Gokul Agro Resources Limited (GARL) announced that CRISIL Ratings Limited has reaffirmed its credit ratings for the company's bank facilities and revised the outlook to 'Positive' from 'Stable'. The long-term rating has been reaffirmed at 'Crisil A/Positive' with the outlook revision, and the short-term rating remains 'Crisil A1'. The total bank loan facilities rated have been enhanced to ₹4420 Crore from ₹2820 Crore. The positive outlook reflects CRISIL's expectation of sustained improvement in GARL's scale of operations and cash accrual generation. The company is projected to grow at high double-digits in fiscal 2027, with all major plants operational and the commencement of a biodiesel plant in fiscal 2026. Operating margins are also expected to see a minor improvement. During fiscal 2026, GARL reported a revenue growth of approximately 23% year-on-year to ₹24,077 crore, with an improved operating profitability of 2.81%. Leverage metrics are expected to improve gradually, supported by healthy internal accrual generation. The ratings continue to reflect the group's established presence in the edible oil industry, diversified sales mix, and improving financial risk profile, partially offset by susceptibility to agro-based business risks, regulatory changes, commodity price volatility, and the low-margin nature of the industry. The Gokul group has planned debt-funded capex of ₹450 crore in fiscal 2027 and 2028 for capacity expansion and renewable power enhancement. The company's liquidity is strong, with bank limit utilization at 25.59% on average for the 12 months ended April 30, 2026, and expected annual cash accrual above ₹385 crore against term debt obligations.
