Infomerics turns negative on Tiger Logistics as margins erode
The rating is still IVR A-, but the outlook flipped to Negative. EBITDA margin compressed to 4.6% in FY26, receivables stretched to 98 days.
What's new
- Infomerics revised Tiger Logistics' outlook from Stable to Negative while reaffirming the IVR A- rating.
- The agency cited material deterioration in operating profitability and stretched working capital.
- EBITDA margin fell to 4.6% in FY26; receivable days stretched to 98.
Why this matters
A rating reaffirmation with a negative outlook is the agency's way of saying the credit is on probation. For a nano-cap with a ₹358 crore market cap, the rating action is a formal warning that the company's ability to service debt is eroding. The shift signals Infomerics sees a real risk of downgrade if FY27's unit economics and receivables don't improve.
What we're watching
- FY27 first-half results for signs of EBITDA margin recovery.
- Whether receivable days fall back below 80.
- Any covenant breaches or debt-restructuring moves.
The full read
Infomerics kept Tiger Logistics' credit rating at IVR A- but yanked the outlook from Stable to Negative. The move flags material deterioration in operating profitability. EBITDA margin compressed to 4.6% in FY26, and receivable days stretched to 98, eroding the company's ability to cover debt service from operations. For a nano-cap logistics firm with a ₹358 crore market cap, the negative outlook is a formal warning that a downgrade could follow if FY27's unit economics and working-capital cycle don't improve. The rating itself isn't new. What's new is the agency saying the trajectory is now problematic.
Questions answered
- What exactly did Infomerics change?
- The long-term rating stays at IVR A-, but the outlook was revised from Stable to Negative. The action is a formal signal of increased credit risk, not yet a downgrade.
- Why did Infomerics turn negative?
- The agency cited a material deterioration in operating profitability. EBITDA margin compressed to 4.6% in FY26, and receivable days stretched to 98, weakening both coverage and internal accruals.
- How significant is this for a company with a ₹358 crore market cap?
- At that size, a negative outlook from a domestic agency can restrict access to working-capital lines and raise borrowing costs. The action is incremental but not unexpected given already-disclosed weak results.