Credit Rating- New

Date: October 27, 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 of Wholly Owned Subsidiary. 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 the Credit Rating of TARON Material Handling Equipments Private Limited (TARON), a wholly owned subsidiary of the Company’s 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 26, 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 Taron Material Handling Equipments’s Bank Loan Facilities to ‘IND A+’/Stable/‘IND A1+’ Oct 26, 2026 | Taron Material Handling Equipments Pvt Ltd | Packaging India Ratings and Research (Ind-Ra) has upgraded Taron Material Handling Equipments Pvt Ltd’s (TARON) bank loan facilities’ long-term rating to ‘IND A+’ with a Stable Outlook from ‘IND A’ and short-term rating to ‘IND A1+’ from ‘IND A1’ as follows: Details of Instruments Size of Rating Regulator of Date of Coupon Maturity Rating Instrument Type Issue (INR Assigned with Instrument Issuance Rate Date Action million) Outlook/Watch Bank loan RBI - - - 2,000 A+/Stable/IND Upgraded facilities Analytical Approach Ind-Ra has taken a fully consolidated view of TARON and its 100% parent LEAP India Limited (LEAP; debt rated at ‘IND A+’/Stable/‘IND A1+’), together referred to as the group hereafter, while arriving at the ratings, given the strong operational and strategic linkages among them. Detailed Rationale of the Rating Action The upgrade follows a similar rating action on the parent resulting from an improvement in the credit profile. The ratings continue to reflect TARON’s strong operational and strategic linkages with LEAP. List of Key Rating Drivers Strengths Strong linkages with parent Sound and diversified customer profile Improving financial profile at both consolidated and standalone level Experienced management and strong sponsor Weaknesses High capex intensity Susceptibility to macro-economic headwinds Detailed Description of Key Rating Drivers Strong Linkages with Parent: Ind-Ra opines TARON has strong operational and strategic linkages with its 100% parent, LEAP. The agency believes TARON is strategically important for LEAP since the former provides services, which enhances the latter’s product offerings and ensures a one-stop solution to its clients. The established synergies, growth in TARON’s revenue and profitability, coupled with its stable EBITDA margins also highlights the linkages between the entities. Furthermore, the agency believes that TARON’s sizeable 10%-15% contribution to the consolidated revenue and EBITDA during FY26 is expected to increase further to 15%-20% over FY27-FY28. The overall operational strategies and treasury functions of TARON are conducted in concurrence and close supervision of LEAP with a common managing director, highlighting the strong operational linkages. The strategic importance is further substantiated by the extension of inter-corporate deposits of about INR1,350 million by LEAP to TARON to enable the latter’s business expansion. Furthermore, LEAP has provided a committed line of credit to TARON, which can be drawn, as and when required. Sound and Diversified Customer Profile: TARON has entered into medium-to-long term agreements (three-to-five years) with strategic customers such as Reliance Industries Ltd (‘IND AAA’/Stable/‘IND A1+’), PGP Glass Pvt Ltd, Saint-Gobain India Pvt Ltd, Vedanta Limited, Huhtamaki India Ltd, and TP Solar Ltd. These relationships provide stability and long-term visibility to its revenue profile. The company serves industry leaders across diverse sectors such as consumer durables and fast-moving consumer goods, retail, logistics, and industrials across India, which helps diversify risk and mitigate the impact of sector-specific downturns, supporting consistent year-on-year revenue growth. The contracts with key customers typically include in-built escalation clauses, further strengthening revenue visibility. In contrast, agreements with smaller, non-strategic customers are usually of one-year tenure, providing TARON with the flexibility to revise pricing upon renewal. Furthermore, TARON provides wet lease services, wherein it provides material handling equipment (MHE), along with operators and related maintenance services which enhances customer stickiness and deepens client relationship. The company’s customer base remains diversified with the top 10 customers contributing around 55% to the revenue in FY26. Improving Financial Profile at Both Consolidated and Standalone Level: The group’s consolidated revenue from operations (including gains from 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, which was acquired in January 2025, and organic growth across assets. The consolidated EBITDA margin (operating profit excluding other income) was comfortable at 49.7% in FY26 (FY25: 55.3%). The group’s consolidated revenue grew 19.1% yoy to INR2,034 million in 1QFY27, with an EBITDA of INR1,042 million (1QFY26: INR851 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 group’s financial profile is likely to strengthen further following the initial public offering in August 2026, through which it raised primary capital of INR4,800 million. Of these proceeds, INR3,600 million were utilised towards debt prepayment, 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 of less than 0.5x (FY26: 0.8x; FY25: 0.9x) and net leverage below 2.25x (2.9x, 3.1x) 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 deterioration in the leverage will be key monitorables. On a standalone basis, TARON’s revenue grew 30.1% to INR1,166.0 million in FY26 while the EBITDA margin was comfortable at 32.1% (FY25: 31.2%). During 1QFY27, TARON reported revenue of INR349 million and an EBITDA margin of 28.3%. The company has a strong order book amounting to INR1,500 million from both existing and new clientele for MHEs, which provides revenue visibility over the near term. Ind-Ra expects TARON’s revenue growth over the near term to be supported by yearly increase in asset base by 350-400 MHEs, coupled with a likely improvement in the utilisation level. Ind-Ra expects it to remain range bound over FY27-FY28. Considering the capital-intensive business, Ind Ra e [Showing first 8,000 characters — download PDF for full document]