Bodal Chemicals Secures Credit Ratings for Rs 1,127.53 Crore Facilities, Reflecting Financial Stability

Bodal Chemicals Limited , a prominent player in the chemical industry, has received credit ratings from Infomerics Valuation and Rating Limited for its facilities totaling Rs 1,127.53 crore. This development underscores the company's financial stability and creditworthiness in the market.

Credit Ratings Breakdown

Facility Type	Amount (Rs Crore)	Rating	Rating Definition
Long-term fund based bank facilities	957.53	IVR A-/Stable	Adequate degree of safety regarding timely servicing of financial obligations
Short-term facilities and proposed commercial paper	170.00	IVR A2	Strong degree of safety regarding timely payment of financial obligations

The ratings cover various aspects of Bodal Chemicals' financial structure, including bank facilities, working capital limits, and proposed commercial paper. These ratings provide a comprehensive assessment of the company's ability to meet its debt servicing obligations.

Financial Position

An analysis of Bodal Chemicals' balance sheet reveals the following financial position:

Metric	Amount (Rs Crore)	YoY Change
Total Assets	2,395.60	2.57%
Current Assets	864.00	10.83%
Fixed Assets	1,290.80	-0.88%
Total Equity	1,151.80	1.68%
Current Liabilities	762.90	10.28%

The company has shown growth in its asset base and equity, with a notable increase in current assets. This growth, coupled with the positive credit ratings, indicates Bodal Chemicals' strong financial foundation and its capacity to manage its debt obligations effectively.

Implications for Investors and Stakeholders

The credit ratings assigned by Infomerics Valuation and Rating Limited offer several key insights for investors and stakeholders:

Financial Stability: The ratings reflect Bodal Chemicals' adequate to strong ability to meet its financial commitments, which is crucial for maintaining investor confidence.
Borrowing Capacity: With these ratings, the company may be better positioned to access capital markets and negotiate favorable terms for future financing needs.
Market Perception: Positive credit ratings often translate to improved market perception, potentially benefiting the company's stock performance and overall valuation.
Operational Efficiency: The ratings indirectly reflect on the company's operational efficiency and its ability to generate sufficient cash flows to service its debt.

As Bodal Chemicals continues to navigate the dynamic chemical industry landscape, these credit ratings serve as a testament to its financial prudence and operational strength. Investors and stakeholders can view these ratings as a positive indicator of the company's financial health and its potential for sustainable growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.48%	+0.79%	-10.51%	-29.87%	-28.85%	-31.73%

Bodal Chemicals Limited, a leading chemical manufacturer, has reported mixed financial results for the second quarter ended September 30, 2025. The company saw revenue growth but experienced a decline in profitability compared to the same period last year.

Revenue Growth

Bodal Chemicals reported consolidated revenue from operations of 4,804.52 million rupees in Q2 FY2026, up 11.2% from 4,321.23 million rupees in Q2 FY2025. For the half-year ended September 30, 2025, revenue stood at 9,346.55 million rupees, representing a 9.4% increase year-over-year.

Profitability Metrics

Despite the revenue growth, the company's profitability metrics showed mixed results:

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY2026 was 429.10 million rupees, compared to 377.30 million rupees in Q2 FY2025.
The EBITDA margin decreased to 8.6% from 8.7% in the same quarter last year.
For H1 FY2026, EBITDA improved to 945.70 million rupees from 746.50 million rupees in H1 FY2025, with the margin expanding to 9.9% from 8.7%.

Net Profit Turnaround

Bodal Chemicals reported a consolidated net profit of 59.93 million rupees in Q2 FY2026, compared to a loss of 2.42 million rupees in the corresponding quarter of the previous year. For H1 FY2026, net profit stood at 155.26 million rupees, a significant improvement from a loss of 14.17 million rupees in H1 FY2025.

Segment Performance

The company's financial results indicate varied performance across its business segments:

Basic Chemicals segment showed strong growth
Dyestuff segment experienced a slight decline
Dye Intermediates segment saw modest growth
Chlor Alkali business reported revenue growth of 9% year-on-year in H1 FY2026

Balance Sheet and Cash Flow

As of September 30, 2025, Bodal Chemicals reported:

Item	Value (million rupees)
Total assets	23,128.51
Total equity	11,219.35
Net cash flow from operating activities (H1 FY2026)	778.82

Management Commentary

The company's management noted that the improvement in volumes across divisions, stable input raw material costs, and ongoing cost-control measures have been helpful in sustaining growth during challenging times. They expect gradual growth and meaningful contributions from new projects, including the Benzene downstream products unit at Saykha, Gujarat.

Outlook

Bodal Chemicals aims to enhance revenue and margins in the near term through improvement in volumes across divisions and stable input costs. The management remains focused on cost-control measures to navigate the challenging business environment.

While the company has shown resilience in revenue growth, the pressure on margins indicates ongoing challenges in the chemical industry. Investors and stakeholders will be watching closely to see how Bodal Chemicals manages these headwinds in the coming quarters.