The Ugar Sugar Works Limited has informed the Exchange about Credit Rating- Revision
UGARSUGAR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.4 pts more than Nifty Microcap 250 and 1.3 pts more than its Other Agricultural Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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CARE Ratings has downgraded Ugar Sugar Works' long-term bank facilities (₹700 crore, enhanced from ₹600 crore) and fixed deposit programme (₹80 crore) from CARE BBB- (Stable) to CARE BB+ (Negative). Despite revenue growing from ₹1,149.73 crore in FY24 to ₹1,329.83 crore in FY25, the company swung to a loss of ₹16.25 crore (PAT) from a profit of ₹21.14 crore, with PBILDT falling from ₹70.57 crore to ₹40.43 crore. The downgrade reflects lower sugarcane crushing, higher cane prices without matching increases in sugar MSP or ethanol prices, and weakening debt metrics — overall gearing worsened from 2.42x to 2.83x and interest coverage dropped from 1.59x to 0.83x. Liquidity is described as stretched due to upcoming high debt repayments and rising working capital borrowings (from ₹365 crore to ₹444 crore). The rating moves from investment grade (BBB-) to non-investment grade (BB+), with a Negative outlook flagging continued stress.
This is a meaningful credit negative — higher borrowing costs are likely and lenders may tighten terms. The shift to sub-investment grade and Negative outlook may weigh on investor sentiment, though the stock could already be pricing in these fundamentals.