Credit Rating

August 18, 2026 National Stock Exchange of India Limited BSE Limited "Exchange Plaza" Phiroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra (East) Dalal Street Mumbai – 400051 Mumbai - 400001 Scrip Symbol: IRMENERGY Scrip Code: 544004 Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Credit Rating Dear Sir/Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that Crisil Rating Limited has reaffirmed the credit rating on the bank facilities of the Company. In this regard, please find below the rating outlook for bank facilities of the Company, and the rating action by CRISIL: Total Bank Loan Facilities Rated Rs. 700 Crores Long Term Rating Crisil AA-/Stable (Outlook revised from 'Negative' to ‘Stable’; Rating Reaffirmed) Short Term Rating Crisil A1+ (Reaffirmed) The rating rationale issued by CRISIL Ratings Limited dated August 17, 2026 is enclosed herewith as Annexure-1. Request to kindly take the above information on record. Thanking you, Yours sincerely, For, IRM Energy Limited Akshit Soni Company Secretary & Compliance Office 8/18/26, 10:15 AM Rating Rationale Rating Rationale August 17, 2026 | Mumbai IRM Energy Limited Rating outlook revised to 'Stable'; Ratings Reaffirmed Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.700 Crore Instrument Crisil AA-/Stable (Outlook revised from 'Negative'; Long Term Rating RBI Rating Reaffirmed) Short Term Rating Crisil A1+ (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 revised its outlook on the long-term bank facilities of IRM Energy Limited (IRM Energy) to ‘Stable’ from ‘Negative’ and reaffirmed the rating at ‘Crisil AA-’; the short-term rating has been reaffirmed at ‘Crisil A1+’. The outlook revision reflects the expected sustenance of improvement in the operating performance during fiscal 2026 and in the first quarter of fiscal 2027, driven by better demand and realisation from both mature and newly-awarded geographical areas (GAs) as well as improvement in the operating profitability. The revision also factors continued strong financial risk profile, which is expected to remain robust over the medium term despite capital expenditure (capex) plans. During fiscal 2026, the company reported volume growth of 8% on-year, supported by robust growth of 21% each in the compressed natural gas (CNG) and piped natural gas domestic (PNG-D) segments, compared with 11% and 23%, respectively, in fiscal 2025. Additionally, the company demonstrated an improved ability to pass on higher gas costs to customers. This, with increase in contracted supply led to improvement in earnings before interest, taxes, depreciation and amortisation (Ebitda) from Rs 4.6 per standard cubic meter (SCM) in fiscal 2025 to Rs 5.0 per SCM in fiscal 2026 and further to Rs 10.5 per SCM in the first quarter of fiscal 2027. The company continues to incur growth capex in its GAs, primarily in Namakkal and Tiruchirappalli, to expand its distribution network and customer base. These investments are expected to support future volume growth of the company. Additionally, the company has also increased the contracted gas supplies to meet the future requirements. Overall, Crisil Ratings expects volume to grow at early double digits and the Ebitda to remain around Rs 6 per SCM over the medium term. However, the company's ability to absorb fixed costs in the new GAs, given its high fixed cost during initial years as well as competitiveness of CNG vis-à-vis alternative fuels, may impact demand growth and operating margin and hence, will remain monitorable. The financial risk profile and liquidity position of the company remains strong, with net cash position (total cash and equivalents less total debt) of ~Rs 205 crore as on June 30, 2026. Net debt to Ebitda ratio is likely to remain below 0.5-1 time over the medium term despite annual capex plans of Rs 200–250 crore. However, higher-than-expected leverage will be monitorable. The ratings continue to factor in the robust business model having a monopoly in the supply of CNG and PNG in the authorised GAs — Banaskantha and the Fatehgarh Sahib GAs awarded in the sixth round of bidding, the Diu and Gir- Somnath GA awarded in the ninth round, and the Namakkal & Tiruchirappalli GA awarded in the eleventh round. These strengths are partially offset by exposure to risk related to under-achievement of minimum works programme (MWP) targets in Diu and Gir-Somnath and Namakkal & Tiruchirappalli, project-related risks and input risks related to availability of gas as well as volatility in prices. Analytical approach Crisil Ratings has analysed the consolidated business and financial risk profiles of IRM Energy. The joint ventures and associate have been moderately consolidated to the extent of any financial support required from the company. Please refer to Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key rating drivers - Strengths Monopoly in CNG and PNG supply in the awarded GAs The company is the sole distributor of CNG and PNG in the authorised GAs. While marketing exclusivity rights for the Banaskantha GA and the Fatehgarh Sahib GA is over, the company has marketing exclusivity rights till September 2028 for https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/IRMEnergyLimited_August 17_ 2026_RR_402822.html 1/8 8/18/26, 10:15 AM Rating Rationale Diu and Gir-Somnath GA; and till March 2030 for Namakkal and Tiruchirappalli GA. IRM Energy has also been granted network exclusivity rights of 25 years in all the GAs for infrastructure creation, including laying down of pipelines and CNG distribution outlets, thus providing sufficient revenue visibility for the long term. The city gas distribution (CGD) players enjoy monopoly in gas distribution in their respective GAs even after the end of market exclusivity rights since the network exclusivity provides them competitive edge over any new player who would need to depend on the pipeline network of incumbent for distribution or transportation of gas. Demand in the mature GA Banaskantha is expected to remain strong, led by sustained growth in the CNG segment. While piped natural gas industrial (PNG-I) demand in the Fatehgarh Sahib GA continues to be subdued following the relaxation of the National Green Tribunal's (NGT) ban on polluting fuels such as coal, the impact is expected to be partly offset by the ramp-up of volumes from the newly-awarded Diu and Gir-Somnath and Namakkal and Tiruchirappalli GA, supported by ongoing capex and network expansion initiatives. Further, as per latest NGT order dated February 25, 2026, NGT has directed the State of Punjab to ensure the shift of Industries from Coal to PNG. Going forward, adherence to this may lead to increase in PNG-I volumes in Fatehgarh Sahib GA. Strong financials and debt protections metrics The financial risk profile and liquidity position of the company remains strong, with net cash position (total cash and equivalents less total debt) of ~Rs 205 crore as on June 30, 2026. Even with annual capex plan of Rs 200–250 crore, the ratio of net debt to Ebitda is expected to stay below 0.5-1 time over the medium term. Similarly, adjusted interest coverage ratio remains strong at 7.6 times during fiscal 2026 (4.4 times during fiscal 2025) and is expected to remain above 8 times over the medium term. Key rating drivers - Weaknesses Exposure to project-related risks; mitigated by strong financial risk p [Showing first 8,000 characters — download PDF for full document]