Company UpdateCredit Rating
Crisil Outlook Positive for Sportking India; Long-Term A+/Positive, Short-Term A1 Reaffirmed
Rating Action
- Long-term facility Rs 935 cr: Crisil A+/Positive; outlook revised from Stable to Positive; rating reaffirmed.
- Short-term facility Rs 65 cr: Crisil A1; rating reaffirmed.
- Total facilities rated Rs 1,000 crore.
Rationale & Drivers
- Outlook revised to Positive on strengthened business risk profile.
- Sustained domestic and international demand with high capacity utilisation.
- Odisha expansion adds about 40% capacity to 5.29 lakh spindles.
- FY2026 revenue Rs 2,503 crore; operating margin 11.7%.
- Projected FY2027 revenue growth around 15%; Odisha facility supports scale.
- Capex of Rs 960 crore; timely commissioning monitorable.
- Debt protections remain healthy; debt/EBITDA 2.0–2.3x; interest coverage >6.5x.
- Liquidity robust; net cash accrual > Rs 300 crore annually; unused WC limits ~ Rs 300 crore.
- Risks: capex execution, working capital intensity, raw-material and forex volatility.
Financial Profile
- FY2026 revenue Rs 2,503 crore; PAT Rs 120 crore; PAT margin 4.8%.
- Adjusted debt declined to Rs 463 crore; debt/EBITDA 1.58x; interest coverage >6x (2026).
- Net cash accruals projected above Rs 300 crore annually through 2027–2029.
Outlook & Risks
- Outlook: Positive reflecting profitability and scale from Odisha expansion.
- Sensitivity: sustained revenue growth and cash generation.
- Downside: weaker profitability or delayed capex execution.