Kusumgar544821Credit rating maintained/reaffirmed

Clarifies no CRISIL rating mandate; CARE reaffirms A/Stable and A1 ratings

Kusumgar Ltd has clarified it gave CRISIL no mandate or data for any credit rating exercise.

By ScoutQuest · Fri 23 Oct 2026, 2:44 PM IST · 2 min read

Long-term facilities rating: CARE A; Stable on ₹18.05 crore long-term facilities (reaffirmed)
LT/ST facilities rating: CARE A; Stable / CARE A1 on ₹23.50 crore LT/ST facilities (reaffirmed)
Rating report date: CARE Ratings' April 02, 2026 report

It has attached its existing credit rating letter/report from CARE Ratings Limited, which it describes as valid and as the rating it has mandated and engaged.
It has not issued any mandate or engagement to CRISIL Limited for a credit rating exercise in respect of the company.
It has not provided any information, documents, data or other particulars to CRISIL for such an exercise.

Long-term bank facilities of ₹18.05 crore: CARE A; Stable, reaffirmed.
Long-term/short-term bank facilities of ₹23.50 crore: CARE A; Stable / CARE A1, reaffirmed.
The rating history table shows the term loan at CARE A; Stable on 20-Mar-25, upgraded from CARE A-; Positive on 02-Apr-24.

Consolidated total operating income ₹781.89 crore in FY25 versus ₹472.22 crore in FY24; PBILDT ₹191.54 crore versus ₹124.32 crore; PAT ₹111.99 crore versus ₹81.14 crore.
Overall gearing 1.17x as on March 31, 2026 (previous year 0.48x) and PBILDT interest coverage 13.09x (previous year 19.78x); total debt/PBILDT at 1.57x (previous year 0.94x).
Fresh equity of ₹127 crore raised in 9MFY26 through issuance of compulsorily convertible preference shares to private equity investors, which CARE expects to strengthen net worth above ₹500 crore.
Consolidated turnover of ₹620 crore as on March 28, 2026. CARE expects scale to moderate in FY26 due to some impact of incremental tariffs on exports to the US and deferment of execution of high value special projects, with PBILDT margin likely at 20-22%.
Liquidity marked adequate: projected gross cash accruals of ₹140-150 crore p.a. against scheduled repayments of ~₹40 crore p.a. and maintenance capex of ₹10 crore p.a.; free cash and liquid investments of ₹37.6 crore as on March 31, 2025.
Average working capital utilisation of ~86% for the 12 months ending December 2025; operations described as working capital intensive with an operating cycle of 100-120 days.

The report states that CRISIL Ratings, vide its press release dated January 21, 2026, reviewed the rating assigned to the company's bank facilities under the non-cooperation category due to non-availability of information and non-cooperation.

Positive: scale above ₹1,000 crore with PBILDT margin above 25%, or overall gearing below 0.25x, on a sustained basis.
Negative: scale below ₹500 crore with PBILDT margin below 20%, overall gearing above 1x, or significant time or cost overrun in the ongoing capex.

The document is primarily a clarification of which rating agency the company has engaged, together with the reaffirmed CARE ratings and the reasons behind them.
It also carries CARE's expectation of lower FY26 scale alongside stable margins, and a gearing level that CARE flags as weaker than its negative sensitivity, with improvement projected after the equity raise and accruals.