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The agency has reaffirmed the company’s long-term rating and short-term rating at ‘IND BBB’ and ‘IND A2’, respectively.
India Ratings and Research stated that it had previously placed the rating on ‘Rating Watch with Negative Implications’, due to uncertainty over the impact of the US tariff on the company’s operations.
The agency had resolved the ‘Rating Watch’ in view of the reduction in the tariff to 18% from 50% and the improvement in the company’s operating performance in 9M FY26.
The affirmation reflects the continued growth in BIL’s revenue during FY25-9MFY26, and India Ratings’ expectation of a sustained increase in the same in the medium term.
The ratings also factor in an improvement in the credit metrics in FY25, and the likelihood of continued improvement in the same in the medium term. Furthermore, the EBITDA margins increased in 9M FY26, and are likely to see further improvement in the medium term.
The ratings are supported by BIL’s established market position and strong customer relationships.
However, the ratings are constrained by BIL’s elongated working capital cycle due to the integrated nature of operations, multi-location manufacturing base, and seasonality in sales and raw leather availability.
Bhartiya International (BIL) exports leather garments and accessories to the US, Italy, France, Spain, and Austria, among others. BIL sources leather from India, Europe, the Middle East, Latin America and other Asia Pacific counties. The company has manufacturing facilities in Bengaluru (Karnataka), Chennai (Tamil Nadu) and Nellore (Andhra Pradesh) with a design studio in Milan via its 100%-owned Italian subsidiary, Ultima S.A.
The company had reported a consolidated net profit of Rs 6.70 crore in the quarter ended December 2025 as against net loss of Rs 1.51 crore during the previous quarter ended December 2024. Sales rose 39.16% to Rs 365.95 crore in Q3 FY26 as compared with Q3 FY25.