Dhampur Bio Organics credit ratings downgraded by CARE Ratings

CARE Ratings Limited has downgraded the credit ratings for Dhampur Bio Organics Limited (BSE: 543593) due to lower-than-anticipated profits and cash accruals reported in 9MFY25. The long-term bank facilities rating was revised from CARE A to CARE A-, with a stable outlook, affecting facilities amounting to INR 1,019.45 crore. Short-term bank facilities and commercial paper (carved out) ratings were also downgraded from CARE A1 to CARE A2+, impacting INR 115.00 crore and INR 100.00 crore facilities, respectively. The revision reflects challenges from reduced recovery rates, red rot infestation, and lower cane availability, though the company is adopting new cane varieties and increasing ethanol production to mitigate these impacts over the medium term.