Indo Farm Equipment Limited — Credit Ratings, 09-08-2025: Credit Rating

Infomerics has reaffirmed Indo Farm Equipment's long-term rating at IVR A-/Stable and short-term rating at IVR A2+. This reflects the company's strong operational track record, widespread dealer network, and significantly improved financial health in FY2025. Key improvements include a reduction in total debt to ₹95.34 Cr from ₹167.29 Cr in FY2024, leading to better debt protection metrics and overall gearing. While operating profitability margins saw a slight decline and the working capital cycle remains elongated due to high inventory, along with industry competition and group company exposure, these factors are balanced by the strong financial risk profile. The stable outlook indicates maintained creditworthiness, which should help sustain investor confidence and stable borrowing costs.