Credit Rating- Revision

Ref: BHL/ STEX 27/ 2026-27 Date: August 06, 2026 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers 5th Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400 001 Mumbai-400051 Scrip Code: 539872 Symbol: BAJAJHCARE Dear Sir/Madam, Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Credit Rating Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, India Ratings and Research (Ind-Ra) has upgraded the credit ratings assigned to the bank loan facilities of Bajaj Healthcare Limited. The Company’s long-term bank loan facilities have been upgraded to ‘IND A’ from ‘IND A-’ with a Stable Outlook, and the short-term bank loan facilities have been upgraded to ‘IND A1’ from ‘IND A2+’. The details of the credit ratings assigned to the Company’s bank facilities are as under: Instrument Type Size of Issue (million) Rating/Outlook Rating Action INR2,820 Bank Loan IND A/ (reduced from Upgraded Facilities Stable/IND A1 INR 3,326.20) The Press Release dated August 06, 2026 issued by the India Ratings and Research (Ind-Ra) is enclosed herewith. Kindly take the above information on record. Thanking you Yours faithfully, For and on behalf of Bajaj Healthcare Limited Monica Tanwar Company Secretary & Compliance Officer Encl: as above India Ratings Upgrades Bajaj Healthcare’s Bank Loan Facilities to ‘IND A’; Outlook Stable Aug 06, 2026 | Bajaj Healthcare Limited | Pharmaceuticals India Ratings and Research (Ind-Ra) has upgraded Bajaj Healthcare Limited’s (BHL) bank loan facilities’ long-term rating to ‘IND A’ from ‘IND A-’, with a Stable Outlook and short-term rating to ‘IND A1’ from ‘IND A2+’. The detailed rating action is as follows: Details of Instruments Size of Rating Instrument Regulator of Date of Coupon Maturity Rating Issue (INR Assigned with Type Instrument Issuance Rate Date Action million) Outlook/Watch 2,820 Bank loan (reduced RBI - - - A/Stable/IND Upgraded facilities from 3,326.20) Analytical Approach Ind-Ra continues to take a standalone view of BHL to arrive at the ratings. Detailed Rationale of the Rating Action The upgrade reflects BHL’s strengthened business and operational profile, marked by healthy order visibility led by its longstanding relationships with large pharmaceutical customers. This enabled the company to sustain gross margins and healthy return on capital employed (ROCE) (during FY24-FY26), despite industry headwinds. The company’s profile further benefits from its strategic shift towards regulated markets and the increasing contribution from contract development and manufacturing organisation (CDMO) engagements (10% of FY26 revenue). This growth is backed by long-term customer relationships, continued investments in research and development (R&D), and a strong product pipeline. Furthermore, BHL’s planned investments in a new R&D centre, the establishment of a peptide active pharmaceutical ingredients (API) manufacturing facility, and an expanding portfolio of regulatory filings are likely to enhance its medium-term revenue visibility, and support sustained margins expansion. Ind-Ra notes that these expansion plans have been aided by the promoter funds via equity shares and warrants, providing the company an adequate headroom to pursue organic growth initiatives. List of Key Rating Drivers Strengths Healthy and improving business profile Capex investment for future growth, aided by promoter funding Improved financial performance in FY26; likely to sustain over near term Improvement in credit metrics during FY26; likely to sustain over near-to-medium term Weaknesses Regulatory risks Elongated working capital cycle Currency and geopolitical risks Detailed Description of Key Rating Drivers Healthy and Improving Business Profile: BHL is a vertically integrated pharmaceutical player with a presence across APIs, formulations, CDMO and alkaloids segments. The company exports its products to regulated and semi- regulated markets. Domestic API sales accounted for about 52% of the revenue in FY26 (FY25: 60%), while export APIs for 31% (23%) and formulations for 17% (17%). Ind-Ra notes that BHL has healthy revenue visibility, supported by its order book, which accounts for a significant portion of the FY27 revenue. The company’s business model is differentiated from peers due to its long-term contracts accounting for a significant share of its API supplies. BHL’s revenue is well diversified, with the top 10 products contributing about 57% to the FY26 revenue and its top 10 customers for around 35%. The company has established relationships with large global and domestic pharmaceutical companies. It has an exclusive agreement for opium processing and poppy processing with the government of India. Moreover, the company’s credibility on its R&D and execution capabilities is supported by the launch of innovative molecules in FY27 in the Indian market, which is backed by supply arrangements with large pharmaceutical customers. Capex Investment for Future Growth, Aided by Promoter Funding: India remains to be BHL’s largest market contributing 69% to its total sales in FY26 (FY25: 77%) while the US, Europe and the rest of the world market accounted for the balance. BHL is strengthening its future growth prospects through the establishment of a new 10,000 square feet R&D centre, likely to become operational by August 2026, and a dedicated peptide API manufacturing facility, with a capacity of around 250 kg per annum, targeted for commissioning in 4QFY27. Ind-Ra expects these investments to enhance the company’s product development capabilities, support the commercialisation of high-value specialty APIs, increase regulatory filings, and expand its presence in regulated markets. The total planned investment is of INR500 million, of which INR350 million was already raised through a preferential allotment of equity shares in FY26. Improved Financial Performance in FY26; Likely to Sustain over Near Term: BHL’s revenue increased to INR6,110 million in FY26 (FY25: INR5,426 million), supported by new product approvals and improving demand for the existing portfolio. The company filed 110 drug master files in FY26. Formulations accounted for 17% of FY26 revenue (FY25: 17%; FY24: 11%), followed by the API business (81%; 75%; 89%) and the opium business (2%; 8%). Gross margins improved to 48% in FY26 (FY25: 47%; FY24: 46%) driven by a better product mix. EBITDA margins also improved to 17.2% in FY26 (FY25: 15.2%; FY24: 16.1%), due to reduction in other expenses. Ind-Ra expects the EBITDA margins to be 18%-19% over the next three-to-four years. As per the management, the company will continue to focus on strategically expanding its product portfolio, consolidating its presence in premium segments and implementing cost optimisation measures. This is likely to support the margins over the medium term. Improvement in Credit Metrics during FY26; Likely to Sustain over Near-to-Medium Term: In FY26, BHL’s gross interest coverage (operating EBITDA/gross interest expense) improved to 4.7x (FY25: 3.0x, FY24: 2.6x), while net leverage (total net debt /operating EBITDA) improved to 2.1x (2.9x,4.7x) due to improvements in EBITDA and a reduction in the total debt. Ind-Ra expects the net leverage to remain below 2.0x over the short-to-medium term, supported by an improvement in EBITDA and the realisation of funds from share warrants issuance completed in FY26. Regulatory Risks: BHL operates three API manufacturing plants, one formulations facility and one intermediates facility. The company exports to over 60 markets, including Europe, the US, Australia, Africa, the Middle East, South America, Australia, New Zealand, Sri Lanka and Southeast Asia. Export sales contributed around 31% to the total revenue in FY26. Ind-Ra notes that any regulatory non-compliance at the manufacturi [Showing first 8,000 characters — download PDF for full document]