Huhtamaki India Limited has informed the Exchange about Credit Rating- Revision
HUHTAMAKI · price
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CRISIL has upgraded Huhtamaki India's long-term bank facility rating from 'Crisil A+/Positive' to 'Crisil AA-/Stable', reflecting a stronger credit profile. The rating now covers Rs 88 crore of bank facilities, down from Rs 175 crore earlier, as the company is not availing a Rs 87 crore proposed term loan. The Rs 150 crore commercial paper rating has been withdrawn at the company's request, with no outstanding amount. The upgrade follows S&P's similar upgrade of the parent Huhtamaki Oyj (Finland) to 'BBB-/Stable' from 'BB+/Positive' on improved credit metrics. CRISIL applied its parent notch-up criteria, giving weight to the 67.73% parent's continued financial and operational support. While CY2024 revenue was nearly flat at Rs 2,525 crore and PAT dropped to Rs 88 crore (boosted in prior year by a land sale), operating margin recovered to 6.3% in Q1 CY2025 from 4.2% in Q4 CY2024 on better product mix and easing raw material costs.
Positive for shareholders — the rating upgrade signals stronger financial health, likely lower future borrowing costs, and continued backing from the well-rated Finnish parent. The reduction in rated debt and strong liquidity position (gearing below 0.1x) further underline the company's financial stability, though margin recovery remains the key thing to watch.