Credit Rating Upgrade

Vadilal Industries Credit Rating Upgraded by India Ratings to IND A+ with Positive Outlook

NSE

VADILALIND

BSE

519156

Vadilal Industries Limited has informed the stock exchanges that India Ratings & Research (Ind-Ra) has upgraded the company’s bank loan facilities to IND A+ from IND A- and assigned a Positive Outlook. The company’s non-fund-based working capital facilities have also been upgraded to IND A1+, reflecting an improved credit profile and stronger financial standing.

PRICE-SENSITIVE TRIGGER

Event: India Ratings & Research upgraded the credit ratings assigned to Vadilal Industries Limited’s banking facilities.

Type: Credit Rating Upgrade

Impact: Positive

Immediate Effect: The upgraded ratings improve the company’s creditworthiness, strengthen lender confidence and could support access to financing at more favorable terms.

Key Metrics:

Key Metrics:

Long-term Rating: Upgraded to IND A+
Previous Rating: IND A-
Outlook: Positive
Short-term Rating: Upgraded to IND A1+
Existing Rated Bank Facilities: ₹181.49 crore
Newly Assigned Bank Facilities: ₹218.51 crore
Total Rated Facilities: ₹400 crore

Highlight:

India Ratings upgraded Vadilal Industries’ long-term bank facilities to IND A+ with a Positive Outlook while upgrading the short-term facilities to IND A1+, reflecting an improvement in the company’s credit profile.

What Happened ?

Vadilal Industries Limited has informed the exchanges that India Ratings & Research has upgraded the credit ratings assigned to its bank loan facilities.

The revision covers both existing and newly assigned banking facilities, including fund-based working capital limits, term loans and non-fund-based working capital facilities. The upgraded ratings carry a Positive Outlook, indicating the rating agency’s expectation of continued improvement in the company’s credit quality.

key details

Credit Rating Revision:

Long-term bank loan facilities upgraded from IND A- to IND A+.
Outlook revised to Positive.
Short-term facilities upgraded from IND A2+ to IND A1+.
Existing facilities worth ₹181.49 crore received the upgraded ratings.
Additional facilities worth ₹218.51 crore were assigned the same upgraded ratings.
Total bank facilities rated by India Ratings now stand at ₹400 crore.

Facility-wise Breakdown:

Fund-Based Working Capital Limits

ICICI Bank – ₹75.00 crore
IDBI Bank – ₹25.00 crore
IndusInd Bank – ₹25.00 crore
HDFC Bank – ₹30.00 crore

Term Loans

HDFC Bank – ₹120.00 crore
ICICI Bank – ₹50.00 crore
ICICI Bank – ₹35.10 crore
IndusInd Bank – ₹20.70 crore

Non-Fund-Based Working Capital

IDBI Bank – ₹5.00 crore

Proposed Facilities:

Proposed Fund/Non-Fund Based Working Capital Limit – ₹14.20 crore
Rating Assigned – IND A+/Positive / IND A1+

Note:

The revised ratings apply to both existing and proposed banking facilities and represent a two-notch improvement in the company’s long-term credit profile from the previous rating of IND A-/Stable.

Risk Analysis

Summary:

Although the rating action is positive, the assigned ratings remain subject to ongoing surveillance by India Ratings based on the company’s financial performance, liquidity profile, leverage and other material developments.

Key Risks:

Ratings may be revised if operating or financial performance weakens.
Significant deterioration in liquidity or debt-servicing capability could affect future ratings.
India Ratings may revise, suspend or withdraw ratings if material information changes or becomes unavailable.

Worst Case:

A sustained deterioration in profitability, cash flows or leverage could result in a future downgrade, potentially increasing borrowing costs and reducing financing flexibility.

Risk Level: Low

Company Commentary

India Ratings upgraded Vadilal Industries’ fund-based working capital facilities and term loans to IND A+/Positive.
Non-fund-based working capital facilities were upgraded to IND A1+.
The company disclosed the rating revision under Regulation 30 of the SEBI (LODR) Regulations, 2015.
The rating letter has been issued by India Ratings & Research on July 10, 2026.

Official Exchange Filing: Vadilal Industries Limited

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