India Ratings Assigns IND BBB+ Rating for Indo Borax & Chemicals' Bank Loan Facilities

India Ratings Assigns IND BBB+ Rating for Indo Borax & Chemicals' Bank Loan Facilities​

India Ratings and Research (Ind-Ra) has assigned an IND BBB+/Stable/IND A2+ rating to the bank loan facilities of Indo Borax & Chemicals Limited (IBCL). The rating reflects the company's established position in the domestic boric acid industry, supported by its operational history and growing revenue base.

The rating was issued for a Bank Loan Facility sized at INR 600 million. Ind-Ra’s assessment considered IBCL’s strong business profile, volume-led revenue growth, and overall credit metrics, while also noting constraints related to raw material dependency and future capital expenditure plans.

Financial Performance and Market Position​

IBCL has maintained a significant presence in the domestic market, reportedly holding around 50% of the boric acid requirement in the steel/refractory segment. The company’s revenue grew significantly in FY26, reaching approximately INR 2,154.51 million from INR 1,752.61 million in FY25. This improvement was driven by higher boric acid volumes and better product realisations, alongside an increase in sales of disodium octaborate tetrahydrate (DOT).

The company has a long operating track record, with its roots dating back to 1980. IBCL's core products include boric acid technical grade and Indian Pharmacopoeia (IP) grade, which it states is the sole manufacturer for in India. The company also holds the first BIS certification for manufacturing technical grade boric acid.

Despite improving blended realisations, which rose to around INR 127,488/MT in FY26 from INR 117,168/MT in FY25, IBCL’s EBITDA margins moderated in FY26. This moderation was attributed to higher raw material costs per tonne (rising to approximately INR 67,187/MT) and the impact of an unplanned 45-day shutdown during the third quarter of FY26. Management estimates that EBITDA margins should remain within the 20%-22% range over the medium term.

Key Rating Drivers and Future Outlook​

Ind-Ra highlighted several strengths, including a strong business profile and initiatives for forward integration to diversify its product mix through value-added boron derivatives like boron oxide and zinc borate. The company is currently focused on de-bottlenecking existing boric acid capacity, intending to increase annual production from 14,000–15,000 MT to around 18,000 MT without major capex commitment in the near term.

Looking ahead, IBCL plans a capital expenditure of approximately INR 900 million over FY27–FY28, which is planned to be funded entirely through internal accruals. This capex includes setting up a 4,000 MT boron oxide capacity and an additional 10,000 MT boric acid capacity, with commercial operations expected to commence from FY29.

However, the rating also noted several constraints and key monitorables. The business remains constrained by its dependence on boric acid, which forms a dominant share of revenue, and a critical 100% import dependency for its key raw material. Furthermore, the promoter shareholding is 100% pledged to secure acquisition debt raised through secured NCDs (INR 3,900 million) and convertible preference shares (INR 750 million). The repayment of this promoter-level debt in FY31 remains a key rating monitorable.

Financial Metrics Overview​

The financial performance data for Indo Borax & Chemicals Limited across FY26 and FY25 is summarized below:

INDOBORAX Stock Price Movement​

Shares of Indo Borax & Chemicals Limited shed 6.30% in post-market trading today, closing at ₹373.5. The stock witnessed heavy selling pressure, with a total traded volume reaching 448,010 shares.