML, also serves as a Non-Executive, Non-Independent Director on the Board of ACGL and Venkata Gopal Ramanan, Chief Finance Officer (CFO) of TML since October 1, 2025, also serves as a Non-Executive, Non-Independent Director 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 of ACGL. The company derives a substantial portion of its revenue from TML, which accounted for ~88% of total revenue in FY26. In line with these strong linkages, the analytical approach for rating TML factors in the consolidation of ACGL. Healthy operational performance The company reported healthy growth in its total operating income (TOI), which increased by 41.5% to ₹937.38 crore in FY26 (PY: ₹662.55 crore), supported by better realisations and higher volumes. Bus sales touched an all-time high of 9,328 units (PY: 7,265 units), lifting capacity utilisation to 77.7% (PY: 73%). PBILDT margins improved to 9.54% in FY26 (PY: 8.17%). In Q1FY27, total income stood at ₹248.94 crore (Q1FY26: ₹256.41 crore), with PBILDT of ₹13.15 crore (Q1FY26: ~₹20.95 crore) and a margin of 5.28% (PY: 10.11%). Margins moderated during the period primarily due to an unfavourable product mix and lower International business (IB) volumes. Margins are expected to improve with the easing of geopolitical uncertainties and recovery in IB volumes; however, the extent and timing of improvement remain monitorable. Robust financial risk profile The company is net debt-free and has no long-term debt obligations. Total debt of ₹9.52 crore in FY26 (₹85.74 crore in FY25), primarily represents outstanding customer bill discounting facilities, which are availed in the company’s name but ultimately settled by TML. Since these facilities are on a recourse basis, they are classified as short-term borrowings in the financials until settlement by TML. Overall gearing improved to 0.03x as on March 31, 2026 (PY: 0.34x), driven by an 88.9% reduction in total debt to ₹9.52 crore (PY: ₹85.74 crore), following lower year-end bill-discounting utilisation. It is expected to remain in a similar range going forward. During the year, the company declared a dividend of ₹16.74 crore, representing ~24% of its profit after tax. CareEdge Ratings expects that the company’s capital structure will remain strong in the near-to-medium term in the absence of major debt-funded capex plans. Liquidity: Strong The company maintains a strong liquidity position, with cash and bank balances and liquid investments amounting to ~₹200 crore in Q1FY27. Fund-based utilisation stood at ~26%, while non-fund-based utilisation stood at ~29%, providing additional liquidity headroom. In FY26, the company generated gross cash accruals of ₹75.73 crore. ACGL has planned a capex of ~₹10-15 crore for the year, primarily for capacity expansion and maintenance. The entire capex will be funded through internal accruals and cash and bank balance, with no reliance on additional debt. Key weaknesses Cyclicality in the Commercial Vehicle (CV) Industry The company’s revenue remains closely linked to the bus segment of the commercial vehicle (CV) industry, which is inherently cyclical and influenced by government budget allocations for public transportation as well as broader economic conditions. Demand volatility in this segment often results in underutilized capacity, higher fixed cost absorption, and delays in achieving operational efficiencies, thereby exerting pressure on cash flows. Intense competition The bus body-building in [Showing first 8,000 characters — download PDF for full document]