CARE reaffirms AA+/Stable on NCDs and A1+ on commercial paper
CARE Ratings reaffirmed CARE AA+; Stable on ₹1,000 Crs.
By ScoutQuest · · 2 min read
- NCD Rating
- CARE AA+; Stable on ₹1,000 Crs.
- Commercial Paper Rating
- CARE A1+ on ₹2,000 Crs.
- Portfolio Market Value
- ₹25,189.71 crore as on 30-Jun-2026
- Debt Cover
- 10.08x against external borrowings of ₹2,500 crore
- Gearing Ratio
- 0.16x as on March 31, 2026
What was announced
CARE Ratings Limited reviewed and reaffirmed the credit ratings on the company's debt instruments. There is no change from the existing ratings.
- Non-convertible debentures: CARE AA+; Stable on INR 1,000 Crs.
- Commercial paper: CARE A1+ on INR 2,000 Crs.
Why the agency kept the ratings
The company is a core investment company of the Aditya Birla group, holding stakes in Grasim, UltraTech Cement, Hindalco, Aditya Birla Real Estate, Aditya Birla Capital, Aditya Birla Fashion and Retail and Aditya Birla Lifestyle Brands, among others.
- Market value of listed investments: ₹25,189.71 crore as on June 30, 2026
- Debt cover: 10.08x against external borrowings of ₹2,500 crore
- Tangible net worth: ₹15,037 crore as on March 31, 2026
- Overall gearing: 0.16x (March 31, 2026) versus 0.13x (March 31, 2025)
- Management intends to keep external debt at about ₹3,000-3,500 crore and net debt cover at a minimum of 7x
Income trends
- Dividend income rose to ₹83.05 crore in FY26 from ₹79.21 crore in FY25
- Interest income fell to ₹202.43 crore in FY26 from ₹235.85 crore in FY25, due to redeployment of funds from interest-bearing loans into equity investments in group companies
- Total debt rose to ₹2,391 crore as on March 31, 2026 from ₹1,937 crore a year earlier, mainly from commercial paper borrowings and issue of ₹500 crore NCDs
Risks flagged by the agency
- Exposure to swings in the market value of listed investments
- Dependence on dividend and interest receipts from group companies
- Refinancing risk, since recurring income may not cover principal repayments; external borrowings as on June 30, 2026 comprised commercial paper of ₹2,000 crore and NCDs of ₹500 crore
A downgrade trigger includes cover falling below 6.00x, deterioration in group entities' credit profiles, or a change in the group's stance of support.
Reported financials (₹ crore)
- Total operating income: 315.06 in FY25, 285.48 in FY26, 13.88 in Q1FY27
- Profit after tax: 169.41 in FY25, 71.86 in FY26, (34.54) in Q1FY27
- Interest coverage: 2.52x FY25, 1.04x FY26, 0.25x Q1FY27
Liquidity was assessed as Strong and the outlook as Stable.
More numbers
- NCD rated amountINR 1,000 Crs.
- Commercial paper rated amountINR 2,000 Crs.
- Market value of investment portfolio₹25,189.71 crore
- Debt cover10.08x
- External debt₹2,500 crore
- Tangible net worth (Mar 31, 2026)₹15,037 crore
- Overall gearing (Mar 31, 2026)0.16x
- Dividend income FY26₹83.05 crore
- Dividend income FY25₹79.21 crore
- Interest income FY26₹202.43 crore
- Profit after tax FY2671.86
- Total debt (Mar 31, 2026)₹2,391 crore
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