Intimation regarding Revision of Credit rating in terms of Regulation 30 of SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015.
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Awaiting price reaction for this filing.
India Ratings & Research (Ind-Ra) has downgraded National Peroxide's bank loan facilities from 'IND A' to 'IND A-' with a Negative Outlook. The downgrade reflects weak operational and financial performance in FY25 — revenue fell 14% to ₹286.9 crore and EBITDA dropped nearly 50% to ₹15.2 crore, with margins shrinking from 11.3% to 5.3%. The agency cited product concentration risk (dependence on hydrogen peroxide), subdued financials, and sensitivity to commodity prices (natural gas) and competitive pressure as key concerns. The short-term rating also moved down one notch from IND A1 to IND A2+. On the positive side, the company remains net cash positive (₹49.8 crore in cash and liquid investments as of FY-end 2025) and continues to enjoy Wadia Group support. The Negative Outlook signals possible further downgrade if EBITDA doesn't improve.
Negative for the stock in the near term — rating downgrade with Negative Outlook signals rising business risk and could raise borrowing costs. Shareholders should watch for improvement in realisations and progress on product diversification into food-grade and electronic-grade hydrogen peroxide over the next 1-2 quarters.