Sambhv Steel Tubes Limited has informed the exchange about ratings provided by Crisil Ratings Limited.

August 17, 2026 To To Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited P J Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai - 400001 Bandra (East), Mumbai– 400051 Scrip Code: 544430 Symbol: SAMBHV Dear Sir / Madam Sub: Disclosure of update in Credit Rating under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 Pursuant to the provisions of Regulation 30 and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that Crisil Ratings Limited (“Crisil Ratings”), has assigned the below ratings of Sambhv Steel Tubes Limited on August 17, 2026 as follows: Facilities/Instruments Amount(₹ Crore) Rating Long Term Rating 162.00 Crisil A+/Stable (Assigned) We are enclosing herewith a copy of the Rating Rationale dated August 17, 2026, published by Crisil Ratings for your reference. The said intimation shall also be available on website of the company at www.sambhv.com. This is for your information and records. Thanking you, For, Sambhv Steel Tubes Limited Niraj Shrivastava (Company Secretary and Compliance Officer) Membership No. F8459 17/08/2026, 18:33 Rating Rationale Rating Rationale August 17, 2026 | Mumbai Sambhv Steel Tubes Limited 'Crisil A+ / Stable' assigned to Bank Debt Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.162 Crore Instrument Long Term Rating Crisil A+/Stable (Assigned) 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 assigned its ‘Crisil A+/Stable’ rating to the long-term bank facilities of Sambhv Steel Tubes Limited (SSTL). The rating reflects the established market presence of the company, backed by the extensive industry experience of its promoters; integrated operations; and healthy financial risk profile. These strengths are partially offset by susceptibility to cyclicality in the end-user industries, and exposure to risks related to ongoing capital expenditure (capex) program. Analytical approach Crisil Ratings has combined the business and financial risk profiles of SSTL and its wholly owned subsidiary, Sambhv Tubes Ltd. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Established market presence backed by the extensive experience of the promoters: The group is promoted by Raipur- based Goyal family, who has experience of over three decades in the steel sector with expertise across integrated rolled/structural steel products industry. This has given the promoters an understanding of the dynamics of the market and enabled them to establish a strong market position. SSTL is one of the largest secondary-route integrated steel tubes manufactures of India, and has been able to sustain its strong growth momentum over the years, as reflected in a compound annual growth rate of 37% in revenue in the last three fiscals through 2026; to over Rs 2,400 crore. With the commissioning of the new value-added product lines and enhanced capacities in the third quarter of fiscal 2025, sales volumes increased by over 30% in fiscal 2026 from fiscal 2025; while higher blended realisations on account of improved product mix also aided revenue growth. Over the years, SSTL has gradually diversified beyond the traditional electric resistance welded (ERW) pipes into high-value stainless steel (SS) coils and pre-galvanised (GP) pipes and coils, reducing dependence on a single segment. With more than Rs 700 crore of topline and ~1.07 lakh tonne sales already registered in the first quarter of fiscal 2027, scale of operations is likely to grow 10-15% over the medium term. Integrated operations: SSTL operates a highly integrated manufacturing setup, reducing dependence on raw materials and enabling better control over costs, quality, and delivery timelines. The company also benefits from strategic plant locations in Chhattisgarh (close to iron ore and coal sources), resulting in lower logistics costs and efficient procurement. SSTL’s current ERW pipes capacity of 3.5 lakh tonne per annum (TPA) and SS coils capacity of 1.16 lakh TPA are mostly integrated, backed by upstream capacities of 4.5 lakh TPA, 3.6 lakh TPA and 2.8 lakh TPA for hot-rolled (HR) coils, blooms/slabs, and sponge iron, respectively. Captive power plant of 25 megawatt (MW) also supports operating efficiency by minimising the dependence on external power. With improving sales contribution from high-value SS products over the last few quarters, and declining intermediate product sales reflecting increased captive consumption and greater value addition; earnings before interest, tax, depreciation, and amortisation (Ebitda) per tonne also improved significantly from ~Rs 5,300 during fiscal 2025 to ~Rs 8,000 during fiscal 2026, and more than Rs 9,000 in the first quarter of fiscal 2027. Considering increasing contribution from SS file:///C:/Users/USER/Downloads/SambhvSteelTubesLimited_August 17_ 2026_RR_400992.html 1/8 17/08/2026, 18:33 Rating Rationale products and high levels of integration over the medium term, Ebitda per tonne is likely to remain healthy, strengthening the operating efficiency; with Ebitda margin of 12-13%. Healthy financial risk profile: The company’s balance sheet strengthened materially following the Rs 440 crore IPO in July 2025, with significant increase in networth and reduction in gearing. The group’s capital structure was healthy, yielding gearing of 0.4 time and total outside liabilities to adjusted networth ratio of 1 time as of March 2026 (1.1 times and 1.9 times, respectively, as of March 2025). With most of its existing term debt having been repaid, the company is contracting new term debt of ~Rs 815 crore over the medium term to fund its ongoing greenfield and brownfield capex projects. Nevertheless, healthy accretion to reserve and a strong tangible networth of over Rs 1,000 crore as of March 2026 should continue to support its capital structure. Key Rating Drivers - Weaknesses Susceptibility of operating margin to volatility in prices, and vulnerability to cyclicality in the end-user industries: Cost of production and profit margin remain susceptible to raw material prices such iron ore and coal, and to volatility of HR coil prices. This was last witnessed in the third quarter of fiscal 2026 when the company’s profitability was impacted, with decline in Ebitda per tonne to Rs 5,245 due to a sharp drop in HR coil prices and volatility in SS prices. Furthermore, performance is linked to the fortunes of the inherently cyclical steel industry, which has strong correlation with overall growth in gross domestic product as well as global demand-supply situation. Operating performance will remain susceptible to volatility in raw material prices, and offtake by key end-user sectors. However, strong integration levels of SSTL and its increasing product diversity will partially offset the impact over the medium term. Exposure to risks related to ongoing capex project: The group has incurred a large greenfield capex at Kesda, Chhattisgarh, with total capital outlay of Rs 935 crore to set up a 3.6 lakh TPA integrated SS manufacturing unit, aided by a 25-MW captive power plant. Along with this, SSTL is also expanding and modifying its existing pipes units and enhancing power capacities at an estimated capex of ~Rs 200 crore, to increase the ERW pipes capacity by 1.5 lakh TPA and increase the captive power plant capacity by 30 MW. While the entire debt of Rs 675 crore has been tied up for [Showing first 8,000 characters — download PDF for full document]