Credit Rating- New

Date: October 15, 2026 To, To, Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phirozee Jeejeeboy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400001. Bandra (East), Mumbai – 400051 Scrip Code: 544865 Symbol: LEAPIND Dear Sir/ Ma’am, Subject: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Update on Credit Ratings With reference to the captioned subject and pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we wish to inform you that India Ratings and Research (Ind-Ra) has upgraded LEAP India Limited’s (LEAP) long-term bank loan rating to ‘IND A+’ from ‘IND A’, with a Stable Outlook, and short-term bank loan rating to ‘IND A1+’ from ‘IND A1’ as follows: Instrument Regulator of Rating Assigned alongwith Rating Action Description Instrument Watch/Outlook Bank Loan facilities RBI IND A+/Stable/IND A1+ Upgraded Press release dated October 14, 2026, issued by the India Ratings and Research is enclosed herewith. We request you to kindly take the above information on record. Thanking you. Yours faithfully, For LEAP India Limited Chirag Bagadia Company Secretary, Compliance Officer and Head Legal Membership No.: A21579 Encl: As above India Ratings Upgrades LEAP India’s Bank Loans to ‘IND A+’/Stable/‘IND A1+’ Oct 14, 2026 | Leap India Limited (Formerly Leap India Private Limited) | Packaging India Ratings and Research (Ind-Ra) has upgraded LEAP India Limited’s (LEAP) long-term bank loan rating to ‘IND A+’ from ‘IND A’, with a Stable Outlook, and short-term bank loan rating to ‘IND A1+’ from ‘IND A1’ as follows: Details of Instruments Instrument Regulator of Date of Coupon Maturity Size of Issue Rating Assigned along Rating Description Instrument Issuance Rate (%) Date (INR million) with Watch/Outlook Action Bank loan RBI - - - 10,509.70 IND A+/Stable/IND A1+ Upgraded facilities Analytical Approach Ind-Ra continues to take a fully consolidated view of LEAP and its subsidiaries to arrive at the ratings, given the integrated nature of the operations, moderate operational linkages, and a common management. Detailed Rationale of the Rating Action The upgrade reflects LEAP’s strengthened financial profile after its initial public offering (IPO) in August 2026, which raised primary equity capital of INR4,800 million. The subsequent prepayment of INR3,600 million of debt is likely to improve the company’s capital structure, with a debt-to-equity ratio of below 0.5x and a net leverage ratio (gross debt including lease liabilities less unencumbered cash & cash equivalents divided by EBITDA) of below 2.25x over the near to medium term. The ratings are supported by the expectation of a satisfactory operational performance, driven by robust revenue growth with capacity expansion across existing assets, geographic expansion in the Middle East, and improved pricing. Ind-Ra expects a healthy EBITDA margin at around 50% over the near to medium term. The ratings are also supported by LEAP’s robust business profile, underpinned by: i) a strong sponsor, Kohlberg Kravis Roberts and Co (KKR & Co. Inc), which is a renowned investment firm having established presence in India; ii) a leading market position in the Indian pallet pooling industry; and iii) a pan-India network. LEAP’s diversified customer portfolio and customer contracts containing in-built escalation clauses after specific timelines provide strong revenue visibility and insulate the company from sectoral downturns. Furthermore, the ratings benefit from LEAP’s experienced management team. However, the ratings are constrained by the capital-intensive nature of the business, resulting in a moderate, albeit improving return on capital employed (ROCE). Furthermore, the long asset life supports a favourable return profile over the investment cycle. List of Key Rating Drivers Strengths Financial profile likely to improve over FY27-FY28 Experienced management and strong sponsor Robust business profile Sound and diversified customer profile Weaknesses High capex intensity Susceptibility to macro-economic headwinds Detailed Description of Key Rating Drivers Financial Profile Likely to Improve Over FY27-FY28: LEAP’s consolidated revenue from operations (including gains from the sale of property, plant, and equipment and assets held for sale) grew 54.8% yoy to INR7,320.6 million in FY26, driven by the full-year contribution from CHEP India Private Limited acquired in January 2025 and organic growth across the pallet, foldable large container/crate (FLC), and material handling equipment (MHE) segments. Over 55% of LEAP’s revenue is derived from pallet pooling, wherein LEAP charges rentals along with movement and allotment fees for the pallets. The balance revenue is mainly derived from the allotment of FLC/crates and MHE. LEAP had a combined asset base (pallets, FLCs, crates, utility boxes, and MHEs) of about 14.9 million as of June 2026 (June 2025: 13.7 million). The consolidated EBITDA margin (operating profit excluding other income divided by revenue from operations) was comfortable at 49.7% in FY26 (FY25: 55.3%). On a pro-forma basis (considering the consolidation of CHEP for FY25), the FY26 revenue grew 16.5% yoy and the EBITDA margin was largely stable at 49.7% (FY25: 50.6%). The company’s consolidated revenue grew 19.1% yoy to INR2,034 million in 1QFY27, with an EBITDA of INR1,042 million, translating into a healthy EBITDA margin of 51.2% (1QFY26: 49.8%). Ind-Ra expects the company to continue reporting organic revenue growth of over 15% over the near to medium term, supported by a steady expansion of its asset base, planned geographic expansion into the Middle East, and price escalations. The EBITDA margin is likely to remain strong at around 50% during the same period. The company’s financial profile is likely to strengthen further after the IPO in August 2026, through which it raised primary capital of INR4,800 million. Of the proceeds, INR3,600 million has been utilised towards the prepayment of debt, while the balance INR1,200 million has been earmarked for general corporate purposes. The resultant deleveraging is likely to improve the capital structure, with debt-to-equity below 0.5x and the net leverage below 2.25x on a sustained basis over the near to medium term. However, any greater-than-Ind-Ra-expected debt-funded capex and/or acquisitions leading to a deterioration in the leverage metrics are key monitorables. Experienced Management and Strong Sponsor: LEAP is led by an experienced management team headed by its founder, Sunu Mathew, who has over 26 years of industry experience. This has enabled the company to establish relationships with marquee customers and build a strong presence across key demand locations. KKR is a significant shareholder, holding 35.11% in LEAP as of August 2026. Ind-Ra believes KKR’s continued association provides strategic oversight and strengthens the company’s business profile. Robust Business Profile: LEAP is the largest player in the Indian pallet pooling industry. It has a pan-India network, with 28 fulfilment centres and over 10,000 customer touch points. This has enabled the company to cater to customers across the country and optimally utilise its assets, as reflected in the pallet utilisation of over 87% during FY23-FY26. The company’s business model entails an optimum utilisation of assets by providing on-demand supply to its customers without the latter having to incur any significant capital outlay. Palletisation is critical in modern warehousing as it improves efficiency and minimises cost and damage during transportation. LEAP focuses on wooden pallets, which are the most widely used due to their higher durability and cost-effectiveness. Thus, the wood segment is likely to continue to dominate the pallet market in India. L [Showing first 8,000 characters — download PDF for full document]