Mukka Proteins Limited has informed the Exchange about Credit Rating- Revision
MUKKA · price
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CARE Ratings has downgraded Mukka Proteins Limited's credit ratings from CARE BBB to CARE BBB- (Negative outlook) for both its Long Term Bank Facilities (₹15 crore) and Long Term/Short Term Bank Facilities (₹480 crore). The short-term rating was also lowered from CARE A3+ to CARE A3. The downgrade reflects significant working capital stress, with the company's operating cycle having elongated to 189 days in FY26 compared to less than 70 days between FY21-24. This is due to a sizeable inventory build-up of 192 days, high working capital limit utilization at 95%, and reliance on ad-hoc bank limits. Debt coverage indicators have deteriorated with total debt/gross cash accruals at 10.84x (vs 7.35x in FY25) and PBILDT interest cover at 2.48x (vs 2.76x). Net cash flow from operations turned negative at ₹123 crore in FY26.
The downgrade signals elevated financial risk and liquidity pressure for Mukka Proteins. While the company retains investment-grade status, the Negative outlook and weakening coverage metrics may increase borrowing costs and restrict access to fresh credit. Shareholders should monitor the company's inventory normalization and cash flow improvement in coming quarters.