Chemplast Sanmar outlook revised to negative, short-term rating downgraded by CRISIL

CRISIL Ratings has reaffirmed the long-term ratings of Chemplast Sanmar Limited (CSL) at 'CRISIL A+' but revised the outlook from 'Stable' to 'Negative'. Concurrently, the short-term rating has been downgraded from 'CRISIL A1+' to 'CRISIL A1'. The total rated bank loan facilities for CSL have been enhanced from INR 1,801 Cr to INR 2,001 Cr. This action reflects expectations of continued pressure on CSL’s performance due to weak realizations in suspension polyvinyl chloride (S-PVC) and paste PVC, exacerbated by cheaper imports and the pending impact of anti-dumping duties.

Similarly, Chemplast Cuddalore Vinyls Limited (CCVL), a wholly-owned subsidiary, has also seen its long-term ratings reaffirmed at 'CRISIL A+/Negative' (outlook revised from 'Stable') and short-term rating downgraded from 'CRISIL A1+' to 'CRISIL A1'. CCVL’s bank loan facilities remain unaltered at INR 2,550 Cr. Both companies’ operating profits are expected to be significantly lower than anticipated in fiscal 2026, with debt levels remaining modest due to ongoing capacity expansions and lower-than-expected recovery in profitability.

CRISIL Ratings projects that a meaningful recovery in operating profits and an improvement in financial risk profiles for both entities will depend on the timely implementation of anti-dumping duties on S-PVC and paste PVC, along with enhanced contributions from custom manufactured chemicals division (CMCD) and better PVC product realizations. The revised ratings were published on September 16, 2025.