Indian Acrylics Ltd

Rating Action & Outlook

• LT rating upgraded to BB-/Stable; ST rating upgraded to A4 for Rs 99 Cr facilities.
• Aggregate facilities amount Rs 99.00 Cr.
• Outlook: Stable for LT rating.

Instruments Rated

• Long-term fund-based facilities Rs 27.89 Cr; Rating: BWR BB-/Stable/Upgrade.
• Long-term Sub-limit EPC Rs (5.60) Cr; Rating: BWR BB-/Stable/Upgrade.
• Long-term Sub-limit CC Rs (0.50) Cr; Rating: BWR BB-/Stable/Upgrade.
• Long-term Sub-limit FOB NLC/FOUBNLC Rs (3.00) Cr; Rating: BWR BB-/Stable/Upgrade.
• Long-term Sub-limit Export Credit Rs (3.00) Cr; Rating: BWR BB-/Stable/Upgrade.
• Short-term Buyer's credit ILC/FLC Rs 70.61 Cr; Rating: BWR A4/Upgrade.
• Inland L/C Rs 0.50 Cr; Rating: BWR A4/Upgrade.

Rationale & Key Metrics

• Repayment of Rs 50 Cr term loan; recovery trajectory improved.
• Revenue and operating profit showing improvement; net loss still ongoing.
• TNW negative; high leverage; DSCR below 1x in FY27.
• EBITDA projected to rise to Rs 14.51 Cr; interest burden to Rs 6.05 Cr.
• Current ratio projected to 1.35x; ISCR to 2.40x by FY27.
• Liquidity: cash balance Rs 9.03 Cr FY26; projected Rs 10.53 Cr FY27.

Outlook & Material Changes

• Outlook: Stable for LT rating; upgrade reflects repayment and recovery trajectory.
• Material change: LT rating moved from D to BB-/Stable.

AGM Details

• Date and time: 29 September 2026, 11:00 AM to 11:35 AM.
• Mode: physical AGM at registered office.
• Record date: 22 September 2026.
• Shareholders on record: 102,242.
• Meeting duration: 11:00–11:35.

Resolutions

• Ordinary – Adoption of standalone and consolidated financial statements.
• Ordinary – Re-appointment of Shri Dheeraj Garg by rotation.
• Ordinary – Ratification of remuneration of Cost Auditor for 2026-27.
• Special – Re-appointment of Shri R K Garg as Managing Director from 01/03/2027.
• Special – Re-appointment of Shri Alok Goyal as Executive Director from 01/03/2027 for three years.

Voting outcomes

• Resolution 1 passed with 99.997% in favour.
• Resolution 2 passed; in favour 39,798,059, against 3,001.
• Resolution 3 passed; in favour 800,059, against 1,001.
• Resolution 4 passed; in favour 301,411, against 18,001.
• Resolution 5 passed; in favour 39,783,059, against 18,001.

Dividend

• No dividend proposed or declared.

Director & Auditor changes

• Dheeraj Garg re-appointed by rotation as director.
• R K Garg re-appointed as Managing Director from 01/03/2027.
• Alok Goyal re-appointed as Executive Director from 01/03/2027 for three years.
• Remuneration ratified for Cost Auditor for FY2027.

Management re-appointments approved at AGM

• Re-appointment of Shri Rajinder Kumar Garg as Managing Director for three years from 01.03.2027, approved by shareholders.
• Re-appointment of Shri Alok Goyal as Executive Director (Works) for three years from 01.03.2027, approved by shareholders.
• Effective date: 01.03.2027; term: three years.
• Reason: shareholders approved the re-appointments.
• Brief profile: Rajinder Kumar Garg is an FIE and has served as MD since 1986.
• Brief profile: Alok Goyal is a chemical engineer with 33+ years’ experience.
• He joined the company in 1998 and contributes to day-to-day operations.
• Disclosure: Garg is promoter and related to Dheeraj Garg (father, Additional MD).
• Disclosures: Alok Goyal is not related to any other director or KMP.
• No debarment: Garg is not debarred from holding director office.
• No debarment: Alok Goyal is not debarred from holding director office.

AGM Details

• Held Sep 29, 2026 at 11:00 AM IST in person at Village Harkishanpura, Punjab.

