This is to share that the CARE Ratings Limited has reaffirmed the ratings of the Company. A copy of the letter dated 29th September, 2025 from CARE Ratings Limited is attached herewith.
MAFATIND · price
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CARE Ratings (CareEdge) has reaffirmed Mafatlal Industries' credit ratings — BBB+; Stable for long-term bank facilities (Rs. 70.30 crore) and long-term/short-term facilities (Rs. 210 crore), and A2 for short-term facilities (Rs. 96 crore), totaling about Rs. 376 crore. The reaffirmation is supported by a strong FY25 where revenue grew ~35% YoY to Rs. 2,807 crore and Q1FY26 revenue surged 174.5% YoY to Rs. 1,240 crore, driven by consumer durables and government tenders. Credit metrics improved meaningfully — adjusted gearing fell to 0.23x (from 0.45x) and total debt/PBILDT dropped to 0.96x — backed by a healthy unexecuted order book of over Rs. 1,000 crore as of June 30, 2025. The ratings have progressively moved up from BBB- in FY22 to BBB+ currently, reflecting strengthening fundamentals, though PBILDT margins remain thin at 2.6–3.8% due to the asset-light, outsourcing-heavy model.
For shareholders, the reaffirmation at BBB+/Stable suggests stable borrowing costs and continued lender confidence, with no negative rating action — a mildly positive signal. Investors should note that thin margins and heavy reliance on government tenders remain key vulnerabilities flagged by the rating agency.