Amarjothi Spinning Mills: CRISIL Affirms 'BBB+/Stable' Rating on ₹55 Cr Loans

CRISIL Ratings has affirmed Amarjothi Spinning Mills Limited's (ASML) long-term credit rating for its ₹55 Crore bank facilities at 'BBB+/Stable'. This rating indicates a stable outlook on the company's ability to meet its financial obligations and is valid until September 30, 2026.

This stable rating signifies continued lender confidence in ASML's financial standing and supports its access to credit on favorable terms.

The company has navigated a fluctuating rating environment. In January 2024, CRISIL had revised ASML's outlook to 'Negative' due to industry challenges like weak cotton yarn demand and rising raw material costs, though the 'BBB+' rating itself was reaffirmed. By March 2025, the outlook improved back to 'Stable', reflecting a stronger business risk profile driven by healthy sales growth and comfortable liquidity.

Despite the credit rating affirmation, some market analysts have expressed concerns. MarketsMojo downgraded ASML to a 'Strong Sell' on April 21, 2026, citing deteriorating technicals and disappointing financial performance, including declining profitability and sales pressure.

For investors, the reaffirmed stable rating generally bolsters confidence. However, the rating's expiry in September 2026 means a future review will be necessary. The rating is subject to ongoing surveillance and could be revised or withdrawn if circumstances change.

In peer comparisons, ASML's 'BBB+/Stable' rating is in a similar tier to Motherland Textile India Private Limited ('CRISIL BBB/Stable'). However, major players like Vardhman Textiles Limited hold significantly higher ratings ('CRISIL AA+/Stable'), while Sutlej Textiles and Industries Limited has an 'IND A/Negative' rating, indicating a more cautious view.

Investors should monitor any future rating actions from CRISIL and the company's financial results. Following up on the rating renewal process after September 30, 2026, will be crucial, alongside tracking ASML's performance against industry trends.