Parag Milk Foods Limited has informed the Exchange about Credit Rating
PARAGMILK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
India Ratings and Research has reaffirmed Parag Milk Foods' credit rating at IND BBB/Stable (long-term) and IND A3+ (short-term), maintaining the same ratings it had given in February 2025. It has additionally assigned a fresh IND BBB/Stable rating to non-convertible debentures worth INR 1,050 million maturing in June 2029. The company's working capital limits have been enhanced by INR 1,200 million to INR 4,500 million, alongside a new term loan of INR 450 million for capex reimbursement. The rating reflects PMFL's strong market position (35% cheese share, 22% cow ghee share), 18.3% revenue CAGR over FY18-FY25 reaching INR 34,322 million, and improving EBITDA margins (7.4% in FY25). Net leverage improved to 2.49x from 3.02x, supported by a rights issue and preferential warrant issuance of INR 1,610 million in April 2025.
Stable rating reaffirmation is a positive signal for shareholders, indicating financial health, improved credit metrics, and continued lender confidence. The new NCD rating enables the company to raise additional debt at investment-grade terms to fund growth, while the stable outlook suggests no immediate concerns on liquidity or solvency.