Intimation of Credit Rating of the Company

ICRA Limited upgraded SEDEMAC Mechatronics Limited's bank loan ratings to [ICRA]A (Positive) / [ICRA]A1 from [ICRA]A- (Stable) / [ICRA]A2+ with enhanced rated amounts. The outlook was revised to Positive from Stable. The upgrade reflects strong revenue growth of 24% and 61% in FY2025 and FY2026, respectively, and expected sustained momentum. Operating margins improved to 21.5% in FY2026. The company benefits from niche product IP, strong promoter background, and healthy financials with gearing at 0.2x and interest coverage of 26.5x in FY2026. Key risks include high customer concentration (77% revenue from largest client) and dependence on imports for 75% of raw materials. Liquidity remains adequate with Rs 57 crore undrawn working capital and Rs 65 crore cash. Capex for FY2027 is Rs 150-200 crore. Rating may improve with diversification and scale; downgrade possible if TD/OPBITDA exceeds 1.8x.