Sarthak Industries Limited has announced a credit rating upgrade from India Ratings and Research (Ind-Ra), marking a positive development for the Mumbai-based manufacturing company. The rating agency upgraded the company's bank loan facilities from IND A4+ to IND BB+/Stable/IND A4+ through its press release dated February 06, 2026.

Rating Upgrade Details

The company informed BSE Limited about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The upgrade reflects India Ratings' assessment of the company's improving operational prospects.

Rating Rationale and Business Outlook

India Ratings provided detailed rationale for the upgrade, highlighting both positive factors and areas of concern. The rating agency expects the company's scale of operations to improve in FY26, which should lead to enhanced EBITDA margins through better absorption of fixed costs.

However, the ratings also reflect certain challenges:

• Modest EBITDA margins in FY25
• Stretched liquidity position in FY25
• Expected similar credit metrics levels in FY26
• Likelihood of continued stretched liquidity in FY26

Company Strengths and Experience

The upgraded rating remains supported by the strong foundation built by the company's promoters, who bring more than three decades of experience in the manufacturing sector. The company's core business activities include:

• Manufacturing of cylinders
• Trading of agricultural commodities
• Trading of non-agricultural commodities

This extensive experience in both manufacturing and trading operations provides stability to the company's business model and supports the rating agency's assessment.

Regulatory Compliance

Sarthak Industries Limited, incorporated in 1982 with CIN L99999MH1982PLC136834, has fulfilled its regulatory obligations by promptly informing the stock exchange about this rating change. The company's registered office is located in Mumbai, Maharashtra, and it trades on BSE under scrip code 531930.

The complete credit rating report by India Ratings and Research is available on the agency's official website for stakeholders seeking detailed analysis of the rating decision.

Sarthak Industries Limited has reported a substantial increase in net profit for the quarter ended June 30, alongside several key corporate appointments and governance updates.

Financial Performance

The company's net profit soared to Rs 113.63 lacs in Q1, marking a significant 350% increase from Rs 25.26 lacs in the same quarter of the previous year. This impressive growth comes despite a decrease in total revenue, which stood at Rs 5,907.87 lacs compared to Rs 10,328.25 lacs in the previous quarter.

Sarthak Industries' performance metrics for Q1 are as follows:

The company's basic earnings per share (EPS) for the quarter stood at Rs 1.22, compared to Rs 0.27 in the corresponding quarter of the previous year.

Segment Performance

Sarthak Industries operates in two main business segments: Cylinders and Trading. The segment-wise revenue breakdown for Q1 is as follows:

• Cylinders Business: Rs 138.04 lacs
• Trading Business: Rs 5,759.74 lacs

The trading business segment showed particularly strong results, contributing significantly to the company's overall performance.

Corporate Governance Updates

The Board of Directors has approved several key appointments to enhance the company's corporate governance structure:

1. M/s. Ajit Jain & Co., Practicing Company Secretaries, appointed as Secretarial Auditor for a five-year term.
2. M/s. S K Malani & Co., Chartered Accountants, re-appointed as Internal Auditor.
3. M/s. A. Goyal and Co., Cost Accountants, re-appointed as Cost Auditor.

These appointments are subject to shareholder approval at the upcoming Annual General Meeting.

Promoter Reclassification

The Board has also considered requests for reclassification of certain promoter group entities. Five entities, collectively holding a 0.06% stake in the company, have requested reclassification from the 'Promoter and Promoter Group' category to the 'Public' category. The entities seeking reclassification are:

1. Abhadevi Shahra (4,667 shares, 0.05%)
2. Shweta Shahra (0 shares)
3. Sandhya Khandelwal (667 shares, 0.01%)
4. Amrita Sachdev (133 shares, 0.00%)
5. Mahakosh Amusement Pvt. Ltd. (0 shares)

This reclassification, if approved, could potentially impact the company's shareholding structure and public float.

Sarthak Industries Limited continues to demonstrate strong financial performance and commitment to robust corporate governance practices. The significant increase in net profit, despite lower revenues, suggests improved operational efficiency. The company's strategic focus on its trading business segment appears to be yielding positive results, contributing to its overall growth trajectory.