MSP Steel & Power ratings upgraded on enhanced financial strength

MSP Steel & Power Limited announced on September 27, 2025, that CARE Edge Ratings upgraded its credit ratings, effective September 25, 2025. The long-term bank facilities rating improved to CARE BBB; Stable from CARE BBB-; Positive, while short-term bank facilities were upgraded to CARE A3+ from CARE A3. This positive revision is attributed to the company's improved financial strength, consistent operational performance, and positive outlook for future growth.

The upgrade follows a significant improvement in MSPL's capital structure and debt coverage indicators in FY25 (April 1, 2024 to March 31, 2025), primarily due to the conversion of Optionally Convertible Debentures into equity share capital. This led to a reduction in total debt from INR 1,020.15 crore as of March 31, 2024, to INR 333.29 crore as of March 31, 2025, and an increase in net worth. The overall gearing ratio consequently reduced from 2.41x to 0.36x during the same period.

The company's total operating income remained stable, increasing marginally by 1% from INR 2,875 crore in FY24 to INR 2,906 crore in FY25, driven by higher sales volume despite a moderation in average sales realization. The PBILDT margin also improved from 4.41% in FY24 to 4.60% in FY25. For Q1FY26, the company reported a total operating income of INR 710.86 crore, with operating margin improving to 6.32% compared to 5.60% in Q1FY25.