Crisil Ltd has downgraded its rating to "CrisilBB+/Negative/CrisilA4+"
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Crisil has downgraded Samrat Pharmachem's credit ratings on its Rs 30 crore bank facilities from 'Crisil BBB-/Stable' (long-term) and 'Crisil A3' (short-term) to 'Crisil BB+/Negative' and 'Crisil A4+' respectively. The downgrade was driven by a sharp deterioration in the company's business risk profile, with operating margin turning negative at -0.14% in the first half of FY2026, reflecting pressure from volatile iodine raw material prices and forex fluctuations. The downgrade pushes the company from investment-grade into speculative-grade territory. Despite weak profitability, the balance sheet remains healthy with low gearing of 0.14 times and networth of Rs 71.8 crore as of March 31, 2025. The company, a 30-year iodine derivatives manufacturer serving pharma, FMCG, animal feed, and agrochemicals, posted revenue of Rs 285.86 crore in FY25 but with thin margins.
Negative for shareholders — the stock has slipped below investment grade, which could raise future borrowing costs and signal further earnings pressure. The 'Negative' outlook means more downgrades are possible if margins do not recover quickly.