CRISIL ratings have confirmed their ‘Crisil AA/Stable/Crisil A1+’ rating on TRIDENT LTD (Trident) bank facilities and commercial paper. The rating shows the company’s diverse revenue profiles and the leading market position in the home textile and yarn segment. The rating also includes its strong position in writing and printing paper (WPP) segment, strong operating capacity operated by integrated operation and a comfortable financial risk profile.
The company’s revenue growth is estimated to be relatively stable in this financial year, due to the current instability for home textile products and significant dependence on the American market. Conversely, in the financial year 2026, yarn and paper segments are expected to have a minor revenue growth between 3-4 percent. This slight growth is likely to partially reduce some negative effects of adverse conditions related to tariffs on the company’s overall revenue performance, giving the top-line somewhat stability. However, there may be loss of revenue and profitability as a result of a consecutive high American tariffs compared to competitive countries and will remain a major monitoring factor.
In the first quarter of the financial year 2026, the company recorded a revenue of ₹ 1,707 crore compared to ₹ 1,743 crore in the same quarter of the last financial year. The company’s Ebitda margin has increased significantly, which has increased to 17 percent in the first quarter of this financial year as against 13 percent in the same quarter of the last financial year. This was mainly due to India’s favorable tariff status during the first trimester and a reduction in the cost of raw materials by the customers and the cost of raw materials. For the end period of July ’25, the margin is not expected to have any effect, although in the remaining seven months of the financial year 2026, the margin in home textiles may be greatly affected due to high dependence on American exports. However, stable margin in yarn and paper may reduce some effects. Margin also supports the implementation of the Rebet of State and Central Taxes and Levies (ROSCTL) incentives and the benefits from high scale and increasing stake of paper segments, which is a high-margin segment.
Financial risk profiles with healthy capital structures and strong produce remain strong. The limit of a limited duration is expected to be comfortable in the medium period ~ 0.4–0.6x range (0.4 in FY25) in the medium period. The date/ebitda ratio is expected to be less than 2.25 times in the moderate period and the net date/ebitda is expected to be less than 1.5 times.
The company has reduced its balance sheet to a great extent by reducing the date level of date in the financial year 2024, after the completion of its CAPEX and pre -payment of debt obligations, in the financial year 2024 to ₹ 1,571 crore in the financial year 2025. Date is expected to remain at the same level as 2025 due to no expectation of CAPEX during the medium period. Cash production is expected to be sufficient to meet the date obligations of ₹ 100-160 crore in the medium period.
Liquidity is healthy by 31 March, 2025 in cash of over ₹ 681 crore and equivalent equivalent and ₹ 1,700 crore unused bank limit by May 2025.
These features are partially reduced by the challenge of 50 percent tariffs imposed by the US, along with exposure to cotton prices and instability in foreign exchange rates, working capital-lower operations, recession in the final-user markets and competition in the home textile segment, as well as partially reduced by the challenge of 50 percent tariffs imposed by the US, out of which the additional 25 percent tariff is applied only after 27 August 2025. Any influence on the company’s export competitiveness and profitability will be monitored.
The rated total bank loan facility is ₹ 4,000 crore. The long -term rating is Crisil AA/Stable (re -confirmed) and the short term rating is Crisil A1+ (re -confirmed). Commercial paper of ₹ 150 crore has been rated Crisil A1+ (re -confirmation).
CRISIL ratings believe that Trident’s Business Risk Profile will benefit from its diverse business stream, healthy demand prospects for home textiles and the situation established in the product segment. Improvement in healthy cash and date profiles will ensure that the financial risk profile remains comfortable.
In the medium period, cash production is expected to be stronger than an annual date of ₹ 100-160 crore. Cash of more than ₹ 681 crore and equivalent by 31 March 2025 and ₹ 1,700 crore unused bank limit by May 2025 helps the liquidity.
In the first three months of the financial year 2025, the company recorded ₹ 1,505 crore in the same period of the financial year 2024 and ₹ 1,758 crore and ₹ 74 crore revenue and net profit as against ₹ 91 crore.
| Details | Unit | 2025 | 2024 |
|---|---|---|---|
| Revenue | ₹ crore | 7,007 | 6,824 |
| Net Profit (PAT) | ₹ crore | 371 | 350 |
| PAT Margin | Percent | 5.3 | 5.1 |
| Adjustable date/adjustable net worth | fold | 0.4 | 0.6 |
| interest coverage | fold | 5.59 | 5.96 |
In the medium period, cash production is expected to be stronger than an annual date of ₹ 100-160 crore. Cash of more than ₹ 681 crore and equivalent by 31 March 2025 and ₹ 1,700 crore unused bank limit by May 2025 helps the liquidity.