Vishnu Prakash R Punglia Limited has informed the Exchange about Credit Rating- Revision
VPRPL · 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 VPRPL's long-term bank facility rating from CARE BBB- (Stable) to CARE BB+ (Negative) for both its ₹200 crore overdraft and ₹760 crore bank guarantee facilities. The outlook was also revised from Stable to Negative. The downgrade reflects a sharp deterioration in operating performance, with the company reporting an operating loss in Q3FY26 and PBILDT margin falling to 4.43% in 9MFY26 from 13.19% a year ago. Total operating income declined to ₹749.57 crore in 9MFY26 vs ₹832.36 crore in 9MFY25, and PAT turned negative at ₹(19.33) crore. High working capital intensity, stretched liquidity (cash loss of ₹31 crore in Q3FY26 vs ₹5 crore monthly repayments), and increased promoter share pledging (~69%) further pressured the rating. The order book remains healthy at ~₹4,500 crore, providing 4x revenue visibility.
Negative for shareholders — the downgrade pushes the rating into speculative grade, signals likely further weakening, and may increase borrowing costs. The negative outlook, combined with high working capital intensity and pledged promoter shares, suggests near-term stress on cash flows and stock sentiment.