Credit Rating- Revision

August 4, 2026 To To Sr. General Manager Sr. General Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai - 400001 Bandra (E), Mumbai - 400 051 Scrip Code: 544317 Scrip Symbol: TRANSRAILL Sub: Intimation regarding upgrade in Credit Rating under Regulation 30 of SEBI Listing Regulations Dear Sir/Madam, Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), please note that India Ratings & Research has upgraded the Bank loan facilities ratings of the Company as given below: Instrument Type Size of Issue Rating assigned along Rating Action (INR million) with Outlook/ Watch Bank loan 4,700 IND Long-term rating facilities AA-/Stable/IND upgraded; Short-term A1+ rating affirmed The rating letter dated August 4, 2026 received from India Ratings & Research is enclosed herewith. Kindly take the same on your records. For Transrail Lighting Limited Monica Gandhi Company Secretary and Compliance Officer Encl: As above India Ratings Upgrades Transrail Lighting’s Bank Loan Facilities to ‘IND AA-’; Outlook Stable Aug 04, 2026 | Transrail Lighting Limited | Civil Construction India Ratings and Research (Ind-Ra) has upgraded Transrail Lighting Limited’s (TLL) bank loan facilities’ long-term rating to ‘IND AA-’ from IND A+, with a Stable Outlook, while affirming the short-term rating at ‘IND A1+’. The instrument-wise rating actions are 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 Long-term rating Bank loan upgraded; RBI - - - 4,700 AA-/Stable/IND facilities Short-term rating affirmed Analytical Approach Ind-Ra continues to take a standalone view of TLL to arrive at the ratings. Detailed Rationale of the Rating Action The upgrade reflects Ind-Ra’s expectation that TLL is likely to continue to sustain its improved business and financial risk profile in FY27, in line with FY26 levels. The company has demonstrated robust cash flow generation, resulting in comfortable liquidity and strong debt protection metrics over FY25-FY26 and is likely to continue the same over FY27. Despite the planned capex over FY27, Ind-Ra expects the company's credit profile to remain resilient, supported by healthy internal accruals and prudent financial management, with leverage and coverage indicators likely to remain comfortable. The company’s net working capital cycle marginally improved in FY26, and the agency expects it to sustain over the medium term, with timely recoveries. Sector-wide competitive intensity, volatility in raw material prices and demand conditions, any deterioration in the working capital cycle, and significant cash outflows towards group entities will remain a key rating monitorable. Ind-Ra also noted that the Board has in-principally approved the amendment of memorandum of association, which is subject to the shareholders’ approval and obtained necessary Board approval for raising capital of up to INR6,000 million, through a qualified institutional placement. List of Key Rating Drivers Strengths Established execution track record, supported by healthy order book Upward revenue trajectory likely to continue in FY27 Comfortable credit metrics Weaknesses Elongated working capital cycle Inherent industry risks Detailed Description of Key Rating Drivers Established Execution Track Record, Supported by Healthy Order Book: Ind-Ra expects the order book to remain healthy over the near-to-medium term, due to the company’s strong pre-qualifications in the transmission and distribution (T&D) segment, and increasing order inflows in the domestic T&D segment. TLL received new orders worth INR85 billion in FY26, resulting in a closing order book of INR163 billion (including L1 orders) at FEY26. Its orders comprised domestic T&D (INR88 billion) and overseas counter parties (INR62 billion), with T&D, including substations, accounting for 92%, followed by civil construction (5%), and railway electrification, poles and lighting (3%). About 58% of the order book is at the nascent stage of execution, i.e., less than 10% posing an inherent execution risk. Any delay in starting of high-value orders is likely to lower the revenue expectations for FY27; hence, remains a key monitorable. However, Ind-Ra draws comfort from the strong execution track record of the company and expects a timely start of execution. At FYE26, the top 10 orders comprised 36% of the order book by value lowering the project concentration risk. Furthermore, the exposure to river-crossing project in Bangladesh has reduced considerably to 3% of the overall order book. At FYE24, around 39% of TLL’s order book was distributed in India and the rest was from overseas markets. However, in FY25, domestic projects had a share of 55% and the same has increased to 60% at FYE26. The shift in order book mix is not materially impacting the company’s revenue profile; however, due to the domestic competitiveness, the margins could be under pressure. The overseas order book had been largely insulated from sovereign risk, as most of the orders were majorly funded by multilateral agencies such as the World Bank, the Asian Development Bank, the French Development Agency and Export-Import Bank of India (debt rated at ‘IND AAA’/Stable) or were LC backed. At FYE26, TLL had a revenue visibility of 2.4x basis FY26 revenue. Ind-Ra has seen some delays in the execution run- rates in a few projects, largely owing to a delay in approvals and clearances from the counterparty. However, the company stated that the extension of timelines shall be available as the delay is not on account of TLL. Ind-Ra draws comfort from TLL’s ability in securing and delivering international projects successfully over the last five years, along with the company being one of the top players in the domestic market. The company has facilities in Deoli (Maharashtra), Butiborri (Maharashtra), Vadodara and Silvassa (Gujarat) for manufacturing towers, conductors and poles. Upward Revenue Trajectory Likely to Continue in FY27: Ind-Ra expects TLL’s revenue to increase at least 20% yoy in FY27, backed by strong order inflows during FY26, and commissioned and planned capex expansion over FY26-FY27. The company has around 40% of orders from Power Grid Corporation of India Limited, which is likely to be a key revenue driver in FY27. The company's revenue grew to INR68.8 billion in FY26 (FY25: INR53.1 billion; FY24: INR40.8 billion), due to improved execution of domestic and international orders received during FY24-FY26. The revenue from international orders remained steady at 50% yoy in FY26 (FY25: 58%; FY24: 59%). However, given the change in geographical composition of orders in FY26, the share of international orders is likely to reduce post FY26. Ind- Ra estimates the company to maintain margins in the range of 12%-14% over FY27-FY28, despite rise in share domestic orders in the overall order-book, due to presence of strong backward integration, which ensures better control over input costs, supply chain efficiency, and margin stability. The company's EBITDA margins contracted to 13.8% in FY26 (14.8%; 13.8%), due to lower-than-expected execution in 4QFY26, owing to supply chain disruptions accentuated by the Middle Eastern crisis. The EBITDA grew to INR9.5 billion in FY26 (INR7.8 billion; INR5.6 billion). Comfortable Credit Metrics: Ind-Ra expects TLL’s credit metrics to remain comfortable in FY27 in line with FY26 levels due to the likely growth in the revenue to be adequately supported by a combination of debt and customer advances, resulting in the interest coverage (operating EBITDA/finance cost) remaining range bound between 2.8x and 3.2x. Further, the capex in FY27 is likely to be funded [Showing first 8,000 characters — download PDF for full document]