AksharChem India Limited — Credit Ratings, 02-04-2025: Credit Rating- Others

AksharChem (India) Limited has submitted a detailed rationale from CARE Ratings for its bank facilities, reaffirming the ratings. The company holds long-term bank facilities of ₹39 crore rated CARE A-; Stable, and a combination of long/short-term facilities of ₹50 crore rated CARE A-; Stable / CARE A2+. The ratings reflect AksharChem’s experienced management, established position in the dye-intermediate industry, and improved operating performance with a PBILDT margin of 7.27% in 9MFY25 compared to 0.50% in FY24. However, challenges remain, including weak return indicators and profitability susceptibility to raw material price volatility. Overall, the outlook appears stable, and the rating affirmation may positively impact investor sentiment but comes with inherent operational risks.