Kuantum Papers Limited has informed the Exchange about Credit Rating
KUANTUM · price
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India Ratings and Research (Ind-Ra) has assigned fresh credit ratings to Kuantum Papers' bank facilities and fixed deposits. The company received IND A with a Stable outlook for long-term instruments, including a term loan of INR 8,539.6 million, fixed deposits of INR 330 million, and fund-based working capital limits of INR 1,000 million. Short-term non-fund-based working capital limits of INR 1,165.5 million received IND A1. This is the first-time assignment of these ratings, coinciding with the company's ongoing INR 7.35 billion capacity expansion (50% capacity addition). The rating acknowledges KPL's integrated operations, dual feedstock mix, and healthy business profile, while flagging elevated leverage at 2.7x in FY25 (up from 1.3x in FY24) due to capex and a 27% drop in EBITDA to INR 2,426 million caused by falling paper prices from import pressure.
The IND A/Stable rating is investment-grade and signals confidence in the company's ability to service its debt, which should support borrowing costs. However, leverage is expected to remain elevated through FY26 before improving with capacity ramp-up, making execution of the expansion plan a key monitorable for shareholders.