Orient Ceratech Receives Credit Rating Reaffirmation from CareEdge Ratings

2 min read Updated on 12 Mar 2026, 07:43 PM

Reviewed by

Riya DScanX News Team

Overview

Orient Ceratech Limited received credit rating reaffirmation from CareEdge Ratings, with long-term facilities rated CARE BBB+ (Stable) and short-term facilities at CARE A2. The decision was based on strong 9MFY26 performance showing ~25% y-o-y growth, sustained PBILDT margins above 10%, and improved interest coverage ratio of 8.10x. The company benefits from its diversified product portfolio, established market position, and adequate capital structure with 0.27x gearing ratio.

*this image is generated using AI for illustrative purposes only.

Orient Ceratech Limited has announced that CareEdge Ratings has reaffirmed the credit ratings for its bank loan facilities, considering the company's performance over nine months of FY 2026. The rating agency maintained its assessment based on the company's strong operational metrics and financial position.

Credit Rating Details

CareEdge Ratings has reaffirmed Orient Ceratech's credit ratings across its banking facilities:

Facilities	Amount (₹ crore)	Rating	Rating Action
Long Term Bank Facilities	65.12	CARE BBB+; Stable	Reaffirmed
Short Term Bank Facilities	14.40	CARE A2	Reaffirmed

The total banking facilities under review amount to ₹79.52 crore, reflecting the company's moderate but stable borrowing requirements.

Performance Highlights

The rating reaffirmation is supported by Orient Ceratech's robust operational performance in 9MFY26. The company achieved approximately 25% year-on-year growth in its scale of operations, driven by rising sales volumes and effective execution of its sizeable order book for proppant and calcined bauxite products.

Financial Metrics	9MFY26	Previous Period	Change
Total Operating Income	₹305.36 crore	-	~25% y-o-y growth
PBILDT	₹31.50 crore	-	Margin above 10%
PBILDT Interest Coverage	8.10x	4.26x	Significant improvement

The company has successfully maintained its PBILDT (Profit Before Interest, Lease Rentals, Depreciation and Taxation) margin above 10%, translating into adequate cash accruals and improved debt coverage ratios.

Key Rating Strengths

CareEdge Ratings highlighted several factors supporting the rating reaffirmation. Orient Ceratech benefits from its diversified product portfolio spanning refractory raw materials and abrasives, including calcined products, alumina fused products, chamotte, proppant, and castable. The company's established operational track record of over four decades and competitive position in the abrasives grain and refractory industry provide stability.

The rating agency noted the company's adequate capital structure, with an overall gearing ratio of 0.27x as of March 31, 2025, and strong interest coverage capabilities. Orient Ceratech's operational efficiency is enhanced by its captive bauxite mines and power plants, providing cost advantages in its power-intensive manufacturing processes.

Areas of Concern

Despite the positive rating action, CareEdge Ratings identified certain constraints that continue to impact the company's credit profile. These include the moderate scale of operations, high working capital intensity with an operating cycle of 184 days in FY25, and vulnerability to raw material availability fluctuations.

The rating agency also noted the company's exposure to cyclical end-user industries including steel, cement, and oil & gas sectors, which can impact demand patterns. Additionally, the weak credit profile of some Ashapura Group entities remains a monitoring factor.

Outlook and Rating Sensitivities

CareEdge Ratings has assigned a stable outlook, reflecting expectations that Orient Ceratech will maintain its adequate financial risk profile while benefiting from established market position and customer relationships. Positive rating actions could be triggered by increasing scale of operations over ₹450 crore with sustained PAT margins above 5%, or reduction in the operating cycle below 150 days.

Conversely, substantial revenue decline or PBILDT margin deterioration below 7.50% on a sustained basis could lead to negative rating actions. The agency will also monitor any significant support extended to group entities or higher-than-anticipated debt-funded capital expenditure.

Source: None/Company/INE569C01020/b9947113-0b6e-4eda-928f-a90cb6920f6e.pdf

Historical Stock Returns for Orient Ceratech

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.08%	+6.40%	-12.33%	+0.18%	+13.62%	+62.96%

Orient Ceratech

View Company Insights

View All News

Orient Ceratech Receives ACUITE A- Credit Rating for Rs. 75.00 Crore Bank Facilities

3 min read Updated on 09 Mar 2026, 12:46 PM

Reviewed by

Suketu GScanX News Team

Add as a preferred
source on Google

Overview

Orient Ceratech Limited received credit ratings from Acuité Ratings for Rs. 75.00 crore bank facilities, with ACUITE A- (stable) for long-term and ACUITE A2+ for short-term facilities. The ratings reflect the company's four-decade operational track record, experienced Ashapura Group promoters, and improved performance, despite constraints from working capital intensity and raw material price volatility. The company operates in advanced ceramics and refractory materials, achieving Rs. 327.58 crore revenue in FY2025 with significant export operations across global markets.

*this image is generated using AI for illustrative purposes only.

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:

Facility Type:	Amount (Rs. Cr):	Long Term Rating:	Short Term Rating:
Bank Loan Facilities:	60.60	ACUITE A- Stable Assigned	-
Bank Loan Facilities:	14.40	-	ACUITE A2+ Assigned
Total Outstanding:	75.00	-	-

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:

Parameter:	FY2025:	FY2024:
Operating Income:	Rs. 327.58 Cr	Rs. 313.90 Cr
PAT:	Rs. 9.93 Cr	Rs. 19.02 Cr
PAT Margin:	3.03%	6.06%
Total Debt/Tangible Net Worth:	0.25 times	0.21 times
PBDIT/Interest:	4.43 times	9.97 times

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

Historical Stock Returns for Orient Ceratech