Diach’s rating information gap persists despite higher historical profit

Diach Chemicals and Pigments remains in ICRA’s issuer-non-cooperating category, leaving the agency unable to provide updated operating and liquidity analysis despite an improvement in the historical earnings figures reproduced in its report.

The October 15 assessment covers Rs. 12 crore of cash credit rated B+ Stable and Rs. 2 crore of short-term non-fund-based facilities rated A4. Both ratings retain the non-cooperating qualification, and total rated coverage remains Rs. 14 crore.

ICRA says it has sought information to monitor performance and issued repeated reminders concerning surveillance fees. With management remaining non-cooperative, the agency relies on the best available information and cautions that its ratings may not adequately reflect current credit risk.

The latest financial table, sourced from MCA, compares FY2025 with FY2024. Revenue declined to Rs. 527.2 crore from Rs. 558.5 crore, while profit increased to Rs. 4.5 crore from Rs. 2.6 crore. The operating margin improved modestly to 2.3% from 2.1%, and interest coverage rose to 1.5 times from 1.3.

Those figures describe a historical improvement in a business with thin disclosed margins. They do not resolve the absence of newer performance information. The rating history shows the same qualified ICRA assessments in May 2024 and July 2025.

The report also records non-cooperating assessments from CARE in November 2025 and Acuité in May 2026. Diach manufactures lead-based products at Dhulagarh, West Bengal, for battery, paint, glass and ceramic applications.

The current development is continued qualified surveillance. Neither the historical profit rise nor the retained Stable outlook establishes an up-to-date assessment of liquidity or repayment capacity.