Credit rating

Ref: KKL/OTH-6/2026-27 16/10/2026 BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Dear Sir/Madam, Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Ref: Scrip ID – KANCHI, Scrip Code – 538896 This is with reference to your email dated 16/10/2026 with subject ‘Additional Details Required for Corporate Announcement filed under Regulation 30 of SEBI (LODR) Regulations, 2015’ noting that there was a discrepancy of Material Event not disclosed to the Exchange within 24 Hours. We wish to submit that Regulation 30(3) of the SEBI (LODR) Regulations, 2015, read with Part A of Schedule III, refers to the disclosure of new credit ratings and revisions in ratings. Since the present rating action pertains to a reaffirmation of the existing credit rating, without any change in the rating, the same does not fall within the specific categories of new ratings or revision in ratings. Accordingly, the Company has disseminated the relevant information to the Stock Exchange in the interest of transparency and good corporate governance. We confirm that the Company does not have listed debt instruments nor any long-term debts in its book of accounts. Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby submit that Crisil Ratings has assigned Crisil BBB-/Stable (Reaffirmed) as the Corporate Credit Rating for the Company in their rating rationale dated 13th October 2026. The same has been disseminated by the Company in their website and by the rating agency through their publication and website. We request you to kindly take the above information on record. Thank you. Yours faithfully, For KANCHI KARPOORAM LIMITED K ABIRAMI Company Secretary 10/15/26, 10:05 AM Rating Rationale Rating Rationale October 13, 2026 | Mumbai Kanchi Karpooram Limited Rating reaffirmed at 'Crisil BBB- / Stable' Rating Action Regulator Of Instrument Ratings Instrument# Corporate Credit Rating Crisil BBB-/Stable (Reaffirmed) - Note: None of the Directors on Crisil Ratings Limited’s 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. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed rationale Crisil Ratings has reaffirmed its ‘Crisil BBB-/Stable’ corporate credit rating on Kanchi Karpooram Ltd (KKL). Crisil Ratings notes that the company’s business risk profile is marked by stagnant revenue over the two fiscals through 2026, coupled with moderation in Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin to 5.3% in fiscal 2026 on account of elevated raw material prices. Operating profitability remains susceptible to volatility in raw material prices besides limited hedging of imported gum turpentine and the company’s restricted ability to pass on increases in input costs to customers. Revenue is expected to remain stable in fiscal 2027 while operating profitability may continue to exhibit volatility. Sustenance of the revenue profile will remain monitorable. Nevertheless, the financial risk profile and liquidity remain strong, supported by low bank limit utilisation and sizeable free cash balances of around Rs 42 crore as on March 31, 2026. Furthermore, the company does not envisage any material debt addition in the near term, in line with its historical track record, and has no plans to contract large debt. Consequently, the financial risk profile and liquidity are expected to remain strong in the near term. Any debt addition and its impact on the credit profile will also remain monitorable. The rating continues to reflect the company’s established market position in the camphor industry and healthy financial risk profile. These strengths are partially offset by susceptibility to volatility in raw material prices, moderate client concentration in revenue, and intense competition from the domestic manufacturers as well as imports from China. Analytical approach Crisil Ratings has evaluated the standalone business and financial risk profiles of KKL. Key Rating Drivers - Strengths Established market position: The company benefits from the four decades of experience of its promoters in the camphor industry, healthy relationships with customers and suppliers and its position as one of the leading players in the Indian camphor market. As KKL is one of the larger players in the country, it is expected to continue to benefit from favourable market conditions and enhanced capacity. Healthy financial risk profile: As on March 31, 2026, networth stood at Rs 217 crore. With absence of any debt-funded capital expenditure (capex) plan over the medium term, the financial risk profile will continue to be healthy. Any debt-funded capex and its subsequent impact on the credit profile will remain monitorable. Key Rating Drivers - Weaknesses Susceptibility to volatility in raw material prices and moderate client concentration in revenue: Operating margin has been volatile at 1.50–17.4% in the four fiscals through 2025. Gum turpentine, the key raw material, accounts for a significant proportion of the company’s raw material costs and is primarily imported from Indonesia, Vietnam, and China, with payments denominated in USD. Gum turpentine prices have been volatile, thereby exposing the company to price risk. The company remains exposed to foreign exchange (forex) fluctuation risk owing to limited hedging. Overall, movements in raw material prices and forex rates, and their consequent impact on profitability will remain monitorable. Besides, customer concentration remains moderate, with the largest customer accounting for around 20% of revenue in fiscal 2026 and the top three clients contributing around 30%. The company’s ability to maintain these relationships and sustain its revenue profile in the near term will remain monitorable. Exposure to intense competition from domestic manufacturers as well as imports from China: Competition is intense in the camphor industry owing to the presence of several domestic as well as foreign players, especially from China. Due to favourable market conditions, players are going ahead with capacity expansion, increasing the supply and intensifying competition among entities, which has led to moderation in realisation. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/KanchiKarpooramLimited_October 13_ 2026_RR_402686.html 1/7 10/15/26, 10:05 AM Rating Rationale Liquidity Adequate Annual net cash accrual of Rs 7-8 crore is expected to aid liquidity over the medium term against nil debt obligation. The company had availed of a working capital facility for Rs 25 crore in fiscal 2026, which was utilised at an average of 20% for the last 12 months ended September 2026. Furthermore, free cash and bank balance of Rs 42 crore as of March 2026 supports the liquidity. Outlook Stable Crisil Ratings believes KKL’s business risk profile is expected to remain stable over the medium term, supported by strong financial risk profile and liquidity. Rating sensitivity factors Upward factors: Growth in revenue driven by volume and sustenance of the operating margin over 12%, leading to steady net cash accrual Sustenance of the healthy financial risk profile and liquidity Downward factors: Decline in revenue by more than 30% due to volume degrowth or decline in operating margin leading to significantly lower net cash accrual Stretch in working capital cycle or higher-than-expected debt-funded capex or large dividend payouts weakening the financial risk profile About the company Incorporated in 1992 and promoted by Mr Suresh Shah and his family, KKL manufactures camphor and its by-products, dipentene, sodium acetate trihydrate and pine tar at its facility in Kanchipuram, Tamil Nadu. The company is listed on the Bombay Stock Exchange. Key fi [Showing first 8,000 characters — download PDF for full document]