Credit Rating

Dated : 07th July’2026 The Na(cid:20)onal Stock Exchange of India Limited The BSE Limited Exchange Plaza, C-1, Block-G PhirozeJeejeebhoy Towers BandraKurla Complex, Dalal Street, Fort Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Subject: In(cid:12)ma(cid:12)on of Credit Ra(cid:12)ng for Bank Facili(cid:12)es under the SEBI (Lis(cid:12)ng Obliga(cid:12)ons and Disclosure Requirements), Regula(cid:12)ons 2015 CARE REAFFIRMS GLOBUS SPIRITS LIMITED RATING WITH LONG TERM AS A+ (STABLE) & SHORT TERM AT A1+ Dear Sir Pursuant to Regula(cid:20)on 30 of the Securi(cid:20)es and Exchange Board of India (Lis(cid:20)ng Obliga(cid:20)ons and Disclosure Requirements) Regula(cid:20)ons, 2015, this is to inform you that CARE Ra(cid:20)ngs Limited have assigned the following ra(cid:20)ngs to our various bank facili(cid:20)es Facili(cid:12)es Ra(cid:12)ng Ra(cid:12)ng Ac(cid:12)on Long Term Bank Facili(cid:20)es CARE A+ ; Stable Reaffirmed Short Term Bank Facilites CARE A1+ Reaffirmed Kindly take the same on record. Thanking You Yours faithfully for Globus Spirits Ltd. Santosh Kumar Pa7anayak Company Secretary ACS-18721 Press Release Globus Spirits Limited July 06, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action 628.25 Long-term bank facilities CARE A+; Stable Reaffirmed (Reduced from 744.78) Long-term / Short-term bank facilities 55.00 CARE A+; Stable / CARE A1+ Reaffirmed Short-term bank facilities 30.00 CARE A1+ 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 assigned to bank facilities of Globus Spirits Limited (GSL) continues to derive strength from its experienced promoter and management team, and its significant presence in the bulk alcohol and Regular and Others (R&O) segment. Ratings consider improvement in capacity utilisation (CU) of bulk alcohol in FY26, due to higher ethanol production amid softening of raw material prices post Government of India (GOI) allowing Food Corporation of India (FCI) to sell surplus rice for ethanol production in January 2025. Ratings also draw comfort from improved financial performance in FY26 (refers to April 01 to March 31) driven by improved operational performance as mentioned earlier, price hike of 4.35% taken in April 2025 in Rajasthan, higher realisation of distiller’s dried grains with solubles (DDGS) and increase in scale of operations of Prestige and Above (P&A) segment driven by higher sales volume. CARE Ratings Limited (CareEdge Ratings) takes note of completion of ongoing capex of extra neutral alcohol (ENA) distillation plant in Uttar Pradesh (UP) with commencement of production in Q4FY26. Ratings also take into consideration improvement in capital structure and debt coverage indicators in FY26, owing to accretion of profits to reserve and reduction in debt levels (majorly working capital borrowings), considering the lower raw material cost. CareEdge Ratings expects GSL’s scale of operations and profitability to improve further with another price hike of 5% approved for Rajasthan market from April 01, 2026, full impact of commencement of production and sales from UP plant in FY27, higher allocation received for sale of country liquor in Delhi market in FY27 and further scaling up of P&A segment. Ratings are constrained by continuous losses reported in P&A segment, despite significant loss reduction witnessed in FY25 and FY26. Ratings are also tempered by input price volatility with limited pricing power and by highly regulated nature of alcohol industry. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Improvement in net debt to profit before interest, lease rentals, depreciation, and taxation (PBILDT) below 1.50x. Negative factors • Deterioration in net debt to PBILDT above 3x. • Adverse regulatory changes having significant impact on GSL. Analytical approach: Standalone Outlook: Stable ‘Stable’ outlook assigned to the long-term rating is based on promoters’ long experience in the alcohol industry and the company’s significant presence in bulk alcohol and R&O segment. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Detailed description of key rating drivers: Key strengths Experienced promoter and management team The main promoter and IIM-Kolkata alumni, Ajay Kumar Swarup (Managing Director of GSL), has over two decades of experience in the alcohol and distillery industry. He is ably assisted by a group of experienced personnel having wide experience in the alcohol industry. Significant presence in bulk alcohol and R&O segment GSL’s business is divided into two segments namely manufacturing and consumer segment. Manufacturing segment comprises production and sale of ENA, ethanol and bottling. Consumer segment is further divided into R&O and P&A categories. R&O consists of country liquor while P&A consists of Indian-made foreign liquor (IMFL) under own and other brands. Bulk alcohol and R&O segment contributed ~94% of the company’s revenue in FY26 (PY: 95%). The bulk alcohol segment contributed maximum revenue to the turnover of GSL of ~61% in FY26 (PY: ~61%), followed by the R&O segment, which contributed ~33% in FY26 (PY: ~33%). Revenue from bulk alcohol increased by ~7% y-o-y in FY26 to ~₹1,644 crore, considering an increase in sales volume of ENA/ethanol by ~6% in FY26, and increase in average sales realisation of DDGS by ~26%. Revenue from R&O segment improved by ~3% to ~₹900 crore in FY26, considering an increase in average sales realisation by ~4% amid stable sales volume. For the R&O segment, the company is majorly present in five states, including Rajasthan, Haryana, Delhi, UP, and West Bengal. Revenue from R&O segment is expected to improve further with another price hike received for Rajasthan market, full year impact of commencement of production and sales at UP plant coming in FY27, and higher allocation received for sale of country liquor in Delhi in FY27. Experience in bottling high-quality IMFL and supplying ENA to large IMFL players Apart from foraying into the IMFL market of its own, GSL manufactures IMFL brands for United Spirits Limited (USL) in its Haryana and Bengal plants, and supplies ENA to large IMFL players, such as Allied Blenders and Distilleries Limited, USL, Pernod Ricard, Radico Khaitan Limited, and Beam. The company has a franchise bottling agreement with USL for the bottling of USL brands in Haryana and West Bengal. GSL also does franchise bottling for Bacardi brands from its plant in West Bengal. Since the liquor industry is regulated by the government in terms of distribution, bottling contracts for the franchise is of strategic importance. Improvement in capacity utilisation in FY26 Bulk alcohol’s CU improved from 74% in FY25 to 80% in FY26, despite increase in capacity (owing to commencement of production of ENA at UP plant in Q4FY26). The improvement is due to higher production of ethanol due to softening of raw material prices post GOI, allowing FCI to sell surplus rice for ethanol production from February 2025 onwards. Improvement in financial performance in FY26 In FY26, GSL reported total operating income (TOI) of ~₹2703 crore registering a y-o-y growth of ~6% in FY25 (₹2,542 crore), considering increase in revenue from consumer segment (comprising R&O and P&A segments) by ~6% and increase in revenue of manufacturing segment by ~4%. Revenue from R&O segment improved by ~3% to ~₹900 crore in FY26, considering an increase in average sales realisation by ~4% due to price hike of 4.35% taken in April 2025 in Rajasthan (its largest market for R&O segment). Revenue from P&A improved significantly by ~27% to ₹164 crore in FY26 (PY: ₹129 crore), considering increa [Showing first 8,000 characters — download PDF for full document]