Exxaro Tiles Limited has informed the Exchange about Credit Rating- Revision
EXXARO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 3.1 pts more than Nifty Microcap 250 and 2.6 pts more than its Ceramics peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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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.