Mafatlal Industries Limited (MIL), the flagship company of the Arvind Mafatlal Group, has received an upgrade in its credit ratings from CARE Ratings Limited. The company’s long-term bank facility rating has been raised from CARE BBB+; Stable to CARE A-; Stable, while its short-term bank facility rating has improved from CARE A2 to CARE A2+.
The rating upgrade reflects the company’s growing business scale, improved liquidity position and healthy debt coverage metrics. Steady performance in its textile and related products business, along with growth in digital infrastructure, has also supported the improved assessment.
Mafatlal Industries reported operating income of ₹3,871 crore in FY 2025–26, marking a year-on-year increase of around 38%. Between FY 2022–23 and FY 2025–26, its operating income grew at a compound annual growth rate of approximately 40%, indicating a significant expansion in business operations over the three-year period.
The company had a confirmed order book of around ₹890 crore as of June 30, 2026. According to CARE Ratings, this order book provides revenue visibility and supports expectations of steady business performance over the medium term. Mafatlal Industries has an established presence in the textile sector, particularly in business-to-business uniform solutions. Its diversified business portfolio and healthy capital structure also contribute to its credit profile.
The company’s digital infrastructure business has shown improvement in operating profitability. Its earnings before interest and tax (EBIT) margin increased to 10.1% in FY 2025–26 from 9.9% in FY 2023–24. The textile business also recorded an improvement, with its EBIT margin rising to 5.1% from 2.9% over the same period.
The company is gradually increasing its focus on digital infrastructure while selectively pursuing contracts that offer better margins. This approach is expected to support operating performance and strengthen its business mix. The Stable outlook reflects expectations that Mafatlal Industries will maintain healthy liquidity and debt coverage levels over the medium term. Its established operating track record, growing revenue base and confirmed order book are important factors supporting the rating outlook.
The upgraded ratings are expected to reflect the company’s improved financial position and operating performance. Continued growth in its textile and digital infrastructure businesses, along with disciplined financial management, will remain important to sustaining its credit profile.
Mafatlal Industries is part of the Arvind Mafatlal Group, a diversified Indian business group with a legacy spanning more than 120 years. The company operates across textile and related products and digital infrastructure, serving institutional customers and other business segments.
