Hind Rectifiers upgraded to BBB+/Stable/A2 by CRISIL

CRISIL Ratings Limited has upgraded its ratings on Hind Rectifiers Ltd's (HRL) bank facilities to 'CRISIL BBB+/Stable/CRISIL A2' from 'CRISIL BBB/Stable/CRISIL A3+'. The rated amount has also been enhanced to Rs.228.9 crore from Rs.150.05 crore. This upgrade is attributed to a sustained improvement in HRL’s business risk profile, marked by robust revenue growth and improved operating margins.

HRL’s revenues rose to Rs.655 crore in fiscal 2025 from Rs.518 crore in fiscal 2024, driven by strong demand and continuous product additions. The company has already achieved revenues of Rs.215 crore in the first quarter of fiscal 2026 and anticipates further growth, supported by a record order book of Rs.1,000 crore as of June 30, 2025. Operating margins have also improved to 10.9% in fiscal 2025 from 8.5% in fiscal 2024 and are expected to remain stable at 10-11% over the medium term.

The company's financial risk profile remains comfortable, with a healthy net worth of Rs.139 crore as of March 31, 2025, and comfortable gearing and total outside liabilities to adjusted net worth ratios of 1.1 times and 1.9 times, respectively. Debt protection metrics have also improved, with interest coverage at 5.3 times in fiscal 2025.