IRM Energy Limited has informed the Exchange about Credit Rating
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India Ratings and Research (Ind-Ra) has affirmed IRM Energy's credit rating on its bank loan facilities of Rs. 7,000 million (Rs. 700 crore) at IND AA-/Stable for long-term and IND A1+ for short-term. The rating was affirmed, not changed, reflecting the company's healthy financial profile and expected improvement in its business profile driven by expansion in the Namakkal and Tiruchirappalli (NT) geographical area. The agency noted that IRM's net leverage remained comfortable at negative 0.86x in FY25 due to high cash balances from unutilized IPO proceeds, though EBITDA margins declined to 9.9% in FY25 from 16.7% in FY24 on lower APM gas allocation and higher license fees. Volumes are expected to pick up to 0.65-0.70 mmscmd in FY26 from 0.57 mmscmd in FY25, with EBITDA/scm stabilizing at Rs. 4.5-5. Key concerns include large capex plans of Rs. 2,500 million each in FY26 and FY27 and the risk of missing minimum work programme targets in newer geographical areas.
The affirmation of the AA-/Stable rating indicates that IRM Energy's creditworthiness remains unchanged and is viewed as solid by the rating agency, which is broadly neutral for the stock. Shareholders should note the expected improvement in operating performance in FY26, though margin pressures and execution risks on new area expansion remain key things to watch.