KIOCL540680Rating outlook

Bank loan facilities of ₹1,050.00 crore reaffirmed at CARE BBB+ / CARE A2; outlook revised to Stable

CARE Ratings reaffirmed ratings for bank loan facilities aggregating ₹1,050.00 crore.

By ScoutQuest · Tue 13 Oct 2026, 3:28 PM IST · 2 min read

₹1,050.00 CroresBank loan facilities rated

Cash and liquid investments as on March 31₹826 crore

Total debt as on March 31₹224 crore

Bank loan facilities rated ₹1,050.00 Crores: Cash and liquid investments as on March 31 ₹826 crore, Total debt as on March 31 ₹224 crore.

Long-term rating: CARE BBB+; outlook revised to Stable from Negative
Short-term rating: CARE A2
FY26 pellet production and net profit: 2.70 million tonnes; ~77% capacity utilisation; ₹17 crore net profit vs ₹205 crore net loss in FY25

KIOCL Ltd has informed the stock exchanges about a credit rating action by CARE Ratings Limited, and attached the rating agency's press release.

CARE Ratings has assigned ratings for the company's bank loan facilities aggregating to ₹1,050.00 crore, comprising both fund-based and non-fund-based facilities.
Long-term / short-term bank facilities: CARE BBB+; Stable / CARE A2.
Rating action: Reaffirmed; the outlook has been revised from Negative to Stable.

CARE said the revision from 'Negative' to 'Stable' reflects a significant improvement in the company's operating performance in FY26, supported by the ramp-up in pellet conversion volumes under the arrangement with NMDC Limited.
Pellet production rose to 2.70 million tonnes in FY26 and capacity utilisation improved to ~77%, supported by higher conversion volumes.
The higher sales volume led to a net profit of ₹17 crore in FY26, against a net loss of ₹205 crore in FY25. CARE said the improvement was also supported by manpower deployment and other operating income.

Net worth of ₹1,731 crore as on March 31, 2026.
Cash and liquid investments of ₹826 crore against total debt of ₹224 crore, with no external term loan.
CARE described the liquidity as adequate, supported by cash and liquid investments, and the capital structure as comfortable.

Profitability remains exposed to movements in iron ore pellet prices, as realisations are closely tied to prevailing market prices.
The pellet plant continues to face occasional shutdowns owing to the unavailability of iron ore fines, and the blast furnace facility remains non-operational.
At the Devadari Iron Ore Mine, execution and registration of the Forest Lease Agreement in FY26 was a key progress, but physical handover of the forest land, receipt of working permission and completion of certain residual compliances remain pending; the timeline for commencement of mineral production and dispatch has been extended to January 01, 2028.
CARE's negative sensitivities include adjusted overall gearing deteriorating beyond the level it treats as a trigger, and significant delay in operationalisation of the Devadari Mines, which may adversely impact operating performance.

Timely execution and commissioning of the capex plan, including development and operationalisation of the Devadari mines.
Sustained operating break-even and positive cash accruals, supported by adequate conversion volumes.
Movement in pellet realisations and conversion volumes under the NMDC arrangement.

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13 Oct 2026