Press Release October 27, 2026 UNIPHOS ENVIROTRONIC PRIVATE LIMITED Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	19.00	ACUITE BBB+ | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	2.00	Not Applicable | Withdrawn	-	RBI
Bank Loan Ratings	0.00	7.00	-	ACUITE A2 | Reaffirmed	RBI
Total Outstanding	0.00	26.00	-	-	-
Total Withdrawn	0.00	2.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

­Acuité has reaffirmed the long-term rating of 'ACUITE BBB+' (read as ACUITE Triple B plus) and the short term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs.26.00 crore bank facilities of Uniphos Envirotronic Private Limited (UEPL). The outlook is revised to 'Stable' from 'Negative'. Further, Acuité has withdrawn its long-term rating on the bank loan facilities of Rs. 2.00 Cr. of Uniphos Envirotronic Private Limited (UEPL) without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of the request received from the issuer and in accordance with Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument. Rationale for rating The revision in outlook reflects the improvement in the group's scale of operations, marked by growth in revenue from operations to Rs. 87.53 Cr. in FY26 from Rs. 73.64 Cr. in FY25, driven by an increase in sales volumes across both domestic and international markets. The group's profitability also improved, with the operating profit margin increasing to 13.52 percent in FY26 from 12.18 percent in FY25, supported by a marginal decline in raw material costs and better absorption of fixed overheads. Further, the PAT margin improved to 7.69 percent in FY26 from 4.51 percent in FY25, primarily due to lower interest costs. The rating continues to be supported by the group's healthy financial risk profile, marked by comfortable gearing levels and debt protection metrics. However, these strengths are partially offset by its intensive working capital requirements, as reflected in the Gross Current Assets (GCA) days of 286 days in FY26, albeit improving from 302 days in FY25.

About the Company

­Gujarat based, UEPL is promoted by Mr. Rajnikant Devidas Shroff and his wife, Mrs. Sandra Rajnikant Shroff. Prior to its incorporation in 2007, UEPL was operated under the name of Chemo Electronic Laboratory (CEL) and had been operational since 1993. The company manufactures and trades in a wide range of detectors and safety products such as gas detectors, fire detectors, analytical equipment and fumigation equipment, among others. UEPL has its own research and development department and also provides services in the nature of annual maintenance contracts for its products.

About the Group

U­niphos Envirotronic Inc.- ­The UEPL Group consists of two companies, i.e. Uniphos Envirotronic Private Limited (UEPL) and Uniphos Envirotronic Inc., USA (UEI). Texas based, Uniphos Envirotronic Inc., is a USA based wholly owned subsidiary of UEPL. This company is a marketing arm of UEPL and is also engaged in the same business of manufacturing and trading of a wide range of detectors and safety products. UPL Limited- UPL Limited, formerly United Phosphorus Limited, is an Indian multinational company promoted by Mr. Rajnikant Devidas Shroff and family in 1969 as a manufacturer of phosphorous-based industrial chemicals. Between 1980 and 2000, it diversified into crop protection chemicals and specialty chemicals. UPL has graduated from crop protection chemicals into a complete agro solutions provider (seeds, crop protection chemicals, biological, soil nutrients and post-harvest solutions). The Company’s product basket comprises offerings for multiple crops, fruits and vegetables, insulating from an excessive dependence on any one segment. The Company is the second largest post-patent global player in the crop protection market.

Unsupported Rating

Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­­Acuité has considered the consolidated approach of UEPL and its subsidiary Uniphos Envirotronic Inc. to evaluate the credit quality of UEPL to arrive at the final rating. To arrive at the final rating, Acuité has also notched up the standalone rating by factoring in the management and financial support extended by the common promoters of UPL Limited .

Key Rating Drivers

Strengths

­Experienced management with established track record of operations UEPL group has a market presence of more than a decade in manufacturing and trading of detectors and other industrial equipment. The group caters to diversified industries including chemical and petro-chemical, oil refineries, government establishments, fumigators, pollution monitoring, waste water treatment plants, chemical plants, iron and steel plants, pharmaceutical plants, power industries, among others. UEPL was previously a division of UPL Limited, which is one of the largest generic agrochemicals and industrial chemical player in the world having a presence in various segments including crop protection products, intermediates, speciality chemicals and other industrial chemicals. UEPL group benefits from the extensive experience of its management, including Mr. Rajnikant D. Shroff and Mrs. Sandra R. Shroff, who collectively possess more than six decades of experience in the generic agrochemical and industrial chemical industry. The top management is ably supported by a well-qualified and experienced team of the second line of management. UEPL group also benefits from its association with UPL Limited. Acuité believes that the group will continue to benefit from the promoter’s established presence in the industry and its improving business risk profile over the medium term. Improvement in scale of operations The group reported a growth in its scale of operations, with revenue from operations increasing by 18.86% to Rs. 87.53 Cr. in FY26 from Rs. 73.64 Cr. in FY25, driven by higher sales volumes in both domestic and international markets. The group's profitability also improved, with the operating margin increasing to 13.52% in FY26 from 12.18% in FY25, supported by a marginal decline in raw material costs and better absorption of fixed overheads. Further, the net profit margin improved to 7.69% in FY26 from 4.51% in FY25, primarily on account of lower finance costs. Acuite believes that the group's scale of operations is likely to improve over the medium term, supported by its established presence in the safety equipment industry, diversified product portfolio, and growing customer base across domestic and international markets. Healthy financial risk profile The group has a healthy financial risk profile, marked by a moderate net worth, comfortable capital structure and strong debt protection metrics. The group's Total Tangible Net Worth (TNW) improved to Rs. 49.42 Cr. as on March 31, 2026 from Rs. 42.91 Cr. as on March 31, 2025, driven by profit accretion during the year. The debt-to-equity ratio improved to 0.41 times as on March 31, 2026 from 0.58 times as on March 31, 2025. Further, the group's debt protection metrics remained strong, with the interest coverage ratio (ICR) improving to 9.73 times in FY26 from 4.96 times in FY25, while the debt service coverage ratio (DSCR) stood comfortable at 2.88 times in FY26 as against 2.56 times in FY25. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio also improved and stood at 0.91 times as on March 31, 2026 against 1.18 times as on March 31, 2025. Acuite believes that the group's financial risk profile is likely to remain healthy over the medium term, supported by steady net worth accretion and the absence of any significant debt-funded capex plans.

