TruCap Finance Limited — Credit Ratings, 05-06-2025: Credit Rating- Revision

CARE Ratings has downgraded TruCap Finance Limited’s long-term bank facilities and non-convertible debentures to CARE BB+ with Rating Watch Developing from CARE BBB-. The downgrade is driven by weaker liquidity, significant FY25 losses due to higher provisions and operating costs, and stress in unsecured business loans. Increased gearing from lower equity infusion and profit erosion has tightened liquidity, reflected in a 55% coverage ratio against near-term debt. A planned ₹206.87 crore equity infusion by Marwadi Chandarana Group is expected to improve capitalisation and leverage. The rating watch awaits clarity on the ownership change and its financial impact. This downgrade may raise TruCap’s borrowing costs and temper investor confidence until stability improves.