Credit Rating

Ref: BCIL/SE/2026/58 August 21, 2026 To, To, The Secretary, The Manager, BSE Limited, Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited, Dalal Street, Exchange Plaza, C-1, G Block, Bandra-Kurla, Mumbai - 400 001 Complex, Bandra (East), Mumbai – 400 051 Scrip Code: 531719 Symbol: BHAGCHEM Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 – Intimation of Credit Rating of Wholly Owned Subsidiary Dear Sir / Madam, With reference to the captioned subject, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that India Ratings and Research (Ind-Ra), has assigned credit rating for the bank loan facilities availed by Bheema Fine Chemicals Private Limited, Wholly Owned Subsidiary of the Company as follows: Regulator Size of Issue Rating Assigned along Rating Instrument Description of Instrument (INR million) with Watch/Outlook Action Bank loan facilities RBI 6,000 IND BBB+/Stable/ Assigned IND A2+ The press release by India Ratings and Research (Ind-Ra) can be accessed from the following link: https://www.indiaratings.co.in/pressrelease/84914 The copy of the same is also available on the website of the Company at www.bhagirad.com Kindly take the same on record and display on the website of your exchange. Thanks & Regards, For Bhagiradha Chemicals and Industries Limited, Sharanya. M Company Secretary & Compliance Officer M. No: F13842 India Ratings Assigns Bheema Fine Chemicals's Bank Loan Facilities ‘IND BBB+’/Stable/’IND A2+’ Aug 20, 2026 | BHEEMA FINE CHEMICALS PRIVATE LIMITED | Pesticides & Agrochemicals India Ratings and Research (Ind-Ra) has rated Bheema Fine Chemicals Private Limited’s (BFCPL) bank loan facilities as follows: Details of Instruments Instrument Regulator of Date of Coupon Maturity Size of Issue Rating Assigned along Rating Description Instrument Issuance Rate (%) Date (INR million) with Watch/Outlook Action Bank loan RBI - - - 6,000 IND BBB+/Stable/IND A2+ Assigned facilities Analytical Approach Ind-Ra has taken a top-down rating approach to arrive at BFCPL’s ratings. The agency has taken a fully consolidated view of BFCPL and its parent, Bhagiradha Chemicals & Industries Limited (BCIL, debt rated at ‘IND BBB+'/Stable), given the strong legal, operational and strategic linkages between the entities. Detailed Rationale of the Rating Action The rating reflects BFCPL’s strong strategic, operational and financial linkages with its parent, BCIL, including the unconditional and irrevocable corporate guarantee (CG) provided by the latter to the former’s bank facilities. BFCPL is central to BCIL’s growth strategy, with the ongoing 9,000 metric tonnes per annum (mtpa) capacity expansion project to increase the group’s aggregate capacity to 12,250 mtpa. Ind-Ra expects BFCPL to contribute around 70% to the consolidated business upon the full commissioning of the project and strengthen backward integration, reduce dependence on imported raw materials, and enhance value addition. Ind-Ra expects a significant improvement in BCIL’s consolidated business profile over FY27-FY28, driven by the ramp-up of the recently commissioned Phase I capacity of 4,500 mtpa at BFCPL and improving demand conditions. The EBITDA margins are also likely to benefit from higher backward integration and increased value addition. The liquidity remains adequate, supported by sanctioned working capital facilities and the moratorium available on debt availed for the ongoing expansion project. The rating is, however, constrained by the elevated net leverage, due to the ongoing debt-funded capex programme; the working capital-intensive nature of operations; high product concentration; and regulatory risks inherent in the agrochemical industry. The timely completion and stabilisation of the remaining phase 2 capacity, along with the resultant improvement in the credit metrics will remain key rating monitorables. List of Key Rating Drivers Strengths Strong linkages with parent Revenues and margins to improve over FY27-FY28 Capex plans to increase scale of operations Credit metrics supported by equity infusion and phased capex execution Weaknesses Working capital-intensive nature of business High product concentration risk Regulated nature of industry Detailed Description of Key Rating Drivers Strong Linkages with Parent: Ind-Ra assesses the linkages between BFCPL and BCIL as strong, given BFCPL's strategic importance to the parent’s growth and integration plans. BFCPL is undertaking capex to add 9,000 mtpa at Yadgir, Karnataka, which would complement BCIL's existing 3,250 mtpa facility at Prakasam, Andhra Pradesh, and increase the total capacity to 12,250 mtpa. The capacity augmentation project has been undertaken through a separate legal entity, primarily for tax efficiency purpose. BFCPL’s facility is strategically important to BCIL’s growth plans, as the facility is likely to strengthen backward integration, reduce dependence on imported raw materials and enhance value addition, thereby supporting an improved margin profile. BFCPL's bank facilities carry an unconditional and irrevocable CG from BCIL, reflecting the parent's strong financial commitment and support to the subsidiary. Furthermore, upon full commissioning, BFCPL is likely to contribute around 70% to the consolidated business. The operational and managerial integration between the entities is also strong, with BFCPL’s board comprising BCIL directors and key management personnel, including BCIL’s managing director, S. Shekhar; and chief executive officer, Arvind Kumar. Consequently, Ind- Ra expects BCIL to continue to extend timely operational, managerial and financial support to BFCPL, as and when required. Revenues and Margins to Improve over FY27-FY28: BCIL’s consolidated revenue increased to INR1,950 million in 1QFY27 (FY26: INR5,359 million; FY25: INR4,405 million) and EBITDA improved to INR305 million (INR571 million; INR369 million), with EBITDA margins rising to 15.7% (10.7%; 8.4%), supported by volume growth, better realisations and improved product mix. Ind-Ra expects the consolidated revenue and absolute EBITDA to significantly improve over FY27-FY28, driven by the ramp-up of the Bheema facility. The company commissioned the first production line under Phase I in March 2024 and subsequently commissioned the multi-line production facility with an aggregate capacity of 4,500 mtpa in December 2025. Ind-Ra believes that while some stabilisation-related challenges may arise during the ramp-up phase, the incremental volumes from the new facility would drive a significant increase in operating scale over the medium term. Furthermore, improved demand conditions and lower channel inventories following moderation in Chinese dumping are likely to support utilisation ramp-up at the Bheema facility. Ind-Ra expects the company’s profitability to benefit from higher backward integration, lower dependence on imported raw materials and increased value addition. The timely stabilisation of the new facility and sustainability of the improved profitability profile, as reflected in the 1QFY27 performance, remain key rating monitorables. Capex Plans to Increase Scale of Operations: BCIL has undertaken a phased capacity expansion through its subsidiary, BFCPL, to augment its technical manufacturing capacity by 9,000 mtpa. The overall capex outlay is estimated at INR9,500 million, including the goods and services tax (GST), to be implemented over FY24-FY28, of which around INR6,000 million has been incurred by end-June 2026. BCIL plans to incur capex of around INR1,300 million in FY27 and INR2,250 million in FY28 toward the remaining Phase 2 expansion. To fund the capex, BCIL had issued share warrants worth INR3,410 million, the proceeds of which were received by FYE25. Additionally, the company intends to raise debt of INR4,600 million for the expansion, of [Showing first 8,000 characters — download PDF for full document]