Shemaroo Entertainment Limited has informed the Exchange about Credit Rating- Revision
SHEMAROO · price
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CARE Ratings has downgraded Shemaroo Entertainment's long-term bank facilities from CARE BB; Stable to CARE BB-; Stable, with the rated facility amount reduced from ₹215 crore to ₹195.90 crore. The downgrade reflects a continued moderation in operating and financial performance, with consolidated revenue falling ~11% YoY to ₹455 crore in 9MFY25, and widening operating and net losses of ₹76.54 crore and ₹84.96 crore respectively in FY25, which further deteriorated in 9MFY26. The company also faces a sizeable contingent liability of about ₹133.61 crore from a GST demand, while liquidity remains stretched with high working capital limit utilisation (~85%) and weak cash accruals. Positives include experienced promoters and a large content library of nearly 3,000 film titles, though the rating outlook remains Stable with risks tilted to the downside.
This is a credit-negative event for shareholders — the downgrade to BB- (speculative grade) signals rising financial stress, weakening debt coverage, and heightened refinancing risk. The stock may see negative sentiment, and borrowing costs for the company could rise further.