Kwality Pharmaceuticals Ltd
Kwality Pharmaceuticals: ICRA upgrades credit rating to [ICRA]BBB+ (Stable)/[ICRA]A2
RATING
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 08 May 2026, 10:39 AM IST · BSE ID: f9ccbcd7-0592-4637-97ca-8b57e2bebe68
View Original BSE Filing (PDF)
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In Simple Terms
A credit rating agency upgraded the company's borrowing reliability score, making it easier to borrow more money.
🤖 AI Summary
- ICRA upgraded long-term rating for Rs. 40.00 Crore term loans to [ICRA]BBB+ (Stable) from [ICRA]B+ (Stable).
- Long-term/Short-term ratings upgraded to [ICRA]BBB+ (Stable)/[ICRA]A2 from [ICRA]B+ (Stable)/[ICRA]A4.
- Rs. 160.00 Crore fund-based/non-fund based limits are now rated [ICRA]BBB+ (Stable)/[ICRA]A2.
- Ratings removed from the "Issuer Not Cooperating" category by ICRA Limited.
- Total rated amount enhanced from Rs. 65.00 Crore to Rs. 200.00 Crore.
🔢 Key Numbers - exact figures from BSE filing, not rounded
Previous Rated Amount
Rs. 65.00 Crore
Current Rated Amount
Rs. 200.00 Crore
Revenue (9M FY2026)
Rs. 346.0 crore
Operating Profit Margin (9M FY2026)
23%
Total Debt/OPBDITA (as on September 30, 2025)
1.1 times
🏢 How This Affects the Company
The enhanced rated amount of Rs. 200.00 Crore provides Kwality Pharmaceuticals with increased access to bank loan facilities, potentially supporting future growth and expansion initiatives. The company's revenue grew by 36% to Rs. 346.0 crore in 9M FY2026.
Improved credit ratings to [ICRA]BBB+ (Stable)/[ICRA]A2 indicate a stronger financial risk profile, potentially leading to more favorable borrowing terms and reduced interest costs for bank loan facilities. The company reported a comfortable total debt/OPBDITA of 1.1 times and an interest cover of 8.8 times in H1 FY2026.
The removal from the "Issuer Not Cooperating" category resolves a compliance flag, indicating improved transparency and cooperation with rating agencies. The company still faces high working capital intensity, with NWC/OI of 50.2% in FY2025.
👥 What This Means For Shareholders
✅
Action Required
No action is required from shareholders based on this credit rating revision.
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Who Is Affected
Shareholders are indirectly affected by the company's improved credit standing, which could facilitate easier access to capital for growth. The ratings reflect the company's financial health and debt management.
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Management Signal
The company's cooperation with ICRA to facilitate the rating exercise signals management's intent towards transparency and strengthening its financial risk profile.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List - track these upcoming events
Upcoming financial results — verify sustained revenue growth and profitability.
Credit rating agency updates — monitor any further changes in ratings or outlook.
Project execution — assess how increased funding supports new initiatives and product launches.
MEDIUM RISK
Despite the upgrade, high working capital intensity and exposure to raw material and forex fluctuations remain.
💡 Investor Takeaway
ICRA upgraded Kwality Pharmaceuticals' long-term rating to [ICRA]BBB+ (Stable) and short-term rating to [ICRA]A2, removing them from the 'Issuer Not Cooperating' category. The total rated amount was enhanced from Rs. 65.00 Crore to Rs. 200.00 Crore, reflecting an improved credit profile and financial flexibility.
⚖️ Strengths & Concerns
✅ Positives
- ICRA upgraded long-term rating to [ICRA]BBB+ (Stable) and removed it from 'Issuer Not Cooperating' category, improving credit perception.
- Rated amount enhanced from Rs. 65.00 Crore to Rs. 200.00 Crore, providing increased access to funding.
⚠️ Concerns
- Company has high working capital intensity, with NWC/OI of 50.2% in FY2025, partly due to increased debtors.
- Company faces susceptibility to fluctuations in raw material prices and foreign exchange due to import dependence and export contribution.
📅 Company Track Record
No previous filings containing financial data or credit rating history were available for this company through ForgeUp's records prior to this intimation. The company reports revenue growth of 21% CAGR between FY2023-FY2025 and 36% in 9M FY2026.
Based on publicly available historical data. For context only.