CRISIL Revises Ovobel Foods' Credit Ratings on Bank Loan Facilities Amid Information Concerns
CRISIL Ratings Limited has revised the credit ratings assigned to the bank loan facilities of Ovobel Foods Ltd (OFL). The rating change was issued after the agency assessed the available information, leading to a classification across several instruments under the "Issuer Not Cooperating" category.The total amount of Bank Loan Facilities rated under this revision stands at ₹29.90 Crore, covering both Cash Credit and Term Loans.
The revised ratings reflect the non-availability of adequate information from management required for the continuous monitoring and assessment of the company's credit profile, resulting in facilities being classified as "Issuer Not Cooperating." The rating rationale provided by CRISIL Ratings Limited detailed these adjustments.
Rating Action Details
CRISIL issued specific actions regarding the various loan facilities:| Facility Type | Amount (₹ Crore) | Revised Long Term Rating | Revised Short Term Rating |
|---|---|---|---|
| Bank Loan Facilities (Cash Credit and Term Loans) | 29.90 | CRISIL BB/Stable (Issuer Not Cooperating) | CRISIL A4+ (Issuer Not Cooperating) |
The company has stated it is taking necessary steps regarding the ratings, including initiating the withdrawal process, as the rating agency reportedly did not adequately consider the Company's current financial performance, which directly impacts borrowing costs.
Rating Rationale and Background
CRISIL Ratings noted that despite repeated attempts to obtain information from OFL through letters and emails dating back to May 04, 2026, management remained non-cooperative.In its detailed rationale, CRISIL stated that the ratings were revised from 'Crisil BB+/Stable/Crisil A4+ Issuer not cooperating' to 'Crisil BB/Stable/Crisil A4+ Issuer not cooperating.' This revision is based on the last available information and restricts CRISIL Ratings’ ability to take a forward-looking view of the entity's credit quality.
The rating rationale confirms that the assignment was made without management interaction, making these ratings dependent on "best available or limited or dated information."
Key Financial Indicators (Q4FY2026 & FY2025)
Financial indicators for Ovobel Foods Ltd across recent periods include:| Indicator | Q4FY2026 | FY2025 |
|---|---|---|
| Revenue | 65.02 | 191.75 |
| Profit After Tax (PAT) | 14.19 | 9.06 |
| Operating Profit Margin (OPM) | 20.66 | 6.93 |
| Net Profit Margin (NPM) | 21.82 | 4.72 |
Company Operations
Ovobel Foods Ltd was established in 1993 by Mr Vishan Swarup Aggarwal and Mr Shanti Swarup Aggarwal. The management transitioned in December 2020 with the arrival of Mr Sathish Babu and Mr Sharad M S. OFL specializes in exporting whole eggs in frozen form and processes them into yolk and albumen powder. Their products are utilized in various applications, including bakery goods, mayonnaise, baby food, pasta, doughnut premixes, fish, and meat.Stock Price Movement
Ovobel Foods Ltd shares closed at ₹196.00 on Friday, after ticking down 2.10% in today's trade. The stock demonstrated intraday volatility, having moved between a low of ₹193.05 and a high of ₹202.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.
Last edited by a moderator: