CARE Ratings has upgraded the rating of company''s bank facilities.
WELSPLSOL · price
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CARE Ratings has upgraded Welspun Specialty Solutions' bank facility ratings on both unsupported and credit-enhanced bases. The unsupported long-term rating moved up from CARE A+ to CARE AA- and the short-term from CARE A1 to CARE A1+. The credit-enhanced rating rose from CARE AA to CARE AA+ (CE); Stable with the outlook revised from Positive to Stable. The upgrade reflects the company's stronger financial profile after raising Rs.350 crore via a rights issue, proceeds of which were used to fully repay/pre-pay outstanding debt (excluding LC acceptances and working capital borrowings) as of June 30, 2025. Overall gearing dropped sharply from 8.25x to 0.50x, and the company ended FY25 with Rs.96.44 crore in cash and no term debt obligations. The rating also factors in its link with parent Welspun Corp (which holds 51.06%), a growing order book of Rs.334 crore including a record BHEL order, and an SS bright bar capacity expansion from 24,000 MT to 84,000 MT.
Positive for shareholders — the rating upgrade signals a healthier balance sheet and lower credit risk, which could translate into better borrowing terms. It also strengthens the company's standalone credit profile, reducing dependence on the parent guarantee over time.