Waterbase credit rating downgraded amid subdued performance

The Waterbase Limited (TWL) has received a downgrade in its credit ratings from CARE Ratings Limited for its banking facilities. Long-term/short-term bank facilities ($93.81 crore) were downgraded from CARE BBB; Stable / CARE A3+ to CARE BBB-; Stable / CARE A3. Short-term bank facilities ($5.03 crore) were downgraded from CARE A3+ to CARE A3. The revision follows continuous subdued financial performance in FY25 and H1FY26, with the company incurring cash losses.

This subdued performance is mainly due to a decline in operational performance, lower capacity utilization of the shrimp feed unit, increased debt levels, and reduced liquidity. Total operating income moderated from $339.25 crore in FY24 to $277.89 crore in FY25, with an operating loss incurred in both FY25 and H1FY26.

Despite the downgrades, the ratings still benefit from the promoters' extensive experience in the shrimp feed industry and the company's affiliation with the Karam Chand Thapar (KCT) group. TWL’s operations benefit from a partially integrated structure, an established brand presence, and a comfortable capital structure with nil term debt. The company has also diversified its revenue streams into processing shrimps, farm care products, and frozen seafood.