GHCL Textiles Receives Credit Rating Upgrade from CARE Ratings for Bank Facilities Worth ₹600 Crores

GHCL Textiles Limited has announced a significant credit rating upgrade from CARE Ratings Limited, reflecting improved operational and financial performance. The rating agency communicated this upgrade to the company on January 09, 2026, based on recent developments including the company's performance in H1FY26.

Credit Rating Upgrades

CARE Ratings has upgraded multiple facility ratings for GHCL Textiles, demonstrating enhanced creditworthiness across different banking arrangements:

Facilities	Amount (₹ Crore)	New Rating	Previous Rating	Rating Action
Long Term/Short Term Bank Facilities	500.00	CARE A; Stable/CARE A1	CARE A-; Stable/CARE A2+	Upgraded
Short Term Bank Facilities	100.00	CARE A1	CARE A2+	Upgraded
Long Term Bank Facilities	0.00	Withdrawn	-	Withdrawn

The withdrawal of long-term bank facility ratings follows the company's full repayment of term loans, supported by a No Dues certificate from the bank. This demonstrates GHCL Textiles' commitment to debt management and financial discipline.

Facility Distribution Across Banking Partners

The upgraded facilities are distributed across multiple banking institutions, providing diversified funding sources for the company's operations:

Short Term Facilities (₹100.00 crores):

State Bank of India: ₹50.00 crores (Letter of Credit/Bank Guarantee)
ICICI Bank Ltd.: ₹25.00 crores (Letter of Credit/Bank Guarantee)
IDBI Bank Ltd.: ₹15.00 crores (Letter of Credit/Bank Guarantee)
CTBC Bank Co. Ltd.: ₹10.00 crores (Letter of Credit/Bank Guarantee)

Long Term/Short Term Facilities (₹500.00 crores):

Unallocated: ₹200.00 crores
State Bank of India: ₹80.00 crores
IDBI Bank Ltd.: ₹60.00 crores
HDFC Bank Ltd.: ₹50.00 crores
Bank of Baroda: ₹45.00 crores
CTBC Bank Co. Ltd.: ₹40.00 crores
ICICI Bank Ltd.: ₹25.00 crores

Regulatory Compliance and Communication

The company has fulfilled its regulatory obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 by promptly informing the stock exchanges. GHCL Textiles communicated the rating upgrade to both NSE (Code: GHCLTEXTIL) and BSE (Code: 543918) on the same day it received the information from CARE Ratings.

The rating upgrade reflects CARE Ratings' assessment based on the company's recent operational and financial performance during H1FY26. The improved ratings enhance GHCL Textiles' access to banking facilities and potentially reduce borrowing costs, supporting the company's operational flexibility and growth initiatives.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.64%	-1.20%	+1.99%	-22.32%	-20.29%	+6.97%

GHCL Textiles Limited has released its financial results for the second quarter of fiscal year 2026, showcasing a mixed performance with revenue growth and improved operational efficiency, despite a decline in net profit.

Revenue and Profit Analysis

The company reported a revenue of Rs 338.04 crore for Q2 FY26, marking an 11% increase from Rs 304.62 crore in the same quarter last year. This growth in revenue demonstrates the company's ability to expand its market presence and sales volume.

However, GHCL Textiles experienced a decrease in net profit, which stood at Rs 16.01 crore for Q2 FY26, compared to Rs 20.60 crore in Q2 FY25. This represents a year-over-year decline of approximately 22.3%.

Operational Performance

Despite the drop in net profit, GHCL Textiles showed improvement in its operational efficiency:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	338.04	304.62	+11.0%
EBITDA	36.81	27.12	+35.7%
EBITDA Margin	10.89%	8.90%	+199 bps
Net Profit	16.01	20.60	-22.3%

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, rising to Rs 36.81 crore from Rs 27.12 crore in the previous year, representing a 35.7% increase. This growth in EBITDA outpaced the revenue growth, indicating enhanced operational efficiency.

The EBITDA margin expanded by 199 basis points, reaching 10.89% compared to 8.90% in the same quarter last year. This margin expansion suggests that GHCL Textiles has been successful in managing its operational costs effectively.

Half-Yearly Performance

For the first half of FY26 (H1 FY26), GHCL Textiles reported:

Total revenue: Rs 605.79 crore
Net profit: Rs 29.53 crore
EBITDA: Rs 70.38 crore

Balance Sheet Highlights

As of September 30, 2025:

Total assets: Rs 1,709.65 crore
Total equity: Rs 1,462.34 crore
Current assets: Rs 464.15 crore
Current liabilities: Rs 111.01 crore

The company maintains a strong balance sheet with a healthy equity position.

Recent Developments

GHCL Textiles paid a dividend of Rs 0.5 per share for the year ended March 31, 2025, amounting to a total payout of Rs 4.78 crore.
The company capitalized and commenced commercial production of its new 25,536 spindles at the Paravai location in Madurai during the quarter ended June 30, 2025.
The Board of Directors has approved an additional capital budget of approximately Rs 35 crore for a 10 MW ground-mounted solar power project for FY26.
Some assets previously classified as "held for sale" at Manaparai and Madurai units, with a book value of Rs 2.25 crore, have been reclassified to Property, Plant & Equipment due to revised business requirements.

GHCL Textiles continues to focus on operational efficiency and expansion, as evidenced by its improved EBITDA performance and recent capacity additions. While the company faces challenges in maintaining profit levels, its revenue growth and margin improvement indicate resilience in a competitive market environment.