Tirupati Starch & Chemicals Limited has received a credit rating reaffirmation from Acuite Ratings & Research Limited, though with a revised outlook that signals potential concerns ahead. The rating agency maintained the ACUITE BBB rating on the company's Rs. 140.00 crore bank facilities while changing the outlook from Stable to Negative, as announced in a press release dated February 24, 2026.

Rating Details and Rationale

The credit rating reaffirmation covers the company's total outstanding bank loan facilities, with no withdrawals reported during the assessment period.

The outlook revision to Negative reflects the weakening of operating and financial risk profile in 9MFY2026, marked by deterioration in profitability and weak coverage indicators following debt-funded capex. However, the rating reaffirmation acknowledges the company's established operational track record, experienced management, and strong position within the maize-processing segment.

Financial Performance Analysis

The company demonstrated mixed financial performance across different periods. In FY2025, Tirupati Starch showed improvement with revenue rising to Rs. 390.05 crore compared to Rs. 306.34 crore in FY2024, driven primarily by higher sales volumes despite some moderation in price realizations.

During 9MFY26, the company recorded moderation in performance with operating income declining to Rs. 273.40 crore from Rs. 288.72 crore in 9MFY25. EBITDA reduced to Rs. 17.07 crore from Rs. 21.02 crore, while profitability weakened further with PAT falling to Rs. 4.13 crore from Rs. 6.00 crore.

Financial Risk Profile and Debt Management

The company's financial risk profile remained moderate, supported by improvement in tangible net worth to Rs. 84.36 crore as of March 31, 2025, from Rs. 74.16 crore in the previous year. The net worth includes Rs. 23.66 crore of quasi-equity in FY25, with the increase largely driven by profit accretion to reserves.

Gearing improved to 1.33 times as of March 31, 2025, from 1.79 times as of March 31, 2024, aided by a reduction in total debt to Rs. 112.21 crore from Rs. 132.81 crore. The debt profile comprises long-term borrowings of Rs. 50.27 crore, unsecured loans of Rs. 1.16 crore, short-term borrowings of Rs. 42.94 crore, and current portion of long-term debt of Rs. 17.84 crore.

Operational Challenges and Industry Dynamics

The rating agency highlighted several operational challenges facing the company. The maize-processing industry remains highly competitive with limited pricing flexibility, restricting the company's ability to fully pass on increases in raw-material costs to customers. The company's profitability remains vulnerable to fluctuations in maize prices, which form the key raw material for its starch and derivative products.

Working capital operations showed improvement with gross current assets cycle reducing to 83 days as of March 31, 2025, from 118 days in the previous year. Inventory days moderated to 43 days in FY2025 from 62 days in FY2024, while debtor days improved to 37 days from 42 days. The utilization of bank limits remained high at around 91 percent for the six months ending August 2025.

Liquidity Position and Future Outlook

The company's liquidity position remains adequate, supported by tightly matched net cash accruals of Rs. 15.39 crore in FY2025 against maturing repayment obligations of Rs. 15.62 crore. The company is undergoing capex for capacity expansion of starch maize products worth Rs. 40.00 crore, which will be funded equally through internal accruals and term loans.

Acuite believes that the company's ability to restore profitability metrics and revenues through timely commencement of additional capacities will remain a key determinant of its credit risk profile going forward. The rating agency emphasized that continuous growth in revenue and profitability, along with prudent liquidity management, will be critical for the company's overall credit profile.

Source: None/Company/INE314D01011/dc488ec3-6b77-42d3-897a-71afd7e9b8de.pdf

Tirupati Starch & Chemicals Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following a board meeting conducted on February 14, 2026. The board meeting commenced at 1:30 P.M. and concluded at 3:55 P.M. at the company's registered office in Indore, Madhya Pradesh.

Financial Performance Overview

The company demonstrated improved quarterly performance with notable growth in profitability metrics. The financial results reflect the company's operational efficiency in its starch and allied products manufacturing segment.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company reported consolidated revenue from operations of ₹27,339.86 lakhs compared to ₹28,812.04 lakhs in the corresponding period of the previous year. The nine-month net profit stood at ₹401.48 lakhs versus ₹598.95 lakhs in the previous year.

Regulatory Compliance and Board Meeting Details

The board meeting (Meeting No.: BM/06/2025-26) was held at the company's registered office at Shree Ram Chambers, 12-Agrawal Nagar, Main Road, Indore, Madhya Pradesh. The board considered and approved both standalone and consolidated unaudited financial results along with limited review reports.

Operational Highlights

The company's cost structure showed variations during the quarter, with cost of materials consumed at ₹5,856.84 lakhs for Q3FY26. Employee benefit expenses remained stable at ₹340.54 lakhs, while finance costs were recorded at ₹243.09 lakhs for the quarter.

The company operates primarily in manufacturing of starch and allied products, representing its single reportable business segment. The financial results have been prepared in compliance with Indian Accounting Standards (Ind AS) and reviewed by the audit committee before board approval.

Statutory Compliance and Disclosures

Harish Khandelwal & Co., Chartered Accountants, conducted the limited review of both standalone and consolidated financial results. The results are being filed in XBRL format within the stipulated time and published in newspapers with Quick Response Code as per SEBI requirements.

The company maintains its registered office at Shree Ram Chambers, Indore, and manufacturing operations at Village-Sejwaya, Ghata Billod, District Dhar, Madhya Pradesh. The results are also available on the company's website at www.tirupatistarch.com .