Credit Rating

Ref: BWRL/2025-26/SE/ Misc./10 07th July, 2026 National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 051. Mumbai – 400 001. NSE Symbol: BHARATWIRE BSE Scrip Code: 539799 Dear Sir/Ma’am, Subject: Intimation under Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 -Credit Rating. Pursuant to Regulation 30 and other applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), it is hereby informed that the CARE Ratings Limited (“Credit Rating agency”) has Reaffirmed the rating on 06th July, 2026, for the bank credit facilities of Bharat Wire Ropes Limited (“the Company”) as under- Facilities Amount (in Rating Rating Action crore) Long term Bank 98.00 CARE BBB+; Stable Reaffirmed Facilities (Reduced from 125.11) Short term Bank 25.00 CARE A3+ Reaffirmed Facilities Kindly take the note of the same. Thanking you, Yours Faithfully For Bharat Wire Ropes Limited Govinda Soni Company Secretary and Compliance Officer Press Release Bharat Wire Ropes Limited July 06, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action 98.00 Long-term bank facilities CARE BBB+; Stable Reaffirmed (Reduced from 125.11) Short-term bank facilities 25.00 CARE A3+ Reaffirmed Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-6. Rationale and key rating drivers Reaffirmation of ratings reflects adequate operational and financial performances of Bharat Wire Ropes Limited (BWRL) in FY26 (refers to April 01 to March 31), despite revenue being impacted by West Asia conflict, as reflected in ~5% year-over-year (y-o- y) decline in revenue to ~₹591 crore in FY26, and CARE Ratings Limited’s (CareEdge Ratings’) expectations of sustained performance in the coming years aided by improving capacity utilisation and expanding distribution network. While revenue growth remained flat, BWRL’s adjusted profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin (adjusting for subsidy income) remained steady at 15.5% in FY26, aided by debottlenecking capex undertaken recently and improving product mix towards high-value products. While CareEdge Ratings expects BWRL’s Q1 FY27 performance to remain impacted by geopolitical headwinds in the form of disruption in demand from the Middle East, which accounts for 10-15% of overall revenue, and transient impact of the significant rise in liquified natural gas (LNG) prices during the quarter, this is likely to normalise with BWRL expected to report revenue growth of 15-20% per annum (p.a.) in the next 1-2 years and sustained profitability. Ratings also consider the Maharashtra Package Scheme of Incentives (PSI) subsidy through refund of state GST, which provides additional liquidity support. While reaffirming ratings, CareEdge Ratings notes the receipt of a plant shutdown notice on June 10, 2026, from the Maharashtra Pollution Control Board (MPCB) citing lapses in environmental compliance, which led to shutdown of operations in the company’s Chalisgaon plant for around a week. However, the plant resumed full operations on June 18, 2026. While the plant shutdown impacted the output, the impact is unlikely to be material as the company had sufficient inventory to meet committed deliveries. No financial penalties have been levied on the company. Despite this, the impact of the plant shutdown and further regulatory actions will continue to be monitored. Ratings continue to factor in BWRL’s adequate capital structure reflected by overall gearing and total outside liabilities to tangible net worth (TOL/TNW)of 0.09x and 0.14x, respectively, as on March 31, 2026 (PY: 0.18x and 0.24x, respectively) aided by steady accretion of profits and mandatory pre-payment of term debt from subsidy received, per terms of the approved resolution plan (RP). Ratings remain supported by BWRL’s comfortable debt coverage indicators with adjusted PBILDT interest coverage and total debt (TD)/adjusted PBILDT at 7.65x and 0.89x, respectively, in FY26. Ratings continue to derive strength from reputed and established customer base, and experience of promoters. However, risks emanating from uncertain global demand outlook and evolving global geopolitical scenario remain monitorable. Ratings also remain constrained by working capital intensive operations, susceptibility to raw material price volatility, and foreign exchange fluctuation risks, and sizeable pledge of promoter shareholding in the company (per terms of the approved RP), which limit the company’s financial flexibility. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Increase in scale of operations above ₹800 crore (excluding subsidy) led by healthy volume growth. • Sustenance of profitability and working capital cycle, translating into comfortable liquidity position while maintaining healthy capital structure and debt coverage metrics. Negative factors • Deteriorating scale of operations below ₹500 crore (excluding subsidy), profitability and/or working capital cycle, leading to pressure on credit metrics on a sustained basis. • Higher-than-anticipated debt-funded capex/acquisition impacting capital structure. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release • Deterioration in PBILDT interest cover below 5x on a sustained basis. Analytical approach: Standalone Outlook: Stable Stable outlook reflects CareEdge Ratings’ expectations that BWRL will sustain its improving financial performance in the coming quarters, aided by its established customer base and experienced management. Detailed description of key rating drivers: Key strengths Experienced promoters, supported by professional management Murarilal Mittal is the key promoter and Managing Director of BWRL, with over four decades of overall corporate experience. Prior to acquiring BWRL, he was associated with large corporates for almost 23 years, in several positions, such as Executive Director on the board of several companies. His son, Mayank Mittal, is the Joint Managing Director of the company. He has a decade of overall industry experience and is involved in all strategic decisions of the company. Promoters are well-supported by diverse board of directors and professional management across all levels. Sustained scale of operations and profitability; likely to sustain in the medium term BWRL’s scale of operations remained steady at ₹590.54 crore in FY26 (PY: ₹619 crore), with impact of marginal decline in overall sales volume mitigated to an extent by stable average realisation, considering high value-added products. The overall sales volume was impacted in FY26, due to muted demand from the Middle East, which accounts for 15-20% of overall revenue, owing to the ongoing geopolitical conflict. Its adjusted PBILDT per tonne (excluding subsidy income) stood healthy at ₹20,448/MT in FY26, up 6% y-o-y, with adjusted PBILDT margin sustaining at 15%. BWRL is expected to sustain its performance with expectations of improvement in global demand and widening of distribution network. The installation of balancing machinery from FY25-FY26 towards debottlenecking is anticipated to improve capacity utilisation, driving revenue growth in forthcoming quarters. While BWRL’s performance in Q1 FY27 could remain impacted by demand disruptions from the Middle East, loss of production due to plant shutdown, and steep rise in LNG prices impacting margins, the performance in likely to improve in the coming quarters. Comfortable capital structure and debt coverage metrics aided by subsidy receivables [Showing first 8,000 characters — download PDF for full document]