Riba Textiles Limited has been informed by CARE Ratings Limited about an updated external credit rating. The rating agency has reaffirmed the company’s credit rating, indicating a stable outlook. This assessment reflects the company’s ongoing financial performance and its ability to meet its financial obligations. Details of the updated rating and its implications are provided in the attached communication from CARE Ratings.
Updated External Credit Rating
Riba Textiles Limited has officially received updated external credit rating (ECR) information from CARE Ratings Limited. This communication, received by the company, signifies an assessment of Riba Textiles’ creditworthiness by an independent rating agency. The updated rating reflects the agency’s current evaluation of the company’s financial stability and its capacity to manage its debts.
Rating Details and Outlook
The press release details indicate that the bank facilities of Riba Textiles Limited have been reaffirmed with a CARE BBB; Stable / CARE A3+ rating. Specifically, Long Term Bank Facilities have been reaffirmed, while Long Term/Short Term Bank Facilities were assigned a rating. The rationale provided highlights moderate working capital requirements, long-standing promoter experience, and a comfortable capital structure as strengths. However, the company faces challenges from operating in a highly competitive industry, susceptibility to foreign exchange fluctuations, and geographical concentration in export markets. The outlook remains Stable, with CARE Ratings believing the company will continue to maintain stable operational performance and benefit from its promoters’ experience and clientele.
Key Financial Indicators
For the financial year ending March 31, 2026, Riba Textiles reported total operating income of ₹255.38 crore. The PBILDT stood at ₹22.71 crore, with a PBILDT margin of 8.89%. The company’s overall gearing was 0.72x, and interest coverage was 3.50x. These figures, as of March 31, 2026, are part of the basis for the reaffirmed ratings.
Source: BSE
