What’s new

• CARE Ratings downgraded PG Foils' long-term rating to CARE BBB (from BBB+) and added a negative outlook.
• Short-term rating was cut to A3+ (from A2+).
• The move follows a 36% revenue decline and a swing to a net loss of ₹8.24 cr in FY26.

Why it matters

This is the lowest rung of investment grade. The negative outlook means another cut is plausible, which would push the nano-cap into junk territory. Higher borrowing costs are now baked in.

What we’re watching

• Whether the negative outlook deepens into a multi-notch cut to junk.
• The impact on refinancing costs for a company with a ₹239 cr market cap.
• Next quarter's results to see if the loss is a trend or an anomaly.

The full read

PG Foils is now one notch from junk. CARE Ratings cut its long-term rating to BBB and added a negative outlook after revenue cratered 36% in FY26, swinging the company to an ₹8.24 crore loss from a ₹24.11 crore profit. For a nano-cap with a ₹239 crore market value, the immediate pain is in borrowing costs. The downgrade will lift interest charges and make lenders skittish just as the business needs to stabilise. The low 0.15 debt-to-equity is a cushion. It won't matter if the revenue slide continues. Hardly.

Primary source: BSE · NSE