Everest Industries' credit ratings downgraded by Crisil amid profit concerns

Crisil Ratings has downgraded Everest Industries Limited's (EIL) long-term bank facilities to 'Crisil A-/Negative' from 'Crisil A/Negative' and short-term bank facilities to 'Crisil A2+' from 'Crisil A1', effective November 25, 2025. This revision is attributed to a slower-than-expected recovery in the company's business risk profile, marked by lower-than-anticipated profitability in the first half of the current fiscal year.

EIL reported a low 0.9% EBITDA margin in the first half of fiscal 2026, significantly below Crisil's earlier expectation of 5-6% for the full fiscal. This underperformance is primarily due to lower processing efficiency, higher defects in the roofing business, a slower ramp-up in the Boards and Panel (B&P) segment, and execution of low-margin Pre-Engineered Building (PEB) contracts.

Total bank loan facilities rated amount to Rs. 440 crores. Despite the downgrade, the company maintains a healthy net worth of above ~Rs. 570 crore and a low gearing of 0.7 times. EIL expects to receive Rs. 134 crores from a land sale in fiscal 2026, which is anticipated to positively impact its debt-protection metrics.