Kusumgar Ltd has clarified that it has not engaged CRISIL Ratings for any rating services, addressing a recent non-cooperation notice. The company maintains an active, stable rating from CARE Ratings. Shareholders should note the company's strong FY25 growth alongside current exposure to export tariff risks and intensive working capital requirements.
Kusumgar Ltd Clarifies Credit Rating Status
Kusumgar Ltd reports FY25 PAT of Rs 111.99 crore, with long-term bank facilities reaffirmed at CARE A; Stable.
Reader Takeaway: Strong FY25 volume growth faces potential headwinds from US export tariffs and high working capital cycles.
What just happened
Kusumgar Ltd has formally notified the exchange that it never issued a mandate to CRISIL Ratings Limited. This follows a press release from CRISIL dated January 21, 2026, which incorrectly listed the company under a non-cooperation category. The company clarified that its credit facilities are currently rated by CARE Ratings Limited, which reaffirmed its 'CARE A' rating for long-term and short-term facilities on April 2, 2026.
Why this matters
Credit rating ambiguity can trigger unnecessary market concerns regarding corporate governance and liquidity. By clarifying this, the company has cleared the air regarding its regulatory standing. Investors now have access to the verified CARE Ratings report, which provides a comprehensive look at the firm's financial health, including a significant 65% year-on-year jump in operating income for FY25.
The backstory
The company significantly strengthened its balance sheet by raising Rs 127 crore in fresh equity via compulsorily convertible preference shares during 9MFY26. This move has improved net worth and supported a recent Rs 108 crore acquisition of a subsidiary in FY26, signaling active expansion.
Risks to watch
While performance remains robust, the company operates in a working capital-intensive environment with an operating cycle ranging from 100 to 120 days. Furthermore, management noted that FY26 results may see moderation due to incremental tariffs on exports to the US and the deferment of specific high-value special projects. The firm also remains sensitive to raw material price volatility in nylon and polyester yarns.
Context metrics
Total operating income rose to Rs 781.89 crore in FY25 from Rs 472.22 crore in FY24. Profit after tax also improved to Rs 111.99 crore, up from Rs 81.14 crore in the previous fiscal year.