La Opala RG Limited has received credit rating reaffirmation from CARE Ratings Limited across all its bank facilities, as announced on January 13, 2026. The rating agency maintained its positive assessment of the tableware manufacturer's financial strength and market position in the domestic opal-ware segment.

Credit Rating Details

CARE Ratings reaffirmed the following ratings for the company's bank facilities:

The total bank facilities covered under the rating exercise amount to ₹13.00 crores. The rating agency issued its press release on January 12, 2026, which was subsequently communicated to stock exchanges under Regulation 30 of SEBI listing requirements.

Key Rating Strengths

CARE Ratings highlighted several factors supporting the credit ratings. The company maintains a strong position in the domestic opal-ware segment with an established brand image built over more than three decades of operations. La Opala RG offers a comprehensive product range across economy and premium segments through its 'La Opala' and 'Divá' brands for opal-ware, and 'Solitaire' for crystal glassware products.

The company demonstrated resilience in maintaining healthy operating margins despite revenue challenges. While total operating income declined by approximately 9% year-on-year in FY25 and 4% in H1FY26, the PBLDT margin remained robust at around 33% in FY25 and improved to 38% in H1FY26.

Financial Performance and Liquidity

The company's financial metrics reflect strong fundamentals:

La Opala RG maintains exceptionally strong liquidity with ₹468.12 crores in liquid investments as of September 30, 2025. The company's capital structure remains comfortable with negligible debt levels, reflected in the very low overall gearing of 0.01x. This financial strength provides substantial flexibility for future operations and growth initiatives.

Market Position and Operations

The company operates through an extensive distribution network spanning approximately 12,000 retailers and over 250 distributors across 600 towns in India. Domestic sales contributed 87% of total sales in FY25, while exports reach over 40 countries globally. The company's production facilities at Madhupur, Jharkhand, and Sitarganj, Uttarakhand, have a combined installed capacity of 32,000 metric tonnes per annum.

Rating Outlook and Challenges

CARE Ratings assigned a stable outlook, expecting La Opala RG to sustain its financial risk profile given its established market position. However, the rating agency noted certain constraints including working capital-intensive operations with higher inventory days, foreign exchange fluctuation risks, and intense competition from domestic players and substitute products. The working capital cycle increased to approximately 166 days in FY25 from 153 days in FY24, primarily due to reduced creditor days.

La Opala RG Limited has received an Environmental, Social and Governance (ESG) score of 64.0 from SES ESG Research Pvt. Ltd., a SEBI-registered Category II ESG Rating Provider. The company informed stock exchanges about this development on January 12, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESG Rating Details

The ESG assessment was conducted independently by SES ESG Research Pvt. Ltd. without any formal engagement from La Opala RG Limited. The rating agency assigned the score voluntarily, demonstrating the growing focus on sustainability metrics in corporate evaluation.

Assessment Methodology

The ESG score was determined based on La Opala RG Limited's disclosures for fiscal year 2025 and other publicly available information. This approach ensures transparency and relies on verified data sources that are accessible to stakeholders and investors.

Regulatory Compliance

The company has fulfilled its disclosure obligations under SEBI regulations by promptly informing both BSE Limited and National Stock Exchange of India Limited about the ESG rating assignment. This transparency helps investors and stakeholders assess the company's sustainability performance and governance practices.

Market Context

ESG ratings have become increasingly important for companies as investors and stakeholders place greater emphasis on sustainable business practices. The voluntary nature of this rating reflects the growing industry trend toward independent ESG assessments, providing market participants with additional insights into corporate sustainability performance.