The India Cements Limited has informed the Exchange about Credit Rating
INDIACEM · price
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Awaiting price reaction for this filing.
CARE Ratings has reaffirmed the highest investment-grade rating of CARE AAA (Stable) on India Cements' long-term bank facilities of ₹1,077.56 crore and CARE AAA/CARE A1+ on long-term/short-term facilities of ₹1,112.61 crore. Additionally, CARE has assigned a CARE A1+ rating to a newly proposed Commercial Paper issue of ₹250 crore. The strong ratings reflect the company's strategic importance as a subsidiary of UltraTech Cement (which holds 81.49% stake after acquiring majority control in December 2024) and the significant improvement in its capital structure, with standalone debt reducing from ₹3,286 crore in FY24 to ₹1,886 crore in FY25. However, the company reported an operating loss of ₹382 crore in FY25 against a profit of ₹104 crore in FY24, with revenues declining 19% to ₹4,149 crore due to weak cement realisations in South India.
The reaffirmation at AAA — the highest credit rating — is a strong positive signal for shareholders, reflecting robust parental support from UltraTech and substantially improved financial health. The newly assigned A1+ rating for commercial paper also opens up cheaper short-term funding options, while existing shareholders benefit from a drastically deleveraged balance sheet. Near-term earnings remain under pressure, but the rating stability reduces refinancing risk significantly.