UltraTech Cement Limited has informed the Exchange about Credit Rating
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Crisil Ratings has reaffirmed its highest credit rating of 'Crisil AAA/Stable' on UltraTech's long-term debt and 'Crisil A1+' on short-term commercial paper, covering Rs 5,400 crore of bank loans, Rs 6,850 crore of non-convertible debentures (down from Rs 7,100 crore) and Rs 5,000 crore of commercial paper. The rating on a Rs 250 crore NCD was withdrawn after its redemption. Crisil cited UltraTech's position as India's largest cement maker with 192.3 MTPA capacity, strong financials (networth above Rs 72,000 crore) and Rs 5,800 crore cash balance. It flagged a temporary rise in net debt/EBITDA to 1.5x in FY25 from 0.2x in FY24 due to the Kesoram and India Cements acquisitions, expected to improve below 1x. EBITDA per tonne moderated to Rs 915 in FY25 but is expected to recover above Rs 1,050 in FY26.
This is a neutral-to-positive signal for shareholders: UltraTech retains the top-tier AAA credit rating despite higher leverage from acquisitions, indicating strong financial health. The redemption of Rs 250 crore NCD reflects healthy cash flows, and the reaffirmed rating keeps borrowing costs low for the company's planned Rs 18,000-20,000 crore capex over FY26-27.