Short-term bank facility rating upgraded to CARE A2+; rating action reflects growth in operating scale, improved liquidity and healthy debt coverage metrics.
Mafatlal Industries (MIL), the flagship company of the Arvind Mafatlal Group and a diversified Indian enterprise with over 120 years of legacy, has received an upgrade in its credit ratings from CARE Ratings (CareEdge Ratings).
The company’s long-term bank facilities have been upgraded from CARE BBB+; Stable to CARE A-; Stable, while its short-term bank facilities have been upgraded from CARE A2 to CARE A2+.
The rating upgrade reflects the company’s growth in scale of operations over the past three years, supported by steady performance across its textile and related products and digital infrastructure segments. Improved liquidity, healthy debt coverage metrics and a confirmed unexecuted order book also support the rating assessment.
Mafatlal Industries reported total operating income of Rs 38.71 billion in FY2025-26, registering year-on-year growth of approximately 38 per cent. Its operating income grew at a compounded annual growth rate (CAGR) of approximately 40 per cent between FY2022-23 and FY2025-26.
The company had a confirmed order book of approximately Rs 8.90 billion as of June 30, 2026. According to CareEdge Ratings, this provides revenue visibility and supports expectations of steady performance over the medium term.
Mafatlal Industries’ established presence in the textile segment, particularly B2B uniform solutions, diversified business portfolio and healthy capital structure underpin its credit profile. According to CareEdge Ratings, the digital initiative segment reported an EBIT margin of 10.1 per cent in FY26, compared with 9.9 per cent in FY24, while the textile segment’s EBIT margin improved to 5.1 per cent from 2.9 per cent over the same period. The company is progressively increasing its focus on digital infrastructure and selectively pursuing contracts with better margins.
The ratings carry a Stable outlook, supported by the company’s established track record and expectation of maintaining healthy liquidity and debt coverage metrics over the medium term.