Aarti Drugs Limited Receives Credit Rating Reaffirmation from ICRA for Rs. 1,452.80 Crore Facilities

Aarti Drugs Limited has received reaffirmation of its credit ratings from ICRA Limited for various banking facilities totaling Rs. 1,452.80 crore. The pharmaceutical company announced this development on March 24, 2026, in compliance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited has reaffirmed its ratings across multiple facility categories for Aarti Drugs Limited. The rating agency maintained its assessment of the company's creditworthiness across both long-term and short-term instruments.

Instrument	Amount (Rs. Crore)	Rating Action
Long term - Fund based term loan	253.13	[ICRA] AA- (Stable); Reaffirmed
Long term - Fund based CC	65.00	[ICRA] AA- (Stable); Reaffirmed
Short term - Fund based/ Non-fund based facilities	1,085.00	[ICRA] A1+; Reaffirmed
Long term - Fund based Proposed term loan	49.67	[ICRA] AA- (Stable); Reaffirmed
Total	1,452.80

Banking Partner Distribution

The rated facilities are distributed across multiple banking institutions, reflecting the company's diversified funding approach. For long-term facilities rated on the long-term scale, Kotak Mahindra Bank provides the term loan facility of Rs. 253.13 crore, while Union Bank of India handles the cash credit facility of Rs. 65.00 crore.

Short-term Working Capital Facilities

The short-term facilities totaling Rs. 1,085.00 crore are structured across fund-based and non-fund based categories:

Fund-based facilities (Rs. 535.00 crore):

HDFC Bank Limited: Rs. 196.00 crore
Axis Bank Limited: Rs. 145.00 crore
State Bank of India: Rs. 75.00 crore
DBS Bank Limited: Rs. 43.00 crore
Kotak Mahindra Bank Limited: Rs. 40.00 crore
Standard Chartered Bank: Rs. 35.00 crore
IDBI Bank Limited: Rs. 1.00 crore

Non-fund based facilities (Rs. 550.00 crore):

Kotak Mahindra Bank Limited: Rs. 140.00 crore
HDFC Bank Limited: Rs. 104.00 crore
HSBC Limited: Rs. 100.00 crore
Axis Bank Limited: Rs. 80.00 crore
Standard Chartered Bank: Rs. 65.00 crore
IDBI Bank Limited: Rs. 44.00 crore
DBS Bank Limited: Rs. 12.00 crore
Union Bank of India: Rs. 5.00 crore

Rating Significance

The [ICRA] AA- (Stable) rating indicates high credit quality with adequate degree of safety regarding timely servicing of financial obligations. The A1+ rating for short-term instruments reflects the highest credit quality and indicates very strong degree of safety regarding timely payment of financial obligations. The reaffirmation of these ratings demonstrates ICRA's continued confidence in Aarti Drugs Limited's financial strength and debt servicing capabilities.

ICRA has indicated that the ratings will become due for surveillance within one year from March 24, 2026. The rating agency reserves the right to review and revise the ratings based on new information or changing circumstances that could impact the company's creditworthiness.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.82%	+3.40%	-3.90%	-27.73%	+2.80%	-50.92%

Aarti Drugs Limited has informed stock exchanges that the GST Department has escalated its tax dispute to the Supreme Court of India by filing a Special Leave Petition challenging the company's recent legal victory at the Bombay High Court.

Background of the GST Dispute

The legal battle originated from a show cause notice issued to Aarti Drugs for alleged contravention of Rule 96(10) of CGST Rule, proposing to demand IGST of Rs. 230.70 crore along with applicable interest and penalty for the period spanning FY 2017-18 to FY 2021-22.

Following the show cause notice, the CGST & C.Ex. Authority passed an order with the following key components:

Component:	Details
IGST Refund Demand:	Rs. 20.72 crore under Section 74(9) of CGST Act, 2017
Dropped Demand:	Rs. 209.98 crore under Section 74 of CGST Act, 2017
Interest:	At prescribed rates under Section 50(1) of CGST Act, 2017
Penalty:	Rs. 20.72 crore under Section 74(9) and 122(2)(b) of CGST Act, 2017

High Court Victory and Supreme Court Challenge

Aarti Drugs had successfully challenged the CGST authority's order by filing a writ petition at the Bombay High Court. In October 2025, the High Court ruled in favor of the company, setting aside the order issued by the CGST & C.Ex. Authority.

However, the GST Department has now challenged this favorable High Court order by filing a Special Leave Petition before the Supreme Court of India, as disclosed in the company's regulatory filing dated March 16, 2026.

Current Legal Status and Financial Implications

The company has provided the following details regarding the ongoing litigation:

Parameter:	Information
Opposing Party:	GST Department
Court/Tribunal:	Hon'ble Supreme Court of India
Matter Status:	Sub-judice
Financial Impact:	Difficult to assess pending Supreme Court outcome

Company's Position and Next Steps

Aarti Drugs has stated that a potential demand has been put forth which remains subject to the outcome of the Supreme Court proceedings. The company emphasized that it is currently difficult to assess the financial impact until the Supreme Court delivers its judgment.

The pharmaceutical manufacturer has committed to taking appropriate legal steps to defend its position in the matter. Additionally, the company has assured stakeholders that it will update stock exchanges of any material developments in the case as it progresses through the Supreme Court.

This disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with investors regarding the potential financial and legal implications of the ongoing GST dispute.