Chemplast Sanmar Limited — Credit Ratings, 13-05-2025: Credit Rating- Revision

CRISIL has downgraded Chemplast Sanmar Limited and its subsidiary Chemplast Cuddalore Vinyls Limited to ‘A+’ with a stable outlook while reaffirming their short-term ratings at ‘A1+’. The downgrade is driven by slower fiscal 2025 recovery due to modest PVC realizations, compressed spreads, and limited benefit from anti-dumping duties, which pressured operating profits. Elevated debt levels stand at about Rs 1800 Cr for Chemplast Sanmar and Rs 2550 Cr for the subsidiary, with moderate net debt/EBITDA ratios around 4-5x and 4x respectively. However, healthy cash reserves of Rs 550-600 Cr and Rs 400 Cr support liquidity, easing refinancing risks and sustaining investor confidence despite the rating cut.