Credit Rating- Revision

25th August 2026 Listing Department Dept. of Corporate Service National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex P. J. Towers, Dalal Street Bandra (East), Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: RENUKA BSE Scrip Code: 532670 Sub: Credit Rating intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January 2026, we would like to inform you that India Ratings and Research (“Ind-Ra”) has downgraded the credit ratings assigned to the Company’s bank facilities and Non-Convertible Debentures (“NCDs”). The revised ratings now stand as follows: Instrument Type C urrent Rating P revious Rating Non-convertible debentures IND A- /Negative INDA/Negative Bank loan facilities IND A- /Negative / IND A2+ INDA/Negative/ IND A1 The Credit Rating Letter for NCD & Bank loan issued by India Ratings and Research with the necessary details is enclosed herewith. You are requested to kindly take the above information on record. Thanking you, Yours faithfully, For Shree Renuka Sugars Limited Deepak Manerikar Company Secretary Shree Renuka Sugars Limited Corporate Office: 7th Floor • Devchand House • Shiv Sagar Estate • Dr. Annie Besant Road • Worli Mumbai 400 018 • Maharashtra • India P +91 22 2497 7744/4001 1400 F +91 22 2497 7747 E info@renukasugars.com Registered Office: 2nd / 3rd Floor, Kanakshree Arcade, CTS No. 10634, JNMC Road, Nehru Nagar, Po: Belagavi- 590 010 • Karnataka • India P +91 831 2404000 F +91 831 2404961 W www.renukasugars.com • Corporate Identification No.: L01542KA1995PLC019046 India Ratings Downgrades Shree Renuka Sugars' NCDs and Bank Loan Facilities to ‘IND A-'/Negative Aug 24, 2026 | Shree Renuka Sugars Limited | Sugar India Ratings and Research (Ind-Ra) has downgraded the rating on Shree Renuka Sugars Limited’s (SRSL) non- convertible debentures (NCDs) and long-term bank loan facilities to ‘IND A-' from ‘IND A’ with a Negative Outlook, and that on its short-term bank loan facilities to ‘IND A2+’ from ‘IND A1’, as follows: Details of Instruments Size of Rating Instrument Regulator of Date of Coupon Maturity Issue Rating Assigned with Type Instrument Issuance Rate Date (INR Action Outlook/Watch million) 4,532 Non-convertible Refer ISIN (reduced - - - IND A-/Negative Downgraded debentures* annexure from 4,558) Bank loan RBI - - - 27,596 A-/Negative/IND Downgraded facilities# # The rated amount has increased to INR27,596 million from INR26,496 million due to rupee depreciation (INR equivalent of the USD50 million funding from Standard Chartered Bank based on an exchange rate of INR95/USD). Analytical Approach Ind-Ra continues to factor in SRSL’s strong operational, strategic and legal linkages with its ultimate parent, Wilmar International Limited (Wilmar), and the continued strong support it receives from the latter, to arrive at the ratings. Furthermore, Ind-Ra continues to take consolidated view of SRSL and its subsidiaries to arrive at the ratings, owing to the operating and strategic linkages between them. Detailed Rationale of the Rating Action The downgrade and the Negative Outlook reflect SRSL’s weaker-than-expected performance in FY26 and the likelihood of it continuing in FY27. After EBITDA losses in 1HFY26, SRSL’s EBITDA recovered to INR2.7 billion in 3QFY26, backed by an improvement in refining spreads. However, against Ind-Ra’s expectation of a sustained improvement, SRSL’s EBITDA fell to around INR1 billion in 4QFY26, resulting in a sharp yoy fall in FY26 to INR1.3 billion (FY25: INR6.4 billion; FY24: INR7 billion). Also, SRSL reported an EBITDA loss in 1QFY27. The losses during 4QFY26-1QFY27 are attributed to higher input costs (energy and logistics), moderate impact of supply chain disruptions on volumes, mark-to-market losses on commodity hedges in the refining business, and seasonality in the domestic business. Refining spreads improved during June-July 2026, which is likely to help recoup a large part of the mark-to-market losses booked in 1QFY27. However, Ind-Ra believes that the elevated cost levels will keep SRSL’s EBITDA for FY27 below its earlier expectations. SRSL’s domestic business is likely to be supported by rising sugar prices (August first week: INR47/kg, April: INR41/kg), given India’s sugar stock at end-sugar season 2026 (October-September) is likely to fall to the lowest level in almost a decade. Strong sugar prices are likely to mitigate the impact of higher sugarcane costs and unchanged ethanol prices on SRSL’s domestic business EBITDA. While SRSL’s distillery business’s EBITDA increased in FY26, policy measures with respect to sugar diversion towards ethanol in the 2026-27 season (given the low sugar inventory) will be a key monitorable. SRSL’s net external debt rose to INR56.9 billion at FYE26 (FYE25: INR45.2 billion) as cash flows reduced, due to a combination of the fall in EBITDA and an increase in the net working capital, as the company reduced its reliance on Wilmar payables to fund inventory. While the decline in the ratio of inventory funding through payables has been sharper than Ind-Ra’s expectations, the agency understands from the management that Wilmar will continue to provide support to SRSL as and when needed. Furthermore, while the creditors are interest-bearing, the management has stated that continued flexibility is available to SRSL to service Wilmar’s interest obligations as needed. Ind-Ra believes SRSL’s ability to improve its EBITDA levels over FY27-FY28 while gradually reducing its external debt would be critical to improve the credit metrics, and progress on the same is a key rating monitorable. Despite the weakening of credit metrics, SRSL’s liquidity position is likely to remain adequate over the near term., supported by Wilmar. Wilmar has sufficient unused working capital lines (largely carved out of the respective lender’s global exposure to Wilmar). Moreover, Wilmar has stated its commitment to provide timely support to SRSL as and when required, which is a critical component of the overall liquidity assessment. The ratings continue to reflect SRSL’s strong linkages with Wilmar and the latter’s comfortable business profile, supported by its large scale and integrated facilities. List of Key Rating Drivers Strengths Strong linkages with parent with continued tangible support Leading sugar producer with strong presence in branded sugar Firm sugar Prices to aid EBITDA recovery Higher ethanol allocation to drive segment's revenue in 1HFY27, ESY27 performance contingent on government's policy Weaknesses Weaker-than-expected EBITDA owing to weak refinery performance Elevated debt to keep credit metrics weak; improvement contingent on EBITDA growth Susceptibility to currency fluctuations; high working capital intensity Detailed Description of Key Rating Drivers Strong Linkages with Parent with Continued Tangible Support: SRSL is a step-down subsidiary of Wilmar (through Wilmar Sugar and Energy Pte. Ltd). With a 62.5% shareholding, Wilmar has full management control over SRSL, with the latter’s board including Wilmar’s chairman, group chief financial officer, and its group sugar head. The operational ties between the entities are driven by the fact that SRSL accounts for around 20% of Wilmar’s total sugar capacity, is the second-largest sugar entity in the group, and a key player in the group’s overall refined sugar exports business. SRSL procures a major portion of its raw sugar requirement for the refining business from Wilmar at competitive prices and credit terms. The strategic linkages between the entities are also strengthened by Wilmar remaining focused on the sugar sector, with a view to widen its consumer product portfolio and increase its wallet share in populated markets such as Indi [Showing first 8,000 characters — download PDF for full document]