Mawana Sugars: CARE Ratings Withdraws Long/Short Term Facilities Ratings
Mawana Sugars Limited announced CARE Ratings has withdrawn its Long/Short Term Working Capital Facilities ratings at the company's request. The company maintains ratings from ICRA Limited (BBB+ Stable/A2) for ₹500 Crore facilities. CARE Ratings cited improvements in FY25 financials, including better capital structure and margins, as key rating drivers. The company's overall gearing improved to 0.86x by March 31, 2025.
The withdrawal of ratings by one agency (CARE) while maintaining them with another (ICRA) is a procedural change. The company continues to have credit ratings, and the underlying financial health as assessed by ICRA remains stable. This is unlikely to have a significant immediate impact on the company's operations or stock.
The announcement is a routine update regarding credit rating withdrawal and reaffirmation from a second agency. While financial performance has improved, the core news is about the rating process, not a direct financial outcome or strategic shift that would warrant a positive or negative sentiment.
Mawana Sugars Limited (MSL) announced that Credit Analysis & Research Limited (CARE) has withdrawn the ratings assigned to the company's Long Term/Short Term Fund-Based Working Capital Facilities at the company's request. This withdrawal is because MSL is obtaining credit ratings from two agencies, CARE Ratings Limited and ICRA Limited.
The company continues to maintain a credit rating from ICRA Limited, which is currently BBB+ (stable) for Long Term/Short Term Fund Based-Working Capital facilities of ₹500 Crore.
CARE Ratings had reaffirmed and withdrawn the outstanding rating of ‘CARE BBB+; Stable’ assigned to bank facilities of Mawana Sugars Limited with immediate effect on May 18, 2026. The reaffirmation factored in the improvement in the company’s financial performance in FY25, characterized by a comfortable capital structure and improved debt coverage indicators. The ratings also derived strength from improved operational performance, growing scale of operations, and improved PBILDT margins in FY25, though they remained subdued in 9MFY26. The company's liquidity profile was supported by the sale proceeds of two subsidiaries, which were utilized towards debt reduction.
Key strengths highlighted include a comfortable financial risk profile with improved capital structure and coverage indicators, with overall gearing improving to 0.86x as of March 31, 2025, from 1.27x on March 31, 2024. Debt coverage indicators were also comfortable, with TD/GCA and interest coverage ratios at 3.56x and 4.32x, respectively, as of March 31, 2025. The company reported an increase in Total Operating Income (TOI) to ₹1449.64 crore in FY25 from ₹1355.13 crore in FY24, a year-over-year growth of approximately 7%. PBILDT margins improved from 6.91% in FY24 to 8.80% in FY25. The company also benefits from an experienced management team and an integrated business model with cogeneration and distillery operations.
Key weaknesses noted include the working capital-intensive nature of operations, with the inventory holding period stretching to 225 days for FY25 and the working capital cycle elongating to 197 days. The industry is also vulnerable to agro-climatic risks, cyclicality, and regulatory changes. The company's liquidity profile was deemed adequate with free cash and bank balance of around ₹6.10 crore as of March 31, 2025, and projected gross cash accruals of approximately ₹105.37 crore for FY26.
What to do with a filing like this
Mawana Sugars Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Mawana Sugars Limited. Read the original for the full detail.