Sigachi Industries Limited — Credit Ratings, 10-07-2025: Credit Rating- Revision

CARE Ratings has reaffirmed Sigachi Industries Limited’s credit ratings at CARE A- / CARE A2 but placed them on Rating Watch with Negative Implications following a major fire at its Hyderabad manufacturing unit, which accounts for about 20% of the company’s revenue. The incident is expected to impact revenue, profitability, and cash flows due to production loss and one-time compensation expenses. However, the company plans to mitigate this by increasing capacity utilization at its Gujarat plants and expanding O&M revenue. Sigachi maintains a comfortable financial profile with a gearing of 0.26x, free cash of ~₹40 crore, and unutilized working capital limits of ~₹30 crore. The rating watch reflects uncertainty around the incident’s full impact, which will be reassessed as more clarity emerges.