Credit Rating- Others

August 12, 2026 Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, Mumbai – 400 001 Bandra Kurla Complex BSE Scrip code – 509820 Bandra (East), Mumbai 400 051 NSE symbol – HUHTAMAKI Sub: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’) – Reaffirmation- Credit rating Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we hereby inform that CRISIL, the rating agency, has reaffirmed the rating for the credit facilities availed by the Company as under: Total Bank Loan Facilities Rated Rs. 88 Crore Long Term Rating Crisil AA-/Stable (Reaffirmed) The detailed rating rationale issued by the rating agency is enclosed. Sharing this for your information and further dissemination on your websites please. Thanking you, Yours faithfully, For Huhtamaki India Limited Ramya Mohan Whole Time Director DIN: 11593706 Encl.: As above Registered & Corporate Office: Tel: +91 (022) 6174 0100 Huhtamaki India Limited CIN: L21011MH1950FLC145537 7th Floor, Bellona, www.flexibles.huhtamaki.in The Walk, Hiranandani Estate, Ghodbunder Road, Thane West- 400 607 Maharashtra. 8/12/26, 1:29 PM Rating Rationale Rating Rationale August 12, 2026 | Mumbai Huhtamaki India Limited Rating reaffirmed at 'Crisil AA- / Stable' Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.88 Crore Instrument Long Term Rating Crisil AA-/Stable (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 AA-/Stable’ rating on the long-term bank facility of Huhtamaki India Limited (HIL). Operating income declined by ~2% to Rs 2,469 crore in 2025 (calendar year) from Rs 2521 crore in 2024 (calendar year). The company's profitability profile strengthened considerably despite the slight decline in revenue with operating margin improving significantly to 7.7% in 2025 from 4.6% in 2024, driven by better procurement efficiencies, cost optimization initiatives resulting in lower wastage, benefits of operating leverage, and a favourable sales mix. In first half of 2026(H1CY26), revenue saw a significant uptick by ~12% year-on-year to Rs 1,322 crore, compared with first half of 2025(H1CY25), primarily driven by healthy mix of price and volume with pricing offsetting commodity hurts from middle east crisis price-led growth and preference among customers for organized players to ensure supply availability amidst the geopolitical uncertainties. Margin for H1CY26 improved to 8.4% compared to 6.4% in H1CY25, supported by a volume growth, operational efficiencies and favorable sales mix. The rating reflects the company’s established market position in the flexible packaging industry, healthy financial risk profile, and operational and financial support from Huhtamaki. These strengths are partially offset by exposure to intense competition, regulatory risks and volatility in raw material prices. Analytical Approach Crisil Ratings has applied its parent notch-up criteria to factor in the operational and financial support from Huhtamaki, which owns 67.73% stake in HIL. Key Rating Drivers - Strengths Established market position in the premium flexible packaging market HIL is an established player in the domestic flexible packaging industry. Its market position is supported by a diversified product range, which comprises flexibles, labels, tube laminate and cylinders. Strong and diverse customer profile will continue to support the business risk profile over the medium-to-long term. The company’s innovation and product development capabilities are strengthened by the support provided by its parent in product development. Healthy financial risk profile The financial risk profile is supported by healthy networth of Rs 1,228 crore and debt of Rs 213 crore (includes external commercial borrowings from the parent, lease liabilities and vendor financing) as on December 31, 2025, resulting in gearing of less than 0.17 time. Additionally, healthy cash accrual will be sufficient to meet capital expenditure (capex) and working capital requirement over the medium term. Operational and financial support from the parent HIL receives support from Huhtamaki for product development, along with operational and financial support. The parent has provided financial support to the company in the form of external commercial borrowings amounting to Rs 200 crore (o/s of Rs 100 crore as on December 31, 2025) at competitive rates and provides corporate guarantees for some of HIL’s banking facilities. Key Rating Drivers - Weaknesses Exposure to intense competition in the fragmented flexible packaging industry and regulatory risks The flexible packaging industry exerts pressure on the profitability of players. Though the industry is highly consolidated in terms of catering to the fast-moving consumer goods (FMCG) and pharmaceutical customers, intense competition restricts pricing flexibility. Also, these players have limited bargaining power against large FMCG and pharmaceutical players. The company is also exposed to regulatory risks due to the increasing focus on environmental issues. Adverse regulatory changes, impacting the credit risk profile of HIL, will be monitorable. https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/HuhtamakiIndiaLimited_August 12_ 2026_RR_400834.html 1/7 8/12/26, 1:29 PM Rating Rationale Susceptibility to volatility in raw material prices Raw material cost accounts for 65-70% of the operating income. The prices of key raw materials, such as films, polyethylene granules and biaxially oriented polyethylene, are linked to crude oil prices, which are volatile and are factored into pricing terms with customers. Susceptibility to fluctuations in input cost is likely to persist. Liquidity Strong HIL enjoys strong liquidity supported by unutilized fund-based bank lines and healthy cash and liquid surplus. Expected net cash accrual for 2025 to 2027 will be sufficient to meet annual capex and working capital requirement. Cash and equivalent along with current Investments remains over Rs 400 crore as on June 30, 2026. ESG Profile The environment, social and governance (ESG) profile of HIL supports its credit risk profile. The packaging sector has moderate environmental and social impact driven by its raw material sourcing strategies, waste-intensive processes and direct impact on the health and wellbeing of customers. Key ESG highlights HIL aims to be carbon neutral by 2030. In 2025, the company reported an increase in the share of renewable energy in its overall energy mix to ~11% from 7% the previous year Company’s scope 1 and 2 emission intensity has increased by ~4% to ~23 tCO2E per crore of revenue in 2025 from ~21 tCO2E in 2023. The company’s employee attrition rate was at ~9% in 2025, which is lower than its peers. Its lost time injury frequency rate for employees reduced to nil in 2025 as compared to 0.42 in 2024. Its governance structure is characterized by 38% of the board comprising independent directors with an independent chairman, split in chairman and managing director positions and extensive disclosures. There is growing importance of ESG among investors and lenders. Continued commitment of HIL to ESG principles will play a key role in enhancing stakeholder confidence given shareholding by foreign portfolio investors and access to both domestic and foreign capital markets. Outlook Stable Crisil Ratings believes HIL will maintain a healthy business risk prof [Showing first 8,000 characters — download PDF for full document]