Hariyana Ship Breakers Ltd-$
Hariyana Ship Breakers — Long-term Rating Downgraded to ACUITE BB from BB+
RATING
▼ Concern Flagged
HIGH RISK
📅 Filed on BSE: 20 Mar 2026, 04:30 PM IST · BSE ID: 1ff3f940-0d0a-4e90-b1e1-d57056533589
View Original BSE Filing (PDF)
💡
In Simple Terms
Ship-breaking company's debt rating was downgraded because it has had almost no ships to break for two years, leaving it with barely any revenue.
🤖 AI Summary
- Long-term rating downgraded to ACUITE BB from ACUITE BB+ on Rs. 25.00 Cr. facilities
- Short-term rating reaffirmed at ACUITE A4+ on Rs. 200.00 Cr. bank loan facilities
- FY25 revenue collapsed to Rs. 0.22 Cr. from Rs. 148.63 Cr. in FY24 due to ship unavailability
- Net worth of Rs. 146.87 Cr. as on March 31, 2025; ~94% invested in real-estate group companies
- Gearing at 0.11 times in FY25 with adequate interest coverage of 2.25 times and DSCR of 1.88 times
🔢 Key Numbers - exact figures from BSE filing, not rounded
Long-term Rating Downgrade
ACUITE BB (from ACUITE BB+)
Facilities Downgraded
Rs. 25.00 Cr.
Short-term Rating Reaffirmed
ACUITE A4+
Short-term Facilities
Rs. 200.00 Cr.
FY25 Revenue
Rs. 0.22 Cr.
-99.85
FY24 Revenue
Rs. 148.63 Cr.
Net Worth (as on March 31, 2025)
Rs. 146.87 Cr.
Interest Coverage FY25
2.25 times
Cash Accruals FY25
Rs. 2.72 Cr.
PAT FY25
Rs. 1.60 Cr.
-50.46
Operating Profit FY25
Rs. (1.31) Cr.
🏢 How This Affects the Company
Operating performance collapsed in FY25–FY26 with revenue dropping 99.8% to Rs. 0.22 Cr. from Rs. 148.63 Cr. in FY24 due to complete absence of vessel inflow for dismantling, the company's core business activity.
Profitability sustained only by investment income. PAT moderated to Rs. 1.60 Cr. in FY25 from Rs. 3.23 Cr. in FY24. Operating loss of Rs. (1.31) Cr. in FY25 against Rs. (2.67) Cr. in FY24. Liquidity supported by cash accruals of Rs. 2.72 Cr. against minimal debt repayment obligations.
Rating downgrade reflects elevated operational and financial risks from chronic ship unavailability, volatile steel prices, geopolitical vessel flow restrictions, and concentration of net worth in illiquid real-estate investments limiting recovery flexibility.
👥 What This Means For Shareholders
✅
Action Required
No immediate action required. Monitor Q4 FY26 results filing and any vessel acquisition announcements closely.
👤
Who Is Affected
All equity shareholders face prolonged operational uncertainty. Net worth of Rs. 146.87 Cr. is heavily invested in illiquid real-estate group entities, constraining dividend capacity and financial flexibility.
🔍
Management Signal
Management acknowledges operational halt and is actively pursuing ship purchases. Presence in discussions with brokers suggests intent to revive operations, but timeline and success remain unconfirmed.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List - track these upcoming events
Q4 FY26 results filing — confirm if revenue remains near-zero or shows any vessel dismantling activity.
Vessel acquisition announcement — track management progress on stated plans for one to two ship purchases.
Rating action update — Acuite will re-rate if net cash accruals fall below Rs. 2 Cr. or exceed Rs. 5 Cr.
HIGH RISK
Core business halted entirely. Revenue fell 99.8%. Recovery timing uncertain. Net worth trapped in illiquid real-estate investments. Rating already downgraded; further deterioration likely without immediate operational revival.
💡 Investor Takeaway
Hariyana Ship Breakers faces structural operational collapse — revenue declined 99.8% to Rs. 0.22 Cr. in FY25 as ship dismantling ceased entirely. Credit rating downgraded from ACUITE BB+ to ACUITE BB on Rs. 25.00 Cr. facilities. Recovery timing uncertain; dependent on vessel availability that management describes as absent through FY26.
⚖️ Strengths & Concerns
✅ Positives
- Promoters retain over three decades of experience in ship-recycling; established relationships at Alang-Sosiya hub.
- Conservative capital structure with gearing at 0.11 times in FY25 and interest coverage at 2.25 times.
⚠️ Concerns
- Revenue collapsed 99.8% to Rs. 0.22 Cr. in FY25 from Rs. 148.63 Cr. in FY24 due to ship unavailability.
- Approximately 94% of net worth (~Rs. 137.86 Cr. of Rs. 146.87 Cr.) invested in real-estate group entities, severely limiting operational liquidity.
📅 Company Track Record
Company incorporated in 1981. First credit rating action disclosed in this filing — no prior rating history available in public records. Ship-breaking operations at Alang-Sosiya, Bhavnagar on leased 4,185 sq. m plot from Gujarat Maritime Board.
Based on publicly available historical data. For context only.