Shiva Mills Limited has informed the Exchange about Credit Rating
SHIVAMILLS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has downgraded Shiva Mills' credit ratings on its bank facilities. The long-term rating was cut from CARE BBB+ (Negative) to CARE BBB (Stable), and the short-term rating was cut from CARE A2 to CARE A3+. The downgrade is driven by three straight years of net losses, with FY25 loss at ₹3.81 crore, caused by weak downstream demand and shrinking profit margins — PBILDT margin fell sharply from 14.25% in FY22 to just 1.26% in FY25. The long-term bank facility limit was also reduced from ₹37.50 crore to ₹27.50 crore. On the positive side, the company has a comfortable balance sheet with very low debt (gearing of 0.11x) and no term loan obligations, and CARE revised the outlook from Negative to Stable, suggesting some confidence in near-term stability.
The downgrade signals ongoing financial weakness in Shiva Mills' cotton yarn business and could mean slightly higher borrowing costs on future bank facilities. However, ratings remain investment-grade and the shift to a Stable outlook from Negative provides some relief, though shareholders should watch closely for any further deterioration in profitability.