Press Release for credit rating of Parent Mont International Private Limited (Wholly Owned Subsidiary of the Company)

Date: October 16, 2026 BSE Limited Corporate Relations Department, 27th Floor, Phiroze Jeejeebhoy Towers, Dalal Street,Fort, Mumbai 400 001 Scrip Code : 523888 ISIN : INE317D01014 Dear Sir / Madam, Sub.: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating of Parent Mont International Private Limited (wholly-owned subsidiary of the Company). Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that Infomerics Valuation and Rating Limited (“Infomerics”) has assigned credit ratings to the bank facilities of Parent Mont International Private Limited, a wholly-owned subsidiary of the Company, as under: Facilities / Instruments Amount (₹ Crore) Rating Long-Term: IVR BBB-/Stable Total Bank Loan Facilities 18.00 Short-Term: IVR A3 (Rating Assigned) The Press Release issued by Infomerics in this regard, dated September 30, 2026, is annexed herewith. You are requested to kindly take the above information on record. Thanking you, Yours faithfully, For, Megamont Limited (Formerly known as VR Woodart Limited) Minal Patil Whole-time Director (DIN: 10579156) Encl.: As above Press Release Parent Mont International Private Limited September 30, 2026 Rating Action Total Bank Loan Facilities Rs. 18.00 crore Regulator^ Rated Long Term Rating IVR BBB-/Stable (Rating Assigned) RBI Short Term Rating IVR A3 (Rating Assigned) RBI ^Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Refer Annexures for details of facilities/instruments, facility wise lender details, and detailed explanation of covenants. Note: None of the Directors on Infomerics Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. Rationale Infomerics Ratings has assigned its rating to the bank facilities of Parent Mont International Private Limited (PMIPL) which derives strength from healthy debt protection metrics, efficient working capital management, scale of business and experience of the promotors. However, the ratings are constrained by thin profit margins, exposure to foreign exchange rate fluctuations and exposure to geopolitical & regulatory risks. Outlook: Stable The outlook is stable in view of comfortable financial risk profile of the group. Analytical Approach Approach Comments Consolidation / Combined Standalone For arriving at rating, Infomerics has taken combined financials of Parent Mont International Private Limited and Nidimo Mont Private Limited together known as the “Mont Group”, based on common promoter (namely Megamont Limited) and similar line of business. Parent/ Group Support Not Applicable List of companies considered for consolidation/combined analysis is given at Annexure 4. Page | 1 www.infomerics.com Press Release Key Rating Drivers with Detailed Description Strengths • Healthy debt protection metrics The group’s strong debt protection metrics remain healthy with interest coverage ratio of 7.04 times in FY26 reflecting comfortable earnings relative to finance costs, reducing vulnerability to interest rate fluctuations. The DSCR also remained healthy at 5.17 times in FY26, indicating adequate cash flows to meet both principal and interest payments on time. Overall, the company has sufficient cushion to handle its debt obligations. • Efficient working capital management The group follows a Just-in-Time (JIT) procurement approach, whereby purchase orders are raised strictly upon confirmed receipt of customer orders, ensuring a demand-driven, risk-free supply chain with minimal inventory holding. For order booking, the company collects an advance of around 10-30% from customers, which is subsequently paid to the suppliers as a booking advance. At the time of shipment, once the Bill of Lading (BL) is generated, the company collects the remaining from customers and settles the payment with the suppliers prior to dispatch of the goods. This structured, back-to back transaction mechanism significantly reduces working capital requirements and limits exposure to counterparty and inventory risks. Consequently, the group has maintained efficient working capital metrics, reflected in low inventory holding and debtor days of 4 days and 7 days respectively in FY26. The inventory holding and debtor collection days is expected to increase to 7 days and 12 days respectively in FY27 led by Coal trading business though is expected to remain healthy. • Scale and size of business FY26 being the second full year of operations, the Mont Group has achieved a substantial scale, reporting revenue of ~Rs. 2,705 crore driven by exports of steel, electronic devices, edible oil and coal to geographies such as Russia and the UAE. The ability to generate such high turnover within a short span reflects the group’s established trade linkages, strong execution capabilities, and ability to scale up operations rapidly. The profitability indicators also remain healthy, with EBITDA and PAT standing at Rs. 36.89 crore and Rs. 23.34 crore, respectively, in FY26, indicating adequate operating efficiency at an early stage of operations. The group’s presence in high-volume trading segments and its established relationships with overseas customers are expected to support steady growth in scale going forward. Page | 2 www.infomerics.com Press Release • Experienced promoters The Mont Group is primarily managed by Dr. Gaurav Patil, who possesses over a decade of experience in international trade and logistics. Since 2014, he has been associated with clearing and forwarding operations in Russia, where he handled customs clearance and documentation for imports of commodities such as steel, coal, and other industrial goods. During his tenure, he developed strong relationships with established trading companies and regulatory authorities, which has supported the group in establishing its operations in India in a structured and efficient manner. He is supported by his wife, Mrs. Meenal Patil, who has over eight years of relevant experience. The promoters are further assisted by a team of experienced and qualified professionals, strengthening the group’s operational capabilities. Weaknesses • Thin profit margins Owing to the low value additive nature of operations with low product differentiation and considering the heavy competition faced among many organized and unorganized players in this sector, the profit margin of the Mont Group has remained thin. The operating margin stood thin at 1.36% in FY26. Aided by growth in volume of sales leading to higher absorption of fixed overheads and rise in total operating income the PAT margin gradually improved to 0.86% in FY26 from 0.72% in FY25 yet remained thin. The operating margins are expected to further improve in FY27 and remain in the range of 1.4-1.5%. • Exposure to foreign exchange rate fluctuations The Mont Group undertakes significant purchases primarily from India, China, Indonesia, UAE while sales are made to Russia, India and UAE. While IVRL notes that exports to Russia are denominated in INR, nevertheless it remains exposed to foreign exchange volatility as purchases are in foreign currency. In certain transactions, invoices are based on the Bill of Lading date, resulting in an exposure of ~20–30 days, which is mitigated through a markup of 0.5%–1.0%. However, in the majority of transactions (70%–80%), invoices are raised based on the exchange rate prevailing around the Import Goods Manifest date, restricting the exposure to ~7–10 days and requiring a lower markup of ~0.25%–0.5%. Overall, the group mitigates the forex risk by factoring currency conversion rates and an appropriate markup into its INR-denominated se [Showing first 8,000 characters — download PDF for full document]