Paushak Limited has announced that CRISIL Ratings Limited has reaffirmed its long-term credit rating and assigned short-term credit ratings for the company's enhanced bank loan facilities. The rating agency communicated this decision through a letter dated January 15, 2026, marking a significant expansion in the company's credit facilities.

Enhanced Credit Facilities Overview

The total bank loan facilities rated by CRISIL have been substantially enhanced to ₹145 crores, representing a significant increase from the previous limit of ₹40 crores. This enhancement reflects the company's growing financial requirements and CRISIL's confidence in Paushak's creditworthiness.

Detailed Rating Structure

CRISIL has provided comprehensive ratings across multiple facility types for Paushak Limited:

Rating Categories Explained

The rating structure includes both long-term and short-term credit assessments. CRISIL has reaffirmed the long-term credit rating at A/Stable for the term loan facility worth ₹70 crores. For short-term facilities, the rating agency has assigned CRISIL A1 ratings to three working capital facilities totaling ₹75 crores, including a proposed facility of ₹30 crores and existing facilities of ₹20 crores and ₹25 crores respectively.

Regulatory Compliance

Paushak Limited has disclosed this credit rating information in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and National Stock Exchange of India Limited about the rating reaffirmation and assignment through official communications.

Company Background

Paushak Limited operates in the chemicals sector and maintains its registered office at Alembic Road, Vadodara, Gujarat. The company holds multiple ISO certifications including ISO 9001, ISO 14001, and ISO 45001, demonstrating its commitment to quality, environmental management, and occupational health and safety standards.

Paushak Limited , a specialty chemicals manufacturer, has released its financial results for the second quarter, revealing a mixed performance with revenue growth accompanied by a decline in profitability.

Revenue Growth

The company reported a revenue increase to ₹588.00 million in Q2, up from ₹573.00 million in the same quarter of the previous year, marking a modest year-over-year growth of 2.62%.

Profit Decline

Despite the revenue growth, Paushak experienced a significant drop in net profit. The company's net profit for Q2 stood at ₹86.00 million, down from ₹142.00 million in the corresponding quarter last year, representing a substantial decrease of 39.44%.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decline:

The EBITDA margin compressed by 454 basis points year-over-year, indicating increased pressure on the company's operational efficiency.

Half-Yearly Performance

For the half-year ended September 30, Paushak reported:

• Total income of ₹1,175.90 crore
• Profit before tax of ₹269.70 crore
• Net profit after tax of ₹206.50 crore

Balance Sheet Highlights

As of September 30, Paushak's financial position showed:

• Total assets of ₹619.86 crore
• Equity share capital of ₹3.08 crore
• Other equity of ₹477.19 crore

Corporate Actions

The company has undertaken significant corporate actions, including:

1. Reclassification of authorized share capital to ₹20.00 crore divided into 4 crore equity shares of ₹5 each.
2. Sub-division of existing shares from face value of ₹10 to ₹5 each.
3. Issuance of bonus shares in the ratio of 3:1, allotting 1,84,92,684 new equity shares.

These actions are aimed at enhancing shareholder value and improving stock liquidity.

Outlook

While Paushak has managed to grow its revenue, the decline in profitability and EBITDA margin suggests challenges in cost management and operational efficiency. The company's focus on specialty chemicals and recent corporate actions indicate efforts to strengthen its market position and create value for shareholders. However, investors may need to watch closely how Paushak addresses the profitability concerns in the coming quarters.