Credit Rating

ROLEX RINGS LIMITED [CIN: L28910GJ2003PLC041991] Regd. Office:-BEHIND GLOWTECH STEEL PRIVATE LIMITED, GONDAL ROAD, KOTHARIA, RAJKOT Phone: (281) 2782577/2782677 Email: compliance@rolexrings.com website. www.rolexrings.com Ref. RolexRings/Reg30/Revision in Ratings/1 June 19, 2026 To, To Corporate Relationship Department, National Stock Exchange of India Limited BSE Limited, Exchange Plaza, C-1, Block G Phiroze JeeJeebhoy Towers, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra (E), Mumbai – 400 051 Script Code: 543325 Script Symbol: ROLEXRINGS Sub: Upgradation of Credit Rating of the Company- Intimation under Regulation 30(6) of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 Dear Sir/Madam, With reference to the above subject, and pursuant to Regulation 30(6) read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that based on IndiaRatings & Research on the bank facilities, the Ratings of the Company has been upgraded. In accordance with the Regulation, please find below the details of the upgradation in rating for the bank loan facilities of the company: Rating Action: Facilities Rating Type Previous New Rating/Outlook Rating Rating/Outlook Action Bank Loan Long IND A-/ IND A/Stable/ IND Upgraded Facilities Term/Short Positive/IND A1 Term A1 We request you to kindly take the same on your records. This information is being uploaded on Company’s website at www.rolexrings.com Thanking You, Yours faithfully For Rolex Rings Limited Hardik Dhimantbhai Gandhi Company Secretary & Compliance Officer [Membership No.: A39931] Title India Ratings Upgrades Rolex Rings Limited's Bank Facilities at 'IND A‘ and revised the Outlook from Positive to Stable Brief India Ratings and Research (Ind-Ra) has taken the following rating actions on Rolex Rings Limited’s (RRL) debt instruments: Details of Instruments Instrument Date of Coupon Maturity Size of Issue Rating Assigned Rating Description Issuance Rate Date (million) along with Action Outlook/Watch Bank Loan Facilities - - - INR1,040(reduced IND A/Stable /IND Upgraded from INR1,894) A1 Analytical Approach Ind-Ra continues to take a standalone view of RRL to arrive at the ratings. Detailed Rationale of the Rating Action The upgrade reflects largely stable revenues and EBITDA in FY26 despite some moderation in demand from USA due to increased tariffs during the year along with full repayment of the complete Right of Recompense (ROR) liability towards consortium lenders. The ratings also reflect RRL’s diversified business profile, continued healthy cash flow generation, healthy scale of operations and sustained healthy EBITDA margins. The ratings also facture in strong credit profile which is expected to remain similar over FY27-28. The ratings are, however, constrained by RRL’s subdued revenue growth in FY25- FY26 along with an elongated working capital cycle. List of Key Rating Drivers Strengths • Diversified Business Profile; Long Track record of Operations • Settlement of ROR Liability • Healthy EBITDA margins; expected to remain rangebound in FY27 • Longstanding customer relationships • Robust credit profile Weaknesses • Elongated working capital cycle, largely due to high inventory days • Customer concentration risk • Forex risk Detailed Description of Key Rating Drivers Diversified Business Profile; Long Track record of Operations: RRL has been engaged in the manufacturing and supply of bearing rings (contributing 47% in total revenues) and auto components (contributing 45% of total revenues) through the forging process for more than four decades, and its operations have significantly expanded over the years. RRL is one of the leading players in the Indian forging industry, with various types of forging lines, and over 500 stock keeping units as of May 2026. The company’s revenue grew at a CAGR of 13% during FY21-FY26 and stood at INR11,435 million in FY26 (FY25: INR11,548; FY24: INR12,218 million). The revenue moderation in FY26 was owing to a reduction in export volumes specially in US amid tariff related uncertainties during FY26. However, the revenue was supported by increased traction from Europe and strong demand for RRL’s bearing rings in the domestic market. Ind-Ra believes the revenue to grow by 7-9% yoy in FY27, led by recovery of volumes in export market particularly from USA following easing of tariff related uncertainties and sustained healthy demand expected from the domestic market. Settlement of ROR Liability: RRL completed the full settlement of its Right of Recompense (ROR) liability towards consortium lenders during FY26, resulting in the complete extinguishment of this obligation from its balance sheet. The total outflow toon account of that was INR 1010 million. The one-time settlement led to an exceptional expense of INR504 million in FY26; with the balance INR506 million already been provided for during FY24–FY25. The resolution of this liability has enhanced RRL’s financial flexibility and materially reduced contingent risks. Healthy EBITDA Margins, expected to remain rangebound in FY27: RRL’s margins remained healthy and ranged between 20% - 22% during FY23- FY26. The EBITDA margin stood at 20.1% in FY26 (20.8%; 21.5%), declined largely due to one-time legal expenditure incurred on account of settlement of ROR liability. Adjusting for this, EBITDA margin for FY26 remained largely stable at 20.7%. EBITDA margin during the year was supported by a decline in power costs aided by company’s installed 17.8MW of solar and 3.75MW of wind capacity established during FY23-FY25. The company further added 9 MW of solar capacity during FY26 which is likely to be commissioned by 1QFY27 and as per management the combined in-house solar and wind capacity for captive consumption likely to reduce power cost further by 2%-25% during FY27. The ROCE for RRL stood healthy at 17% in FY26 (FY25: 20%). The EBITDA margins for RRL are dependent upon the product mix, and Ind-Ra believes the margins would benefit from company’s efforts to increase revenue share of auto components for exports, which offer better margins compared to bearing rings. Furthermore, any volatility in prices of steel, its primary raw material, would only affect the entity's EBITDA margins for the short term as the company has the ability to pass on a major portion of the price increase to its customers on a quarterly basis. Ind-Ra expects the EBITDA margins to remain healthy in the range of 19% - 20% in FY27. Longstanding Customer Relationships: The customers of RRL include entities that manufacture semi-finished components and industrial machinery for passenger vehicle (PV) and commercial vehicles (CV) producing OEMs. RRL longstanding relationships with majority of its customers have been lending strong support and sustainability to its business operations even during the period of volatility in macro environment. Robust Credit Profile: RRL’s credit metrics continued to remain during FY25-FY26. The company maintained a net cash position during FY24-FY26 and reported a nil debt position at FYE26. Its gross interest coverage (operating EBITDA/gross interest expense) improved to 160x in FY26 (101x ; 97x), led by a reduction in gross interest expenses to INR14 million (INR24 million ; INR27 million) which primarily include only bank charges. Ind-Ra expects the credit profile to remain strong over FY27-FY28, led by healthy operating cash flow coupled with no debt raise plans as per management in the near to medium terms. RRL has repaid its entire long-term debt in FY23 and has not borrowed any debt since then and neither does have any large debt-funded capex plans. Any significant increase in overall debt and net leverage remains a key monitorable. Elongated Working Capital Cycle, largely due to High Inventory Days: The company’s operations remain working capital intensive, largely due to elevated inventory days. The net wor [Showing first 8,000 characters — download PDF for full document]