Andhra Cements Limited has informed the Exchange about Credit Rating
ACL · price
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India Ratings & Research has placed Andhra Cements Limited (ACL) on Rating Watch with Developing Implications with a rating of IND BBB (long-term) and IND A3+ (short-term) for its INR 9,869.70 million bank loan facilities. The rating watch reflects the proposed amalgamation of ACL into its 75% parent Sagar Cements Limited (SCL), expected to complete in 9-12 months pending regulatory approvals. ACL posted modest EBITDA of INR 72.3 million in 9MFY26, recovering from losses of INR 292 million in FY25, on revenue of INR 2,876 million. The watch signals the rating may be upgraded, affirmed, or downgraded depending on the amalgamation's progress and the consolidated credit profile of SCL. The proposed merger aims to streamline operations, reduce overhead costs, and rationalise compliance, with ACL accounting for ~21% of SCL's consolidated cement capacity of 10.5 million tonnes.
The Rating Watch with Developing Implications indicates uncertainty — the rating could move in either direction as the amalgamation outcome unfolds. Until the merger is completed, ACL's standalone credit profile remains linked to its parent SCL (rated IND BBB+ with Negative Outlook), and any deterioration in SCL's liquidity or deleveraging could weigh on ACL's rating.