Long-term rating downgraded by CARE Ratings to AA-, outlook stable
GUJALKALI · price
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CARE Ratings downgraded GACL's long-term bank facility rating from AA to AA- with stable outlook, citing weaker-than-expected financial performance in FY25 and FY26. Reasons include moderate caustic soda prices, negative chlorine realisations, weak downstream offtake, and slow ramp-up of the NALCO joint venture. Consolidated PBILDT margin at 10.72 percent in FY26 versus an expected 14-16 percent. Short-term rating and commercial paper rating reaffirmed at A1+.
Signals weaker earnings profile, may raise future borrowing costs. Short-term obligations unaffected, liquidity strong. Stable outlook limits near-term concern.