Ruby Mills Limited has received a significant credit rating upgrade from India Ratings and Research, with its bank loan facilities upgraded to 'IND BBB+' from 'IND BBB' while resolving the Rating Watch with Developing Implications. The rating agency has assigned a Stable outlook, reflecting improved operational performance and strategic clarity following recent corporate developments.

Rating Actions and Facility Details

India Ratings has assigned ratings across multiple bank loan facilities totaling INR 4,235.80 million. The detailed rating actions include:

Key Drivers Behind the Upgrade

The upgrade reflects Ruby Mills' improved operating profitability margin in 1HFY26, which exceeded India Ratings' expectations. During 1HFY26, the company earned revenue of INR 1,552 million with absolute EBITDA of INR 270 million and EBITDA margins of 17.41%. The revenue breakdown shows INR 1,342.66 million from textiles segment and INR 209.50 million from real estate lease rentals.

India Ratings resolved the Rating Watch following successful execution of the memorandum of association with Mindset Estates Pvt Ltd. This development provides clarity regarding the impact on Ruby Mills' business and financial profile, with lease rentals previously credited to MEPL now flowing to Ruby Mills.

Financial Performance Overview

The company's recent financial performance shows mixed trends across different periods:

Business Strengths and Risk Factors

India Ratings highlighted several key strengths supporting the rating:

• Established Operations: Incorporated in 1917, Ruby Mills has an established track record in textile manufacturing and commercial real estate
• Reputed Tenant Base: Strong revenue stream from long-term associations with tenants like Ernst & Young, Cathay Pacific Airways Limited, and DSP Asset Managers Pvt Ltd
• Cash Flow Protection: Rental income flows through escrow account with waterfall mechanism ensuring debt servicing priority

However, the rating agency also noted key risk factors:

• Single Asset Concentration: Reliance on single asset exposes company to operational performance risks
• Stretched Credit Metrics: Net leverage deteriorated to 4.91x in FY25 from 2.53x in FY24
• Working Capital Challenges: Gross working capital cycle elongated to 379 days in FY25 from 304 days in FY24

Liquidity and Future Outlook

Ruby Mills maintains adequate liquidity with a Debt Service Reserve Account equivalent to three months of repayment obligations. The company had cash balance of INR 110 million at end-September 2025 and liquid investments of INR 1,168.49 million. India Ratings expects healthy improvement in revenue in FY26 due to closure of the MOA, with ownership of leased assets transferred to Ruby Mills at end-December 2025.

The rating agency will monitor the debt service coverage ratio remaining above 1.20x and resolution of outstanding governance issues as key factors for future rating actions.

Ruby mills Limited has announced its Q3FY26 financial results for the quarter ended December 31, 2025, presenting a mixed performance with revenue growth offset by profit decline. The Board of Directors approved the unaudited financial results in their meeting held on February 13, 2026.

Financial Performance Overview

The company's quarterly performance showed contrasting trends in revenue and profitability metrics:

Despite the revenue growth of 23.03%, the company experienced a significant decline in net profit, falling from ₹1,470.19 lakhs in Q3FY25 to ₹946.23 lakhs in Q3FY26. The earnings per share also decreased correspondingly from ₹4.40 to ₹2.83.

Nine-Month Performance Demonstrates Strength

The nine-month period ended December 31, 2025 revealed a more positive trajectory for the company:

The nine-month results demonstrated robust growth with revenue increasing by 43.64% and net profit rising by 23.61% compared to the corresponding period in the previous year.

Segment-wise Revenue Analysis

Ruby Mills operates through two primary business segments - Textiles and Real Estate. The segmental performance for Q3FY26 showed:

For the nine-month period, the textile segment generated revenue of ₹20,292.56 lakhs compared to ₹13,862.55 lakhs in the previous year, while the real estate segment contributed ₹3,228.66 lakhs versus ₹2,515.25 lakhs.

Key Financial Highlights

Several notable aspects emerged from the financial results:

• Other income for Q3FY26 was ₹499.63 lakhs, which included profit on sale of property amounting to ₹218.00 lakhs
• Finance costs increased significantly to ₹467.97 lakhs in Q3FY26 from ₹113.64 lakhs in Q3FY25
• The company reported fair value losses on unquoted equity instruments of ₹35.00 lakhs in Q3FY26
• Total comprehensive income for the quarter stood at ₹949.47 lakhs compared to ₹1,444.96 lakhs in the previous year

Regulatory Compliance and Publication

The company has fulfilled its regulatory obligations under SEBI (LODR) Regulations, 2015. On February 16, 2026, Ruby Mills published public notices in The Free Press Journal and Navshakti newspapers as required under Regulation 30 and 47. The intimation was submitted to both NSE (Symbol: RUBYMILLS) and BSE (Code: 503169) confirming the newspaper publication of the financial results.

Corporate Developments

The company noted several important developments during the period. The Government of India consolidated 29 existing Labour Laws into four new Labour Codes effective from November 23, 2025, and Ruby Mills has assessed and accounted for the financial implications of these changes. Additionally, upon closure of the Development agreement with Mindset Estate Private Limited, the agreed premises now vest solely with Ruby Mills Limited.

The unaudited financial results were reviewed by statutory auditors CNK & Associates LLP and received an unmodified conclusion. The company maintains its paid-up equity share capital at ₹1,672.00 lakhs with a face value of ₹5 per share.