Ester Industries Limited has informed the Exchange about Credit Rating- Revision
ESTER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CRISIL Ratings has revised the outlook on Ester Industries' long-term bank facilities to 'Stable' from 'Negative', while reaffirming the long-term rating at CRISIL A- and the short-term rating at CRISIL A2+. Total bank loan facilities rated stand at Rs. 523.9 crore. The revision reflects a sharp turnaround in the company's financial performance — revenue grew 22% year-on-year in FY25 to Rs. 1,282 crore, and EBITDA margin recovered to 11.5% from -1.3% in FY24. The company also swung back to profit with a PAT of Rs. 14 crore versus a Rs. 121 crore loss a year earlier. Gearing improved to 0.86x from 1.08x and interest coverage rose to 2.43x from just 0.01x.
The outlook upgrade from Negative to Stable is a positive signal indicating improved business confidence from the rating agency, though the rating itself was reaffirmed and not upgraded. Shareholders can view this as reduced near-term default risk, but the company still faces risks from volatile raw material prices, demand-supply swings in the packaging films industry, and a planned $180 million JV project with Loop Industries that will need careful monitoring.