Nova Agritech outlook shifts to stable as profitability moderates

CARE Ratings Limited has reaffirmed the long-term credit facilities rating for Nova Agritech Limited and its material subsidiary, Nova Agri Sciences Private Limited, at CARE BBB. However, the outlook has been revised from 'Positive' to 'Stable', according to an intimation dated September 12, 2025.

The outlook revision is attributed to factors such as an elongated operating cycle, susceptibility of profitability margins to raw material price volatility, exposure to competition, and dependency on monsoon and climatic conditions. Specifically, the revision considers an elongated working capital cycle and moderation in profitability during FY25.

The total long-term bank facilities for Nova Agritech Limited were reduced from ₹36.00 crore to ₹30.99 crore. For Nova Agri Sciences Private Limited, the total long-term bank facilities were reduced from ₹22.00 crore to ₹20.22 crore. Nova Agritech has requested CARE Ratings to revisit these ratings.