Dishman Carbogen Amcis issued a clarification following the downgrade of its long-term and short-term credit ratings by India Ratings & Research to A and A1, respectively, with a negative outlook. The company asserts that this action does not reflect the improving business and financial performance of the Group, citing significant leverage reduction and EBITDA margin recovery as evidence of positive trends since the prior April 2025 rating affirmation.
Clarification on Recent Credit Rating Action
Dishman Carbogen Amcis Limited has provided a clarification regarding the credit rating downgrade announced by India Ratings & Research Pvt. Ltd. (“IND-RA”). This communication follows the rating agency’s action on February 18, 2026, which downgraded the long-term and short-term ratings for the company’s India credit facilities to A and A1, respectively, accompanied by a negative outlook.
The company explicitly states that the recent credit rating action, which adopted a consolidated view, does not represent the improving business and financial performance of the Group.
Performance Metrics Show Improvement
The management highlighted several positive financial indicators that contrast with the rating outcome:
- The rating exercise preceding the current one, conducted in April 2025, had affirmed the ratings at A+ and A1+ with a stable outlook.
- Net Leverage Reduction: As of September 30, 2025, the net leverage ratio improved to 3.18x, a significant reduction compared to 3.92x as of March 31, 2025 (or 3.07x when excluding notional Forex impact).
- EBITDA Margin Growth: The Group’s EBITDA margins have been consistently improving when excluding performance data from the new French site and the recently re-approved India site, when compared to pre-EDQM observation period margins.
Leverage Ratio Analysis
Data presented shows that both Net Debt and Net Adjusted Leverage declined as of September 30, 2025, compared to March 31, 2025. Specifically, Net Debt reduced from ₹16,404 Crore to ₹14,238 Crore (at reported FX rate).
EBITDA Margin Trend
Analysis of Consolidated EBITDA margins shows a strong recovery:
- The EBITDA margin for 6MFY2026 stood at 25.68% (Consolidated).
- Excluding the France and India sites, margins for the nine months ending December 31, 2025, also indicate growth compared to pre-EDQM observation margins.
- The company anticipates achieving EBITDA levels at the pre-EDQM observation level of 24.4% through the scale-up of the new French facility, the recently re-approved Bavla site in India, and continued growth across other sites.
The company affirms its commitment to maintaining transparent communication with all stakeholders.
Source: BSE
