India Ratings and Research has revised the outlook on CCL Products (India) Limited to Stable from Negative while affirming the company’s credit rating at IND AA-. This positive development follows a period of steady capacity ramp-ups and improved EBITDA margins. The agency highlights the company’s strong market position and diversified geographic presence as key factors supporting its credit profile, while anticipating continued improvement in leverage and financial metrics over the medium term.
Credit Outlook Revision
In a recent credit rating update dated April 27, 2026, India Ratings and Research affirmed the long-term rating of IND AA- for CCL Products (India) Limited and its bank loan facilities, while upgrading the outlook to Stable. The rating action is driven by the company’s successful completion of significant capital expenditure projects, which has led to increased revenue and strengthened operational performance across its manufacturing facilities in India and Vietnam.
Financial Performance and Growth
The company has demonstrated robust growth, with consolidated revenue rising at a CAGR of 28.6% between FY22 and FY25, reaching INR 31,057 million in FY25. Performance remained strong in the current fiscal year, with revenue increasing 42% year-on-year to INR 32,329 million for the nine months ended December 2025 (9MFY26). Consolidated EBITDA for FY25 rose 25% to INR 5,550.92 million, underpinned by high-margin contracts and increased production of freeze-dried coffee.
Operational Highlights
CCL Products has successfully scaled its operations through strategic investments. Notable achievements include the expansion of its freeze-dried coffee capacity in Vietnam by 6,000 MT in May 2025 and the commissioning of a new 16,000 MT spray-dried capacity in India. These projects have significantly bolstered the company’s global supply capabilities. Management is also focused on expanding its domestic B2C segment, with a long-term goal to increase its revenue contribution to 20%.
Future Projections
Looking ahead, the rating agency anticipates a significant improvement in the company’s net leverage, projecting it to decline to 1.80x by the end of the current fiscal year and further below 1.5x by FY27. The improvement in credit metrics is expected to be supported by rising scale, reduced reliance on working capital borrowings, and limited future capital expenditure, positioning the company for long-term financial stability.
Source: BSE
