Exxaro Tiles Limited has informed the Exchange about Credit Rating- Revision
EXXARO · price
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Awaiting price reaction for this filing.
CRISIL has downgraded Exxaro Tiles' long-term rating from 'Crisil BBB-/Negative' to 'Crisil BB+/Stable' and short-term rating from CRISIL A3 to CRISIL A4+ on total bank facilities of Rs. 122 crore. The downgrade, a move into the non-investment grade (BB+) category, is driven by stretched liquidity and a working capital cycle where gross current assets stood at 359 days as of March 2025, with high inventory (213 days) and receivables (138 days). Bank limit utilization is at 98.55%, leaving little cushion. The company slipped into a small loss in FY25 (PAT of negative Rs. 0.12 crore vs Rs. 2.25 crore profit in FY24) on Rs. 304 crore revenue, though operating margin improved to 9.4% in Q1 FY26. Debt-funded capex for a solar plant is planned in FY26, which will keep cash flows tight.
This is a negative signal for shareholders — the rating has slipped below investment grade, meaning higher future borrowing costs and weaker financial flexibility. Short-term, the stock may face selling pressure as institutional investors with mandates to avoid junk-rated names may exit.