India Ratings affirms Birla Corp's bank loan ratings, withdraws NCD rating

Birla Corporation Limited announced that India Ratings & Research Pvt. Ltd. affirmed its 'IND AA/stable' rating for bank loan facilities totaling INR2,500 million and assigned the same rating to additional bank loan facilities of INR1,281.5 million. The rating agency also withdrew the 'WD' rating for non-convertible debentures (NCDs) amounting to INR1,500 million, following their redemption on February 28, 2025.

The ratings reflect BCL's strong business and financial profile, supported by a robust market position, geographical diversification, and comfortable leverage levels. The company's capacity utilization remained high at approximately 90% in FY25, significantly above the industry average of 65%-70%. BCL plans to invest INR60 billion-65 billion over FY26-FY29 to expand cement and clinker capacity and improve operating efficiencies.

Despite a fall in EBITDA, BCL's net debt reduced to INR22.4 billion at FYE25 from INR30 billion at FYE24, with net leverage improving to 1.8x in FY25 from 2.1x in FY24. The company's liquidity remains adequate, supported by healthy cash flows and investments in listed equities and bonds.