Sigachi Industries ratings downgraded after Hyderabad fire

Sigachi Industries Limited's credit ratings for its bank facilities have been downgraded by CARE Ratings Limited, with a continued "Rating Watch with Negative Implications." The downgrade, announced on December 26, 2025, follows a June 2025 fire at the company's Hyderabad plant. The incident destroyed 6,400 MTPA capacity, representing 30% of total installed capacity and 20% of consolidated revenue.

The fire resulted in 54 fatalities and 28 injuries, leading to a loss of ₹90.44 crore in H1FY26 and an exceptional provision of ₹116.35 crore. Sigachi disbursed ₹22.14 crore in compensation by November 2025 and anticipates recovering approximately ₹51 crore in insurance claims for plant and machinery loss by December 2025. To restore capacity, Sigachi plans to increase effective installed capacity to approximately 18,000 MTPA by Q4FY26 and intends to raise ₹125 crore through non-convertible debentures for expansion, working capital, and compensation.