Acutaas Chemicals Secures Credit Rating Reaffirmation with Enhanced Bank Facilities

Acutaas Chemicals Limited , a prominent player in the chemical industry, has received a significant boost to its financial standing. CARE Ratings has reaffirmed the company's credit rating while simultaneously increasing its bank facilities, signaling strong confidence in the firm's operational and financial performance.

Credit Rating Reaffirmation

CARE Ratings has maintained Acutaas Chemicals' long-term and short-term bank facilities rating at CARE A4 Stable/CARE A1+. This reaffirmation comes after a review of the company's operational and financial performance.

Enhanced Bank Facilities

CARE Ratings has approved an increase in the company's bank facilities from Rs. 125.00 crores to Rs. 135.00 crores. This enhancement reflects the company's growing financial needs and its ability to manage larger credit lines.

Banking Partners

The enhanced bank facilities are spread across multiple banking partners, including:

Bank	Facility Type
Axis Bank Ltd.	Cash Credit, Working Capital Demand Loan, Pre/Post-shipment Facility, Letter of Credit, Bills Discounting, Bank Guarantee
ICICI Bank Ltd.	Cash Credit, Working Capital Demand Loan, Letter of Credit, Bank Guarantee, Packing Credit in Foreign Currency, Export Packing Credit, Domestic Factoring with Recourse
HDFC Bank Ltd.	Cash Credit, Pre/Post-shipment Facility, Working Capital Demand Loan, Letter of Credit, Buyers Credit
DBS Bank India Ltd.	Working Capital Demand Loan, FCDL, Packing Credit, Packing Credit in Foreign Currency

Financial Performance Insights

An analysis of Acutaas Chemicals' balance sheet reveals significant growth and financial stability:

Metric	FY2025 (Rs. crore)	YoY Change
Total Assets	1,537.90	+43.55%
Current Assets	771.30	+64.88%
Fixed Assets	499.20	+39.79%
Total Equity	1,311.60	+94.28%
Current Liabilities	199.00	-25.69%

The company has demonstrated robust growth across key financial metrics, with total assets increasing by 43.55% year-over-year and total equity nearly doubling with a 94.28% increase. The significant reduction in current liabilities by 25.69% further underscores the company's improving financial health.

Conclusion

The credit rating reaffirmation and enhanced bank facilities are testament to Acutaas Chemicals' strong financial position and growth trajectory. As the company continues to expand its operations and strengthen its market presence, these developments may provide a solid foundation for future growth and investment opportunities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.51%	-4.44%	-6.82%	+53.55%	+51.31%	+265.60%

Acutaas Chemicals Limited , a leading player in the specialty chemicals and pharmaceutical intermediates sector, has reported strong financial results for the second quarter of fiscal year 2026, showcasing significant growth and margin expansion.

Key Financial Highlights

Metric	Q2 FY26	Y-o-Y Growth
Revenue	INR 306.20 crores	24.10%
EBITDA	INR 95.30 crores	~100.00%
EBITDA Margin	31.10%	1,130 bps
PAT	INR 71.90 crores	91.30%
PAT Margin	23.50%	824 bps

Segment-wise Performance

Advanced Pharmaceutical Intermediates

Revenue: INR 262.60 crores, up 27.10% year-on-year
Growth primarily driven by expansion in CDMO business

Specialty Chemicals

Revenue: INR 43.60 crores, up 7.30% year-on-year

H1 FY26 Performance

Total revenue: INR 513.40 crores, up 21.30% year-on-year
EBITDA: INR 146.20 crores, up 86.40% year-on-year
PAT: INR 115.90 crores, more than doubled compared to H1 FY25

Strategic Developments

Electrolyte Additives Project:
- Capex of INR 180 crores planned for FY26
- Expected completion by Q4 FY26
- Full commercial production anticipated in FY27
Pilot Plant Capex:
- INR 30 crores allocated for FY26
- Expected completion by Q3 FY26
Korean Joint Venture - Indichem:
- Groundbreaking ceremony conducted last month
- Commercial production expected to start from H2 FY27
Operational Efficiency:
- Working capital improved to 100 days from 128 days in Q1 FY26
- Strong cash generation from operations: INR 136.50 crores in H1 FY26

Management Commentary

Naresh Patel, Chairman and Managing Director, stated, "Our focus has consistently been on building a long-term sustainable business rather than chasing opportunities. This disciplined approach is now beginning to yield tangible results."

Abhishek Patel, Vice President of Strategy, added, "We are steadily moving towards our vision of becoming a global chemical company with diversified business verticals catering to multiple industries, including pharmaceutical, battery chemicals, semiconductors chemicals, cosmetics, and other specialty chemicals."

Outlook

The company has revised its EBITDA margin guidance to 28-30% for FY26
Maintains 25% revenue growth target for FY26
Expects the electrolyte additives plant to reach optimal capacity utilization in about 3 years

Acutaas Chemicals continues to demonstrate strong growth momentum, driven by its diversified product portfolio and strategic expansions into high-growth segments like battery chemicals and semiconductor chemicals. The company's focus on operational efficiency and margin improvement positions it well for sustained growth in the coming years.