Credit Rating

Ref: 09/SE/LC/2026-27 Date: November 04, 2026 To, To, National Stock Exchange of India Limited BSE Limited (“BSE”) (“NSE”) Listing Department Listing Department Corporate Relationship Department Exchange Plaza, C-1 Block G, Bandra Kurla Phiroze Jeejeebhoy Towers, Complex Bandra (East), Mumbai – 400051 Dalal Street, Fort, Mumbai - 400 001 NSE Scrip Symbol: SMT BSE Scrip Code: 545001 ISIN: INE356Y01018 ISIN: INE356Y01018 Subject: Intimation of Upgradation of Credit Rating under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/ Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Regulations”), we wish to inform you that CRISIL Ratings Limited, has upgraded the credit ratings for Bank Loan Facilities of Sahajanand Medical Technologies Limited (“the Company”) as well as its Wholly Owned Material Subsidiary (“WOS”) i.e., SMT Cardiovascular Private Limited. In compliance with the Regulations, the details of the ratings are provided below: Name of the Rating Instrument Current Rated Rating Rating Rating Action Entity Agency Amount (INR Type Assigned crore) Sahajanand CRISIL Bank loan 300 Crores Long Term CRISIL A- Upgraded from Medical Ratings facilities /Stable CRISIL BBB+/ Technologies Limited Stable Limited Short Term CRISIL A2+ Upgraded from CRISIL A2 SMT Bank loan 50 Crores Long Term CRISIL Upgraded from Cardiovascular facilities BBB+/Stable CRISIL Private Limited BBB/Stable Enclosed below are the credit rating rationales issued by CRISIL for the Company and WOS as Annexure A & Annexure B respectively. This information is also being uploaded on the website of the Company at www.smtpl.com Thanking you, For Sahajanand Medical Technologies Limited Bhargav Dhirajlal Kotadia Managing Director & Chief Executive Officer DIN: 06575042 Annexure A Rating Rationale November 03, 2026 | Mumbai Sahajanand Medical Technologies Limited Ratings upgraded to 'Crisil A- / Stable / Crisil A2+ '; rated amount enhanced for Bank Debt Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.300 Crore (Enhanced from Rs.280 Crore) Instrument Crisil A-/Stable (Upgraded from 'Crisil BBB+ / Long Term Rating RBI Stable') Short Term Rating Crisil A2+ (Upgraded from 'Crisil A2 ') RBI 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 upgraded its ratings on the bank facilities of Sahajanand Medical Technologies Limited (SMTL; part of the SMTL group) to ‘Crisil A-/Stable/Crisil A2+’ from ‘Crisil BBB+/Stable/Crisil A2’. The ratings upgrade reflects strengthening of the SMTL group’s business risk profile, driven by growing scale of operations and sustained profitability, while its financial risk profile remains comfortable coupled with adequate liquidity. Operating revenue grew 18% in fiscal 2026 to Rs 1,214 crore against Rs 1,032 crore in fiscal 2025, supported by higher sales volume and improved sales realisation. Operating margin has remained broadly stable over the three fiscals through 2026. It was 13.14% in fiscal 2026, compared with 12.87% in fiscal 2025 and 12.76% in fiscal 2024. Sustenance of the growth momentum and operating profitability will be key rating sensitivity factors. Further, company has also successfully completed its initial public offering (IPO) in October 2026, comprising entirely an Offer for Sales by existing shareholders. The ratings continue to reflect the extensive experience and technical expertise of the group’s promoters in the healthcare equipment industry, sizeable market share, robust distribution network and healthy financial risk profile. These strengths are partially offset by susceptibility to raw material prices and foreign exchange (forex) rate fluctuation, exposure to regulatory risks and large working capital requirement. Analytical approach Crisil Ratings has combined the business and financial risk profiles of SMTL, along with its subsidiaries and stepdown subsidiaries. This is because all these entities, collectively referred to as the SMTL group, are in similar businesses and have business synergies. Key rating drivers - Strengths Extensive experience and technical expertise of the promoters: The SMTL group was founded by Dhirajlal Kotadia in 1993 to offer laser technology-based solutions to the diamond industry. Over the decades, the group became a pioneer in providing automated capital equipment for the diamond industry in India. The promoters leveraged their expertise in laser technology to manufacture stents with the help of skilled professionals having technical expertise in the medical sector. In fiscal 2020, the group acquired Imex SC, Zarek and Vascular Concepts Limited, which widened its distribution network and product portfolio by including the niche product, transcatheter aortic valve implantation (TAVI). The group achieved revenue of Rs 1,214 crore in fiscal 2026 up from Rs 1,028 crore in fiscal 2025. Sizeable market share and robust distribution network: The group has an established position in the stent (DES) market in India and in various countries. It has a robust distribution network with wide geographical reach as well as better collection cycle. High capacity and healthy prospects for domestic players on account of price cap should aid growth in the global market. The group is also expanding its network in Europe, which will support improvement in the revenue profile over the medium term. Healthy financial risk profile: The financial risk profile is driven by strong network, healthy capital structure and moderate debt protection metrics. The networth increased from Rs 513 crore as on March 31, 2025, to Rs 633 crore a year later on account of accretion of profit to reserve. The capital structure has remained healthy with gearing and total outside liabilities to tangible networth (TOLTNW) ratio estimated at 0.43 time and 0.83 time, respectively, as on March 31, 2026 (0.44 time and 0.91 time, respectively, a year earlier). The capital structure is expected to improve with no further plan to avail external debt and expected improvement in networth with steady accretion of profit. The debt protection metrics were moderate with net cash accrual to adjusted debt and interest coverage ratios of 0.53 time and 6.53 times, respectively, in fiscal 2026 (0.39 time and 6.20 times, respectively, in fiscal 2025). Key rating drivers - Weaknesses Susceptibility to raw material prices and forex rate fluctuation, and exposure to regulatory risks: The group derives 65-70% of its revenue from the overseas market with more than 30% of total revenue from Europe and balance from various other countries, which exposes its profitability to adverse movements in the forex rates. Also, the company imports 70-75% of its material requirement due to which the exposure is partially hedged and it has a hedging policy in place. However, higher-than-expected adverse movements in the forex rate, which is not built in sales and is unhedged, may impact its profit margin. Also, the National Pharmaceuticals Pricing Authority (NPPA) has placed a price cap on various medical devices which reduces the company's pricing flexibility and movement in the material price may affect its profitability. Furthermore, the group remains susceptible to adverse changes in regulations or government policies. Delay or inability in obtaining or maintaining permits/licenses/registrations may impact the operating performance. The operating margin remained stable at 13.14% in fiscal 2026 as against 12.5% in fiscal 2025. Profit after tax (PAT) margin remained lower primarily on account of higher depreciation. Profitability is expected [Showing first 8,000 characters — download PDF for full document]