Revised Credit Ratings assigned by ICRA Ltd.
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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 downgraded Indag Rubber's credit ratings across the board. The long-term rating on the cash credit facility (Rs. 3.40 crore) has been cut from [ICRA]A (Negative) to [ICRA]A- (Negative). The short-term rating on bank guarantees (Rs. 25 crore) has been lowered from [ICRA]A1 to [ICRA]A2+, and the unallocated limit has been cut to zero. The downgrade is driven by a sharp fall in revenues (-9.1% YoY in FY25, -19% in Q1 FY26) and steep margin compression, with consolidated operating margin shrinking to just 0.7% in FY25 from 6.6% in FY24 due to high raw material costs and weak demand. The Negative outlook remains, signaling further action is possible if performance doesn't improve. Positives: the company remains debt-free at standalone level and holds ~Rs. 116 crore in cash and liquid investments as of June 2025.
Negative for the stock — the rating downgrade and continued Negative outlook highlight ongoing stress on revenues and profitability, with the loss-making subsidiary Millenium adding execution risk. However, the company stays in investment-grade territory with strong liquidity, limiting near-term solvency concerns.