India Ratings affirms ratings of Polyplex Corporation with 'stable' outlook

The agency has also affirmed the company's short-term rating at 'IND A1+'.

India Ratings and Research stated the affirmation reflects an improvement in the consolidated financial performance in FY25 while maintaining a strong credit profile, in line with the agency's expectations.

The ratings continue to be supported by the company's strong position in the flexible packaging industry.

The agency further said that developments that could, individually or collectively, lead to a positive rating action include an improvement in the scale and operating EBITDA, and maintaining the share of value-added products in the overall revenue and EBITDA mix, while maintaining the credit metrics on a sustained basis.

However, delays, cost over-runs or a slower-than- expected ramp-up for new projects, a decline in the consolidated revenue or sustained deterioration in the operating EBITDA, large, debt-funded capex or acquisition, leading to sustained deterioration in the net leverage, and any adverse government regulatory action negatively impacting the sector could lead to an adverse rating action.

Polyplex Corporation (PCL) has a product portfolio includes PET films (thin & thick), BOPP, cast polypropylene and blown polypropylene. These products are used in flexible packaging besides several industrial applications such as tapes, labels, thermal lamination, imaging and graphics, photo-voltaic and optical applications. The company's manufacturing facilities spread across India, the US, Thailand, Turkey and Indonesia.

The scrip rose 0.21% to currently trade at Rs 1205.65 on the BSE.

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