Crisil ratings upgrades Campus Activewear outlook to positive on improved business risk

Crisil Ratings has upgraded the outlook on Campus Activewear Ltd's long-term bank facilities to ‘Positive’ from 'Stable', while reaffirming the 'Crisil A+' rating. The short-term rating has been reaffirmed at 'Crisil A1'. This revision applies to total bank loan facilities of INR 303 crore. The improved outlook is driven by an anticipated sustained enhancement in the group's business risk profile.

Campus Activewear's scale of operations increased by 9.99% to INR 1,593 crore in fiscal 2024 from INR 1,448 crore. Sales volume rose to 2.49 crore pairs in fiscal 2025. Revenue for the first quarter of the current fiscal reached INR 343 crore from 0.51 crore pairs. The company's earnings before interest, tax, depreciation, and amortization (Ebitda) margin was a comfortable 15.29% in fiscal 2025 and is projected to remain between 15-17%.

The company plans capital expenditure of approximately INR 230 crore over fiscals 2026 and 2027 to boost footwear upper manufacturing capacity. Net worth stood strong at over INR 743 crore in fiscal 2025, contributing to a superior capital structure. Debt protection metrics remained healthy, with an expected interest coverage ratio of 12.96 times in fiscal 2025.