Mumbai, Sept. 9 -- Crisil Ratings stated that the rating upgrade reflects Crisil Ratings' belief that the business risk profile of the Eureka Forbes Group will continue to strengthen over the medium term. The improvement is expected to be driven by sustained growth in the scale of operations and steady improvement in operating profitability.

Operating margins have remained stable over the past quarters (on quarter-on-quarter basis), supported by various cost-rationalisation initiatives, better operating leverage, and optimisation of the cost structure. This stability has been achieved despite the group's continued investments in brand building, advertising, and product innovation.

Revenue growth has also remained healthy, as reflected i...