NewsStocksCARE Ratings Reaffirms Crest Ventures' BBB Rating, Assigns Rating to New ₹100 Crore NCD IssueCARE Ratings Reaffirms Crest Ventures' BBB Rating, Assigns Rating to New ₹100 Crore NCD Issue
CARE Ratings reaffirmed Crest Ventures Limited's issuer rating and existing ₹100 crore NCDs at CARE BBB with stable outlook on December 10, 2025, while assigning the same rating to proposed ₹100 crore debentures. The rating reflects adequate capitalisation with total CAR at 75.39%, moderate financial performance with FY25 PAT of ₹79 crore, and the company's long operational track record since 1982. However, ratings remain constrained by significant real estate exposure and high unsecured lending through intercorporate deposits to group companies.
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Crest Ventures Limited received comprehensive credit rating updates from CARE Ratings Limited on December 10, 2025, with the rating agency reaffirming existing ratings while assigning new ratings to proposed debt instruments. The company informed stock exchanges about these rating actions through a regulatory filing dated December 11, 2025.
Rating Actions and Details
CARE Ratings took multiple rating actions for Crest Ventures, covering both existing and proposed debt instruments:
| Instrument Type: | Amount (₹ crore) | Rating | Action |
|---|---|---|---|
| Issuer Rating: | - | CARE BBB, Stable | Reaffirmed |
| Existing NCDs (INE559D08024): | 100.00 | CARE BBB, Stable | Reaffirmed |
| Proposed NCDs: | 100.00 | CARE BBB, Stable | Assigned |
The existing Non-Convertible Debentures carry the ISIN INE559D08024 and are scheduled for repayment by December 20, 2025, with an outstanding amount of ₹93.00 crore. The proposed NCD issue requires revalidation if not issued within six months from December 10, 2025.
Rating Rationale and Key Drivers
The rating reaffirmation reflects Crest Ventures' adequate capitalisation, moderate financial performance, and adequate liquidity profile. CARE Ratings highlighted the company's long operational track record, experienced promoters, and management team as key strengths. The rating agency noted the company's ability to raise funds from banks and financial institutions at competitive rates during FY25 and H1FY26.
Key Rating Strengths:
- Long operational track record since incorporation in 1982
- Adequate capitalisation with total CAR at 75.39% and Tier-1 CAR at 73.81% as on March 31, 2025
- Low gearing levels with adjusted overall gearing at 0.25x as on March 31, 2025
- Experienced management team led by Vijay Choraria with over 30 years of experience
Rating Constraints:
- Significant exposure to real estate segment through investments and lending
- High proportion of unsecured lending through intercorporate deposits to group companies
- Income volatility from investment book operations
- Moderate resource profile with reliance on short-term ICDs
Financial Performance Overview
Crest Ventures demonstrated mixed financial performance across recent periods. In FY25, the company reported profit after tax of ₹79.00 crore on total income of ₹164.00 crore, compared to ₹50.00 crore on ₹140.00 crore in FY24. The increase in PAT was driven by gains from fair value changes following reclassification of investments in TBO Foods Private Limited.
| Period: | PAT (₹ crore) | Total Income (₹ crore) |
|---|---|---|
| FY25: | 79.00 | 164.00 |
| FY24: | 50.00 | 140.00 |
| H1FY26: | 25.00 | 70.00 |
| H1FY25: | 63.00 | 92.00 |
On a consolidated basis, the company posted PAT of ₹90.00 crore on total income of ₹205.00 crore in FY25, versus ₹62.00 crore on ₹184.00 crore in FY24.
Business Operations and Investment Profile
Crest Ventures operates as a systemically important non-deposit-taking NBFC, now classified under the Middle Layer and registered with RBI as an Investment and Credit Company. As of September 30, 2025, the company maintained investments of ₹527.00 crore and loans and advances of ₹447.00 crore.
The investment portfolio shows significant concentration, with 68% comprising exposure to group and related entities through equity and debentures, 29% invested in other equity shares, and 3% in mutual funds. The company's lending activities primarily involve ICDs, with 36% extended to related parties and 64% to other entities as of September 30, 2025.
Rating Outlook and Sensitivities
CARE Ratings maintained a stable outlook, considering the maintenance of adequate business and financial parameters supported by improved capitalisation levels, low gearing, and adequate liquidity. The rating agency identified specific factors that could lead to rating actions:
Positive Rating Drivers:
- Sustained improvement in profitability with ROTA of 2.50% or above
- Significant diversification away from real estate segment
- Reduced reliance on short-term ICDs
Negative Rating Triggers:
- Deterioration in profitability and income profile
- Construction or sales delays in real estate projects
- Asset quality deterioration with GNPA ratio exceeding 1.50%
- Increase in overall adjusted gearing above 0.35x
The rating actions reflect CARE Ratings' assessment of Crest Ventures' current financial position and business prospects, providing investors and stakeholders with updated credit risk evaluation for both existing and proposed debt instruments.
Historical Stock Returns for Crest Ventures
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.35% | -1.22% | +1.88% | -9.33% | -18.98% | +256.54% |
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