Mukka Proteins: CARE Ratings Reaffirms Bank Facilities, Outlook Revised to Stable
RATING
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 07 Oct 2026, 04:45 PM IST · BSE ID: 47497064-8931-4ad6-8b3b-a2c3e2c8c2c7
View Original BSE Filing (PDF)
💡
In Simple Terms
The company's credit rating was confirmed, with its future outlook improved from negative to stable.
🤖 AI Summary
- CARE Ratings reaffirmed bank loan ratings for Mukka Proteins, revising outlook to Stable.
- Long Term / Short Term Bank Facilities of ₹480.00 crore reaffirmed at CARE BBB-; Stable / CARE A3.
- Outlook revised from Negative to Stable due to improved Q1FY27 performance and liquidity.
- Revenue grew ~187% YoY to ₹490 crore in Q1FY27, with PBILDT margin sustaining above 9%.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Long Term / Short Term Bank Facilities Amount
480.00 Crore
Long Term Bank Facilities Amount
15.00 Crore
Q1FY27 Revenue
490 Crore
187.00
Consolidated Inventory (August 30, 2026)
800 Crore
Consolidated Inventory (March 31, 2026)
867 Crore
Overall Gearing (June 30, 2026)
1.50x
PBILDT Interest Cover (Q1FY27)
2.92x
🏢 How This Affects the Company
The reaffirmed rating and stable outlook can enhance the company's ability to access credit and manage financing costs, supporting ongoing operations and potential expansion projects.
Improved liquidity from Q1FY27 performance and an equity raise is expected to provide a cushion, potentially reducing leverage and improving coverage metrics.
A focus on sustained performance and inventory reduction is noted, aiming to ease pressure on liquidity and operational efficiency.
The revision to a stable outlook suggests some previously identified risks, such as working capital intensity, are being managed, though volatility in prices and forex remains.
👥 What This Means For Shareholders
✅
Action Required
No specific action is required from shareholders based on this credit rating update.
👤
Who Is Affected
All shareholders are indirectly affected as a stable credit rating can support the company's financial stability and future growth prospects.
🔍
Management Signal
Management is signaling a commitment to improving operational efficiency and financial metrics, evidenced by recent performance and strategic initiatives.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q2FY27 results — monitor revenue growth and PBILDT margin sustainability.
Oman facility commencement — track impact on production and exports.
Inventory levels — observe reduction below 150 days holding period.
MEDIUM RISK
Working capital intensity, price volatility, and forex exposure persist despite positive rating action.
💡 Investor Takeaway
CARE Ratings reaffirmed Mukka Proteins' bank facilities with a Stable outlook, citing strong Q1FY27 performance and improved liquidity, despite working capital challenges.
⚖️ Strengths & Concerns
✅ Positives
- Q1FY27 revenue grew ~187% YoY to ₹490 crore driven by ~93% higher realisations and ~49% increased volumes.
- Consolidated inventory reduced by ~7% to ~₹800 crore as of August 30, 2026, from ₹867 crore on March 31, 2026.
⚠️ Concerns
- Working capital intensive operations driven by substantial elongation in operating cycle in FY26, owing to higher inventory stocking.
- Overall gearing was 1.50x as on June 30, 2026, with PBILDT interest cover at 2.92x in Q1FY27.
📅 Company Track Record
In May 2026, Mukka Proteins faced a credit rating downgrade due to extended working capital. This current rating action signals a potential improvement in managing these challenges.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What is the credit rating for Mukka Proteins' bank facilities?
CARE Ratings reaffirmed the Long Term / Short Term Bank Facilities at CARE BBB-; Stable / CARE A3 and Long Term Bank Facilities at CARE BBB-; Stable.
What is the outlook on Mukka Proteins' credit rating?
The outlook on Mukka Proteins' credit rating has been revised from Negative to Stable by CARE Ratings.
What was Mukka Proteins' revenue in Q1FY27?
Mukka Proteins' revenue from operations grew approximately 187% year-over-year to ₹490 crore in Q1FY27.
How have Mukka Proteins' inventory levels changed?
Consolidated inventory reduced by approximately 7% to ₹800 crore as on August 30, 2026, from ₹867 crore on March 31, 2026.
What is Mukka Proteins' overall gearing as of June 30, 2026?
Mukka Proteins' overall gearing was 1.50x as on June 30, 2026.
Questions based on this BSE filing only. For information purposes.