GMMPFAUDLRNSEGMM Pfaudler LimitedMediumNegative
Announced Sat, 21 Jun · 12:10 IST

Update on credit rating

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GMMPFAUDLR · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

CRISIL has reaffirmed GMM Pfaudler's long-term credit rating at 'AA-' and short-term rating at 'A1+' on Rs 600 crore of bank facilities, but revised the long-term outlook from 'Positive' to 'Stable'. The outlook change reflects expected rangebound revenue growth in the near-to-medium term due to weak demand from chemical and agrochemical sectors. In FY25, the company's consolidated revenue declined 7% to Rs 3,199 crore, and profit after tax fell sharply to Rs 49 crore from Rs 174 crore in FY24, hurt by lower absorption of fixed costs and one-time closure costs for its UK (Leven) and Hyderabad facilities. The company remains the global leader in glass-lined equipment with a healthy order book of Rs 1,636 crore as of March 31, 2025. The financial risk profile stays comfortable with gearing of 1.1x, expected to drop below 1.0x in FY26, and strong cash and equivalents of Rs 467 crore supporting liquidity.

Likely market impact

The rating itself is unchanged, so the credit profile remains strong, but the outlook downgrade signals that near-term growth and profitability may remain under pressure, which could temper positive sentiment on the stock in the short term.