Trident Limited has received credit rating affirmation from India Ratings and Research (Ind-Ra) for its proposed non-convertible debentures, maintaining the 'IND AA' rating with Stable outlook. The rating agency has changed its approach from standalone to fully consolidated view, considering Trident's wholly-owned subsidiaries and associate company operations.

Rating Details and Rationale

The affirmation reflects Trident's healthy consolidated business profile, resilient operating performance, and healthy credit metrics expected to sustain despite tariff-linked uncertainties. With completion of the capacity expansion programme, the company began deleveraging in line with expectations and will continue further deleveraging through incremental EBITDA generation.

Financial Performance and Credit Metrics

Ind-Ra expects consolidated net adjusted leverage of 1.50x-1.60x over FY26-FY27 owing to completion of large debt-led capex and sustained EBITDA generation. The net adjusted leverage stood at around 1.46x (annualised) in 9MFY26, compared to 1.19x in FY25 and 1.72x in FY24.

*Standalone on annualised basis

Operational Performance and Business Strengths

Despite US tariff implications, Trident maintained sustained operational performance in 9MFY26 with consolidated revenue remaining stable at INR50.69 billion compared to INR51.23 billion in 9MFY25. The company benefits from leading market share in global terry towel market and diversified product mix comprising yarn, terry towels, bed linen, paper and chemicals.

Revenue Composition (9MFY26):

• Home textiles (bath & bed linen): 54%
• Yarn: 31%
• Paper: 15%

Key Rating Drivers

Strengths:

• Comfortable credit metrics likely to improve over FY26-FY27
• Sustained operational performance despite US tariff implications
• Healthy business profile with vertically-integrated operations
• Support from fiscal incentives in textile segment (FY25: INR3.56 billion)

Constraints:

• Decline in paper business margins to 13.0% in 9MFY26 from 18.4% in FY25
• High revenue concentration with top customer contributing 17.9% in FY25
• Geographical concentration from US markets at 40.4% in FY25
• Forex and raw material volatility risks

Liquidity and Financial Flexibility

The company maintains adequate liquidity with reduced fund-based limits to INR10.41 billion from INR18.00 billion due to lower working capital requirements. Average utilisation of fund-based limits was low at around 24% for 12 months ended January 2026. Free cash balances stood at INR5.49 billion at FYE25.

Manufacturing Capabilities

Trident operates three manufacturing facilities in Dhaulra, Sanghera (Punjab) and Budhni (Madhya Pradesh). As of 31 December 2025, facilities collectively held 8,15,000 spindles, 7,464 rotors, 1,100 looms, paper manufacturing capacity of 175,000 metric tonnes per annum, and chemical manufacturing capacity of 115,000 mtpa for sulphuric acid.

Trident Limited has issued a formal response to BSE Limited regarding a surveillance query about increased trading volume in the company's shares. The response, dated March 19, 2026, addresses concerns raised by the exchange's surveillance department about unusual trading activity.

Company's Position on Volume Increase

In its official communication, Trident Limited stated that it is currently not aware of any significant or price-sensitive information that would require dissemination to investors. The company emphasized transparency in its response to the BSE query regarding the volume spike in its shares.

Market-Driven Trading Explanation

The company provided a clear explanation for its inability to comment on share price movements. Trident noted that since its shares are freely traded on stock exchanges, the pricing mechanism remains purely market-driven. This market dynamic makes it challenging for the company to provide specific commentary on share price or volume fluctuations.

Regulatory Compliance Commitment

Trident Limited reaffirmed its commitment to regulatory compliance in the response. The company highlighted its consistent adherence to SEBI LODR Regulations provisions and emphasized its track record of making requisite disclosures in a timely manner. The management assured continued compliance with applicable regulations going forward.

Official Communication Details

The response was signed by Company Secretary Sushil Sharma, who holds ICSI Membership No F6535. The communication included a digital signature dated March 19, 2026, at 12:52:28 +05'30'. The company provided authentication guidelines for verifying signatory authority through its official website or corporate email address.