Parag Milk Foods Limited — Credit Ratings, 30-06-2025: Credit Rating- New

India Ratings has affirmed Parag Milk Foods Limited’s issuer rating at IND BBB/Stable and assigned an IND BBB/Stable rating to INR105 Cr non-convertible debentures. The affirmation reflects PMFL’s strong brand presence, growing scale, and improving EBITDA margins driven by value-added products, alongside integrated operations and an extensive distribution network. Although credit metrics remain moderate, they have improved with net leverage reducing to 2.49x and interest coverage rising to 2.71x in FY25, supported by better profitability and incremental equity infusion. Adequate liquidity, backed by enhanced working capital limits and improved cash flow from operations, provides comfort. The stable rating implies steady borrowing costs and sustained investor confidence, while credit profile improvement is expected over FY26-FY27.