Intimation for Credit Rating of the Company

SEDEMAC Innovative Controls August 17, 2026 To, To, BSE Limited, National Stock Exchange of India Limited, Corporate Relations Department, Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G block, Bandra Kurla Complex, Mumbai – 400001 Bandra (East), Mumbai – 400051 Scrip code: 544723 NSE Symbol: SEDEMAC Dear Sir/Madam, Sub: Intimation - India Ratings Upgrades Bank Loan Facilities to ‘IND A’/Stable Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. We hereby inform you that India Ratings & Research has upgraded and assigned the Company’s bank loan facilities rating as follows: Facilities Amounts Rating / Outlook Rating Action (INR Million) Long-term Rating Bank Loan Facilities 1,130.9 IND A/Stable/IND A1 Upgraded; Short-term Rating Affirmed Bank Loan Facilities 1,018.6 IND A/Stable/IND A1 Assigned Enclosed herewith is the press release issued by India Ratings & Research dated August 17, 2026. You are requested to kindly take note of the same. Thanking you, For SEDEMAC Mechatronics Limited (Formerly SEDEMAC Mechatronics Private Limited) Prasad Rajendra Chavan Company Secretary and Compliance Officer Membership No.: A49921 Encl: As above SEDEMAC Mechatronics Limited (Formerly SEDEMAC Mechatronics Private Limited) Registered Office, Technical Center & Corporate Office: Survey No. 270/1/A/2, Pallod Farms, Baner Road, Baner, Baner Gaon, Haveli, Pune - 411045, Maharashtra, India. Tel: +91 20 6715 7200 Mfg. Facility I: G-1, MIDC, Phase- III, Chakan Industrial Area, Nighoje, Pune 410501, MH, India. Tel: +91 2135 623 200 Mfg. Facility II: Survey No.64/5, Bhide Baug Industrial Estate, Wadgaon Budruk, Pune 411041, MH, India. Tel: +91 20 6750 2200 e-mail: cs@sedemac.com Website: www.sedemac.com CIN: L29253PN2007PLC246956 India Ratings Upgrades Sedemac Mechatronics’ Bank Loan Facilities to ‘IND A’/Stable; Rates Additional Limits Aug 17, 2026 | Sedemac Mechatronics Limited (Formerly Sedemac Mechatronics Private Limited) | Auto Components & Equipments India Ratings and Research (Ind-Ra) has upgraded Sedemac Mechatronics Limited’s (SML) bank loan facilities’ long-term rating to ‘IND A’ from ‘IND A-’ with a Stable Outlook, while affirming the short-term rating at ‘IND A1’. The detailed rating actions are as follows: Details of Instruments Regulator of Date of Coupon Size of Issue Rating Assigned along Instrument Type Rating Action Instrument Issuance Rate (INR million) with Outlook/Watch Bank loan RBI - - 1,130.9 IND A/Stable/IND A1 Long-term Rating facilities Upgraded; Short- term Rating Affirmed Bank loan RBI - - 1,018.6 IND A/Stable/IND A1 Assigned facilities Analytical Approach Ind-Ra continues to take a standalone view of SML to arrive at the ratings. Detailed Rationale of the Rating Action The rating upgrade reflects the sustained and continuous improvement in SML’s revenue and EBITDA over FY25-FY26, which is likely to continue in FY27 led by strong order flows from new and existing customers, new product launches, and innovative technology solutions. The upgrade also factors in the company’s strong credit metrics over FY25-FY26, which is likely to continue in the near to medium term led by healthy cash accruals, with limited reliance on debt for funding capex. The ratings, however, are constrained by product and customer concentration risk as well as technological obsolescence risk. List of Key Rating Drivers Strengths Strong business profile; innovative technology with patented products and limited competition Improvement in scale of operations with healthy order flows from existing and new customers FY26 EBITDA margin improved with strong ROCE; likely to sustain in near to medium term Sustained strong credit metrics Continuous capex supporting expansion plans Weaknesses Customer and product concentration risk Dependence on imported raw materials; forex risk Technology obsolescence risk Detailed Description of Key Rating Drivers Strong Business Profile; Innovative Technology with Patented Products and Limited Competition: SML manufactures sensor-less controllers for powertrain engines of two wheelers (2Ws) and three wheelers (3Ws) using a unique and patented technology. Its principal product, integrated starter generator (ISG), is a replacement of the traditional starter motor system used in 2Ws and uses a single compact fitting instead of multiple fittings used earlier. The company’s product portfolio also consists of controllers for electric fuel injections (EFI) used in both internal combustion engines (ICE) and gensets; it has expanded to a combination of ISG + EFI for ICE 2Ws/3Ws as a cost-effective solution. Furthermore, the company has launched motor control units (MCUs) for electric (e)-2Ws/3Ws. The company spends 7%-8% of its revenue on R&D, which supports innovative product launches. SML’s sensor-less technology has created a high demand for its products while maintaining healthy margins. SML is also gradually entering new product segments such as power tools and after treatment control module (ACM) controllers. The management believes these products could gradually become a major revenue source after launch. The company’s products face some competition from traditional motor controllers; however, SML has been able to successfully capture market for its products. Improvement in Scale of Operations with Healthy Order Flows from Existing and New Customers: SML derives most of its revenue by selling its principal products, which are used primarily in 2W and 3W ICE engines. The company’s revenue posted a CAGR of 35% over FY21-FY26 to INR10,584 million (FY25: INR6,584 million; FY24: INR5,307 million), mainly led by a 53% yoy increase in sales volume in FY26 for its core products (ISG and EFI) to 3.42 million units (2.23 million; 1.90 million) along with increased MCU volumes. Furthermore, SML’s revenue grew 43% yoy to INR3,098 million in 1QFY27 (1QFY26: INR2,174 million). The increase in sales volume was led by the widespread adaption of SML’s sensor-less ISG systems supported by the addition of ISG + EFI product category, ramp-up in MCU sales in the electric vehicle (EV) segment and launch of EFI controllers in the U.S. genset market. The company’s revenue surpassed the 2W/3W industry volume growth during FY25-FY26. Ind-Ra expects revenue growth to continue in the near to medium term with an uptick in rural demand leading to growth in the 2W segment, along with an increasing demand of SML’s products from the existing and new customers. The revenue growth would also be aided by demand for newly launched products for the e-2W and e-3W segments, as demand for EVs pick up in the medium term. FY26 EBITDA Margins Improved with Strong ROCE; Likely to Sustain in Near to Medium Term: SML’s margins improved sequentially to 20.5% in FY26 (FY25: 18.4%; FY24: 14.7%), led by increased volumes and scale coupled with lower raw material costs due to better pricing negotiations. The absolute EBITDA increased to INR2,169 million in FY26 (FY25: INR1,209 million; FY24: INR779 million) due to an improvement in product design, which resulted in lower raw material consumption and better absorption of overheads costs. The EBITDA margins moderated slightly to 19.1% 1QFY27 (1QFY26: 19.8%), led by some pressure on raw material prices; however, in absolute terms, the EBITDA increased to INR592 million (INR431 million). Ind-Ra expects the margins to remain at similar levels in the near to medium term, led by continued scale benefits. SML’s ROCE improved to 36% in FY26 (FY25: 24%, FY24: 17%) due to an increase in earnings led by the increasing scale. Ind-Ra expects the ROCE to sustain at similar levels in the near term; however, a slight moderation is likely due to large capex planned over FY27-FY28. Sustained Strong Credit Metrics: The company’s credit metrics improved significantly in FY26 with the gross interest coverage (operating EBITDA/gross interest expense) reaching 25.4x [Showing first 8,000 characters — download PDF for full document]