Credit Rating- Revision

IIMDO TECH August 17, 2026 Department of Corporate Services Listing Department Bombay Stock Exchange Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 532717 Symbol: INDOTECH Sub: Intimation of Reaffirmation of Credit Rating Dear Sir/ Madam, Pursuant to Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, we hereby submit the summary of reaffirmation of credit rating from India Ratings and Research (Ind-Ra) as tabulated below: Instrument Type Date of Issuance Coupon Rate Maturity Size of Rating Assigned Rating Action Date Issue Along with wi (million) Outlook/Watch IND BBB+/Positive Affirmed; Outlook Bank loan facilities - - - INR4,000 /IND A2 revised to Positive IND BBB+/Positive Bank loan facilities - - - INR1,200 Assigned /IND A2 The rating letter and rationale for reaffirmation has been annexed to this letter. The rationale for reaffirmation is also made available on Ind-Ra’s website. The link is mentioned below: i) https://www.indiaratings.co.in/pressrelease/84865 We request you to take the same on record. Yours faithfully, For Indo Tech Transformers Limited Karthick. D Compliance Officer INDO TECH TRANSFORMERS LIMITED ASubsidiaryof >hirdiSaiElectricalsLimited Tele/Fax:+91(0)44 27281858 CIN:L29113TN1992PLC022011 Email:info@indo-tech.com Regd.Off.:S.No.153-210,llluppapattuVillage,P.O.Rajakulam, Kancheepuram(Dist),Tamilnadu,India-631561 www.indo-tech.com IndiaRatings &Research AFilchGroupCompany India Ratings Revises Outlook onIndo tech Transformers’s Bank LoanFacilities to Positive; Affirms at ‘IND BBB+’;Rates Additional Limits Aug17,2026|IndotechTransformersLtd. | HeavyElectricalEquipment India Ratings and Research (Ind-Ra) has revised the Outlook on Indo tech Transformers Ltd.’s (ITL) bank loan facilitiestoPositivefromStablewhileaffirmingtheratingasfollows: Details ofInstruments Sizeof Instrument Regulatorof Dateof Coupon Maturity RatingAssignedalong Issue(INR RatingAction Description Instrument Issuance Rate(%) Date withWatch/Outlook million) Bankloan RBI 4,000 INDBBB+/Positive/IND Affirmed; facilities A2 Outlookrevised toPositive Bankloan RBI 1,200 INDBBB+/Positive/IND Assigned facilities A2 AnalyticalApproach India Ratings continues to take a standalone view of ITLto arrive at ratings.Currently, transactions between ITLand its parent, Shirdi Sai Electricals Limited (SSEL), remain limited, with only minimal exposure in the form of sales, job work transactions, and receivables. Any material increases in operational, financial, or funding-related transactions betweenITLandSSELovertheneartomediumtermwillremainakeyratingmonitorable. DetailedRationaleoftheRatingAction The Positive Outlook reflects a significant improvement in the company’s scale of operations, continued healthy EBITDAmarginsand comfortable creditmetrics in FY26.Ind-Ra expects the scaleof operations to further improve in thenearterm,supportedbytheexecutionofthe existingorderbookandplannedcapacityexpansion.Theratingsare supportedbythepromotors’overthreedecadesofexperienceinthetransformerindustry. ListofKeyRatingDrivers Strengths (cid:127) Strongoperatingandfinancialperformance;likelytosustaingrowthmomentum (cid:127) HealthyEBITDAmargins (cid:127) Comfortablecreditmetrics (cid:127) Experienceofpromotersandreputedclientele Weaknesses (cid:127) Volatilerawmaterialprices (cid:127) Workingcapitalintensivenatureofoperations DetailedDescriptionofKeyRatingDrivers Strong Operating and Financial Performance; Likely to Sustain Growth Momentum: ITL demonstrated strong operating performance in FY26,with its revenue increasing toINR7.731.80million (FY25:INR6,055.20million; FY24: INR4,983.08million), drivenbygrowth in sales volumes to10,919MVA(8,306 MVA) supportedbysustained demand for the company's transformer products. The increase in sales volumes was supported by the expansion of installed capacityto12,000MVAinFY26(FY23-FY25:9,684MVA).Consequently,itscapacity