Panama Petrochem's bank facility ratings reaffirmed with stable outlook

CARE Ratings Limited has reaffirmed Panama Petrochem's long-term bank facilities at CARE A+; Stable and short-term bank facilities at CARE A1+. The reaffirmation reflects the company's established presence in the petroleum specialty oils business, diversified revenue streams, above-average profit margins, and healthy capital structure. As of March 31, 2025, the total operating income for consolidated financials was ₹2792.89 crore.

The ratings are supported by the company's consistent revenue growth, with consolidated revenue reaching ₹2792.89 crore in FY25, an 18% year-over-year increase. The capital structure remains strong, with overall gearing at 0.15x as of March 31, 2025, and healthy debt coverage indicators. In FY25, the company reported Gross Cash Accrual (GCA) of ₹200.37 crore.

Despite a moderation in profitability with the PBILDT margin declining to 8.83% in FY25, the outlook remains stable. CareEdge Ratings anticipates continued benefits from Panama Petrochem's market position and customer relationships, maintaining a healthy financial risk profile in the medium term.