Andhra Petrochemicals has announced a revision in its credit ratings assigned by ICRA, with downgrades affecting the majority of its credit facilities. The company communicated this development to The Bombay Stock Exchange through a regulatory disclosure dated 7 February 2026.

Credit Rating Revisions

The rating agency has made significant changes to the company's credit profile, affecting both long-term facilities while maintaining stability in short-term ratings. The revisions reflect ICRA's updated assessment of the company's creditworthiness across different facility categories.

Impact on Long-Term Facilities

The downgrades primarily affected the company's long-term credit facilities, with both the unallocated limits and fund-based working capital facilities experiencing a reduction from A- to BBB+ category. Both ratings maintain a negative outlook, indicating potential for further downgrades if the company's credit profile deteriorates.

The long-term unallocated limits of Rs.57.18 crores represent the largest component of the affected facilities, followed by the fund-based working capital facilities of Rs.35.00 crores. Together, these downgraded facilities account for Rs.92.18 crores of the total Rs.94.18 crores under ICRA's rating coverage.

Short-Term Rating Stability

Despite the downgrades in long-term facilities, ICRA reaffirmed the company's short-term non-fund based working capital facilities rating at [ICRA]A2+. This Rs.2.00 crores facility maintained its existing rating, suggesting that the company's short-term liquidity position remains stable according to the rating agency's assessment.

Regulatory Compliance

The disclosure was made in compliance with regulatory requirements, with the company informing the stock exchange through its Chief Financial Officer and Company Secretary, G. Adinarayana. The communication referenced the company's equity code 500012 and was addressed to the Department of Corporate Services at The Bombay Stock Exchange.

Andhra Petrochemicals reported its unaudited financial results for the quarter and nine months ended 31st December 2025, showing mixed performance with reduced quarterly losses but increased nine-month losses. The company's operations were significantly impacted by plant shutdown for maintenance and challenging market conditions.

Quarterly Financial Performance

The company's financial performance for Q3FY26 showed improvement in loss reduction compared to the previous year:

Despite the significant revenue decline, the company managed to reduce its net loss by 28.9% compared to the corresponding quarter of the previous year.

Nine Months Performance Analysis

The nine months performance presented a contrasting picture with increased losses despite higher revenue:

Operational Challenges and Plant Shutdown

The company faced significant operational challenges during the quarter. The plant was shut down from 29th October 2025 for maintenance works relating to preventive and essential repairs, which were completed on 27th January 2026. However, due to decreased sales prices, increased input costs, and a huge gap between demand and supply, the Board and Management decided to continue the shutdown until 3rd February 2026, with operations resuming on 4th February 2026.

Cost Structure Analysis

The company's expense structure for Q3FY26 revealed several key components:

Legal Developments

The company continues to address the land lease renewal matter with Visakhapatnam Port Authority (VPA). Following the Hon'ble High Court of Andhra Pradesh judgment delivered on 3rd November 2025, the company has addressed a letter to VPA for issuing a tender as per Land Lease Policy guidelines 2015. Pending execution of the lease deed, the company has provisionally considered its bid amount for accounting of leases in accordance with Ind AS 116.

Board Approval and Compliance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 4th February 2026. The statutory auditors conducted a limited review of the financial results, confirming compliance with applicable accounting standards and regulatory requirements. The company maintains a paid-up equity share capital of ₹8497.16 lakhs with face value of ₹10 per share.