utilisationimprovedto92.5%in FY26 (FY25: 80.2%; FY24: 75.1%) reflecting efficient absorption of the augmented manufacturing capacity. The revenueexpandedataCAGRofabout28.1%overFY23-FY26. The company had an order book of INR11,228 million as on 30 June 2026, which the management expects to execute largely during FY27. The order book provides healthy near-term revenue visibility and translates into about 1.45x FY26 revenue. The EBITDA increased to INR1.291.16 million (FY25: INR846.28 million; FY24: INR683.41 million), supported by higher scale of operations. Exports contributed a marginal 0.12% (0.32%; 4.31%) of the revenue, with the balance generated from domestic customers. Ind-Ra expects ITL's scale of operations to improve overtheneartomediumterm,supportedbyexecutionoftheexistingorderbookandplannedcapacityexpansions. Healthy EBITDA Margins: ITL's EBITDA margin remained healthy at 16.70% in FY26 (FY25: 13.98%; FY24: 13.71%), primarily driven by better absorption of personnel and administrative expenses following higher scale of operations. The return on capital employed also strengthened to 37.2% in FY26 (FY25: 31.4%), reflecting improved operatingefficiency. The company’s profitability is likely to witness pressure, due to the current geopolitical conditions, elevated freight costs and volatility in raw material prices, particularly copper and cold rolled grain oriented (CRGO) steel. Ind-Ra expects the EBITDA margins to remain healthy over the near to medium term, supported by the company's predominantly variable-price contracts, which allow it to pass on a significant portion of input cost increases to customers,therebymitigatingtheimpactonprofitability. Comfortable CreditMetrics: ITL's gross interest coverage (operating EBITDA/ gross interest expense) increased to 11.70x in FY26 (FY25: 7.97x; FY24: 5.49x) and the net leverage (net debt/EBITDA) reduced to negative 0.57x (negative 0.48x; 0.22x), supported by the increase in its EBITDA coupled with increase in free cash balances to INR781.73million(INR710.77million;INR260.78million)andadecreaseindebtlevelstoINR51.95million(INR81.59 million;INR49.96million) The company incurredcapexof aboutINR340.55millioninFY26towardscapacity enhancementto 12,000 MVA.The capex wasfunded entirely throughinternal accruals.The management plans toincrease thecapacity by 13,000MVA by end-FY27 through a capex of INR680 million and further expand by 25,000 MVA by end-FY29 through an additionalinvestmentofaroundINR3,950millionoverFY27-FY29.The managementexpectsthe capex to be funded through a mix of internal accruals and debt. Despite the proposed debt-funded expansion, Ind-Ra expects the credit metrics to witness only a moderate moderation and remain comfortable, supported by the likely improvement in its operatingscaleandcashgeneration. Experience of Promoters and Reputed Clientele: ITL benefits from the experience of its promotors, SSEL, in the transformersindustryforoverthreedecades. N.VisweswaraReddy,whohasaroundthreedecadesofexperiencein the transformer industry, is the managing director of SSEL. The agency expects the company’s established industry presence and operationaltrack record to enhance customer engagement and support the acquisitionof fresh orders. ITLhas reputed clients such asTata Projects Limited (‘INDAA’/Stable),Avaada Energy Private Limited (debt rated at ‘IND A+’/Stable) , Flero Solar Energy Private Limited, JSW Neo Energy Limited, Tata Power Solar Limited, and BlupineEnergyPrivateLimited. Volatile Raw MaterialPrices:ITL's key raw materials, including cold rolled grain oriented (CRGO) steel and copper, are subject to price volatility.The companyoperatedunderamix of fixedprice and variable price contracts. In FY26, fixed price contracts accounted for 27% (FY25: 59%), with the balance being variable price contracts. Due to fluctuation in raw material prices, [Showing first 8,000 characters — download PDF for full document]