Press Release

Press Release

March 05, 2026

THE PLANTATION CORPORATION OF KERALA LIMITED
Rating Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB- \| Stable \| Upgraded	-
Total Outstanding	50.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has upgraded its long-term rating to 'ACUITE BBB-' (read as ACUITE triple B minus) from 'ACUITE BB-' (read as ACUITE double B minus) on Rs.50.00 Cr. bank facilities of The Plantation Corporation of Kerala Limited (PCOKL). The outlook is 'Stable'.

Rationale for upgrade:
The rating upgrade reflects the migration from ‘Issuer non-cooperative status’ and sustained improvement in the operating performance, reflected in improvement in the profitability in FY2025 and 9MFY2026. the rating also factors in the improvement in financial risk profile with improved cash accrual generation and adequate liquidity position. The rating also draws comfort from the established track record and Government of Kerala (GoKs) full ownership. However, rating is constrained by the intensive working capital operations and exposure to operational inefficiencies and revenue concentration risks.

About the Company

The Plantation Corporation of Kerala Limited (PCOKL) was incorporated in 1962 in the State of Kerala as a Public Sector Undertaking by the Government of Kerala (GOK) to accelerate the agro-economic development in Kerala. PCOKL is fully owned subsidiary of Government of Kerala and it is the largest plantation based public sector company in Kerala. The corporation is mainly engaged in processing of centrifuged latex and crumb rubber. Company also owns various plantations such as cashew, oil palm, cinnamon coconut, arca nuts, teak, pepper and other miscellaneous trees. The directors of the company are Mr. O.P Abdul Salam, Mr. James Jacob, Mr. M.V.G Kannan I.F.S., Mr.Ajith kumar Joseph, Mr. Musaifa Suneeja Beegum, Mr. Joby Joseph, Mr. Joyce Sebastian, Mr. Koyan Kalappoth Asharaf, Mr. Kunnel Scaria Kuriakose and Mr. Mohan Kumar.

Unsupported Rating

ACUITE BB-/Stable

Analytical Approach

To arrive at the rating, Acuité has considered the standalone business and financial risk profile of PCOKL and notched up the standalone rating by factoring in the full ownership by Government of Kerala (GoK) and strong operational and financial support extended by GoK.

Key Rating Drivers

Strengths

Longstanding track record of operations and management's extensive experience in plantation industry
The Plantation corporation of Kerala Limited's (PCOKL) was established in 1962 in order to promote agro economic development in Kerala and owned by Government of Kerala. The main objective of company is processing of centrifuge latex and crumbed rubber. PCOKL owns land parcel of 14195 hectares divided into 15 estates. Since its inception company has developed plantations like rubber, cashew, cashew, oil palm, cinnamon coconut, arca nuts, teak, pepper and other miscellaneous trees. Company has three processing units located at Kodumon, Pathanamthitta district and Kallala, Ernakulam district. Company has experience of more than five decades in plantation industry. Acuite believes that PCOKL being fully owned entity of GOK, shall continue to benefit from the operational and management support of GOK from time to time.

Improvement in revenue and profitability
PCOKL’s revenue improved to Rs.117.66 Cr. in FY2025 (Prov.) from Rs.83.64 Cr. in FY2024 (Prov.) and Rs.66.70 Cr. in FY2023 (Prov.). The stable growth in revenue is due to increased rubber production and increased sale of old trees. During the 9MFY2026, the company registered revenue of Rs.84.52 Cr. against Rs.84.22Cr registered during 9MFY2025 and expected to end the year with the revenue of Rs.115-118 Cr. The operating profit margins improved significantly to 10.30 percent in FY2025 (Prov.) from loss of -10.84 percent in FY2024 (Prov.) due to increased turnover and better absorption of overheads. Consequently, PAT margin improved to 6.22 percent in FY2025 (Prov.) from loss of -15.55 percent in FY2024 (Prov.). Further, the improvement in profitability is expected to continue for FY2026 as the corporation registered EBITDA margin of ~18 percent in 9MFY2026. Acuite believes, the revenue will improve over the medium term due to expected increase in production, while profitability expected to improve marginally due to increase sale of old trees.

