BMW Industries credit rating affirmed, stable outlook

BMW Industries Ltd. announced on October 4, 2025, that India Ratings and Research Private Limited ("India Ratings") affirmed its credit rating for bank loan facilities at "IND A/Stable/IND A1." This affirmation applies to INR 2,566.80 million in bank loan facilities.

The rating is based on BMWIL's sustained operating and financial performance in FY25, driven by improved realisations and a stable contribution from its conversion business, with EBITDA margins remaining largely stable at 23.4%. The company's consolidated revenue increased to INR6,286 million in FY25 from INR5,982 million in FY24, supported by efficient capacity utilisation. BMWIL's net leverage increased marginally to 0.97x in FY25, while interest coverage improved to 11.09x.

The rating also considers the renewal of contracts with key customers and capacity enhancements in the tube segment, ensuring revenue visibility. BMWIL is expanding into manufacturing with a greenfield project in Bokaro, Jharkhand, involving an investment of approximately INR7,500 million, to be funded through a term loan of INR5,000 million and internal accruals/unsecured loans. This expansion is expected to moderate credit metrics over FY27-FY28 but improve post-completion.