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CRISIL Ratings Limited has revised the outlook on the long-term bank facilities and fixed deposits of Bombay Dyeing & Mfg Company Limited (BDAMCL) to ‘Stable’ from ‘Positive’, while reaffirming the rating at ‘CRISIL BBB+’. The rating on the short-term bank loan facilities has been reaffirmed at ‘CRISIL A2+’.

The revision in outlook is attributed to a moderation in the polyester staple fibre (PSF) segment’s operating profitability in the first half of fiscal 2026, primarily due to reduced sales from the higher-margin export market, particularly to the USA. While the company is implementing cost efficiency measures to improve operating margins and enhance realizations through value addition, an increase in export business is considered critical for improved profitability. The sustenance of scale and improvement of margins from the PSF segment remain key monitorables.

CRISIL expects BDAMCL to launch a fresh real estate project in Q4 FY 2026, and customer bookings and response, along with resultant cash flows, will be closely monitored. The company's financial profile and liquidity remain strong, with no debt and surplus cash and cash equivalents, including liquid investments, amounting to approximately ₹1300 crore as of September 30, 2025. Significant liquidity is expected to be maintained even with the launch of new real estate projects.

The ratings reflect BDAMCL's diversified revenue profile, experienced management, strong market position in the polyester staple fibre (PSF) segment, an established track record in executing real estate projects, and a strong financial risk profile. These strengths are partially offset by low operating margins in the PSF segment, susceptibility to volatility in raw material prices and forex fluctuations, and exposure to the cyclicality inherent in the Indian real estate industry.

The analysis combines the business and financial risk profiles of BDAMCL and its 97.36% owned subsidiary, P.T Five Star Textiles, Indonesia (PT Five). The company has total bank loan facilities rated at ₹501 crore and fixed deposits rated at ₹0.3 crore.