Aether rating withdrawal follows banker consent as earnings strengthen

ICRA has withdrawn its ratings on Aether Industries’ bank facilities at the company’s request and after receiving bankers’ no-objection certificates, expressly stating that it has no information suggesting credit risk has changed since the last review.

The October 15 action withdraws A+ Stable on Rs. 296 crore of cash-credit/PCFC facilities and A1 on an interchangeable Rs. 296-crore letter-of-credit and bank-guarantee sublimit. The report’s aggregate is Rs. 296 crore; adding the interchangeable line again would overstate rated coverage.

The withdrawal is accompanied by an improving consolidated earnings record. Operating income rose to Rs. 1,160.1 crore in FY2026 from Rs. 840.5 crore, while net profit increased to Rs. 219.5 crore from Rs. 158.4 crore. The operating-profit margin widened to 31.3% from 28.9%.

Q1 FY2027 operating income was Rs. 326.5 crore and profit Rs. 62.7 crore, with a 31.5% operating margin. The consolidated assessment includes wholly owned Aether Speciality Chemicals because of common ownership, management and related business activities.

Financing indicators show a mixed movement. Total debt relative to operating profit increased to 1.3 times from 0.8 in FY2025, even as interest coverage improved to 20.1 times from 18.8. The first-quarter interest-coverage figure was 18.4 times.

ICRA omits fresh detailed rating drivers, liquidity analysis and sensitivities because coverage is being withdrawn. The notice does not state that the underlying facilities have been repaid or cancelled. Its supported conclusion is termination of this rating coverage through the prescribed consent process, alongside the financial performance disclosed in the accompanying table.