Announcement under Regulation 30 (LODR)- Credit Ratings received from Infomerics Ratings
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RMC Switchgears has received a credit rating upgrade from Infomerics Ratings on its bank facilities. The long-term facility rating moved from IVR BBB-/Stable to IVR BBB/Stable (amount enhanced from Rs. 50 crore to Rs. 85 crore), and the short-term facility rating improved from IVR A3 to IVR A3+ (enhanced from Rs. 90.75 crore to Rs. 105 crore), taking total rated facilities to Rs. 190 crore. The upgrade is supported by strong H1FY26 revenue growth of about 111% year-on-year to Rs. 221.61 crore, driven by higher execution of Solar EPC contracts, and a healthy unexecuted orderbook of Rs. 571.63 crore plus a fresh Letter of Intent worth Rs. 200.86 crore. Financial risk profile remains satisfactory with gearing at 0.59x, ISCR at 5.77x, and net cash accruals of Rs. 21.86 crore in H1FY26. Key concerns include high client concentration (top 5 customers at 83% of sales), working capital intensity, tender-driven business, and raw material price volatility.
Positive for shareholders. The rating upgrade and enhancement of bank facility limits improve the company's borrowing capacity and reflect lender confidence in its growth trajectory, though margins have moderated slightly as the company prioritizes volume expansion.