Mafatlal Industries' credit ratings upgraded by Acuite on strong performance

Acuite Rating & Research Ltd has upgraded Mafatlal Industries Limited's long-term rating to 'ACUITE A- Stable' from 'ACUITE BBB+ Stable' and its short-term rating to 'ACUITE A2+' from 'ACUITE A2'. This upgrade applies to bank facilities totaling INR 323.00 crore. Additionally, Acuite has assigned a 'ACUITE A- Stable' long-term rating and 'ACUITE A2+ Stable' short-term rating to an additional INR 54.00 crore of bank facilities.

The rating upgrades are primarily attributed to consistent growth in operating performance, with operating income increasing 35.07% year-over-year to INR 2807.23 Cr in FY25 from INR 2078.41 Cr in FY24. The company's operating profit margin improved to 2.45% in FY25 from 2.19% in FY24, supported by a healthy order book of INR 1000 Cr as of June 2025.

Mafatlal Industries also demonstrated a healthy financial risk profile, with stable gearing of 0.10 in FY25 and FY24, and improved debt protection metrics. The company’s liquidity position is strong, supported by net cash accruals of INR 113.17 Cr against matured debt obligations of INR 17.28 Cr in FY25.