Birla Cotsyn (India) Ltd

Birla Cotsyn India Ltd. Receives 'IVR B+/Stable' Rating 📈

• Received 'IVR B+/Stable' rating for long-term bank facilities totaling ₹40 crore.

• Strong promoter commitment with ₹60 crore funding support, covering two-thirds of the ₹90 crore revival cost.

• Cash-based operating model with a short working capital cycle of 20-25 days and unutilized ₹10 crore cash credit from Punjab National Bank.

• Operational 48,000-spindle spinning facility in Maharashtra's cotton belt, with 75% capacity refurbished and operational.

• Generated ₹15 crore revenue in 9MFY26 with an order pipeline of ₹20-25 crore supporting initial business traction.

• Financial targets include achieving over ₹250 crore revenue with EBITDA margins above 7% and total debt/EBITDA under 3.0x.

• Key risks include high sensitivity to cotton price fluctuations and sub-optimal capacity utilization (~75%).

• Liquidity is currently stretched with weak internal accruals, but projected cash flow improvement is expected with operational ramp-up.