India Ratings downgrades Shree Renuka Sugars' instruments amid declining financials and increased leverage

Shree Renuka Sugars Ltd announced that India Ratings and Research has downgraded its ratings on the company's instruments, specifically the Non-convertible debentures carrying an amount of N/A, to IND A- /Negative from INDA/Negative, and the Bank loan facilities also carrying an amount of N/A, to IND A- /Negative from IND A2+/INDA/Negative/IND A1; the agency’s notes indicate a downgrade action for both instruments. The company’s financials reveal a significant shift with FY26 revenue at INR 91.7 billion compared to INR 109.1 billion in FY25, EBITDA (pre-forex) declining from INR 6.8 billion to INR 2.6 billion, EBITDA falling from INR 6.4 billion to INR 1.3 billion, EBITDA margin decreasing from 5.9% to 1.4%, interest coverage (extended debt) dropping from 1.8 to 0.3, and net leverage (extended debt) increasing substantially from 7 to 44.4; no rating data was provided by India Ratings, and placeholder instruments were not rated.