Dhanuka Agritech's credit ratings reaffirmed, outlook stable

On September 6, 2025, Dhanuka Agritech Limited announced that CARE Ratings Limited reaffirmed its credit ratings for the company's bank facilities. The long-term bank facilities received a 'CARE AA; Stable' rating, while the short-term bank facilities were rated 'CARE A1+'. This reaffirmation underscores the company's established position in the agrochemical sector, its long operating track record, and experienced management.

The ratings draw comfort from Dhanuka Agritech's strong financial risk profile, characterized by a robust capital structure, low gearing, strong debt coverage metrics, and healthy profitability. The company's total operating income increased to ₹2,035.15 crore in FY25 from ₹1,758.54 crore in FY24, a growth of approximately 16%. PBILDT margins also improved to 20.47% in FY25 from 18.62% in FY24, supported by a favorable product mix and higher share of 9(3) molecules.

Dhanuka Agritech’s liquidity remains strong, with healthy gross cash accruals of approximately ₹350.00 crore in FY25 against modest scheduled obligations in FY26. The company also holds sizeable surplus liquid investments exceeding ₹200 crore as of March 31, 2025.