Crisil Ratings Ltd on Friday revised its outlook on the long-term bank facilities and fixed deposits of The Bombay Dyeing and Manufacturing Company Ltd to 'Stable' from 'Positive', while reaffirming the long-term rating at 'Crisil BBB+'. The rating on the company's short-term bank loan facilities has been reaffirmed at 'Crisil A2+', with total bank loan facilities standing at ₹501 crore. The rating on fixed deposits of ₹0.3 crore has also been reaffirmed at 'Crisil BBB+' with the outlook revised to 'Stable' from 'Positive'. According to Crisil, the revision to a 'Stable' outlook suggests the company's creditworthiness will remain steady, without significant immediate pressure for upgrades or downgrades.
According to the rating rationale issued by Crisil, the revision in outlook reflects moderation in operating profitability of the polyester staple fibre (PSF) segment in the first half of fiscal 2026. This was primarily due to lower sales from the higher-margin export market, with export business reducing from 34% to 16% in H1 fiscal 2026 due to US tariffs, which has significantly impacted margins. Crisil noted that while the company is undertaking cost efficiency measures to save power costs and improve realisations through value addition, an increase in export business will be critical for improvement in profitability. The agency highlighted that sustenance of scale and margin improvement in the PSF segment will remain key monitorables for future performance. For rating purposes, Crisil has combined the business and financial risk profiles of Bombay Dyeing with its 97.36%-owned subsidiary, P.T Five Star Textiles, Indonesia.
As reported by Crisil, the company is expected to launch a fresh real estate project in the fourth quarter of fiscal 2026, and customer bookings, response, and resulting cash flows will be monitored closely. The rating agency highlighted that the company has an established track record in executing real estate projects, though this is partly offset by the cyclicality inherent in the Indian real estate industry. According to the latest assessment, the success of upcoming real estate ventures will be crucial for the company's overall performance trajectory.
The rating agency said the company's financial profile and liquidity remain strong, supported by nil debt and surplus cash and cash equivalents, including liquid investments of about ₹1,300 crore as of September 30, 2025. Crisil expects the company to maintain significant liquidity even with the launch of real estate projects in fiscal 2026, with ₹600-700 crore expected to be maintained unencumbered. The ratings continue to reflect the company's diversified revenue profile, experienced management, and strong market position in the PSF segment. The robust financial standing, strengthened by proceeds from the Worli land sale totaling approximately ₹5,224 crore across two tranches, provides a cushion against operational fluctuations in the business environment.
According to latest market data, shares of Bombay Dyeing & Manufacturing Company Ltd are currently trading at ₹130.01 on NSE as of January 2, 2026, down 1.70% from its previous close of ₹132.26. The company's market capitalization stands at ₹2,685.16 crore with a trading volume of 11,73,631 shares. The stock has shown a 5-day performance of 0.22% and maintains a price-to-earnings ratio of 5.48 compared to the sectoral P/E of 3.66. The company reached a 52-week high of ₹198.90 on January 3, 2025, and touched a 52-week low of ₹117.50 on April 7, 2025. According to Crisil, upward rating factors include improvement in operating profitability above 2% in the PSF segment, while downward factors include continued operating losses from the PSF segment and subdued project response.