Key Resolutions

• Adoption of financial statements (including consolidated) for year ended Mar 31, 2026 (Ordinary Resolution).
• Re-appointment of Shri Dheeraj Garg as Director by rotation (Ordinary Resolution).
• Ratification of remuneration of Cost Auditor M/s V. Kumar & Associates (Ordinary Resolution).
• Re-appointment of Shri Rajinder Kumar Garg as Managing Director for three years from 01.03.2027 (Special Resolution).
• Re-appointment of Shri Alok Goyal as Executive Director (Works) for three years from 01.03.2027 (Special Resolution).

Auditor & Updates

• Cost Auditor remuneration ratified.

Voting & Results

• Resolutions transacted and approved; detailed results to be annexed after scrutiny report.

Rating Action

• Long-term rating upgraded to BWR BB-/Stable.
• Short-term rating upgraded to BWR A4/Upgrade.
• Bank loan facilities aggregating Rs 99 crore rated.
• Outlook: Stable for long-term rating.
• Material change since last rating: upgrades from D to BB-/Stable and D to A4/Upgrade.
• Previous rating was D; now BB-/Stable and A4/Upgrade.

Rationale

• Repayment of Rs 50 crore term loan improved liquidity.
• Revenue and operating profit projected to improve; losses narrowed.
• TNW remains negative; leverage high; DSCR weak.
• Current ratio expected to reach 1.35x by FY27.
• ISCR projected to 2.40x by FY27; DSCR to 0.95x by FY27.
• Cash and bank balance around ₹9.03 cr FY26, ₹10.53 cr FY27.

Change Since Last Rating

• Previous rating was D; now BB-/Stable and A4/Upgrade.

INDIAN ACRYLICS LIMITED — Closure of Trading Window from 1 October 2026 for designated persons up to 48 hours from the declaration of Unaudited Financial Results for the quarter and half year ended 30 September 2026

AGM and AR access

• 39th AGM slated for 29 September 2026 at 11:00 a.m. at the registered office.
• Annual Report 2025-26 available on the company website; emails not sent due to unregistered addresses.
• Shareholders without registered emails may access AR via provided web-links.
• Update email, bank details, and mobile numbers with RTA or DP.
• SEBI's special window for pre-2019 physical securities available 05 Feb 2026 to 04 Feb 2027.
• AR and AGM notices also on BSE website.

Financial performance

• Revenue from operations ₹35168.47 lakh; YoY down from ₹38933.14 lakh.
• Total revenue ₹35741.69 lakh; net loss after tax ₹2408.51 lakh.
• PBDIT ₹442.09 lakh; PBT ₹-2408.74 lakh; PAT ₹-2408.51 lakh.
• EPS (basic) ₹-1.78; Dividend declared Nil.

Operational performance

• Acrylic Fibre production 14116 MT; Acrylic Yarn production 7056 MT.
• Fibre sales 8728 MT; Yarn sales 7141 MT.
• Export revenue ₹12142.96 lakh; Fibre export 4060 MT; Yarn export 1592 MT.

Geography and product mix

• Domestic revenue ₹23025.51 lakh; Export ₹12142.96 lakh; Total external Fibre ₹15738.00 lakh; Yarn ₹19430.48 lakh.
• Inter-segment adjustments ₹9181.44; Total revenue ₹35168.47 lakh.

Debt and liquidity

• Total borrowings ₹23,077.05 lakh; non-current ₹19,180.17; current ₹3,896.88.
• Cash and cash equivalents ₹903.49 lakh; total current assets ₹15,295.34; total assets ₹35,205.35.
• Cash flow: Operating cash flow negative ₹2,983.30 lakh; net financing ₹3,396.46 lakh; closing cash ₹1,520.70.

Capital structure and shares

• Equity capital ₹13,532.22 lakh; promoters hold 62.56% (PSIDC 13.55%; SAB group).
• Net worth negative; current ratio 1.10; debt-equity ratio −0.09.
• Dividend Nil; no distributions declared.

Governance and audit

• Auditors: AKR & Associates; Secretarial Auditor: S.K. Sikka & Associates.
• Going concern basis disclosed; 4 Board meetings held in 2025-26.
• CSR and risk governance in place; independent directors on the board.

Risks and outlook

• Industry faces dumping from cheaper imports; antidumping duty advised but not notified.
• Export growth and currency volatility; energy costs pressuring margins.
• Management focus on product development, export expansion, and cost control.

AGM Details

• AGM on September 29, 2026 at the registered office; physical meeting with remote e-voting.
• Shareholder records closed from September 23 to September 29, 2026 (inclusive).
• Cut-off date for eligibility is September 22, 2026.
• Remote e-voting period runs September 26, 2026, 9:00 AM to September 28, 2026, 5:00 PM.