Credit Rating

Ref : UCL/SEC/2026-27 13th October, 2026 BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Listing Department, Exchange Plaza, Phiroz Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 504212 Scrip Code: UNIVCABLES EQ Dear Sir/Madam, Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Ratings _ Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CARE Ratings Ltd. (“Credit Rating Agency”) has reaffirmed the rating at “CARE A; Stable / CARE A1” in respect of Long-Term / Short-Term Bank Facilities for Rs. 95.00 Crores (Enhanced from Rs. 65.00 Crores); and “CARE A; Stable” in respect of Long-Term Bank Facilities for Rs. 1,509.00 Crores (Enhanced from Rs. 1,205.00 Crores); “CARE A1” in respect of Short-Term Bank Facilities for Rs. 2,375.00 Crores (Enhanced from Rs. 1,800.00 Crores). Copy of Press Release issued by the Credit Rating Agency on 12th October, 2026 at 8.00 P.M. is attached herewith. Kindly take the same on your records. Thanking you, Yours faithfully, For UNIVERSAL CABLES LIMITED (Ajay Kumar Sharma) Company Secretary Encl: As above Press Release Universal Cables Limited October 12, 2026 Name of the Rating Facilities/Instruments Amount (₹ crore) Rating2 Regulator1 Action Long-term / Short-term bank 95.00 CARE A; Stable / RBI Reaffirmed facilities (Enhanced from 65.00) CARE A1 1,509.00 Long-term bank facilities RBI CARE A; Stable Reaffirmed (Enhanced from 1,205.00) 2,375.00 Short-term bank facilities RBI CARE A1 Reaffirmed (Enhanced from 1,800.00) Details of instruments/facilities in Annexure-1. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has reaffirmed ratings assigned to the bank loan facilities of Universal Cables Limited (UCL) at CARE A; Stable/ CARE A1. Rating reaffirmation factors in growth in UCL’s revenue to ₹3,026 crore in FY26 (FY25: ₹2,414 crore) driven by higher volumes and improved products mix combined with sustained momentum in Extra-High Voltage (EHV) cable business. Despite an increase in input cost due to West Asia crisis, UCL was able to maintain its profitability at 8.7% in FY26 (FY25: 7.5%) supported by higher sales of the margin accretive EHV cables and better product mix and the strong performance continued in current fiscal as well. CareEdge Ratings expect growth momentum to continue given the healthy order book in-hand of around ₹3,000 crore and orders in pipeline worth ₹470 crore as of September 2026, available with the company to be executed in the next 18-20 months. Owing to large capital expenditure (capex) plan of around ₹720 crore from FY25-FY27, financial risk profile remained moderate with net leverage of 3.6x in FY26 (FY25: 3.4x) while the interest coverage ratio remained comfortable at 2.3x in FY26 (FY25: 1.7x). In the absence of further large debt funded capex plan, financial risk profile is likely to remain comfortable. However, Birla Furukawa Fibre Optics Private Limited (BFFOPL; CARE BBB+/Stable), JV between MP Birla Group and Furukawa Electric Company Limited (FECL) is proposing to undertake a capex of ₹4,500 crore to increase its production capacity in the medium term which will further strengthen the overall business profile of the group, however, broad contours of the project such as funding pattern and expected group support are yet to be finalised. CareEdge Ratings will therefore monitor the project's progress and once details on the funding pattern are firmed up, assess its impact on the credit profile of UCL as well as UCL holds 26.14% shareholding in BFFOPL. Rating continues to derive comfort from its association with experienced and financially strong MP Birla group, which has a demonstrated track record of extending timely funding support, when required by the group companies. UCL also benefits from strong financial flexibility as part of the group, evident from recent infusion of funds to support its capex. However, ratings remain constrained by inherently working capital intensive operations, which results in high reliance on bank borrowings. While the working capital cycle has improved in recent years with reduction in debtor days owing to faster collection, it continues to remain elongated due to the company’s exposure to the engineering, procurement, and construction (EPC) segment as major portion of this business is executed against payment terms linked to physical progress and project milestones. The company also faces exposure to raw material price volatility, which is partly mitigated by hedging practices and escalation clauses. The competitive intensity in the cables and EPC industry and project execution risks also weigh on the credit profile. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Substantial increase in total operating income (TOI) with profit before interest, lease rentals, depreciation and taxation (PBILDT) margin to over 10% and operating return on capital employed (ROCE) above 15% on a sustained basis. • Total debt to PBILDT (TD/PBILDT) ratio below 2.5x on a sustained basis. • Improving operating cycle to below 100 days on a sustained basis. 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 Negative factors • Sustained decline in PBILDT margins below 8% or operating ROCE below 10% on a sustained basis. • Total debt/PBILDT beyond 4x on a sustained basis. • Operating cycle remaining elongated or deteriorating beyond 180 days. Analytical approach: Consolidated CareEdge Ratings has considered a consolidated approach considering strong operational, management and financial linkages between group companies. Entities consolidated are listed under Annexure-5. Ratings also duly factor in financial support from MP Birla group of companies. Outlook: Stable ‘Stable’ outlook reflects CareEdge Ratings’ expectation of sustained strong operating performance backed by healthy order book position with comfortable financial risk profile and likelihood on continued support from MP Birla group, when required. Detailed description of key rating drivers Key strengths Established track record in the cable business; Funding support from experienced and resourceful promoter group UCL has over five decades of track record in the power cables industry, with a broad product portfolio that includes low voltage (LV), medium voltage (MV), EHV cables up to 500 kV, and polyvinyl chloride (PVC) and rubber insulated cables up to 11 kV. This diverse offering enables the company to cater to varied customer segments across industries. UCL’s technical strength is reinforced by its long-standing collaboration with FECL, under which it has installed two vertical continuous vulcanising (VCV) lines to manufacture EHV cables. UCL has partnered with Viscas Corporation, Japan (a joint venture of Furukawa and Fujikura) for sourcing advanced cable jointing accessories for 220 kV and above, further enhancing its capability in the high-end cable segment. UCL benefits from being part of the well-established and diversified MP Birla group, which has business interests across sectors such as cement, jute, carbide, power cables, capacitors, and telecom cables. The group operates through entities such as Birla Corporation Limited (rated CARE AA; Stable/CARE A1+), Vindhya Telelinks Limited (CARE A RWD/ CARE A1 RWD) and Birla Cable Limited (CARE A (CE) RWD/ CARE A1 (CE) RWD and CARE BBB+ RWP). The MP Birla group owns 50% ownership in two joint venture entities: Birla Furukaw [Showing first 8,000 characters — download PDF for full document]