Updated External Credit Rating (ECR).

sy [Riba Textiles Limited A 7 (GOVT. RECOGNISED EXPORT HOUSE) 4 REGD. OFFICE: DD-14, NEHRU ENCLAVE, % /4 OPP. KALKAJI POST OFFICE, NEW DELHI-110019) // TELEPHONE :(011) 26236986 //////////' . FAX: (011) 26465227 CIN No : L18101DL1989PLC034528 Date: 21.08.2026 Corporate Relation Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai -400001 Scrip Code: 531952/Equity Dear Sir/Madam Sub: Submission of Updated External Credit Rating (ECR). Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company has received a communication from CARE Ratings Limited regarding the updated External Credit Rating (ECR). A copy of the updated ECR letter received from the credit rating agency is enclosed herewith for your information and record. Kindly take the same on your record. Thanking You, Yours Faithfully, For Riba Textiles Limited (Neha Dubey) Company Secretary & Compliance Officer Village Chidana, Tehsil Gohana, District Sonepat (Haryana) Postal Address : Kishore House Annexie, Assandh Road, Panipat-132103 (Haryana) INDIA Telephone : 0180-4002429, 4011987 USA Fax : 1 (734) 3196178 E-mail: riba@ribatextiles.com URL : www.ribatextiles.com Press Release care:-d ge RATINGS Riba Textiles Limited August 19, 2026 ies/Instruments ::;:Jelaotf;re Amount (¥ crore) o L reswanomson | canenan| Remmes t::iit'il':srm / Short Term Bank RBI 5.50 CAREC::g,Ai rfble / Assigned Long Term Bank Facilities RBI (Re ducezdsérsc())m 29.00) CARE BBB; Stable Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of the ratings assigned to the bank facilities of Riba Textiles Limited (RTL) factor in moderate working capital requirements of the company marked by average operating cycle of around ninety days. Ratings also derive strength from the long-standing experience of its promoters as reflected in its diversified and reputed client base. Ratings further take comfort from average financial risk profile of the company marked by comfortable capital structure and moderate debt coverage indicators along with an adequate liquidity position. Ratings strengths are however offset by the presence of the company in a highly competitive industry, thereby, limiting its bargaining power. Ratings are further constrained by the susceptibility of margins to foreign exchange fluctuations risk and the geographical concentration risk faced by the company. Rating sensitivities: Factors likely to lead to rating actions Positive factors « Increase in the scale of operations beyond Rs. 300 crores with Return on Capital Employed (ROCE) of around 13% on a sustained basis « Improvement in the capital structure of the company marked by Total Debt/ Profit Before Interest, Lease, Depreciation, and Tax (PBILDT) below 3.00x on a sustained basis Negative factors * Any significant unplanned capex deteriorating the capital structure of the company marked by an overall gearing of above 1.00x « Deterioration in the working capital cycle of the company due to increase in collection period beyond 70 days on sustained basis Analytical approach: Standalone Outlook: Stable CARE Ratings believes that the company shall continue to maintain its stable operational performance and expected to benefit from the long-standing experience of its promoters along with its reputed clientele. SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA; Pension Fund Regulatory and Development Authority “Complete definitions of the ratings assigned are avalable at www.careratings.com and in other CARE Ratings Limited’s publications. 1] CARE Ratings Ltd. Press Release carEEd ge RATINGS Detailed description of key rating drivers: Key strengths Established presence in export-oriented home textile segment with diversified customer profile RTL has an established track record in the manufacturing and export of terry towels, bathmats, bath robes and other home textile products. The company has developed long-standing relationships with several international retailers, wholesalers and distributors across geographies, enabling it to maintain a diversified customer base and repeat business. During FY26 (refers to April 01, 2025 to March 31, 2026), the top 10 customers accounted for approximately 34% of total operating income, indicating moderate customer concentration and reducing dependence on any single buyer. The company derives a significant proportion of its revenue from exports, with overseas sales accounting for around 89% of gross sales in FY26. While the United States continues to be an important market, its contribution reduced to around 20% of total sales in FY26 from around 29% in FY25, reflecting management’s efforts towards geographical diversification. The company has expanded its presence in markets such as Chile, Saudi Arabia, Brazil, UAE and Peru, partially mitigating concentration risks associated with any limited export destinations. Continued diversification of export markets and expansion of customer relationships remain important from a credit perspective. Stable operating profitability despite moderation in scale of operations RTL reported operating income of Rs. 255.38 crore in FY26 as against Rs. 295.86 crore in FY25 due to lower demand from certain key export markets. Despite the decline in revenue, the company maintained healthy operating profitability, with PBILDT improving marginally to Rs. 22.71 crore in FY26 from Rs. 22.68 crore in FY25. Consequently, PBILDT margin improved to 8.89% in FY26 from 7.67% in FY25. The stable profitability is supported by the company's established customer relationships, operational efficiencies and favourable raw material cost environment during the year. The company continues to operate an integrated manufacturing facility with installed capacity of 8,400 metric tonnes per annum for terry towels and related products, supporting operational flexibility and product diversification. Sustaining its profitability margins amidst fluctuating input costs remains a key monitorable. Moderate capital structure and moderate debt protection metrics RTL's financial risk profile remains comfortable, supported by steady accretion to reserves and moderate reliance on external debt. Tangible net worth improved to Rs. 106.02 crore as on March 31, 2026, from Rs. 97.90 crore a year earlier owing to retention of profits. The capital structure continued to remain comfortable with overall gearing of 0.72x as on March 31, 2026 (PY: 0.63x). Although total debt increased to Rs. 75.88 crore as on March 31, 2026, from Rs. 61.39 crore as on March 31, 2025, primarily on account of higher working capital borrowings and incremental term debt, the leverage indicators remained at comfortable levels. Debt coverage indicators were moderate with total debt to GCA and total debt to PBILDT of 4.98x and 3.34x respectively as on March 31, 2026. Interest coverage also remained satisfactory at 3.50x in FY26. The company's ability to maintain its comfortable capital structure while supporting future growth plans will remain a key rating monitorable. Moderate working capital intensity The company operates in a working capital-intensive industry due to inventory requirements and credit extended to overseas customers. Nevertheless, its working capital cycle has remained at moderate levels over the years. The operating cycle stood at 95 days as on March 31, 2026, as compared to 72 days as on March 31, 2025. The elongation in operating cycle was primarily on account of higher inventory holding period, which increased to 54 days in FY26 from 35 days in FY25, along with moderation in collection efficiency as reflected by average collection period of 60 days (FY25: 53 days). Despite the increase, the working capital cycle remains manageable and is supported by established rel [Showing first 8,000 characters — download PDF for full document]