Intimation of Credit Rating.
MUKKA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
CARE Ratings has downgraded Mukka Proteins' credit ratings from CARE BBB to CARE BBB- with Negative outlook for both its long-term bank facilities (₹15 crore) and long-term/short-term bank facilities (₹480 crore). The downgrade reflects significant working capital stress, with the operating cycle elongated to 189 days in FY26 compared to less than 70 days average during FY21-24. The company built up inventory to 192 days and is relying on ad-hoc bank limits, with working capital utilization at 95%. Debt coverage metrics deteriorated, with total debt to gross cash accruals at 10.84x (vs 7.35x) and overall gearing increased to 1.51x (vs 1.01x). Despite strong revenue growth of 45% y-o-y to ₹1,468 crore and steady PBILDT margin of 9.04%, the rating agency flagged liquidity pressure as a key monitorable.
The downgrade signals elevated credit risk and deteriorating financial health. Shareholders should note the Negative outlook reflects continued pressure on liquidity and debt coverage. While not yet junk status, BBB- is the lowest investment-grade rating, and further deterioration could impact borrowing costs and banking relationships.