Update on Credit Rating

Date: 07th August, 2026 To, To, The Listing Department The Listing Department BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400001 Mumbai – 400051 Scrip Code: 544587 Symbol: MIDWESTLTD Dear Sir / Madam, Sub.: Intimation of Credit Rating of the Company under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (‘Listing Regulations’), we hereby inform you that CRISIL Ratings Limited has reaffirmed the previous credit ratings which it had issued earlier on total loan facilities of the Company as below: Facilities Ratings Remarks Long Term Rating Crisil A/Stable (Assigned) - Short Term Rating Crisil A1 (Assigned) - Corporate Credit Rating Crisil A/Stable (Reaffirmed) - We hereby further inform you that CRISIL Ratings Limited has reaffirmed the previous credit ratings of Andhra Pradesh Granite (Midwest) Private Limited, a material subsidiary of the Company, which it had issued earlier on total loan facilities of the Company as below: Facilities Ratings Remarks Long Term Rating Crisil A-/Stable (Reaffirmed) - Short Term Rating Crisil A2+ (Reaffirmed) - The report from the CRISIL covering the rationale for revision in credit rating is enclosed. This is for your information and records. Thanking you, Yours faithfully, For Midwest Limited K. Achyutanand Reddy Company Secretary & Compliance Officer M.No.: A44619 Rating Rationale https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/Rati... Rating Rationale August 07, 2026 | Mumbai Midwest Limited 'Crisil A / Stable / Crisil A1 ' assigned to Bank Debt; Corporate Credit Rating Reaffirmed Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.100 Crore Instrument Long Term Rating Crisil A/Stable (Assigned) RBI Short Term Rating Crisil A1 (Assigned) RBI Corporate Credit Rating Crisil A/Stable (Reaffirmed) - 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 assigned its ‘Crisil A/Stable/Crisil A1’ ratings to the bank facilities of Midwest Limited (ML; formerly known as Midwest Granite Pvt Ltd)and has reaffirmed its ‘Crisil A/Stable’ corporate credit rating on the company. The ratings reflect the extensive experience of ML’s the promoter in the mining and quarrying business, integrated operations, geographical diversification in revenue and healthy financial risk profile. These strengths are partially offset by product concentration, vulnerability to intense competition, exposure to inherent cyclicality in demand from the end-user markets, moderate working capital cycle and vulnerability of operating margin to fluctuations in foreign exchange (forex) rates Analytical approach To arrive at its ratings, Crisil Ratings has combined the business and financial risk profiles of ML, with its subsidiaries and joint ventures (JVs). This is because all these entities, collectively referred to as the Midwest group, operate in the same industry and have operational and financial linkages. Please refer to Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation Key rating drivers - Strengths Extensive experience of the promoter: K Raghava Reddy, one of the promoters of ML, has more than four decades experience in the mining and quarrying industry. He is supported by his son, K Ramachandra, who also has over 20 years of experience in the same business. K Soumya (daughter of Raghava Reddy) is a graduate in commerce and was instrumental in establishing the group’s diamond wire saws and gang saw blades manufacturing operations and facilitating its backward integration with mining operations. The grouphas been engaged in the business of mining and quarrying of rough granite blocks since 1981. It has established relationships with quarry owners and overseas customers. This has allowed the Midwest group to maintain its market position and healthy demand for its products. Geographical diversification in revenue and integrated operations: ML, with its subsidiaries and JVs, caters to a wide number of clients, both in India and overseas. It consistently derives around 35% of its revenue from exports. The top customers generated revenue of around 25% in fiscal 2026. Diversity in geographic reach and clientele should continue to support the business risk profile. The group also processes and polishes granite at its plants that are in proximity to the mines, as a part of forward integration. It also manufactures diamond wire (used for cutting the granite blocks with less wastage) as a part of backward integration. The group drills and extracts rough natural stone from its mines in India. Its nature of operations allows it to penetrate deep into the value chain. However, sale of dressed granite blocks will continue to be the highest revenue contributor for the group. 1 of 9 07-08-2026, 15:47 Rating Rationale https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/Rati... The group commands a strong market position in the overall black galaxy exports from India. It is one of the leading players for this variety of granite. The group has employed the latest technology and mechanised processes for the development and extraction of stone from the mines to have better recovery rates of the stone. Furthermore, the vast network of distributors developed over years, and association with key players in both the domestic and overseas markets will continue to support the business risk profile. The group also participates in well-known international trade shows, which help improve its visibility and garner orders from new clients. Healthy financial risk profile: Capital structure and debt protection metrics were comfortable. Adjusted networth (adjusted for revaluation surplus and intangible assets) stood at over Rs 845 crore as on March 31, 2026. Networth increased significantly after ML’s recently concluded initial public offering (IPO), which helped it raise Rs 250 crore. The IPO proceeds will fund the phase 2 capital expenditure (capex) in Midwest Neostone Pvt Ltd. Electric dumpers and part of the existing debt were also repaid from the proceeds. Hence, capital structure will remain strong over the medium term. On the back of healthy profitability, debt protection metrics are also expected to be strong, with interest coverage ratio of above 10 times over the medium term. Key rating drivers - Weaknesses Concentration in product profile: The business risk profile is constrained by heavy reliance on revenue contribution from the black galaxy segment, which contributed ~69% to the consolidated revenue in fiscal 2026. Any unexpected shortage in demand or slowdown in the end-user industry will impact the business performance. However, the group is diversifying its product profile by venturing into the quartz segment and extraction of heavy mineral sands. Capex is completed for phase I of quartz processing and commercial production commenced in April 2025. Timely completion of capex and quick ramp in operations in the quartz segment, thereby reducing dependence on the black galaxy segment, will remain monitorable. Vulnerability to intense competition and cyclicality in the end-user industry: ML, with its subsidiaries and JVs, caters to the real estate, construction and infrastructure industries, whose performance is strongly correlated to economic cycles. Besides, the industry is intensely competitive and dominated by unorganised entities and reputed brands. Abil [Showing first 8,000 characters — download PDF for full document]