Disclosure for Credit Rating under Regulation 30 of SEBI(Listing Obligations and Disclosure Requirements ) Regulations, 2015
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Rathi Bars Limited has been assigned a credit rating of 'CARE BBB; Stable' by CARE Ratings on its long-term bank facilities of ₹83 crore (comprising ₹75.49 crore cash credit and ₹7.51 crore term loan). CARE was appointed as the company's rating agency on March 31, 2025, replacing Crisil, which had reaffirmed its earlier BBB rating but subsequently withdrew it on August 28, 2025. The rating reflects the company's experienced promoters, established 'Rathi' brand, satisfactory financial risk profile with overall gearing of 0.85x, and adequate liquidity. However, rating concerns include thin profitability (PBILDT margin of 2.69%, PAT margin of 0.52% in FY25), declining scale of operations (revenue fell from ₹614.04 crore in FY24 to ₹496.29 crore in FY25), elongated operating cycle of 67 days, and exposure to volatile steel prices and competitive industry conditions.
The BBB rating is investment grade and the stable outlook suggests no immediate concerns for lenders or shareholders, but thin margins, declining sales volumes in FY25, and high working capital intensity remain watch points. The rating agency change from Crisil to CARE is largely procedural and does not alter the borrower's credit standing.