Rain Industries Limited (RIL) has had its credit rating affirmed by India Ratings and Research (Ind-Ra). The rating agency has maintained RIL’s issuer rating and bank loan facilities at ‘IND A’ with a Stable outlook. This affirmation signifies no change from the previous year’s rating and reflects the agency’s confidence in RIL’s consolidated business and credit risk profile. The report highlights improved operational performance and expected financial stability.
Credit Rating Affirmed by India Ratings
Rain Industries Limited (RIL) has received an affirmation of its credit rating from India Ratings and Research (Ind-Ra), a Fitch Group company. As per the report dated September 16, 2026, the agency has affirmed the issuer rating and its bank loan facilities at ‘IND A’ with a Stable outlook. This rating remains unchanged from the credit rating issued in the previous year.
Key Drivers for Rating Affirmation
The affirmation is based on an improved consolidated business and credit risk profile, evidenced by an increase in revenue and EBITDA margins in 2025. India Ratings anticipates further improvement in the net leverage ratio, expecting it to remain below 4.0x over 2026-2027. Key strengths supporting the rating include continued improvement in the business scenario driven by raw material availability for the carbon segment, improved operational performance expected to continue through 2026-2027, strong linkages with subsidiaries, a robust business profile, and a sustained standalone financial profile with likely group support.
The report also notes strengths such as sustained standalone financial profile with group entities likely to continue providing debt servicing support. Furthermore, RIL’s diversified product portfolio across carbon, advanced materials, and cement segments contributes to its strong business profile. The company’s operational performance in 2025 saw a significant increase in revenue and EBITDA, with expectations of stabilization and growth in 2026-2027.
Areas of Constraint
Despite the positive outlook, the ratings are subject to constraints including increased working capital requirements, exposure to volatility in international business, and the West-Asia conflict. Weaknesses identified include declining demand and profitability in the cement segment, volatility in the carbon segment’s profitability, and fluctuations in commodity prices and foreign exchange rates.
Financial Overview
For 1H26, RIL reported revenue of INR 96,879 million and Operating EBITDA of INR 16,228 million, with an EBITDA margin of 16.75%. The company’s net adjusted leverage was reported at 2.88* for 1H26. India Ratings expects RIL’s net working capital cycle to stretch to around 150 days in 2026-2027, while maintaining a comfortable debt service coverage ratio.
Details of Instruments Rated
The ‘IND A/Stable’ rating applies to RIL’s issuer rating and its bank loan facilities. A specific term loan facility of INR 1,700 million with ICICI Bank is rated ‘IND A/Stable’.
Source: BSE
