India Ratings Upgrades Karamtara Engineering's Bank Loans to ‘IND AA-’/Stable/‘IND A1+’
India Ratings upgraded Karamtara Engineering's Long-Term Credit Rating to ‘IND AA-‘ (Stable) and Short-Term to ‘IND A1+’. The upgrade is driven by increased scale of operations and improved credit metrics, with consolidated revenue reaching ₹43,120 million in FY26. Net leverage is projected below 3.5x over FY27-FY28.
A credit rating upgrade can lead to better borrowing terms, increased investor confidence, and potentially a lower cost of capital, significantly impacting the company's financial flexibility and growth prospects.
The credit rating upgrade from 'IND A+' to 'IND AA-' and 'IND A1' to 'IND A1+' indicates improved financial health and creditworthiness of the company, which is a positive development.
India Ratings and Research Private Limited has upgraded Karamtara Engineering Limited's (KEL) Long-Term Credit Rating from ‘IND A+’ to ‘IND AA-‘ with a stable outlook, and its Short-Term Credit Rating from ‘IND A1’ to ‘IND A1+’ for its bank loan facilities.
The upgrade reflects a significant increase in KEL’s scale of operations, driven by higher sales volumes of solar structures and transmission line towers. The company's consolidated revenue increased to ₹43,120 million in FY26 from ₹31,584 million in FY25. The EBITDA margin improved to 11.6% in FY26, and the EBITDA/tonne increased to ₹12,844. KEL’s credit metrics are expected to improve, with net leverage likely to remain below 3.5x over FY27-FY28, supported by IPO proceeds largely used for debt repayment.
The company has a healthy order book of ₹60,000 million, providing revenue visibility for the next 12 to 18 months. KEL is also undertaking capex in Saudi Arabia, with an estimated project cost of ₹4,050 million, expected to operationalize in FY28. The business remains working-capital intensive, with a net working capital cycle of 143 days in FY26.
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Karamtara Engineering Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Karamtara Engineering Limited. Read the original for the full detail.