Pennar Industries Limited — Credit Ratings, 11-08-2025: Credit Rating

Pennar Industries' credit ratings for its long-term (₹712.46 Cr) and short-term (₹1,012.50 Cr) bank facilities have been reaffirmed at 'CARE A; Stable' and 'CARE A1' respectively, with a stable outlook. This stability stems from the company's consistent growth in operating income and improving profit margins, coupled with a comfortable financial risk profile and adequate liquidity (cash/liquid investments ₹143 Cr). Despite persistent debt-funded capital expenditure and exposure to raw material price volatility, the ratings are supported by an experienced management team, diversified product portfolio, and strong client base. This reaffirmation signals continued confidence from the rating agency, which helps maintain stable borrowing costs and supports investor sentiment.