Orient Ceratech Limited has received credit rating assignments from Acuité Ratings & Research Limited for its bank loan facilities totaling Rs. 75.00 crore. The company announced this development through a regulatory filing under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Credit Rating Details

Acuité Ratings has assigned comprehensive ratings to Orient Ceratech's banking facilities across different categories:

The long-term rating of ACUITE A- comes with a stable outlook, while the short-term facilities received an ACUITE A2+ rating. The total withdrawn amount stands at Rs. 0.00 crore.

Rating Rationale and Strengths

The assigned ratings reflect several positive factors supporting Orient Ceratech's creditworthiness. The company benefits from over four decades of established track record in the abrasives industry and experienced promoter management through the Ashapura Group. The rating agency highlighted the company's improved operating performance and healthy financial risk profile with adequate liquidity position.

Orient Ceratech demonstrated revenue growth to Rs. 327.58 crore in FY2025 from Rs. 313.90 crore in FY2024. For 9MFY2026, the company achieved Rs. 309.88 crore and targets above Rs. 400.00 crore for FY2026. The company maintains balanced operations with 40.00 per cent revenue from exports in FY2025, serving markets across Europe, Middle East, Africa, Asia and Australia.

Financial Performance Metrics

The company's financial indicators show mixed performance with both strengths and areas of concern:

The tangible net worth improved to Rs. 282.88 crore in FY2025 from Rs. 275.59 crore in FY2024. Operating profit margin moderated to 10.63 per cent in FY2025 from 11.76 per cent in FY2024, primarily due to higher employee costs, depreciation, power and fuel charges, and interest expenses.

Business Operations and Market Position

Orient Ceratech Limited, formerly Orient Abrasives Limited, was incorporated in 1971 and operates in advanced ceramics and refractory materials segment. The company serves core industrial sectors through multiple product lines including ceramic proppants for oil & gas industry, high alumina refractory raw materials, monolithic refractories & high-performance castable, Neutral Ramming Mass (NRM), and Foundry Sands & Coatings.

The company operates as part of the Ashapura Group of Industries with two key subsidiaries: Orient Advanced Materials Private Limited (incorporated in 2006) focusing on industrial minerals production, and UAE-based Orient Advanced Materials FZE (incorporated in 2006) engaged in trading ceramic products and related materials.

Rating Constraints and Risk Factors

Despite positive aspects, the rating agency identified several constraining factors. The company faces moderately intensive working capital operations with gross current assets of 256 days in FY2025. Inventory days remained high at 145 days in FY2025 compared to 139 days in FY2024, while debtor days stood at 91 days versus 99 days in the previous year.

Profitability remains susceptible to volatility in raw material prices, particularly pet coke and alumina, and foreign exchange risk from imported raw materials (approximately 20.00 per cent) and export sales (45.00-50.00 per cent range). The working capital limit utilization remained low at approximately 25.77 per cent over six months ending January 2026, while non-fund-based limits were fully utilized at 100.00 per cent.

Source: None/Company/INE569C01020/6a79c255-32fb-40fe-91e2-6d8acb10a169.pdf

Orient Ceratech Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance across both standalone and consolidated metrics. The company published these results in compliance with Regulation 33 of the SEBI (Listing Obligations and Other Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company delivered robust financial results for the third quarter of FY26, with significant improvements in key performance indicators.

Consolidated Results

The consolidated financial results also showed positive trends, reflecting the overall strength of the group's operations.

Earnings Per Share and Capital Structure

The company maintained a stable capital structure with paid-up equity share capital of ₹1,196.52 lakhs, consisting of shares with a face value of ₹1 each.

Earnings Per Share Performance:

• Basic EPS (Standalone): ₹0.36 for Q3FY26 compared to ₹0.20 for Q3FY25
• Diluted EPS (Standalone): ₹0.36 for Q3FY26 compared to ₹0.20 for Q3FY25
• Nine-month Basic EPS: ₹1.13 for FY26 versus ₹0.56 for FY25

Strategic Developments

The Board of Directors granted in-principle approval for the sale of the thermal power station, which is part of the company's power division located at the Porbandar Plant. Following this decision, the company has reclassified the thermal power station's plant and machinery from Property, Plant & Equipment to assets held for sale under current assets, with a written-down value of ₹356.93 lakhs.

Regulatory Compliance and Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on February 4, 2026. The statutory auditors issued an unmodified review opinion on these results. The company reported that for the quarter ended December 31, 2025, it received 3 investor complaints, disposed of all 3, and maintained a closing balance of nil complaints.

Impact of New Labour Codes

The company recognized an exceptional item of ₹169.28 lakhs in standalone results and ₹213.74 lakhs in consolidated results due to the implementation of the New Labour Codes effective November 21, 2025. This impact relates to incremental provisions for gratuity and compensated absences arising from the revised wage definitions and expanded scope of employee benefits under the unified labour legislation framework.