Vindhya Telelinks Limited has received a credit rating downgrade from CARE Ratings Limited, with both long-term and short-term bank facilities being placed on Rating Watch with Developing Implications. The telecommunications infrastructure company informed stock exchanges about this development through a regulatory filing dated April 1, 2026.

Rating Downgrade Details

CARE Ratings has implemented significant changes to Vindhya Telelinks' credit profile:

The Rating Watch with Developing Implications (RWD) status indicates uncertainty about the future direction of the ratings pending resolution of specific developments affecting the company's credit profile.

Operational Performance Challenges

The downgrade reflects several operational headwinds faced by the company during 9MFY26. CARE Ratings cited continued moderate operations with lower-than-envisaged operating profitability, primarily driven by slow execution of engineering, procurement, and construction (EPC) orders.

Key performance metrics for the period show:

The EPC segment, which contributes approximately 80% of the company's topline, faced execution-related delays resulting in lower revenue recognition. These delays were primarily attributed to funding-linked disbursement issues under key government infrastructure programs, particularly the Uttar Pradesh Jal Jeevan Mission.

Financial Profile Deterioration

The company's financial risk profile has moderated significantly, with several key indicators showing stress:

• Overall debtors increased from ₹1,527.71 crores at FY25-end to ₹2,191.85 crores as of December 31, 2025
• Total debt, including advances from customers, rose from ₹1,061.66 crores at March 31, 2025, to ₹1,066.91 crores at December 31, 2025
• Debt to PBILDT ratio is expected to remain above 3.5x by the end of FY26
• Overall gearing increased to 0.26x as of March 31, 2025, from 0.15x in the previous year

Planned Merger Impact

A significant factor contributing to the Rating Watch status is the announced amalgamation with group entity Birla Cable Limited. The merger, approved by the Board on March 21, 2026, is expected to take 10-12 months for completion, subject to regulatory and other requisite approvals.

Under the merger terms:

• Shareholders of Birla Cable Limited will receive 10 equity shares of Vindhya Telelinks for every 115 shares held
• No cash consideration is involved in the transaction
• The scheme aims to streamline operations, simplify corporate structure, and enhance operational efficiency

Order Book and Business Strengths

Despite the operational challenges, Vindhya Telelinks maintains several positive aspects:

The company benefits from its association with the well-established MP Birla Group, which has demonstrated financial support through infusion of ₹250 crores in the form of inter-corporate deposits and unsecured loans as of March 31, 2025.

Rating Outlook and Monitoring Factors

CARE Ratings will continue monitoring developments regarding the merger and will reassess ratings after the scheme's completion. Key factors that could influence future rating actions include:

Positive factors:

• Significant improvement in operating performance with PBILDT margin over 10% on a sustained basis
• Improvement in operating cycle to less than 120 days

Negative factors:

• Significant decline in PBILDT margins leading to total debt/PBILDT above 4.5x
• Delays in securing new orders affecting revenue visibility
• Inability to improve PBILDT margins above 6% sustainably

The rating agency emphasized that timely execution of the existing order book, especially in the high-value EPC segment, remains critical and will be a key monitoring factor going forward.

Vindhya Telelinks Limited has announced the launch of its second 100-day campaign 'Saksham Niveshak' to help shareholders update their KYC details and prevent the transfer of unclaimed dividends to the Investor Education and Protection Fund (IEPF). The campaign will run from April 1, 2026 to July 9, 2026, providing shareholders with a dedicated window to complete their compliance requirements.

Campaign Objectives and Timeline

The 'Saksham Niveshak' initiative is designed to facilitate direct payment of unpaid/unclaimed dividends to rightful shareholders while ensuring compliance with guidelines issued by the Investor's Education and Protection Fund Authority (IEPFA) under the Ministry of Corporate Affairs (MCA).

KYC Update Requirements

Shareholders holding shares in physical form are required to update comprehensive KYC details with the company's Registrar and Share Transfer Agent. The mandatory information includes:

• PAN details
• Bank account information
• Address with PIN code
• Mobile number
• Specimen signatures
• Nomination details

Registrar and Contact Information

The company has designated MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.) as its Registrar and Share Transfer Agent for processing KYC updates.

Documentation and Process

Shareholders can access the required forms for KYC and nomination updates through multiple channels. The relevant formats include Forms ISR-1, ISR-2, ISR-3, SH-13, and SH-14, which are available for download from:

• RTA website: https://in.mpms.mufg.com under Resources → Downloads → General → Formats of KYC
• Company website: https://www.vtlrewa.com

Shareholders holding shares in demat form should coordinate with their respective Depository Participants to update KYC and bank account details.

Unclaimed Dividend Recovery

The company has made provisions for shareholders to claim unpaid or unclaimed dividends to prevent their automatic transfer to IEPF Authority. Details of unclaimed dividends for the past seven years are available on the company's website under the 'Investor Relation' section at https://www.vtlrewa.com .

For additional assistance and grievance resolution, shareholders can contact the company at investorgrievance@vtlrewa.com . The initiative represents the company's commitment to maintaining updated shareholder records and ensuring compliance with regulatory requirements while protecting shareholder interests.