Re-affirmations of Credit Ratings assigned to the Company by the Credit Rating Agency with revised outlook.
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
ICRA has re-affirmed Indag Rubber Limited's long-term credit rating at [ICRA]A but revised the outlook from Stable to Negative. The short-term rating of [ICRA]A1 was also re-affirmed across total facilities of Rs. 43 crore. The outlook revision is driven by a ~9% decline in revenue during 9M FY2025 (to Rs. 173.4 crore) and a sharp contraction in operating margins from 7.1% in FY2024 to just 1.2%, caused by elevated natural and synthetic rubber prices and lower-than-expected State Transport Corporation business. Despite these headwinds, the company remains debt-free at a standalone level with strong liquidity of around Rs. 72 crore in liquid investments. The disclosure to the stock exchange was delayed from the original ICRA rating action date of February 20, 2025, with the company citing an inadvertent oversight.
The Negative outlook raises the risk of a future rating downgrade if revenues and margins do not recover, which could weigh on the stock in the near term. However, the reaffirmation of the actual rating, zero debt status, and healthy liquidity provide a cushion against any immediate distress.