Gallantt Ispat's long-term rating upgraded to IND AA-/Stable

India Ratings and Research, a Fitch Group Company, has upgraded Gallantt Ispat Limited's (GIL) long-term issuer rating to 'IND AA-/Stable' from 'IND A+' and reaffirmed its short-term issuer rating at 'IND A1+'. The upgrade applies to INR3,000 million in fund-based limits and a proposed INR1,500 million long-term loan, while INR4,000 million in non-fund-based limits received a reaffirmed 'IND A1+'.

The rating action is driven by an improvement in EBITDA per tonne (excluding subsidy) in FY25 and 1QFY26, alongside better-than-estimated operational and financial performance. GIL’s adjusted net leverage was 0.49x in 1QFY26, with gross interest coverage at 43.73x. The company reported revenue of INR42,972 million in FY25 and projects further growth in FY26.

Key strengths supporting the upgrade include improved credit metrics, steady revenue growth, entirely self-funded capital expenditure, and enhancing backward integration. GIL’s ongoing capacity expansions, including new captive iron ore mines and a 60MW solar plant, are expected to further boost cost efficiencies and liquidity, with subsidy receipts also contributing positively.