GMM Pfaudler Limited — Credit Ratings, 21-06-2025: Credit Rating- Revision

CRISIL has reaffirmed GMM Pfaudler Limited’s long-term rating at ‘CRISIL AA-’ and revised the outlook from ‘Positive’ to ‘Stable’, while the short-term rating remains ‘CRISIL A1+’. The outlook revision reflects moderated demand in key end-user industries leading to rangebound revenue growth near term. Despite a 7% revenue decline to Rs 3,199 crore in fiscal 2025 and margin compression due to lower fixed cost absorption and exceptional closure costs, GMM Pfaudler maintains a comfortable financial risk profile. Gross debt stands at Rs 1,132 crore with gearing at ~1.1 times, expected to improve below 1.0 times by March 2026. Strong liquidity, steady internal accruals, and prudent debt management support the stable outlook, underpinning investor confidence and cost-effective borrowing.