Crisil Ratings Reaffirms Grade for Kovilpatti Lakshmi Roller Flour Mills Amid Enhanced Debt Facilities

Crisil Ratings Reaffirms Grade for Kovilpatti Lakshmi Roller Flour Mills Amid Enhanced Debt Facilities​

Crisil Ratings has reaffirmed the credit rating for the enhanced loan facilities of Kovilpatti Lakshmi Roller Flour Mills Limited (KLRFML). The rating affirmation, announced on April 20, 2026, reflects the company's status concerning its total bank debt, which is rated at Rs. 142 Crore, enhanced from a previous amount of Rs. 91 Crore.

The rating reassessment for the bank facilities, which covers both existing and newly proposed term loans, maintained the classification at 'Crisil BBB- / Stable'.

Facility Breakdown and Ratings​

The analysis of KLRFML’s total bank loan facilities was conducted across ten different segments, totaling Rs. 142 Crore. The ratings provided for these facilities are detailed below:


The rating for the total bank loan facilities is listed as Crisil BBB- / Stable.

Operational and Financial Analysis​

Crisil Ratings noted that the rating reflects a moderation in the business risk profile of KLRFML. This moderation was noted against previous expectations, citing the decline in operating margins and revenue estimated in fiscal 2026. The company reported revenue of Rs 311 crore during the nine months of fiscal 2026.

The rating maintains that KLRFML possesses strengths, including the extensive industry experience of the promoters, who have over 40 years of experience in the agriculture and engineering division industry. The company also demonstrated a moderate working capital cycle, with gross current assets reported at 70-82 days over the three fiscals ended March 31, 2025.

Conversely, the rating report highlighted weaknesses, particularly the susceptibility of the operating margin to volatility in raw material prices. The company is also exposed to the risks of limited availability of key raw materials due to unfavourable climatic conditions, as well as risks associated with debt-funded capital expenditure plans.

KLRFML is currently undertaking capital expenditure (capex) for the expansion of its production facility, along with future plans for constructing a hotel.

Financial Indicators​

The company operates in two segments: the engineering division and the foods division. Analyzing the historical financial performance provides a snapshot of the company’s financial indicators:


Crisil Ratings maintained that the improvement in operating margin will remain a key monitorable factor in the medium term. The rating outlook is deemed stable.

Stock Price Movement​

Kovilpatti Lakshmi Roller Flour Mills Ltd shares settled at ₹109.74 on Tuesday, having advanced 3.04% from the previous close. The equity ranged throughout the day, moving between a low of ₹106.22 and a high of ₹109.74.