Satia Industries Limited has informed the Exchange about Credit Rating
SATIA · price
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India Ratings & Research has affirmed Satia Industries' bank loan ratings at 'IND A+' with a Stable outlook and proposed commercial paper at 'IND A1+'. The agency also assigned ratings to additional fresh limits, including a new term loan of INR 382.2 million, a non-fund-based working capital limit of INR 18 million, and a proposed term loan of INR 15.6 million. The affirmation is supported by the company's integrated paper manufacturing operations, a healthy 10-15% market share in the state textbook segment, and robust credit metrics with net leverage of just 0.4x in FY25. FY25 saw revenue decline 12.1% to INR 15,120 million and EBITDA fall 35% to INR 2,703 million as paper prices softened from supernormal highs. The company plans capex of INR 4-4.5 billion over FY26-FY27 to upgrade one of its paper machines, which is expected to temporarily hit volumes and earnings.
The rating affirmation at investment grade signals continued financial stability and should keep borrowing costs favourable. However, near-term earnings are likely to be pressured by a planned six-to-nine-month plant shutdown starting November 2025 and soft paper prices, with a meaningful recovery not expected before the second half of FY27.