Vaibhav Global Secured Rating Upgrade to CARE A+ From CARE Ratings

Vaibhav Global Limited (VGL) is delighted to announce that CARE Ratings Limited has upgraded its long-term bank facilities rating from “CARE A” to “CARE A+” with a stable outlook. This significant upgrade underscores the company’s robust financial position and positive outlook. The short-term rating has been reaffirmed at “CARE A1” with a stable outlook, reflecting the company’s consistent ability to meet its short-term obligations and maintain a strong liquidity position.

The upgrade to “CARE A+” is a testament to VGL’s strong financial performance, prudent financial management, and consistent growth trajectory. The company’s robust financial metrics, including its healthy debt-to-equity ratio, strong cash flow generation, and adequate working capital management, have been instrumental in securing this rating upgrade.

This positive development is expected to enhance VGL’s borrowing costs further and provide greater flexibility in accessing capital markets. The company’s improved credit profile will also strengthen its reputation among stakeholders, including lenders, investors, and customers.

Mr Nitin Panwad, Group CFO of Vaibhav Global Limited, said, “Rating upgrade reflects sustained improvement in our financial performance. Our approach to prudent capital management with a strong balance sheet positions us to leverage opportunities and supports our long-term growth objectives.” 

Financial Performance

During Q1FY25, the company achieved a 15% year-over-year revenue growth. It recorded stronger gross margins fueled by improved realisations, a favourable product mix, and efficient sourcing. The investments in digital initiatives and optimised G&A expenses support long-term value creation while maintaining profitability. The company’s unique customer base has reached an all-time high of 6,36,000. 

It maintains a strong balance sheet with a net cash positive balance of ₹158 crore. The company reaffirmed its full-year revenue guidance of 14% to 17%, along with operating leverage.

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