Ruby mills Limited has expanded its business portfolio by incorporating two wholly-owned subsidiaries focused on green technology solutions. The company announced the incorporation of Ruby Greentech K Private Limited and Ruby Greentech T Private Limited on March 18, 2026, following regulatory disclosure requirements under SEBI regulations.

Subsidiary Incorporation Details

Both subsidiaries were incorporated following board approval granted during a meeting held on January 19, 2026. The incorporation represents Ruby Mills Limited's strategic move into environmental and renewable energy sectors.

Business Focus Areas

Ruby Greentech K Private Limited

This subsidiary has been established to engage in water and effluent treatment services. The company's operational scope includes:

• Water purification and treatment facilities
• Effluent treatment and management
• Water recycling solutions
• Waste management services
• Waste-to-energy solutions

Ruby Greentech T Private Limited

The second subsidiary focuses on power generation and distribution activities, specifically targeting renewable energy sources. Its business activities encompass:

• Generation, transmission, and distribution of electrical energy
• Trading and sale of electrical energy
• Renewable energy sources including solar, wind, and hydro power
• Captive power generation
• Both conventional and renewable energy solutions

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ruby Mills Limited has provided comprehensive details through Form A and Form B submissions, covering all aspects of the subsidiary incorporations including business objectives, shareholding structure, and operational focus areas.

Both subsidiaries are newly incorporated entities that have yet to commence business operations. As wholly-owned subsidiaries of Ruby Mills Limited, these entities represent the company's diversification into environmental sustainability and renewable energy sectors, aligning with current market trends toward green technology solutions.

Ruby Mills Limited has received a significant credit rating upgrade from India Ratings and Research, with its bank loan facilities upgraded to 'IND BBB+' from 'IND BBB' while resolving the Rating Watch with Developing Implications. The rating agency has assigned a Stable outlook, reflecting improved operational performance and strategic clarity following recent corporate developments.

Rating Actions and Facility Details

India Ratings has assigned ratings across multiple bank loan facilities totaling INR 4,235.80 million. The detailed rating actions include:

Key Drivers Behind the Upgrade

The upgrade reflects Ruby Mills' improved operating profitability margin in 1HFY26, which exceeded India Ratings' expectations. During 1HFY26, the company earned revenue of INR 1,552 million with absolute EBITDA of INR 270 million and EBITDA margins of 17.41%. The revenue breakdown shows INR 1,342.66 million from textiles segment and INR 209.50 million from real estate lease rentals.

India Ratings resolved the Rating Watch following successful execution of the memorandum of association with Mindset Estates Pvt Ltd. This development provides clarity regarding the impact on Ruby Mills' business and financial profile, with lease rentals previously credited to MEPL now flowing to Ruby Mills.

Financial Performance Overview

The company's recent financial performance shows mixed trends across different periods:

Business Strengths and Risk Factors

India Ratings highlighted several key strengths supporting the rating:

• Established Operations: Incorporated in 1917, Ruby Mills has an established track record in textile manufacturing and commercial real estate
• Reputed Tenant Base: Strong revenue stream from long-term associations with tenants like Ernst & Young, Cathay Pacific Airways Limited, and DSP Asset Managers Pvt Ltd
• Cash Flow Protection: Rental income flows through escrow account with waterfall mechanism ensuring debt servicing priority

However, the rating agency also noted key risk factors:

• Single Asset Concentration: Reliance on single asset exposes company to operational performance risks
• Stretched Credit Metrics: Net leverage deteriorated to 4.91x in FY25 from 2.53x in FY24
• Working Capital Challenges: Gross working capital cycle elongated to 379 days in FY25 from 304 days in FY24

Liquidity and Future Outlook

Ruby Mills maintains adequate liquidity with a Debt Service Reserve Account equivalent to three months of repayment obligations. The company had cash balance of INR 110 million at end-September 2025 and liquid investments of INR 1,168.49 million. India Ratings expects healthy improvement in revenue in FY26 due to closure of the MOA, with ownership of leased assets transferred to Ruby Mills at end-December 2025.

The rating agency will monitor the debt service coverage ratio remaining above 1.20x and resolution of outstanding governance issues as key factors for future rating actions.