CRISIL Ratings has reaffirmed Trident Limited’s long-term bank facilities rating at ‘Crisil AA / Stable’ and its short-term bank facilities and commercial paper rating at ‘Crisil A1+’. This reaffirmation reflects the company’s strong business risk profile, diversified revenue streams, healthy operating efficiency, comfortable financial risk profile, and robust liquidity position.
Trident Limited’s Credit Ratings Reaffirmed by CRISIL
CRISIL Ratings Limited has announced the reaffirmation of its ratings for Trident Limited. The long-term credit rating for the company’s bank facilities has been confirmed at ‘Crisil AA / Stable’, with a stable outlook. Concurrently, the short-term credit rating for both its bank facilities and commercial paper programme has been reaffirmed at ‘Crisil A1+’.
Key Factors Supporting the Ratings
The reaffirmation is driven by Trident Limited’s robust business risk profile. This is underpinned by its established market position within the home textile industry and diversified revenue streams that span across yarn, terry towels, bed linen, and paper segments. The company demonstrates healthy operating efficiency, a comfortable financial risk profile, and a strong liquidity position.
Financial Performance and Resilience
Trident Limited showed resilience during tariff-related disruptions in the US market in fiscal 2026, maintaining stable profitability despite a ~4% revenue decline to Rs 6,712 crore. The company expects revenue growth of 7-8% in fiscal 2027, driven by volume expansion in the textile segment and stable performance in the paper business. Operating margins are projected to improve to 15-16% in fiscal 2027.
Financial Risk Profile
The financial risk profile remains strong, supported by a healthy capital structure. Despite an increase in debt to Rs 1,768 crore as of March 31, 2026, leverage metrics remain comfortable. Gearing stood at 0.4 time and the total outside liabilities to tangible networth (TOLTNW) ratio was 0.7 time as of March 31, 2026. CRISIL expects these metrics to remain favourable.
Liquidity Position
Liquidity is reported as healthy, with a substantial cash balance of Rs 793 crore as of March 31, 2026. The company maintains significant unutilised working capital limits and healthy banking relationships. Net cash accrual is expected to comfortably meet yearly debt obligations and capex requirements.
Source: BSE
