Walchandnagar Industries Limited — Credit Ratings, 31-05-2025: Credit Rating

Acuite has reaffirmed Walchandnagar Industries Limited’s long-term rating at BB and short-term rating at A4+ but revised the outlook from stable to negative. The downgrade reflects expected operational weakness in FY25, with revenue falling to Rs.259.18 Cr and a net loss of Rs.86.03 Cr due to cost overruns and provisions. While financial risk remains moderate with a tangible net worth of Rs.372.34 Cr and improved gearing at 0.52x, coverage metrics are weak (Interest Coverage Ratio at -0.72x). Liquidity benefits from Rs.290 Cr capital infusion and Rs.54.96 Cr cash reserves, though negative cash flows and a stretched working capital cycle pose risks. The ratings reaffirmation supports ongoing funding access but signals cautious borrowing costs ahead.