Everest Industries Limited — Credit Ratings, 28-05-2025: Credit Rating- Revision

ICRA has downgraded Everest Industries Limited’s long-term rating to [ICRA]A (Negative) from [ICRA]A+ (Negative) and short-term rating to [ICRA]A2+ from [ICRA]A1. The downgrade reflects sustained pressure on operating margins, which fell to 1.7% in FY2025 from 2.6% the previous year, affected by lower efficiencies in asbestos roofing, slow ramp-up of a new boards and panels plant, and moderate margins in the Pre-Engineered Building segment. Increased debt-funded capex pushed total debt/OPBITDA to 8.9 times and interest coverage down to 1.3 times. While margins are expected to improve as the new plant stabilizes, leverage and coverage ratios will likely stay under pressure. This action may raise borrowing costs and signals elevated risk, though liquidity remains adequate with free cash of Rs.10 crore and undrawn limits of about Rs.60 crore.