India Ratings Affirms Banswara Syntex at ‘IND A/Negative’ Amid Debt-Funded Modernisation Drive

An announcement from Banswara Syntex Ltd ( (IN:BANSWRAS) ) is now available.

India Ratings and Research has affirmed Banswara Syntex Ltd’s existing bank loan facilities at ‘IND A/Negative/IND A1’ and its fixed deposit programme at ‘IND A/Negative’, while also assigning the same ratings to an additional INR 513.2 million in bank loan facilities and noting that the fixed deposit limit has been reduced to INR 300 million from INR 400 million. The Negative outlook reflects expectations that Banswara Syntex’s credit metrics will remain stretched in the medium term due to sizeable debt-funded modernisation capex and weaker-than-expected operational performance in the first half of FY26, even as the agency anticipates improvement in the second half of FY26 and beyond, driven by higher contributions from value-added products, operational efficiencies, cost optimisation, and future savings from renewable power initiatives; at the same time, the ratings factor in the company’s strong business profile and adequate liquidity, with elevated leverage expected to peak in FY26 and gradually improve from FY27, amid ongoing exposure to price volatility, foreign exchange movements and inherent textile industry risks.

More about Banswara Syntex Ltd

Banswara Syntex Ltd operates in the textile sector, producing other textile products with a growing focus on value-added offerings such as garments. The company is undertaking a modernisation capital expenditure programme aimed at boosting production efficiency, optimising costs, and shifting its sales mix toward higher-margin, value-added products, while also planning to lower power costs through participation in group captive renewable energy initiatives.

Average Trading Volume: 1,554

Technical Sentiment Signal: Hold

Current Market Cap: 3.97B INR

For a thorough assessment of BANSWRAS stock, go to TipRanks’ Stock Analysis page.