NR Agarwal Industries Ltd
NR Agarwal Industries: Credit Rating Reaffirmed with Enhanced Facility Amount
RATING
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 17 Jul 2026, 01:23 PM IST · BSE ID: 4b367cff-f0ab-4b86-9354-4b9f235e5803
View Original BSE Filing (PDF)
💡
In Simple Terms
An agency confirmed the company's creditworthiness is good and increased the amount of credit it can access.
🤖 AI Summary
- ICRA reaffirmed [ICRA]A- Stable long-term rating and [ICRA]A2+ short-term rating for NR Agarwal.
- Total credit facilities rated increased by Rs. 181.93 Crores from Rs. 955.64 Crores to Rs. 1,137.57 Crores.
- Company reported 29% revenue growth in FY2026 due to capacity ramp-up.
- Operating margins improved to 8.1% in FY2026 from 6.7% in FY2025.
- Capacity of duplex board plant enhanced to 900 TPD in January 2026.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Previous rated amount (Total)
955.64 Crores
Current rated amount (Total)
1,137.57 Crores
Long-term rating
[ICRA]A- Stable
Short-term rating
[ICRA]A2+
Revenue growth FY2026
29%
Operating margin FY2026
8.1%
Operating margin FY2025
6.7%
Gearing (as on March 31, 2026)
1.0 times
Total debt/OPBITDA (FY2026)
4.7 times
Interest coverage (FY2026)
2.7 times
Duplex board plant capacity (current)
900 TPD
Overall annual installed production capacity
around 5 lakh tonne per annum
🏢 How This Affects the Company
The enhanced credit facilities and reaffirmed rating provide the company with greater financial flexibility for operations and potential expansion. Improved utilization of incremental capacity drove revenue growth.
Total rated credit facilities increased by Rs. 181.93 Crores. Gearing increased to 1.0 times as on March 31, 2026, and total debt/OPBITDA remained elevated at 4.7 times in FY2026.
Capacity of the duplex board plant was enhanced to 900 TPD, increasing overall annual installed production capacity to around 5 lakh tonne per annum.
Vulnerability to paper realization fluctuations and volatility in wastepaper prices, influenced by forex rates, remain rating constraints. A major debt-funded capex plan is likely to keep credit metrics and liquidity under check.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required by shareholders based on this credit rating update.
👤
Who Is Affected
All shareholders are indirectly affected by changes in the company's credit rating and financial flexibility.
🔍
Management Signal
Management is focused on growth initiatives, evidenced by capacity expansions and an enhanced credit facility amount.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
FY27 financial results for margin improvement confirmation.
Update on Unit VI project capex plan and its funding.
Future credit rating reviews by ICRA.
MEDIUM RISK
Elevated debt, forex volatility in raw materials, and a large capex plan pose ongoing risks.
💡 Investor Takeaway
NR Agarwal Industries' credit rating reaffirmed at [ICRA]A- Stable with total credit facilities enhanced to Rs. 1,137.57 Crores. FY2026 saw 29% revenue growth and improved margins, though debt remains elevated.
⚖️ Strengths & Concerns
✅ Positives
- Revenue growth of 29% in FY2026 supported by capacity ramp-up and higher sales volumes.
- Operating profitability improved to 8.1% in FY2026 from 6.7% in FY2025 due to better fixed cost absorption.
⚠️ Concerns
- Total debt/OPBITDA remained elevated at 4.7 times in FY2026, with interest coverage at a moderate 2.7 times.
- Vulnerability to fluctuations in paper realization and wastepaper prices, with 59% raw material imports in FY2026.
❓ Frequently Asked Questions
What is NR Agarwal Industries' reaffirmed credit rating?
ICRA has reaffirmed NR Agarwal Industries' long-term rating at [ICRA]A- Stable and short-term rating at [ICRA]A2+.
How much has NR Agarwal Industries' rated credit facility amount increased?
The total rated credit facilities have increased from Rs. 955.64 Crores to Rs. 1,137.57 Crores.
What was NR Agarwal Industries' revenue growth in FY2026?
The company reported a healthy revenue growth of 29% in FY2026.
What was NR Agarwal Industries' operating margin in FY2026?
Operating profitability improved to around 8.1% in FY2026 from 6.7% in FY2025.
What are the key constraints for NR Agarwal Industries' credit rating?
Constraints include vulnerability to paper realization and wastepaper price volatility, with 59% raw material imports in FY2026.
Questions based on this BSE filing only. For information purposes.