KIRLFERBSEKirloskar Ferrous Industries LtdMediumNeutral
Announced Wed, 31 Dec · 14:23 IST

Rating rationale

Credit & Debt View source PDF

KIRLFER · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

ICRA has reaffirmed Kirloskar Ferrous Industries' credit ratings across all debt instruments totaling Rs. 4,828.51 crore. The long-term rating stays at [ICRA]AA with a Stable outlook, and the short-term/commercial paper rating remains [ICRA]A1+. The reaffirmation reflects KFIL's strong market position in pig iron (22-25% share) and castings, comfortable financial profile with gearing of 0.4x and interest cover of 5.3x in FY2025, and successful turnaround of the seamless pipes business. The company has large capex plans of Rs. 400-500 crore per year over the next three years for an alloy steel plant and other projects, which could expose it to execution and cyclicality risks. FY2025 operating income stood at Rs. 6,564.8 crore with PAT of Rs. 294 crore.

Likely market impact

The rating reaffirmation with Stable outlook signals continued financial strength and low default risk for lenders, which is neutral to mildly positive for shareholders. The large upcoming capex is a key watchpoint but is expected to be funded largely through internal cash generation without significantly straining credit metrics.