Weaknesses

Intensive working capital operations The working capital management of the group is intensive marked by GCA days of 286 days in FY2026 as against 302 days in FY2025. The high GCA days are driven by high inventory days and debtor days. The inventory days stood at 133 days in FY2026 as against 154 days in FY2025. Due to the long manufacturing cycle of 2-2.5 months depending on the specifications, UEPL has to maintain an inventory of finished goods in order to cater orders in time bound manner. The debtor days stood at 82 days in FY2026 as against 77 days in FY2025. UEPL generally gives a credit period of 90-120 days to its customers. The majority of the orders which UEPL group caters to are tender based contracts of public sector units and private players. The Creditor days stood at 85 days in FY2026 as against 49 days in FY2025. Acuite believes that the operations of the group will continue to remain working capital intensive over the medium term due to inherit nature of operations. ­Dependence on tenders coupled with delays in execution and project execution risk UEPL group executes tender based contracts of public sector units and private players indicating that the firm is highly dependent on successful bidding of tenders. Further, delays in the project execution due to site clearances along with the delayed receipt from customers are likely to result in higher working capital requirements.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Sustained improvement in scale of operations, with revenue growth of 30-35% while maintaining healthy profitability margins. Improvement in working capital operations.

Potential triggers (individual or collective) for a downward rating action:

Decline in revenue by 20-25 percent, or any steep deterioration in profitability margins. Further elongation in the working capital cycle, leading to higher reliance on working capital borrowings.

Liquidity Position

Adequate

The group's liquidity position is adequate, marked by healthy net cash accruals vis-à-vis its debt repayment obligations, a comfortable current ratio, and adequate cash and bank balances. The group generated net cash accruals of Rs. 9.31 Cr. in FY26 against debt repayment obligations of Rs. 2.40 Cr. during the same period. The current ratio stood at a comfortable 1.74 times as on March 31, 2026, as compared to 1.60 times as on March 31, 2025. Further, the group has cash and bank balances of Rs. 15.34 Cr. as on March 31, 2026. The fund-based working capital limits remained moderately utilized at ~89.71 percent during the six months ended September 2026. Acuite believes that the group's liquidity position is likely to remain adequate over the medium term, supported by steady cash accrual generation against its debt repayment obligations and the absence of any significant debt-funded capex plans.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	87.53	73.64
PAT	Rs. Cr.	6.73	3.32
PAT Margin	(%)	7.69	4.51
Total Debt/Tangible Net Worth	Times	0.41	0.58
PBDIT/Interest	Times	9.73	4.96

Status of non-cooperation with previous CRA (if applicable)

­Not applicable

Any Other Information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 29 Jul 2025 Bank Guarantee (BLR) Short Term 3.00 ACUITE A2 (Reaffirmed) Forward Contracts Short Term 4.00 ACUITE A2 (Reaffirmed) Working Capital Term Loan Long Term 0.29 ACUITE BBB+ | Negative (Reaffirmed) Proposed Long Term Bank Facility Long Term 1.71 ACUITE BBB+ | Negative (Reaffirmed) Cash Credit Long Term 19.00 ACUITE BBB+ | Negative (Reaffirmed) 30 Apr 2024 Bank Guarantee (BLR) Short Term 3.00 ACUITE A2 (Reaffirmed) Cash Credit Long Term 19.00 ACUITE BBB+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.43 ACUITE BBB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 4.57 ACUITE BBB+ | Stable (Reaffirmed) 01 Feb 2023 Bank Guarantee (BLR) Short Term 3.00 ACUITE A2 (Reaffirmed) Cash Credit Long Term 19.00 ACUITE BBB+ | Stable (Reaffirmed) Working Capital Term Loan Long Term 3.43 ACUITE BBB+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.57 ACUITE BBB+ | Stable (Reaffirmed)

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No. Company Name 1 UPL Limited 2 Uniphos Envirotronic Private Limited 3 Uniphos Envirotronic Inc.

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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