India Ratings Affirms Trident's Proposed NCDs at IND AA; Outlook Stable
India Ratings and Research (Ind-Ra) has affirmed Trident Limited's proposed Non-Convertible Debentures (NCDs) rating at 'IND AA' with a 'Stable' outlook. This reflects the company's strong consolidated business profile and credit metrics. Consolidated revenue was ₹50.69 billion in 9MFY26, with EBITDA at ₹6.42 billion. Net adjusted leverage is expected between 1.50x-1.60x over FY26-FY27.
The affirmation of a strong credit rating for proposed NCDs is positive for the company's debt fundraising capabilities and financial flexibility. It suggests continued confidence from rating agencies, which can influence investor perception and borrowing costs.
The credit rating agency has affirmed a strong 'IND AA' rating with a 'Stable' outlook for Trident Limited's proposed NCDs, indicating a positive assessment of the company's financial health and future prospects.
India Ratings and Research (Ind-Ra) has affirmed Trident Limited's proposed non-convertible debentures (NCDs) rating at 'IND AA' with a 'Stable' outlook. The affirmation reflects Trident's healthy consolidated business profile, resilient operating performance, and strong credit metrics, which Ind-Ra expects to sustain.
The rating approach has been changed to a fully consolidated view of Trident and its subsidiaries due to increased operations. The affirmation is supported by comfortable credit metrics, with consolidated net adjusted leverage expected to be between 1.50x - 1.60x over FY26-FY27, and interest coverage sustaining above 5.0x. Consolidated revenue remained stable at ₹50.69 billion in 9MFY26, with EBITDA at ₹6.42 billion. Management expects demand from global markets to improve, supported by free trade agreements and supply chain diversification by global retailers.
The company benefits from a leading market share in the global terry towel market, a diversified product mix, and vertically integrated operations. However, the paper business EBITDA margins declined in FY25 and 9MFY26 due to higher raw material costs and reduced realisations, though they are expected to stabilize. The company faces risks from high revenue concentration, particularly from the US market, and forex volatility.
Liquidity is assessed as adequate, with low utilization of fund-based limits and moderate free cash balances. Ind-Ra expects the debt service coverage ratio to remain comfortable and free cash flow to turn positive in FY26. The agency notes that ESG factors are minimally relevant to the rating.
What to do with a filing like this
Trident Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Trident Limited. Read the original for the full detail.