Mumbai, Aug. 27 -- The agency has also downgraded the company's short-term rating to 'IND A2' from 'IND A1'.

India Ratings and Research stated that the rating downgrade reflects a significant dip in the group's profitability with subdued margins in FY26, mainly due to the partial absorption of US tariff-related costs, a slower-than-expected ramp-up in the Warangal unit, and delays in the execution of orders.

This along with the impact of the recently completed large debt-funded capex for Kitex Apparel Parks (KAPL) resulted in sharp deterioration in the consolidated credit metrics in FY26. India Ratings expects the net leverage to remain high from FY27, with gradual deleveraging in the medium term through term-loan repayments.

The 'nega...