Laxmi Organic Industries Limited has informed the Exchange about Credit Rating
LXCHEM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CRISIL has downgraded Laxmi Organic Industries' long-term bank facility rating to 'Crisil AA-/Negative' from 'Crisil AA/Negative', while reaffirming the short-term rating at 'Crisil A1+' on bank facilities and Rs.150 crore commercial paper. The downgrade is driven by a steeper-than-expected 9% decline in revenue to Rs.2,071 crore in the first nine months of FY26, with the specialty chemicals segment falling 22% to Rs.566 crore. Operating margin collapsed from 9.5% to 4.4%, specialty chemical margins halved from 24% to 13%, and PAT fell to Rs.58 crore from Rs.92 crore. The company is also executing a heavy capex of over Rs.700 crore in FY26, mainly for the Dahej plant, which has pressured RoCE (expected to drop to low single digits) and interest coverage (fell to 6x from 18.7x). The Negative outlook reflects uncertainty over whether margins and RoCE can recover meaningfully over the medium term.
Negative for shareholders — the one-notch downgrade and Negative outlook signal worsening financial health, lower profitability, and execution risk on large capex, which could weigh on the stock and raise future borrowing costs. However, the balance sheet remains strong with low gearing of 0.17x and healthy networth of Rs.1,928 crore, limiting immediate financial risk.