Mumbai, Aug. 27 -- The reaffirmation reflects the company's established position in the cotton yarn industry, supported by a diversified customer base; long operating track record; presence in both the domestic and export markets; and a healthy operating scale.

The ratings also factor in the expected recovery in operating performance from fiscal 2027 onwards, supported by improvement in yarn realisations, healthy demand from key export destinations, benefits from ongoing modernisation initiatives, and a financial risk profile that is expected to remain comfortable despite debt-funded capital expenditure (capex).

The operating performance moderated during fiscal 2026 due to the US tariffs, leading to lower garment exports and weaker yarn...