Mafatlal Industries Limited has received an upgrade in its long-term bank facility rating to CARE A- from CARE BBB+, with a Stable outlook, from CARE Ratings. Its short-term bank facility rating was also upgraded to CARE A2+ from CARE A2, reflecting growth in operating scale, improved liquidity and stronger debt coverage metrics.
The company reported operating income of Rs 3,871 crore in FY26, an increase of around 38 per cent year-on-year. Its operating income grew at a compound annual growth rate of approximately 40 per cent between FY23 and FY26. As of June 30, 2026, the company had a confirmed unexecuted order book of around Rs 890 crore, providing revenue visibility over the medium term.
Margin improvement across its business segments also supported the rating assessment. The textile segment’s EBIT margin increased to 5.1 per cent in FY26 from 2.9 per cent in FY24, while the digital infrastructure segment’s EBIT margin rose to 10.1 per cent from 9.9 per cent over the same period. The company has been increasing its focus on digital infrastructure and selectively pursuing contracts with better margins.
CARE Ratings cited Mafatlal Industries’ established presence in textiles, particularly B2B uniform solutions, its diversified business portfolio and capital structure as factors supporting its credit profile. The Stable outlook reflects expectations of sustained liquidity and debt coverage metrics over the medium term.
