Lords Chloro Alkali Limited has informed the Exchange about Credit Rating- Revision
LORDSCHLO · price
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Awaiting price reaction for this filing.
ICRA has reaffirmed Lords Chloro Alkali's long-term credit rating at BBB+ while revising the outlook from Negative to Stable across all three facilities totaling Rs 126.90 crore (Rs 30 crore working capital, Rs 90 crore term loan, Rs 6.90 crore unallocated). The upgrade in outlook reflects expected improvement in profitability driven by better caustic soda realisations and cost savings from the company's newly commissioned 16 MW solar power project. Financials have shown recovery: operating income rose to Rs 270.22 crore in FY25 from Rs 221.11 crore in FY24, the company swung to a Rs 6.18 crore profit in FY25 and posted Rs 10.45 crore profit in Q1 FY26 alone, and interest coverage improved sharply from 0.40 to 4.20 times. However, a planned Rs 200 crore debt-funded capex for solar, CPW and caustic soda expansion may temporarily pressure leverage metrics in the near term.
Positive signal for shareholders — improved credit outlook indicates strengthening financial health, better profit visibility, and likely easier access to funding at competitive rates. Near-term stock sentiment should improve, though planned debt-funded expansion could keep leverage elevated for the next 2-2.5 years.