Andhra Petrochemicals Ltd

Financial highlights

• Revenue from operations: Rs 1,409.06 lakhs; total income: Rs 2,069.47 lakhs.
• PBT before exceptional items: Rs -475.32 lakhs; after exceptional: Rs -176.17 lakhs.
• Exceptional items: Rs 308.27 lakhs; tax expense: Rs 150.14 lakhs.
• Profit from continuing operations: Rs -325.18 lakhs; EPS (basic/diluted): -0.38.
• Plant shutdown due to propylene supply; resumed 11 May 2026; extended to 4 Aug 2026.

Operational and regulatory notes

• Board approved unaudited results on 5 Aug 2026; Limited Review by CV RAMANA RAO & Co.
• Single-product manufacturer; no segment reporting; lease dispute with Visakhapatnam Port Authority.
• Lease accounting under Ind AS 116 provisionally; lease deed pending after relevant judgments.

Andhra Petrochemicals Ltd closes trading window from 1 July 2026 to 7 August 2026 ahead of board meeting on 5 August 2026 to consider unaudited financial results for the quarter ended 30 June 2026

Meeting Details

• Board meeting scheduled for Wednesday, 27 May 2026.

Key Agenda Items

• Approval of audited financial results for the quarter and year ended 31 March 2026.
• Adoption of audited accounts for financial year 2025-26.

Credit Rating Action ️

• ICRA downgraded Andhra Petrochemicals' long-term ratings from A- (Negative) to BBB+ (Negative).
• Short-term rating reaffirmed at A2+.

Instruments Rated

• Long-Term Unallocated Limits: Rs. 57.18 crore, rated BBB+ (Negative).
• Long-Term Fund-Based Working Capital Facilities: Rs. 35.00 crore, rated BBB+ (Negative).
• Short-Term Non-Fund Based Working Capital Facilities: Rs. 2.00 crore, rated A2+.

Rationale

• Operating margins declined in FY2025 and 9M FY2026 due to narrowing oxo-alcohols and feedstock price spread.
• Plant shutdown from Oct 29, 2025 to Feb 3, 2026 due to unremunerative realizations and surge in low-priced imports.
• Profitability exposed to fluctuations in oxo-alcohols and feedstock price spread.
• Dependence on single supplier HPCL for propylene exposes company to force majeure risk; some diversification via BPCL and GAIL.
• Subdued performance in 9M FY2026 and weak FY2026 outlook due to weak realizations and compressed margins.

Financial Position

• Company is debt-free; project term loan of Rs. 5.18 crore fully repaid.
• Working capital limits of Rs. 35 crore unutilized, secured by assets and fixed deposits worth Rs. 239.36 crore.
• Holds Rs. 81.68 crore in debt mutual funds with SBI consortium banker.

Rating Sensitivities

• Upgrade possible with improvement in operating margins and sustained profitability.
• Further downgrade possible with continued weak realizations, margin pressure, or supply disruptions.

Outlook

• Negative

Credit Rating Action ️

• ICRA downgraded long-term ratings; reaffirmed short-term rating.

Instruments/Facilities Rated

• Long-Term Unallocated Limits (Rs. 57.18 crore): downgraded to [ICRA]JBBB+ (Negative) from [ICRA]JA- (Negative).
• Long-Term Fund-Based Working Capital Facilities (Rs. 35.00 crore): downgraded to [ICRA]BBB+ (Negative) from [ICRA]JA- (Negative).
• Short-Term Non-Fund Based Working Capital Facilities (Rs. 2.00 crore): rating reaffirmed at [ICRA]A2+.

Rating Agency

• ICRA.

Outlook

• Negative for downgraded long-term ratings.
• Stable for reaffirmed short-term rating.

Material Changes Since Last Rating

• Downgrade of long-term ratings from [ICRA]JA- (Negative) to lower levels.
• Short-term rating reaffirmed.

Credit Rating Action ️

• ICRA downgraded Andhra Petrochemicals' long-term ratings; short-term rating reaffirmed.

Instruments/Facilities Rated

• Long-term Unallocated Limits Rs. 57.18 crore downgraded to [ICRA]JBBB+ (Negative) from [ICRA]JA- (Negative).
• Long-term Fund-based Working Capital Rs. 35.00 crore downgraded to [ICRA]BBB+ (Negative) from [ICRA]JA- (Negative).
• Short-term Non-fund based Working Capital Rs. 2.00 crore rating reaffirmed at [ICRA]A2+.

Rating Agency

• ICRA

Outlook

• Long-term ratings outlook Negative; short-term rating outlook unchanged.

Material Changes Since Last Rating

• Long-term ratings downgraded from [ICRA]JA- (Negative) to [ICRA]JBBB+ (Negative) and [ICRA]BBB+ (Negative).
• Short-term rating reaffirmed at [ICRA]A2+.