Shankara Building Products Limited has announced a credit rating downgrade by CRISIL affecting its bank facilities worth ₹595.00 crore. The company informed stock exchanges about this development on January 2, 2026, in compliance with SEBI listing regulations.

Rating Downgrade Details

CRISIL has revised the company's credit ratings with significant downgrades across both long-term and short-term facilities. The rating agency communicated these changes in a letter dated December 31, 2025, addressed to the company's Chief Financial Officer, Alex Varghese.

The downgrade also removes the company from 'Rating Watch with Developing Implications' status, indicating CRISIL's updated assessment of the company's creditworthiness.

Bank Facility Distribution

The rated facilities are distributed across ten major banks, with cash credit facilities forming the majority of the exposure. YES Bank Limited holds the largest facility at ₹80.00 crore, followed by Citibank N.A. at ₹75.00 crore.

Regulatory Compliance and Validity

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The rating letter remains valid until March 31, 2026, after which a new rating letter will be required. CRISIL has indicated that if the company does not avail the proposed facilities within 180 days from December 31, 2025, a fresh revalidation letter will be necessary.

Rating Surveillance

CRISIL maintains continuous surveillance of all assigned ratings and reserves the right to withdraw or revise ratings based on new information or changing circumstances. The rating agency emphasizes that its ratings reflect current opinions on timely payment likelihood and do not constitute investment recommendations or market price commentary.

Shankara Building Products , a leading player in the building materials sector, has reported robust growth in its Q2 performance, driven by significant increases in steel volumes and overall revenue.

Key Highlights

• Achieved highest Q2 steel volume of 2.52 lakh tons, up 31% year-on-year
• Consolidated revenue reached INR 1,681 crores, marking a 26% growth
• Net profit increased by 66% to INR 25 crores

Strong Volume Growth in Steel Business

Shankara Building Products demonstrated impressive growth in its steel business, achieving its highest Q2 steel volume of 2.52 lakh tons. This represents a substantial 31% year-on-year increase, underlining the company's strong position in the market.

Financial Performance

The company's financial results for Q2 show significant improvement across key metrics:

The robust revenue growth of 26% year-on-year to INR 1,681.00 crores reflects the company's strong market presence and effective business strategies. The net profit surge of 66% to INR 25.00 crores indicates improved operational efficiency and cost management.

Demerger Progress

Shankara Building Products has made significant progress in its planned demerger. The company has received in-principle approval from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for listing its marketplace business, Shankara Buildpro Limited. This listing is expected to be completed by the end of November, marking a crucial step in separating the company's manufacturing and marketplace operations.

Outlook

The strong Q2 performance, particularly in steel volumes, positions Shankara Building Products well for continued growth. The upcoming demerger and listing of Shankara Buildpro Limited may provide additional opportunities for both entities to focus on their core strengths and potentially unlock shareholder value.

As the company moves forward with its strategic initiatives, including the demerger, investors and industry observers will be keen to see how these changes might impact the company's future performance and market position in the competitive building materials sector.