SESteel Exchange India534748Periodic business update

Record Re-Bar output, two-notch credit upgrade and ₹102 Crore debt reduction in H1 FY27

Business update for H1 FY27 covering production, credit rating, debt and raw material supply.

By ScoutQuest · Tue 13 Oct 2026, 10:51 AM IST · 2 min read

Q2 FY27 Re-Bar Production

69,617.424 MT

Credit Rating Upgrade

IVR BBB+/Stable from IVR BBB-/Stable; short-term IVR A2 from IVR A3

Total Debt Reduction

reduced by ₹102 Crore, including redemption of ₹43.19 Crore of NCDs

Business update: the company issued a press release titled "Record Production, Credit Upgrade and Rapid Deleveraging: Steel Exchange India Ltd Strengthens Its Foundation in H1 FY27". It covers production, credit rating, debt reduction, raw material sourcing and institutional approvals.

Production and financial performance

• Q2 FY27 (July-September 2026) Re-Bar production was the highest ever at 69,617.424 MT.
• September 2026 set a new monthly record of 25,095.035 MT, surpassing the previous high of 24,823.509 MT in August 2026.
• The newly commissioned Reheating Furnace (RHF) has increased monthly Re-Bar production capability by approximately 27%.
• Consolidated revenue registered approximately 45% year-on-year and 25% quarter-on-quarter growth.

Credit rating

• Infomerics upgraded the long-term rating by two notches, from IVR BBB-/Stable to IVR BBB+/Stable, and the short-term rating from IVR A3 to IVR A2.
• Rated bank facilities were enhanced from ₹200 Crore to ₹359.63 Crore, taking the total rated quantum to ₹558.19 Crore.
• This is the company's second successive upgrade by Infomerics.

Debt reduction

• Total debt reduced by ₹102 Crore, including redemption of ₹43.19 Crore of NCDs and progressive term loan prepayments.
• Around 30% of long-term debt has been discharged since December 2025, supported by operational cash flows and strategic equity inflows mainly from IMR Group, a Switzerland-headquartered metals and mining conglomerate.

Raw material tie-up

• A strategic MoU was signed with NMDC Limited for long-term supply of consistent-grade iron ore fines (Fe 61-63% and above) from NMDC's upcoming Buffer Stockpile & Blending Yard at Visakhapatnam.
• The primary term is four years, laying the foundation for future long-term agreements.

Institutional approvals

• Approval from the Andhra Pradesh Capital Region Development Authority (APCRDA) for use of SIMHADRI TMT in the ₹65,000 Crore Amaravati Capital City projects.
• A five-year renewal of approval from the Military Engineer Services (MES) under the Ministry of Defence.

Road ahead

• Progressively improving capacity utilisation at the Rolling Mill to realise the full potential of the expanded Re-Bar capacity.
• Building on the NMDC MoU towards long-term agreements, strengthening backward integration and logistics efficiency.
• Expanding participation in large-scale infrastructure, government and defence projects through SIMHADRI TMT.
• Diversifying into specialty steels under the PLI scheme and pursuing expansion into green steel and logistics infrastructure.
• Continuing disciplined capital management with the objective of becoming debt-free in the near future.

The company notes that statements which are not historical facts are forward-looking and are subject to risks and uncertainties that could cause actual results to differ materially.

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