Credit Rating

WALCHANDNAGAR INDUSTRIES LIMITED Walchandnagar: 413 114, Dist. Pune, Maharashtra, India Tel: 02118-252 235/252 236/252 237/252 238 Fax: 02118-252 584 Website: www.walchand.com Email: wil@walchand.com Ref. No. : WIL: SEC : 2026 Date : August 07, 2026 National Stock Exchange of India Ltd. BSE Ltd., Exchange Plaza, 5th floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra (East) Fax: 22723121/2039/2037 Mumbai 400 051. Scrip Code : 507410 Fax :26598237/38, 66418126/25/24 Scrip Code : WALCHANNAG Dear Sirs, Sub.: Disclosure under Regulation 30 (6) read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Re- Credit Rating With reference to the above subject, we wish to inform you that ACUITE Ratings and Research Limited, the Credit Rating Agency, have reaffirmed the credit rating of the Company vide its letter dated August 07, 2026 as given below: Product Bank Loan Ratings Long Term Rating Short Term Rating Quantum (Rs. Cr) Bank Loan Ratings 129.89 Acuite BB| Stable| - (Fund Based) Reaffirmed Bank Loan Ratings 120.49 Not Applicable| - (Fund Based) Withdrawn Bank Loan Ratings 384.62 - Acuite A4+| (Non-Fund Based) Reaffirmed Total Outstanding 514.51 - - In this regard, please find enclosed herewith Published rating dated August 07, 2026 issued by ACUITE Ratings and Research Limited. You are requested to kindly take the above information on record please. Thanking you, Yours faithfully, For Walchandnagar Industries Ltd. G. S. Agrawal Whole Time Director & Company Secretary DIN:00404340 Encl.: As above REGD OFFICE: Siddharth Towers (Tower No.1), S.No.12/3-B, Office 908 to 910, Kothrud, Pune- 411 038, Maharashtra, India. Tel: 020-2543 8585 Fax: 020-2543 8585 CIN: L74999PN1908PLC255621 8/7/26, 6:22 PM Press Release Press Release August 07, 2026 WALCHANDNAGAR INDUSTRIES LIMITED Rating Reaffirmed and Withdrawn Quantum (Rs. Quantum (Rs. Cr) Regulated Product Long Term Rating Short Term Rating Cr) (SEBI) (Other FSR) By Bank Loan ACUITE BB | Stable | 0.00 129.89 - RBI Ratings Reaffirmed Bank Loan Not Applicable | 0.00 120.49 - RBI Ratings Withdrawn Bank Loan ACUITE A4+ | 0.00 384.62 - RBI Ratings Reaffirmed Total 0.00 514.51 - - - Outstanding Total 0.00 120.49 - - - Withdrawn Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. Rating Rationale Acuite has reaffirmed the long-term rating of 'ACUITE BB' (read as ACUITE double B) and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on Rs.514.51 Cr. bank facilities of Walchandnagar Industries Limited (WIL). The outlook is revised from ‘Negative' to 'Stable'. Acuité has also withdrawn its proposed long-term rating of Rs. 120.49 Cr. bank facility without assigning any rating as it is a proposed facility of Walchandnagar Industries Limited. The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.? Rationale for Rating The rating reaffirmation and revision in outlook reflects the improvement in the company's operational performance during FY2026 as compared to FY2025. Revenue was increased by ~6% during the year, while the company reported a positive EBITDA, as a result of reduced cost and better absorption of operating costs. However, the sustainability of the operational turnaround and improvement in profitability remains a key monitorable. The company's liquidity position is stretched, supported by debt repayments through share warrant proceeds, funding towards planned capex requirements, inflow of inter-corporate borrowings, and moderate bank limit utilisation. Nevertheless, the company continues to report negative cash accruals, which shall remain a key monitorable over the medium term. Acuite notes that monetization of non-core assets for the outstanding debt repayment or any further capital infusion remains a key rating sensitivity factor. The rating also factors in the comfort derived from the release of partial retention money of Rs.23.74 Cr. and bank guarantees of Rs.8.28 Cr. from TNEB during FY26. The working capital cycle, however, continues to remain intensive owing to the inherent nature of the business. Further, the financial risk profile remains moderate supported by steady networth, gearing below unity albeit below average debt protection metrics. Acuite also notes the management's plans to raise additional funds through preferential allotment by FY2027. The proposed fund infusion is expected to support debt reduction, fund capital expenditure requirements, and augment working capital, thereby strengthening the company's overall financial flexibility. About the Company https://connect.acuite.in/fcompany-details/WALCHANDNAGAR INDUSTRIES LIMITED/7th_Aug_26 1/8 8/7/26, 6:22 PM Press Release Mumbai based, Walchandnagar Industries Limited (WIL) is an ISO 9001:2008 certified company with global presence and diversified business portfolio in Projects, Products and High-tech Manufacturing. Incorporated in 1908, WIL has a long track record of operations for over 100 years. WIL has been engaged in strategic business areas like Defence, Nuclear, Missiles, Aerospace (DNAM) and industrial products like Gears, Centrifugal, Castings and Gauges. The company benefits from an established customer base across its business segments and listed on the BSE and NSE stock exchanges in India. The directors of the company are Mr. Chirag Chakor Doshi, Mr. Rupal Anand Vora, Mr. Prabhat Kumar, Mr. Chakor Lalchand Doshi, Mr. Jayesh Chaturdas Dadia and Mr. Giriraj Sharan Agrawal. Unsupported Rating Not Applicable Analytical Approach Acuite has taken standalone financial and business risk profile of Walchandnagar Industries Limited to arrive at this rating. Key Rating Drivers Strengths Established track record of operations and experienced management WIL has a long operating track record of over 100 years and is engaged in strategic sectors such as Defence, Nuclear, Missiles and Aerospace (DNAM), which contributed around 31% of FY2026 revenues. The company also derives revenues from its Product segment (55% of total revenue) and Foundry & Instrumentation segment (14% of total revenue). Established by (Late) Seth Walchand Hirachand Doshi, WIL has evolved into a diversified engineering enterprise with capabilities across high-precision manufacturing and critical equipment supply. The company is currently led by Mr. Chakor Doshi, who brings over three decades of industry experience. WIL has developed strong technical expertise and execution capabilities over the years, catering to marquee domestic and international customers. Its contribution to several prestigious national programmes, including the supply of critical equipment for India's lunar missions, Chandrayaan-I and Chandrayaan-II, as well as the Akash Missile programme, underscores its strong positioning in strategic sectors. Acuite believes that WIL's established presence in niche engineering segments, longstanding customer relationships, and the extensive experience of its management are expected to continue supporting its business profile over the medium term. Increase in scale of operations during FY26 The operating income of the company stood at Rs.278.11 Cr. in FY26 as against Rs.262.09 Cr. in FY25 primarily driven by higher execution in the product segment. The unexecuted order book stood at Rs.374.56 Cr. as on 30.06.2026. The OB/OI stood at 1.35 times. This provides revenue visibility over the medium term. The EBITDA margin stood at 7.84% in FY26 as against (25.62) % in FY25 supported by the execution of higher-margin nuclear and aerospace orders, improved operational efficiencies and better cost control measures. Fu [Showing first 8,000 characters — download PDF for full document]