Credit Rating- Revision

Registered Office: “THIRUMALAI HOUSE”, Plot No. 101-102, Road No. 29, Sion (East), Mumbai – 400 022, India PHONE: +91 – 22– 43686200 FAX +91 – 22 – 24011699 E-MAIL: thirumalai@thirumalaichemicals.com Website: www.thirumalaichemicals.com (AN ISO 9001, 14001, 50001/ HACCP & FSSC 22000 CERTIFIED COMPANY) CIN: L24100MH1972PLC016149 TCL/SE034/2026-27 August 13, 2026 The National Stock Exchange of India Ltd. BSE Limited Listing Department Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers Bandra (East) Dalal Street Mumbai 400 051 Mumbai 400 001 Scrip code: TIRUMALCHM Scrip code: 500412 Dear Sir/ Madam, Sub.: Sub: Intimation under Regulations 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Credit Rating Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Regulations”), we inform you of the rating action, based on the intimation received from ICRA Limited dated August 13, 2026, as summarized below: Instrument Amount Rating Action Reason / (Rs. In cr.) Rationale Long term - Fund based - 445.00 [ICRA]BBB (Negative); Term loan Downgraded from [ICRA]BBB+ (Negative) Long term Fund based - 334.50 [ICRA]BBB (Negative); Working capital facilities downgraded from [ICRA]BBB+ (Negative) and assigned for enhanced amount Downgraded – Short term –Non-fund- (684.00) [ICRA]A3+; downgraded based Facilities from [ICRA]A2 and Letter Attached assigned for enhanced amount Long term/Short term - 350.00 [ICRA]BBB (Negative) Unallocated limits /[ICRA]A3+; Downgraded from [ICRA]BBB+ (Negative)/[ICRA]A2 and Registered Office: “THIRUMALAI HOUSE”, Plot No. 101-102, Road No. 29, Sion (East), Mumbai – 400 022, India PHONE: +91 – 22– 43686200 FAX +91 – 22 – 24011699 E- MAIL: thirumalai@thirumalaichemicals.com Website: www.thirumalaichemicals.com (AN ISO 9001, 14001, 50001/ HACCP & FSSC 22000 CERTIFIED COMPANY) CIN: L24100MH1972PLC016149 Instrument Amount Rating Action Reason / (Rs. In cr.) Rationale assigned for enhanced amount Short term –Non-fund- 175.00 [ICRA]A3+; downgraded based Facilities from [ICRA]A2 and assigned for enhanced amount Non-convertible debentures 100.00 [ICRA]BBB (Negative); Downgraded from [ICRA]BBB+ (Negative) Kindly take the above information in your records. Thanking you, Yours faithfully, For Thirumalai Chemicals Limited Aditya Sharma Company Secretary & Compliance officer Encl: As above August 13, 2026 Thirumalai Chemicals Limited: Ratings downgraded to [ICRA]BBB(Negative)/[ICRA]A3+; rated amount enhanced Summary of rating action Previous rated Current rated Financial Sector Instrument* amount amount Rating action Regulator# (Rs. crore) (Rs. crore) Long term - Fund based - [ICRA]BBB(Negative); downgraded 451.00 445.00 RBI Term loan from [ICRA]BBB+(Negative) [ICRA]BBB(Negative); downgraded Long term - Fund based - 330.50 334.50 from [ICRA]BBB+(Negative) and RBI Working capital facilities assigned for enhanced amount Short term – Non-fund [ICRA]A3+; downgraded from [ICRA]A2 (680.00) (684.00) RBI based facilities and assigned for enhanced amount [ICRA]BBB(Negative)/[ICRA]A3+; Long term/Short term - downgraded from 336.05 350.00 RBI Unallocated limits [ICRA]BBB+(Negative)/[ICRA]A2 and assigned for enhanced amount Short term – Non-fund [ICRA]A3+; downgraded from [ICRA]A2 100.00 175.00 RBI based facilities and assigned for enhanced amount Non-convertible [ICRA]BBB(Negative); downgraded 100.00 100.00 MCA debentures from [ICRA]BBB+(Negative) Total 1,317.55 1,404.50 *Instrument details are provided in Annexure I # SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI. Rationale The downgrade in the ratings of Thirumalai Chemicals Limited (TCL) factors in the significant increase in US project cost to USD 340 million (including working capital and cash buffer expected for the company) from USD 255 million and the extension in the project timeline for full commencement of operations of the project to December 2026 from earlier expected June/July 2026. The revised investment requirement for the US project factors in the elevated construction costs in the US due to higher execution intensity and higher skilled-labour requirements, particularly in the mechanical, electrical and instrumentation seg- ments. The overall project cost has further increased on account of higher interest during construction, employee expenses, security costs, project management expenses and debt-raising costs. The resultant funding gap is proposed to be met through additional debt, thereby increasing leverage and exerting pressure on the company’s liquidity profile amid scheduled debt repayments commencing from FY2027. A timely completion of the US project without further cost revision or extension in timeline will continue to be a key monitorable. Once completed and stabilised, the projects are expected to offer a favourable product portfolio and geographical diversification, resulting in improved operating margins. The ratings also remain con- strained by the exposure of the profitability margins to fluctuations in raw material prices and TCL’s presence in commodity chemicals, which limits its pricing flexibility. ICRA notes the improvement in operating profits in Q1FY2027, with operating profit increasing to Rs. 32.6 crore from Rs. 6.2 crore in Q4FY2026 and loss of Rs. 26.7 crore in Q1FY2026, despite working capital constraints affecting raw material procure- ment. This is due to the improvement in PAN-OX spread (phthalic anhydride and its key raw material, orthoxylene) with an improvement in prices of both raw material and end product in the downstream industry. ICRA also notes the Directorate www. icra .in Page | Sensitivity Label : Public General of Trade Remedies' (DGTR) recommendation in August 2026 to extend the anti-dumping duty on imports from China and South Korea for a further five-year period, which is expected to provide continued support to domestic PAN manufactur- ers. ICRA also notes the various successful fund raises by the company over the recent quarters and the proposed fund raise upto Rs. 750 crore in domestic business in addition to the incremental debt proposed for funding the completion, commission- ing and start-up expenses of the US project, various refinancing efforts and the efforts by the company to sell non-core assets to improve its liquidity. The ratings also factor in the established track record and strong market position of TCL in the phthalic anhydride (PAN) seg- ment in India, as well as the diversification benefits arising from the sale of downstream derivative products such as esters and food acids in India. The company will also benefit from the diversification derived from the sale of maleic anhydride (MAN), malic acid and fumaric acid from its greenfield project in West Virginia, USA, in a phased manner post its full commencement in December 2026, which are expected to generate higher operating margins. ICRA also notes that Cheminvest Pte Ltd. Singa- pore (a wholly-owned subsidiary of TCL), which is a majority shareholder in OOSB (the Malaysian entity manufacturing MAN), is exploring suitable options to divest the entity, which is expected to improve the consolidated operating profitability. The capex cost revision in the US to USD 340 million arises from an increase in the U.S. construction costs due to higher exe- cution intensity thereby resulting in increased manhours, mainly in the mechanical, electrical and instrumentation area, along with increase in interest during construction period (IDCP), increased salaries, security charges, project management expenses, debt raising expenses, etc. This cost revision is expected to be funded from external sou [Showing first 8,000 characters — download PDF for full document]