Credit Rating

TRIDENT/CS/2026 August 25, 2026 National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code: TRIDENT BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Scrip Code: 521064 Sub: Credit Rating of Trident Limited Dear Sir/Madam In terms of the Regulation 30 read with schedule III and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that Credit Rating(s) of Trident Limited have been reaffirmed by CRISIL Ratings Limited as under: Bank Loan Facilities: Total Bank Loan Facilities Rated INR 4000 Crore Long Term Rating CRISIL AA/Stable (Reaffirmed) Short Term Rating CRISIL A1+ (Reaffirmed) Commercial Paper: INR 150 Crore Commercial Paper CRISIL A1+ (Reaffirmed) A copy of the formal rating rationale issued by CRISIL Ratings Limited is enclosed herewith. The rating can be accessed on the website of the CRISIL at Rating Rationale and on the website of the Company at www.tridentindia.com under the category: Investor Relations → Financial Reports → Credit Ratings. Thanking you Yours faithfully, For Trident Limited (Sushil Sharma) Company Secretary ICSI Membership No. F6535 Encl: as above Disclaimer :- The details of the authorised signatories are uploaded on the official website of the Company. You may authenticate the authority of the signatory before relying upon the contents of this communication by visiting https://www.tridentindia.com/authority-matrix/ or may write to us on corp@tridentindia.com. 25/08/2026 TL/2026/074542 Rating Rationale August 25, 2026 | Mumbai Trident Limited Ratings reaffirmed at 'Crisil AA / Stable / Crisil A1+ ' Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.4000 Crore Instrument Long Term Rating Crisil AA/Stable (Reaffirmed) RBI Short Term Rating Crisil A1+ (Reaffirmed) RBI Rs.150 Crore Commercial Paper 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 reaffirmed its 'Crisil AA/Stable/Crisil A1+' ratings on the bank facilities and commercial paper programme of Trident Limited (Trident). The ratings continue to reflect the company’s strong business risk profile, supported by its established market position in the home textile industry, diversified revenue streams across yarn, terry towels, bed linen and paper segment, healthy operating efficiency, comfortable financial risk profile and strong liquidity position. The company demonstrated resilience during tariff-related disruptions in the US market in fiscal 2026 owing to its integrated operations, strong customer relationships and prudent financial management. Despite these headwinds, the company was able to limit the decline in revenue to ~4% on-year to Rs 6,712 crore (Rs 7000 crore in fiscal 2025) while maintaining stable profitability. Since the normalisation of tariff on US exports in March 2026, the volume across the textile segment is expected to increase in fiscal 2027. Same was visible in the first quarter of fiscal 2027 when the revenue grew 5% on-year to Rs 1,787 crore. For the full year, revenue is expected to grow by 7–8% in fiscal 2027, supported by combination of volume growth and improved realisation in the textile division and stable performance in the paper segment. The operating performance remained healthy despite low revenue in fiscal 2026 with operating margin staying stable at 13.1% in fiscal 2026 (13.2% in fiscal 2025), duly supported by business diversification, cost efficiency including renewable energy initiatives. The company has continued investing in premiumisation, innovation and higher-value product categories, which along with integrated manufacturing capability, provided a structural advantage during volatility. With improvement in realisation and large inventory benefit in the yarn segment, the operating margin improved to 17.3% in the first quarter of fiscal 2027. As the gross margin is to improve by 150–170 basis points (bps) for the full year, driven by high realisation in the textile segment, the overall operating margin is expected to improve to 15–16% in fiscal 2027. Networth increased further during the year through profit retention, and the management has indicated that future capital expenditure (capex) requirement is expected to remain moderate and largely funded through internal accrual. As earnings improve, leverage metrics are expected to strengthen further over the medium term. The financial risk profile remains strong, driven by comfortable capital structure. Despite an increase in debt to Rs 1,768 crore as on March 31, 2026 (Rs 1,571 crore as on March 31, 2025) due to working capital requirement and strategic investments, leverage remained comfortable with healthy gearing and debt protection metrics. Gearing and total outside liabilities to tangible networth (TOLTNW) ratio stood at 0.4 time and 0.7 time, respectively, as on March 31, 2026. Crisil Ratings adjusted debt/ Ebitda (earnings before interest, taxes, depreciation and amortisation) also remained low at 2 times in fiscal 2026. Gearing and TOLTNW ratio are expected to remain lower than 0.5 time and 0.8 time, respectively, and debt/Ebitda ratio is expected to remain below 1.5 times over the medium term amid heathy accrual, no major capex requirement and stable working capital cycle. Interest coverage ratio to remain healthy at above 7 times in the near term. Liquidity remains healthy. The company maintained substantial cash balance of Rs 793 crore as on March 31, 2026, adequate unutilised working capital limit and healthy banking relationships. Net cash accrual is expected to remain above Rs 600 crore (Rs 440 crore in fiscal 2026) and will remain sufficient to meet yearly debt obligation of Rs 140–200 crore and capex requirement of Rs 150–200 crore over the medium term. The company had unutilized fund based working capital limit of Rs 1,090 crore available, as on March 31, 2026. These strengths are partially offset by the company's exposure to the US market and susceptibility to changes in global trade policies and tariff, customer concentration among large retailers, volatility in cotton prices, foreign exchange (forex) rates and working capital-intensive operations. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of Trident and its wholly owned subsidiaries, Trident Europe Ltd, UK, Trident Global Inc, USA, Trident Group Enterprises PTE Ltd and THTL Trading LLC owing to business and financial linkages. In line with its analytical treatment, Crisil Ratings has reduced revaluation reserve by Rs 690 crore while computing adjusted networth and assets. The company has revalued its property, plant and equipment, and certain other assets as per Ind AS norms and created a revaluation reserve, which has been reduced from networth and assets. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Diversified operations with leading market position in the home textiles segment and established position in writing and printing paper (WPP) Trident has established position in India's integrated home textile manufacturers and benefits from a diversified product portfolio comprising yarn, terry towels, bed linen and paper products, supported by vertically integrated operations extending from yarn manufacturing to finished textile products. The diversified revenue mix has enabled the company to withstand cyclical volatility. In fiscal 2026, the company booked 53- 55% of revenue from bed and bath linen, 29–30% [Showing first 8,000 characters — download PDF for full document]