Bafna Pharmaceuticals Limited has received a credit rating outlook upgrade from ICRA Limited, with the rating agency revising its outlook from Stable to Positive on January 23, 2026. The company informed stock exchanges about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited has taken rating actions on the company's bank loan facilities totaling Rs. 50.00 crores. The rating agency reaffirmed the existing ratings while upgrading the outlook, signaling improved confidence in the company's credit profile.

Facility-wise Rating Breakdown

The rating actions cover various banking facilities across different instruments. ICRA's detailed assessment includes term loans, working capital facilities, and trade finance instruments.

Banking Relationship

The rated facilities are primarily with ICICI Bank Limited, covering both fund-based and non-fund based requirements. The facilities include term loans of Rs. 25.87 crores, cash credit facilities of Rs. 20.00 crores, and letter of credit facilities of Rs. 5.00 crores, along with unallocated limits of Rs. 4.13 crores.

Regulatory Compliance

The company has fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about the rating revision. The communication was signed by Mohanachandran A, Company Secretary & Compliance Officer, ensuring proper regulatory compliance.

Rating Surveillance

ICRA Limited noted that the ratings will become due for surveillance within one year from the date of the rating communication letter dated January 23, 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.

Bafna Pharmaceuticals Limited , a Chennai-based pharmaceutical company, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, showcasing a mixed performance with revenue growth and a slight decline in profitability.

Financial Highlights

The company reported revenue from operations of INR 3,546.82 crore for Q2 FY2026, marking a 2.44% increase from INR 3,462.40 crore in Q2 FY2025. However, the net profit for the quarter stood at INR 312.49 crore, down by 7.79% compared to INR 338.89 crore in the same quarter of the previous year.

For the half-year period ending September 30, 2025, Bafna Pharmaceuticals achieved a total revenue of INR 7,009.22 crore, with a net profit of INR 651.38 crore.

Key Financial Metrics

Balance Sheet Strength

The company's financial position shows improvement, with total assets increasing to INR 16,068.27 crore as of September 30, 2025, up from INR 13,215.84 crore in the previous year, indicating a 21.58% growth.

Operational Performance

Despite the slight dip in quarterly profits, Bafna Pharmaceuticals demonstrated resilience in its operations. The company's Board of Directors approved these results in a meeting held on November 11, 2025, as recommended by the Audit Committee.

Auditor's Observations

The independent auditor's review report highlighted two key matters:

1. Outstanding foreign currency receivables of INR 213 crore as of September 30, 2025, which exceed the time limit stipulated by RBI regulations.
2. An income tax refund adjustment of INR 45.17 crore from previous assessment years, currently under legal proceedings.

The company's management is addressing these issues, with efforts underway to obtain necessary approvals and resolve the tax matter through a writ petition filed with the Madras High Court.

Market Position

While specific market share data was not provided, the steady revenue growth suggests that Bafna Pharmaceuticals is maintaining its position in the competitive pharmaceutical sector. The company continues to focus on its core business of manufacturing pharmaceutical formulations.

Looking Ahead

As Bafna Pharmaceuticals navigates through the evolving pharmaceutical landscape, investors and stakeholders will be keen to see how the company addresses the challenges highlighted in the auditor's report and leverages its increased asset base to drive future growth and profitability.

The company's ability to maintain revenue growth in a challenging environment is noteworthy, and future quarters will be crucial in determining if this trend can translate into improved bottom-line performance.