CARE Ratings reaffirms credit ratings on bank loan facilities; long-term facility size at Rs. 696.00 crore

CARE Ratings Limited (CareEdge) has re-affirmed the credit ratings on the bank loan facilities of the company.

Fri 2 Oct 2026

Long Term Bank Facilities

Rs. 696.00 crore (Enhanced from Rs. 526.00 crore) — CARE AA, Outlook: Stable — Re-affirmed

Long Term / Short Term Bank Facilities

Rs. 960.00 crore — CARE AA, Outlook: Stable / CARE A1+ — Re-affirmed

Non-convertible debentures

Rs. 80.00 crore and Rs. 20.00 crore — CARE AA, Stable — Re-affirmed (nil outstanding as on September 30, 2026)

Outlook

Stable

Rating Action

Re-affirmed

What has been announced

CARE Ratings Limited (CareEdge) has re-affirmed the credit ratings on the bank loan facilities and instruments of the company. The intimation to the exchanges states the rating action was received on 1st October 2026 at around 8.17 p.m. (IST), and the rating agency's press release is dated 1st October 2026.

The ratings as listed

• Long Term Bank Facilities: Rs. 696.00 crore (Enhanced from Rs. 526.00 crore) — CARE AA, Outlook: Stable — Re-affirmed
• Long Term / Short Term Bank Facilities: Rs. 960.00 crore — CARE AA, Outlook: Stable / CARE A1+ — Re-affirmed
• Non-convertible debentures: Rs. 80.00 crore — CARE AA, Stable — Re-affirmed
• Non-convertible debentures: Rs. 20.00 crore — CARE AA, Stable — Re-affirmed

Both non-convertible debenture lines are shown with nil outstanding as on September 30, 2026.

Reading the words carefully

"Re-affirmed" means the rating stays at the same level as before — it is neither an upgrade nor a downgrade. The long-term bank facility figure is shown as enhanced from Rs. 526.00 crore to Rs. 696.00 crore; this is the size of the rated facility. The long-term bank facility is not fund-based — it is the term loan line.

Why the agency says so (key drivers)

• Healthy competitive position in grey cement manufacturing, with installed capacity of 21.4 MTPA as on March 31, 2026, spread across central, northern, western and eastern India.
• Installed capacity grew by 1.4 MTPA in FY26 with the commencement of the Kundanganj line (grinding unit) in Uttar Pradesh.
• The company plans to expand capacity to 27.6 MTPA by FY29.
• Large retail trade mix of 77% in FY26, with premium products at 60% of trade sales.
• Cost competitiveness from captive limestone mines, coal block mines and captive power; the Bikram coal block commenced operations in June 2026.
• Debt indicators improved: overall gearing of 0.75x as on March 31, 2026 against 0.83x as on March 31, 2025, and net debt/PBILDT of 2.17x in FY26 against 2.97x in FY25.
• Tangible net worth of Rs. 5,389 crore as on March 31, 2026 (Rs. 5,005 crore as on March 31, 2025).
• Liquidity described as strong, marked by a liquid balance of Rs. 832 crore comprising free cash of Rs. 127.76 crore and liquid investments of Rs. 704 crore as on March 31, 2026.

What the agency flags as risks

• The cement industry is highly cyclical and moves with economic growth.
• Exposure to volatile input costs (pet coke, coal, gypsum, fly ash, slag, diesel) and to cement price realisations.
• Sizeable debt-funded capex is expected: total capex outlay of Rs. 4,300-4,500 crore over FY27-FY29, to be funded by a mix of debt and internal accruals in a 2:1 ratio, which may moderate coverage metrics.

Financials the agency used (Rs. crore)

• Total operating income: 9212 (FY25), 9662 (FY26), 2647 (Q1 FY27)
• PBILDT: 1218 (FY25), 1467 (FY26), 342 (Q1 FY27)
• Profit after tax: 295 (FY25), 563 (FY26), 116 (Q1 FY27)
• Overall gearing (x): 0.83 (FY25), 0.75 (FY26)
• Interest coverage (x): 3.72 (FY25), 5.55 (FY26), 5.09 (Q1 FY27)

What could lead to a rating action

Positive factors: a significant increase in scale of operations and/or profitability, and sustained strengthening of debt coverage with net debt (including security deposits and letter of credit acceptances) to PBILDT below 2x. Negative factors: net debt/PBILDT above 3.50x on a sustained basis, announcement of a major debt programme moderating the capital structure, or liquidity weakening with cash and cash equivalents falling below Rs. 300 crore. The outlook on the ratings is Stable.

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