| Mangalam Organics Limited | ||||||
| Ratings continues on 'Watch Developing' | ||||||
| Rating Action | ||||||
| ||||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has continued its ratings on the bank facilities of Mangalam Organics Ltd (MOL) on ‘Rating Watch with Developing Implications’.
Crisil Ratings had placed the ratings on ‘Watch Developing’, following a fire incident at one of the divisions of camphor plant at Kumbhivali village in Maharashtra on July 17, 2025.
Crisil Ratings will continue to be in discussion with MOL management and will be taking appropriate rating action with the emergence of clarity of the impact and the timelines for settlement of the entire insurance claim.
The ratings continue to reflect the diversifying product portfolio and above-average financial risk profile. These strengths are partially offset by susceptibility to raw material prices and large working capital requirement. |
Analytical Approach Crisil Ratings has consolidated the business and financial risk profiles of MOL and its three subsidiaries, which are strategically important to and have significant degree of operational integration with MOL. These companies are Mangalam Brands Pvt Ltd (formerly Campure Pvt Ltd [CPL]), Mangalam Pooja Stores Pvt Ltd (MPSPL) and Mangalam Speciality Chemicals Pvt Ltd (MSCPL).
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Diversified product portfolio MOL’s retail segment, which primarily includes fast-moving consumer goods under CamPure and Mangalam brands, has been growing and accounted for 38% of revenue in fiscal 2025 and is expected to increase further in FY 26 as seen during 9m of FY 26. While camphor manufacturing remains the key product of the company, it has been focusing on further expanding the retail segment, which is margin remunerative. During the 9 months fiscal 2026, the group achieved sales of Rs 469 crore with earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 8.7%.
Above-average financial risk profile: Networth, sizeable at Rs 293 crore as on March 31, 2025, and was at Rs 308 crore as on Sept 30, 2025 supported the financial flexibility of the group. It is expected to increase further driven by healthy accretion to reserves. Backed by robust networth, the capital structure was moderate with total outside liabilities to adjusted networth ratio of 1.13 times as on March 31, 2025.It is expected to be sub 1 times over the medium term. |
Key Rating Drivers - Weaknesses Susceptibility to raw material and camphor prices The operating margin is susceptible to fluctuation in raw material and camphor prices. Alpha pine and gum turpentine, which account for 60-70% of total raw material, are largely imported from Indonesia, Brazil, Russia and Europe, and their availability and prices are subject to demand and supply situation. Camphor prices are also volatile and impacts realisation and profitability. The business risk profile will continue to be susceptible to changes in input and camphor prices and will remain a major rating sensitivity factor. The operating margin has been at 0.49-11.11% for the three fiscals through 2025.Operating margin has improved to 8.7% in 9 M of fiscal 2026 and sustained improvement in same will remain key monitorable.
Large working capital requirement MOL’s operations were working capital intensive as reflected in gross current assets at 226 days as on March 31, 2025, with receivables and inventory of 47 days and 167 days, respectively. Inventory is generally high during the fiscal end as the company builds inventory for the peak season of July to December. GCA is expected to increase in fiscal 2026 on account of higher inventory. Currently, the working capital requirement has increased, further leading to high dependence on debt, hence, the working capital management will be a key rating sensitivity factor. |
Liquidity Adequate Bank limit utilisation was low around 64% on average for the 12 months ended November 2025. Annual cash accrual is expected above Rs 55 crore against yearly term debt obligation of Rs 14-15 crore over the medium term and will cushion liquidity. The current ratio was moderate at 1.11 times as on March 31, 2025. |
Rating sensitivity factors Upward factors:
Downward factors:
|
About the Group Incorporated in 1981, MOL (formerly Allied Collides Pvt Ltd), is based in Mumbai and manufactures and trades in fine specialty chemicals, including camphor, resins and dipentene. The company also has retail operations, which include homecare and personal care products under the CamPure and Mangalam brands. Operations are managed by Kamal Kumar Dujodwala and Pannkaj Dujodwala. MOL is listed on the Bombay Stock Exchange as well as National Stock Exchange. |
Key Financial Indicators (Consolidated Numbers)
|
Any other information: Not applicable |
Note on complexity levels of the rated instrument: Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Annexure - Details of Instrument(s)
|
Annexure – List of entities consolidated
|
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||
|
Criteria Details
|