Credit Rating

PPFL/SE/2026-2027/022 August 08, 2026 BSE Limited National Stock Exchange of India Limited 25th Floor, P.J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai - 400001 Bandra (E), Mumbai - 400051 Scrip Code: 542907 Scrip Symbol: PRINCEPIPE Dear Sir/Madam, Sub: Disclosure under Regulation 30 of Securities and Exchange Board of India (Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR”) – Credit Rating Reaffirmed Pursuant to Regulation 30 of SEBI LODR, we would like to inform the Exchanges that on August 07, 2026, Prince Pipes and Fittings Limited (“the Company”) has received a letter from CRISIL Ratings Limited (“CRISIL”), a credit rating agency, in relation to the credit rating assigned to the below mentioned instruments of the Company amounting to Rs. 768 Crore. Instruments Rating Total Bank Loan Facilities Rated Rs. 768 Crore Long Term Rating Crisil A+/Negative (Reaffirmed) Short Term Rating Crisil A1+ (Reaffirmed) A copy of ratings rationale issued by CRISIL dated August 07, 2026, is enclosed. This is for your information and record. Thanking you, Yours Faithfully, For Prince Pipes and Fittings Limited Jyoti Sancheti Company Secretary & Compliance Officer FCS: 9639 Encl. As above Corp. Off.: The Ruby, 8th Floor; 29, Senapati Bapat Marg (Tulsi Pipe Road), Dadar (W), Mumbai - 400 028; Maharashtra, India. T: 022-6602 2222 F: 022-6602 2220 E: info@princepipes.com W: www.princepipes.com Regd. Off.: Survey No. 132/1/1/3, Athal road, Village Athal, Naroli, Silvassa, Dadra Nagar Haveli, India – 396235. CIN: L26932DN1987PLC005837 Printed on 100% Recycled Paper ♻ Prince Pipes and Fittings Limited Ratings reaffirmed at 'Crisil A+ / Negative / Crisil A1+ ' Rating Action Total Bank Loan Facilities Rs.768 Crore Regulator Of Instrument Rated Long Term Rating Crisil A+/Negative RBI (Reaffirmed) Short Term Rating Crisil A1+ (Reaffirmed) RBI 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 reaffirmed its ‘Crisil A+/Negative/Crisil A1+’ ratings on the bank facilities of Prince Pipes and Fittings Limited (PPFL). The ratings continue to reflect the company's strong business risk profile, supported by its established market position in the domestic plastic pipe industry, diversified product portfolio, strong brand equity, and geographically diversified operations. The ratings also derive strength from the company's strong financial risk profile, characterized by comfortable capital structure. These strengths are partially offset by susceptibility of profitability to fluctuations in raw material prices and exposure to intense competition in the domestic plastic pipe industry. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of PPFL Key Rating Drivers - Strengths Strong business risk profile supported by established market position, diversified product portfolio and strong brand presence: PPFL continues to benefit from its established position in the domestic plastic pipe industry, supported by over three decades of operating track record, strong brand recognition through its flagship brands, and a diversified product portfolio across un-plasticized polyvinyl chloride (UPVC), Chlorinated polyvinyl chloride (CPVC), Polypropylene random (PPR) and High-density polyethylene (HDPE). The company's extensive distribution network, wide product offerings and strong market presence continue to support its competitive position in the industry. Revenue grew by around 3% to Rs 2,598 crore in fiscal 2026 from Rs 2,513 crore in fiscal 2025, primarily driven by healthy volume growth across product categories. The company's business profile remains supported by geographically diversified manufacturing facilities, enabling it to cater to a broad customer base across regions while mitigating concentration risks. Furthermore, the company's strong brand value, diversified product portfolio and established dealer network are expected to support steady business growth over the medium term. The operating profitability also witnessed improvement during fiscal 2026, with operating margin improving to around 13% in Q4 fiscal 2026 and 8.93% for the full year, supported by stable raw material prices, better operating efficiencies and healthy volume growth. Sustained improvement in profitability while maintaining growth momentum will remain a key monitorable. Strong financial risk profile: The financial risk profile of PPFL continues to remain strong, supported by healthy net worth, conservative capital structure and robust debt protection metrics. Adjusted net worth improved to Rs 1,645 crore as on March 31, 2026, driven by steady accretion to reserves through healthy profits. The company's reliance on external debt remains moderate, reflected in comfortable gearing of 0.09 time as on March 31, 2026. The total debt levels remained low relative to capitalization, providing significant financial flexibility to support future growth initiatives. Debt protection metrics continue to remain strong, as reflected in interest coverage of 21.51 times and net cash accruals to adjusted debt ratio of 1.47 times in fiscal 2026. The healthy accrual generation coupled with low debt levels is expected to support the company's financial risk profile over the medium term. Key Rating Drivers - Weaknesses Susceptibility of profitability to fluctuations in raw material prices: The company remains vulnerable to volatility in prices of key raw materials, particularly PVC and CPVC resins, which are linked to global crude oil prices. Significant fluctuations in raw material prices may impact inventory valuation and operating profitability. Additionally, exposure to imported raw materials results in susceptibility to adverse movements in foreign exchange rates. Although profitability improved during fiscal 2026, operating performance remains exposed to cyclicality in raw material prices and competitive pricing pressures. The company's ability to sustain margins amidst volatile input costs will remain a key monitorable. Exposure to intense competition in the domestic plastic pipe industry The domestic plastic pipe industry remains highly competitive, characterized by the presence of large, organized players as well as numerous regional and unorganized participants. Limited product differentiation and high price sensitivity result in intense competition, which can constrain pricing flexibility and profitability. While PPFL benefits from its strong brand, established market position and diversified product portfolio, ability to maintain market share and profitability amidst increasing competitive intensity will remain monitorable. Liquidity: Strong The liquidity position of the company remains healthy, supported by strong cash accrual generation, comfortable liquidity reserves and moderate utilization of working capital limits. The company is expected to generate net cash accruals of over Rs 200 crore over the near term against relatively modest scheduled debt repayment obligations of around Rs 29-30 crore annually. Further, liquidity is supported by cash and cash equivalents of Rs 129 crore as on March 31, 2026. Moderate reliance on working capital borrowings and adequate cushion available in fund-based bank limits provide additional financial flexibility. Outlook Negative PPFL’s credit profile will remain under pressure on account of subdued operating performance with reducing operating margins Rating sensitivity factors Upward Factors • Sustained growth in volumes, resulting in revenue growth and operating margins improving to over 10% • Efficient working capital management and sustenance of financial risk profile. Downward Fact [Showing first 8,000 characters — download PDF for full document]