Credit Rating- Revision

October 31, 2026 The National Stock Exchange of India Limited Department of Corporate Services/Listing Exchange Plaza, 5th Floor, BSE Limited Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East), Dalal Street, Fort, Mumbai – 400 051 Mumbai – 400 001 N SE Symbol: APOLLOPIPE S CRIP Code: 531761 Subject: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015- Upgrade in Credit Ratings Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that ICRA Limited (“ICRA”) has upgraded the credit ratings assigned to the bank facilities of Apollo Pipes Limited (“Company”) aggregating to Rs. 150 Crore, as detailed below: Instrument Type Existing Rating / Revised Rating / Rating Action Outlook Outlook Long term/Short term – Fund [ICRA]A+ (Stable)/ [ICRA]AA- (Stable) Upgraded from based - Cash credit [ICRA]A1 /[ICRA]A1+ [ICRA]A+(Stable)/ Long term/Short term - Non- [ICRA]A+ (Stable)/ [ICRA]AA- (Stable) Upgraded from fund based - Others [ICRA]A1 /[ICRA]A1+ [ICRA]A+(Stable)/ The Rating Rationale issued by ICRA is enclosed herewith for your reference. This information is also being uploaded on the website of the Company at www.apollopipes.com. You are requested to take the same on record. Thanking you, Yours faithfully, For Apollo Pipes Limited Gourab Kumar Nayak Company Secretary and Compliance Officer Encl: As above. October 30, 2026 Apollo Pipes Limited: Ratings upgraded to [ICRA]AA-(Stable)/[ICRA]A1+ Summary of rating action Previous rated amount Current rated amount Financial sector Instrument* Rating action (Rs. crore) (Rs. crore) regulator# Long term/Short term – Fund [ICRA]AA-(Stable) based - Cash credit 80.00 80.00 /[ICRA]A1+; upgraded from [ICRA]A+ (Stable)/[ICRA]A1 Long term/Short term - Non- [ICRA]AA-(Stable) fund based - Others 70.00 70.00 /[ICRA]A1+; upgraded from [ICRA]A+ (Stable)/[ICRA]A1 Total 150.00 150.00 *Instrument details are provided in Annexure I; ^ Interchangeable with fund-based facility to the extent of Rs 55.0 crore. #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of financial sector regulators other than SEBI Rationale The upgrade in the ratings assigned to the bank lines of Apollo Pipes Limited (APL/the company) factors in the strengthening of its financial flexibility through a deeper integration with the APL Apollo Group, led by Mr. Sanjay Gupta. With Mr. Sanjay Gupta, the Managing Director and Chairman of APL Apollo Tubes Limited {APL Apollo, rated [ICRA]AA+ (Stable)/[ICRA]A1+} taking over as the Chairman of APL and increasing his ownership, ICRA expects the company to benefit from a stronger alignment with the Group. The integration is expected to enhance APL’s market reach through access to the distribution and dealer network of APL Apollo Tubes Limited, supporting a faster growth ramp-up, particularly in the southern and western markets where it has a limited presence. ICRA also expects the company’s access to bank funding to further improve through common banking channels. The ratings also derive comfort from the commitment from the promoters to provide timely operational and funding support to the company in the event of any unforeseen liquidity constraints to ensure timely debt servicing by APL. APL’s performance moderated in FY2026, with the revenue declining by ~6% year-on-year (YoY) due to lower realisations following a drop in poly-vinyl chloride (PVC) resin prices, while the consolidated volume rose by a modest 4% YoY. The demand conditions remained subdued across key end-user segments, impacted by muted government spending and weak traction in the real estate sector. The performance witnessed a sharp correction in Q1 FY2027, with the revenue growing by around 7% YoY, largely driven by the increase in PVC prices in April 2026 while the volumes grew by ~3% YoY. The operating profitability, however, remained under pressure, with the OPBDITA moderating to Rs. 72.1 crore in FY2026 from Rs. 97.1 crore in FY2025 due to continued weak performance of Kisan Mouldings Limited, the company’s strategy to protect market share through price actions and the volatility in PVC prices. The profitability weakened further in Q1 FY2027, with the operating margin declining to 1.0% owing to sharp inventory losses amid a sharp volatility in PVC prices and initial ramp-up costs associated with the commissioning of the Varanasi plant. The operating profitability is expected to gradually recover hereafter, supported by stable PVC prices, ramp-up of the Varanasi plant and scaling up of its ceramics business. The ratings continue to factor in APL’s established position in the domestic plastic pipes industry under the APL Apollo brand, supported by its extensive product profile and distribution network. The company’s manufacturing units are located across India which enables it to cater to a pan-India distribution network. The Varanasi facility has commenced operations recently and should strengthen APL’s presence in the eastern part of the country. Following the integration with APL Apollo’s distribution network, the company’s marketing reach will expand further. APL has also expanded into value-added products such as bathroom fittings, water tanks, oPVC pipes and uPVC doors and window profiles. All the three O-PVC lines are operational, although the revenue contribution remains modest owing to the long approval cycles and a gradual build-up of the order book. The doors and windows business, which was commercially launched in June 2025, also remains in the scale-up phase. Additionally, the company has forayed into ceramic tiles manufacturing and www .icra.in S ensitivity Label : Public Page plans to acquire operating units, with one acquisition having been already completed in September 2026. APL plans to expand the ceramics business over the next few years, which will provide diversification benefits and broaden its products portfolio. Hence, the investment and the ramp up of the segment will remain a key monitorable. The company’s capitalisation and coverage metrics also remain comfortable, supported by steady cash accruals and equity raised at various stages to fund the expansion plans and working capital requirements. The ratings remain constrained by the vulnerability to fluctuations in raw material prices and foreign currency rates, along with intense competition and geographical concentration in northern India. The inventory losses in Q1 FY2027 demonstrate the sensitivity of the earnings to sharp movements in PVC resin prices, particularly when the imported inventory is subject to longer procurement and transit lead times. The increase in domestic sourcing should moderate this risk, although it will not eliminate the company’s exposure to raw material price movements. Further, the company operates in a highly competitive industry characterised by modest product differentiation, the presence of numerous unorganised players and competition from a few large, organised players as well. The Stable outlook factors in ICRA’s expectation that APL will benefit from its strong brand presence and the healthy demand prospects for PVC. Moreover, the company’s foray into value-added products is expected to provide incremental diversification benefits which will support the cash flow generation from operations and keep the credit metrics stable. Key rating drivers and their description Credit strengths Established position in domestic PVC pipes industry; strong dealership network and strong financial flexibility – APL manufactures and markets uPVC, cPVC, HDPE and oPVC pipes and fittings, besides allied products such as water tanks, bath fittings, solvent cement [Showing first 8,000 characters — download PDF for full document]