Intimation on revision in Credit rating as per Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

® INDO BORAX & CHEMICALS LTD. Regd. Office : 506, 5th Floor, Tulsiani Chambers, Free Press Journal Marg, Nariman Point, Mumbai - 400021, India. Ph.: 022 35218591 @ CIN : L24100MH1980PLC023177 Email : info@indoborax.com @ Website : www.indoborax.com Date: August 31, 2026 Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C/1, G Block, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 524342 Scrip Symbol: INDOBORAX Sub: Intimation of Revision in Credit Rating under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, (“Listing Regulations”), we wish to inform you that India Ratings and Research Private Limited (“India Ratings”) has revised the credit rating assigned to the bank facilities of the Company. The details of the revision are as follows: [ Instrument type Previous Rating Revised Rating ’ Bank Loan Facilities IND BBB+/Stable/IND A2+ IND BBB+/Rating Watch | with Negative Implications/IND A2+/Rating Watch with Negative Implications The same is also available on the website of the Company at www.indoborax.com A copy of the Credit Rating letter including all requisite details is enclosed herewith. You are requested to kindly take the same on record. Yours sincerely, For Indo Borax & Chemicals Limited PRAVIN Fr—— PRABHAKAR SHfigiiitass CHAVAN G2 250831 1430530 Pravin Chavan Company Secretary & Compliance Officer Membership No.: A16857 Encl.: As above IndiaRatings &R earch India Ratings Places Indo Borax’s Bank Loan Facilities on Rating Watch with Negative Implications Aug 31, 2026 | Indo borax & chemicals Limited | Specialty Chemicals India Ratings and Research (Ind-Ra) has placed Indo Borax & Chemicals limited (IBCL) bank loan facilities on Rating Watch with Negative Implications as follows: Details of Instruments ize of Rating Assi Instrument Regulator of Date of Coupon Maturity Is:LZ:(TNR almgw"shslgned Rating Type Instrument Issuance Rate Date million) Outlook/Watch Action BBB+/Rating Watch with Placed on Negative Rating Bank loan facilities RBI - - - 600 Implications/IND | Watch with A2+/Rating Negative Watch with Implications Negative Implications Analytical Approach Ind-Ra continues to take a standalone view of IBCL for arriving at the ratings. Detailed Rationale of the Rating Action Ind-Ra has placed the ratings on Rating Watch with Negative Implications following the announcement of IBCL'’s acquisition of Kronox Lab Science Limited's (KLSL) 64.26% promoter shareholding, which is likely to be completed by 29 September 2026. As per the public announcement made on 20 August 2026, IBCL has entered into a share purchase agreement with the promoters of KLSL, under which, IBCL is likely to acquire 2,38,44,000 equity shares (INR10 face value each) for an aggregate consideration of INR2,461.2 million. Furthermore, IBCL's board has approved an open offer along with Zenrock Chemicals Private Limited (ZCPL; parent of IBCL) for acquisition of up to 95,70,000 equity shares of KLSL, representing a 25.79% stake. Post-transaction, the erstwhile promoters of KLSL will continue to hold a 9.95% stake and provide transition support post the acquisition. The management plans to acquire promoter stake with a borrowing of around INR2,250 million, for which the sanction is yet to be availed. Nevertheless, the transaction completion is subject to receipt of the requisite regulatory approvals. Ind-Ra will resolve the Rating Watch post the completion of the transaction. The rating reflects IBCL's established position in the domestic boric acid industry, supported by its long operating track record, with around 50% market share in the steel/refractory segment, and adequate liquidity profile. The company’s revenue improved in FY26, driven by higher boric acid volumes, improved realisations, and increased contribution from disodium octaborate tetrahydrate (DOT). Despite an improvement in its blended realisations, IBCL's EBITDA margins moderated in FY26, mainly due to higher raw material costs per tonne (t) and the impact of an unplanned shutdown of over 45 days in 3QFY26. Consequently, its EBITDA/tonne declined to around INR26,130/metric tonnes (MT). The management expects the margins to remain at 20%-22% over the medium term. However, the rating is constrained by IBCL's moderate scale of operations, high dependence on boric acid, 100% import dependence for its key raw material, an inventory-driven working capital cycle, and promoter-level pledge risk. While IBCL had no debt outstanding at FYE26, it plans to avail a working capital facility of around INR600 million over the medium term. Furthermore, 100% of the promoter shareholding is pledged to secure ZCPL's acquisition debt, comprising outstanding non-convertible debentures (NCD) principal worth around INR2,550 million and a bullet repayment due in FY31. As a result, promoter deleveraging and pledged shares remain key rating monitorables. List of Key Rating Drivers Strengths « Strong business profile; forward integration efforts to further strengthen business profile « Volume-led revenue growth in FY26; 1QFY27 revenue growth in line with Ind Ra’s expectation « Credit metrics to remain healthy despite proposed debt infusion over medium term Weaknesses « Product/geographical concentration reflected in single product and 100% import dependency « EBITDA per tonne moderated in FY26; likely to remain at similar levels in FY27 « Working capital intensive-operations reflected in higher raw material days; exposed to inventory losses « 100% pledge of promoter shareholding remains key monitorable Detailed Description of Key Rating Drivers Strong Business Profile; Forward Integration Efforts to Further Strengthen Business Profile: IBCL has an established operating track record in boron-based chemicals, with operations dating back to 1980. The company set up its first boric acid plant in 1981 at Asangaon, Maharashtra, followed by a borax plant in 1983. It currently operates its key manufacturing facility in Pithampur, Madhya Pradesh. The company’s product portfolio primarily comprises boric acid technical grade and Indian Pharmacopoeia (IP) grade, along with borax and DOT. Boric acid remains the major revenue contributor for IBCL and caters to end-user industries, such as steel, refractories, glass, ceramics, pharmaceuticals, personal care, agriculture, and industrial chemicals. In the steel industry, IBCL's boric acid is mainly used in ramming mass and refractory/furnace-lining applications, where it acts as a heat-activated bonding/fluxing input and supports the strength and heat resistance of furnace lining materials used in steel-melting operations. As per the management, IBCL has a market share of around 50% in the boric acid requirement for the steel/refractory segment, which supports its established customer base in the domestic market. The company also has a differentiated position in IP-grade boric acid, and its disclosures state that it is the sole manufacturer of IP-grade boric acid in India with a valid Food and Drug Administration licence. Additionally, IBCL was the first company in India to receive Bureau of Indian Standards certification for manufacturing technical grade boric acid. IBCL is focusing on improving the utilisation of its existing boric acid capacity through de- bottlenecking, along with forward integration into value-added boron derivatives such as DOT, boron oxide and zinc borate. These initiatives are likely to support product diversification and improve its revenue mix over the medium term, although a meaningful scale-up will depend on market development, customer acceptance and sustainable demand for these value- added products. Volume-led Revenue Growth in FY26; 1QFY27 Re [Showing first 8,000 characters — download PDF for full document]