VPRPL Credit Rating Migrated to 'Issuer Not Cooperating' Category by CARE
Vishnu Prakash R Punglia Limited's credit rating has been migrated to 'Issuer Not Cooperating' (INC) category with a BB- rating by CARE. This follows a technical classification due to non-cooperation with the rating agency's monitoring process. The company has initiated engagement with a new rating agency. CARE cited significant deterioration in operating performance, including operating losses and high working capital intensity, as reasons for the downgrade.
A migration to 'Issuer Not Cooperating' status and a rating downgrade can significantly impact the company's ability to access credit, raise funds, and its overall reputation with lenders and investors.
The credit rating has been migrated to 'Issuer Not Cooperating' and downgraded, indicating a negative sentiment due to operational challenges and lack of cooperation with the rating agency.
Vishnu Prakash R Punglia Limited (VPRPL) announced an update regarding its credit rating. CARE Ratings has migrated the credit rating of the company's bank facilities and instruments to the 'Issuer Not Cooperating' (INC) category, with a rating of BB-.
The company clarified that this technical classification does not reflect its actual credit risk or governance standards. VPRPL stated that it had previously communicated its non-acceptance of a prior rating review by CARE on February 25, 2026, as it did not align with the company's factual position. VPRPL has initiated engagement with another SEBI-registered Credit Rating Agency for a comprehensive review, and this new rating exercise is currently underway.
The press release from CARE Ratings dated June 09, 2026, indicated a downgrade for long-term bank facilities amounting to ₹200.00 crore from CARE BB+; Negative to CARE BB-; Negative and moved to ISSUER NOT COOPERATING. Similarly, long-term/short-term bank facilities of ₹760.00 crore were downgraded from CARE BB+; Negative / CARE A4+ to CARE BB-; Negative / CARE A4; ISSUER NOT COOPERATING.
CARE Ratings cited a significant deterioration in the company's operating performance in Q4FY26 and FY26, marked by a moderation in total operating income (TOI) and significant operating and cash losses in Q4FY26. High working capital intensity, continued pledging of shares by promoters (around 93% of their holding), and slower project execution were also noted as key rating drivers. The company reported a TOI of ₹851.20 crore for FY26, a decrease from ₹1,237.42 crore in FY25. VPRPL reported an operating loss and loss before tax of ₹130.43 crore and ₹151.77 crore, respectively, in Q4 FY26, resulting in a cash loss of approximately ₹150 crore for the quarter and approximately ₹156 crore for FY26. Despite these challenges, the company reported positive cash flow from operations of ₹141.78 crore for FY26.
VPRPL's liquidity is described as stretched, necessitating fund infusion through incremental share pledging. The company has a monthly scheduled repayment of approximately ₹3.5 crore in FY27 against a cash loss of approximately ₹156 crore in FY26. Improvement in project progress, certifications, and debtor realization is deemed crucial for its liquidity profile. The company continues to maintain a strong financial position, services its debt obligations on time, and remains compliant with statutory disclosures.
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