Shivam Autotech Limited — Credit Ratings, 22-07-2025: Credit Rating

CARE has reaffirmed Shivam Autotech's long-term bank facilities at CARE BB- but revised the outlook from 'Stable' to 'Negative'. Short-term facilities are reaffirmed at CARE A4. This reflects the company's persistently weak financial health, marked by continued losses (₹48.04 Cr in FY25), underutilization of capacity, and a highly leveraged capital structure with gearing at 10.94x. Liquidity remains stretched, with dependence on promoter support and new funding. The negative outlook signals higher financial risk and could increase future borrowing costs or impact investor sentiment. While experienced promoters and access to ~₹88 Cr in undisbursed NCDs provide some comfort, the company's strategic flexibility remains constrained until operations improve and fundraising stabilizes.