Siyaram Silk Mills Limited — Credit Ratings, 05-07-2025: Credit Rating

Crisil Ratings has reaffirmed Siyaram Silk Mills Limited’s credit ratings at Crisil AA-/Stable for long-term bank facilities and Crisil A1+ for short-term bank facilities and commercial paper, reflecting a very strong degree of safety in timely debt servicing. The reaffirmation factors in Siyaram’s steady operating income of Rs 2,221 crore in fiscal 2025, healthy EBITDA margin of 13.5%, and strong cash accrual of Rs 200 crore, comfortably covering debt obligations and coupon payments on recently issued preference shares worth Rs 318 crore. Despite a slight moderation in capital structure due to new debt, liquidity remains robust with Rs 212 crore in cash and ample undrawn bank limits. The ratings continue to reflect Siyaram’s entrenched market position, diversified product portfolio, and asset-light outsourcing model, balanced against industry competition and raw material price volatility.