Weaknesses

Moderate financial risk profile
PCKOL’s financial risk profile is moderate with moderate networth and debt protection metrics. The networth of the company stood at Rs.36.80 Cr. as on March 31, 2025 (Prov.) as against Rs.28.72 Cr. as on March 31, 2024 (Prov.). The low networth is due to accumulated losses over the years, however, the company has registered profits in FY2025 (Prov.) resulting improvement. The total debt levels of the company (comprising Rs.0.48 Cr. of long-term debt from GoK and Rs.46.40 Cr. short-term debt) stood at Rs.46.88 Cr. as on March 31, 2025 (Prov.). The gearing level improved yet remained moderate at 1.27 times as on March 31, 2025 (Prov.). Total outside liabilities to tangible networth stood high at 6.39 times as on March 31, 2025 (Prov.) due to presence of high amounts of provisions for employee benefits, taxation and others. The debt protection metrics stood moderate with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) of 2.75 times as on March 31, 2025 (Prov.). The debt to EBITDA remained moderately high at 3.45 times as on March 31, 2025 (Prov.). Acuite believes, the financial risk profile of the company will improve over the medium term due to improving operations and profitability.

Intensive working capital operations
The working capital operations of the company remained intensive as evident through the gross current asset (GCA) of 381 days in FY2025 (Prov.) against 528 days in FY2024 (Prov.). The elongation in GCA days is due to higher inventory days, which primarily comprises rubber stock in process, spares and nurseries. The inventory days stood at 100 days in FY2025 (Prov.) against 97 days in FY2024 (Prov.). The debtors days remained low at 9 days in FY2025(Prov.) against 8 days in FY2024 (Prov.), while creditor days remained at 39 days in FY2025 (Prov.) against 41 days in FY2024 (Prov.). The fund based working capital limits were utilized at an average of 92 percent over the past 9 months ending December 2025. Acuite believes, the working capital operation will remain intensive in nature due to high inventory levels as inherently required by the nature of business.

Exposure to operational inefficiencies and revenue concentration risks
The corporation remains characterised by a high labour-intensive cost structure, elevated wage commitments and operational inefficiencies arising from ageing plantations and ongoing replanting cycles, which constrain productivity. Its revenue profile is still concentrated in natural rubber and centrifuged latex, exposing it to inherent commodity price volatility and limiting diversification into higher value-added products.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

PCKL is fully owned by Government of Kerala and it is a largest plantation based public sector company in Kerala. GoK extends supports to PCKL by way of budgetary support.

Stress scenario:
Acuite believes that the support from the GoK will continue in the form of budgetary support even in stress scenario.

Rating Sensitivities

Sustainable improvement in Profitability
Leverage and liquidity position of the company.
Credit profile of GoK
Any weakening of financial risk profile of the company.
Any deterioration in working capital cycle and liquidity profile of the company

Liquidity position: Adequate

PCOKL registered net cash accruals (NCAs) of Rs.8.64 Cr. in FY2025 (Prov.) as against the nil repayment obligations. The company is expected to register NCAs in the range of Rs.8.5 Cr. to 13.5 Cr. over the medium term, which will be sufficient against the expected nominal repayment obligation range of Rs. 0.25 Cr to Rs.0.75 Cr. The working capital operations are intensive with GCA of 381 days in FY2025 (Prov.). The current ratio stood weak at 0.52 times as on March 31, 2025 (Prov.) due to presence of high amounts of provisions in current liabilities. The fund based working capital limits were utilized at an average of 92 percent over the past 9 months ending December 2025. The unencumbered cash and bank balances stood at Rs. 1.16 Cr. as on December 31, 2025 which provides additional liquidity comfort. While there is no direct financial support from the GoK in terms of Loan arrangements, PCOKL benefits from implicit support owing to its 100 percent government ownership. Acuite believes, the liquidity position will remain adequate on account of higher cash accruals generation and comfort derived from the government ownership.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Provisional)
Operating Income	Rs. Cr.	117.66	83.64
PAT	Rs. Cr.	7.79	(13.00)
PAT Margin	(%)	6.62	(15.55)
Total Debt/Tangible Net Worth	Times	1.27	1.76
PBDIT/Interest	Times	2.75	(1.70)

Status of non-cooperation with previous CRA (if applicable)

Not applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• State Government Ratings : https://www.acuite.in/view-rating-criteria-26.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
27 Oct 2025	Secured Overdraft	Long Term	50.00	ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB)
30 Jul 2024	Secured Overdraft	Long Term	50.00	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ \| Stable)
05 May 2023	Secured Overdraft	Long Term	50.00	ACUITE BB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Canara Bank	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BBB- \| Stable \| Upgraded ( from ACUITE BB- )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.no	Name of the company
1	The Plantation Corporation of Kerala Limited
2	The Government of Kerala (GoK)

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Katta Akhil
Senior Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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