Credit Rating- Revision

Ref. No. AL/SECT/2026-27/73 October 12, 2026 To, To, BSE Limited National Stock Exchange of India Limited Listing Dept./ Dept. of Corporate Services Listing Dept., Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/1, G. Block Dalal Street Bandra-Kurla Complex Mumbai - 400001 Bandra (E), Mumbai - 400051 Security Code : 500101 Symbol : ARVIND Security ID : ARVIND Dear Sir / Madam, Sub.: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating Pursuant Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that Care Ratings Limited (“CARE”) has upgraded the credit ratings of Arvind Envisol Limited - a subsidiary of the Company as under: Facilities / Instruments Amount (₹ crore) Rating Long-Term / Short-Term 135.00 (Reduced from 137.00) CARE A-; Stable / Bank Facilities CARE A2+ Long-Term Bank Facilities 7.50 (Reduced from 10.09) CARE A-; Stable Short-Term Bank Facilities 1.00 CARE A2+ The Press Release issued by CARE in this regard, which was received by the Company today i.e. on October 12, 2026 is annexed herewith. You are requested to kindly take the above information on record. Thanking you Yours faithfully, For, Arvind Limited Pritesh Shah Company Secretary Encl.: As above Press Release Arvind Envisol Limited October 09, 2026 Name of the Facilities/Instruments Amount (₹ crore) Rating2 Rating Action Regulator1 Long Term / Short-term 135.00 CARE A-; Stable / Upgraded from CARE bank facilities (Reduced from 137.00) CARE A2+ BBB+; Stable / CARE A2 7.50 Upgraded from CARE Long-term bank facilities RBI CARE A-; Stable (Reduced from 10.09) BBB+; Stable Short-term bank facilities RBI 1.00 CARE A2+ Upgraded from CARE A2 Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Upgrade in ratings assigned to bank facilities of Arvind Envisol Limited (AEL) factors in improvement in its scale of operations marked by total operating income (TOI) and profitability in FY26, considering healthy order execution, improved operating efficiencies and benefits of operating leverage. A strong outstanding order book as on August 31, 2026, also provides medium- term revenue visibility. Ratings also consider strong financial risk profile of its parent, Arvind Limited (Arvind; CARE AA; Stable/ CARE A1+; LT rating upgraded from CARE AA-; Stable and ST rating reaffirmed in August 2026) and benefits derived from its strong parentage. Ratings continue to factor AEL’s established execution track record, proprietary patented technology, reputed clientele, comfortable capital structure, strong debt coverage indicators and adequate liquidity. These rating strengths are partially offset by AEL’s working capital intensive operations, concentration of order-book to a few large orders, profitability susceptible to input prices and inherent engineering, procurement, and construction (EPC) execution risks. Competition in the fragmented wastewater-treatment industry remains an additional constraint. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Growth in the scale of operations to over ₹500 crore with ROCE of over 25% on a sustained basis. • Significant improvement in Arvind’s credit profile. Negative factors • Deterioration in its liquidity profile and elongation of gross operating cycle beyond 150 days. • Deterioration in capital structure with total outside liability to total net worth (TOL/TNW) above 1.5x. • Change in stance of support from or major deterioration in Arvind’s credit profile. Analytical approach: Standalone and factoring the parentage of Arvind, which holds 100% shareholding in AEL. CARE Ratings Limited (CareEdge Ratings) has also applied parent notch-up framework to arrive at AEL’s rating. Outlook: Stable CareEdge Ratings believes AEL will continue to benefit from established relationships with clients leading to growth in revenue with steady profitability. Detailed description of key rating drivers Key strengths Improving scale of operations and profitability, strong order-book providing near-medium term revenue visibility AEL’s TOI grew by ~14% to ₹307 crore in FY26 (FY25: ₹268 crore), considering strong order execution. Order-inflow remained healthy amid rising industrialisation, growing water scarcity, stringent environmental regulations and greater emphasis on wastewater recycling and reuse. The company had an outstanding order book of ~₹419 crore as on August 31, 2026, providing revenue visibility in the medium term. The continued to receive order inflow and annual O&M contracts from reputed customers, which shall support its TOI to ~₹350-450 crore p.a. over 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 Increase in scale, and improved operating efficiencies, resulted in a substantial improvement in PBILDT margin to 12.86% in FY26 (FY25: 5.53%). Growth momentum continued in Q1FY27, with TOI increasing by ~35% y-o-y to ₹90 crore. PBILDT margin also improved to 7.96% in Q1FY27 (Q1FY26: 2.29%). Supported by the healthy order book and expected operating leverage, PBILDT margin is projected to remain healthy over the medium term. Strong parentage of Arvind Arvind is the flagship company of the Ahmedabad based Lalbhai group and one of India’s leading vertically integrated textile and technical textile companies with presence of over nine decades in the industry. Arvind is among the largest denim and woven fabric manufacturers, with an installed capacity of 60 million metres per annum (MMPA) and 180 MMPA, respectively, as on March 31, 2026. Arvind manufactures a range of fabrics, garments and technical textiles/advanced material products. Through its wholly owned subsidiary AEL, Arvind is engaged in assembling and installing waste-water treatment plants. AEL is expected to benefit from strong parentage in future. In FY26, Arvind’s TOI grew by ~12% to ₹9,335 crore in FY26 (FY25: ₹8,351 crore) with PBILDT margin at 11.51%. Healthy net worth base of ₹4,113 crore as on March 31, 2026, supported a comfortable capital structure with overall gearing of 0.54x (PY: 0.54x). In-house developed patented technology for waste-water treatment AEL has an established track record of ~15 years in the wastewater treatment industry and has executed over 750 projects across effluent treatment plants (ETPs), common effluent treatment plants (CETPs), sewage treatment plants (STPs) and zero liquid discharge (ZLD) systems. The company provides integrated solutions across the project lifecycle, encompassing plant designing, engineering, procurement and construction (EPC), operation and maintenance (O&M), and supply of components. AEL’s technological capabilities are supported by three patents registered across globe, including its proprietary Polymeric Film Evaporation Technology (PFET) for mechanical vapour recompression evaporators. PFET uses polymeric-film heat exchangers in place of conventional metallic heat exchangers and entails significantly lower energy consumption compared to steam-based evaporation systems, reducing the operating cost of evaporators. The company’s proprietary technology, and its established execution track record and end-to-end service capabilities, supports its competitive position in the wastewater treatment industry. Reputed clientele AEL has executed projects across diverse end-user industries, including textiles, chemicals, pharmaceuticals, steel, renewable energy and other industrial segments. Its customer base comprises reputed corporates and common effluent treatment companies. The [Showing first 8,000 characters — download PDF for full document]