Two Indian mid-cap companies have achieved the significant milestone of eliminating all borrowings in FY26, demonstrating different approaches to financial restructuring. Rolex Rings took over a decade to reach zero debt, starting with ₹615 crore in borrowings in FY16 and paying approximately ₹285 crore in interest along the way. The company finally achieved this goal in FY26 after reducing debt from ₹14 crore in FY25 to zero. Sunshield Chemicals took a more accelerated route, clearing ₹100 crore in borrowings in a single quarter through a rights issue that raised ₹130 crore from shareholders in September 2025.
Both companies now significantly outperform their respective industry benchmarks on return metrics. Rolex Rings earns a return on capital employed (ROCE) of 21% against an industry median of 16%, while Sunshield Chemicals achieves 20% ROCE compared to an industry median of 14%. According to reports from The Financial Express, Rolex Rings reported sales of ₹1,144 crore in FY26 with a five-year compound annual growth rate of 13%, though operating profit has declined from ₹261 crore in FY23 to ₹230 crore in FY26. Sunshield Chemicals demonstrated stronger growth momentum with sales compounding at approximately 22% between FY23 and FY26, reaching ₹441 crore in FY26.
Both companies have adopted different strategies for returning value to shareholders. Rolex Rings executed a ₹180 crore buyback in April 2026, extinguishing 1 crore shares at ₹180 each, with the full amount going to non-promoter shareholders as the promoter family chose not to tender. The stock has appreciated 55% in the past six months from ₹111 to ₹172, trading at a PE of 23x against the industry median of 29x. Sunshield Chemicals raised its final dividend to ₹3 from ₹2.50 and has seen its stock price surge 57% in six months from ₹765 to ₹1,200, trading at a PE of 29x against an industry median of 30x.
Despite achieving debt-free status, both companies face different operational challenges amid broader market caution. Rolex Rings has experienced stalled growth with sales declining from ₹1,179 crore in FY23 to ₹1,144 crore in FY26, while Sunshield Chemicals shows stronger momentum but faces cash flow concerns with operating cash flow falling to ₹10 crore in FY26 from ₹48 crore previously. According to The Financial Express, Rolex Rings management has guided for FY27 EBITDA margins of 21-22% and highlighted challenges from elevated ocean freight costs, while Sunshield Chemicals maintains a 66.54% promoter holding with a relatively thin float held by approximately 5,300 shareholders. The debt-free achievements come as broader market conditions show signs of investor risk aversion, with cryptocurrency prices falling 50% or more since Halloween 2025 and high-yield debt spreads blowing out above +10% to levels last seen during early 2025 tariff concerns.
