Parag Milk Foods Limited has informed the Exchange about Credit Rating
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ICRA has withdrawn the credit rating assigned to Parag Milk Foods' Rs. 150 crore Non-Convertible Debenture (NCD) programme at the company's request and after receiving a no-objection certificate from the lender. The last outstanding rating was [ICRA]BBB- on 'Rating Watch with Developing Implications', assigned in April 2025. Importantly, ICRA stated it has no information to suggest that the credit risk profile has changed since the last review. The company's recent financials show improvement: FY2025 operating income rose to Rs. 3,432.2 crore (from Rs. 3,138.7 crore in FY2024), PAT grew to Rs. 118.8 crore, and the total debt/OPBDIT ratio improved to 2.6x from 3.2x. The NCD in question carries an 11.5% coupon, issued in May 2021 with maturity in June 2029, suggesting the withdrawal is likely a procedural step tied to refinancing or restructuring of the NCD rather than a credit event.
This is a rating withdrawal, not a downgrade, and ICRA has confirmed no change in perceived credit risk. However, the rating history shows a clear downward trajectory over the past three years (from BBB+ in 2022 to BBB- in 2024-25), which may concern investors. With the NCD rating withdrawn, the company loses independent credit benchmarking on this instrument, though the lender's NOC suggests an orderly refinancing.