Blackbuck’s short-term credit rating has been upgraded to [ICRA]A2+, reflecting a significant improvement in its business and financial risk profiles. The company’s technology-focused service platform and fresh equity of ₹550 crore raised through its IPO have strengthened its position. ICRA expects Blackbuck to generate healthy accruals while maintaining a comfortable capital structure.
Rating Upgrade Details
ICRA Limited has upgraded Blackbuck’s short-term rating to [ICRA]A2+ from [ICRA]A3+, indicating a strengthened business and financial outlook.
Key Drivers for Upgrade
The rating upgrade is attributed to several factors:
- Significant improvement in the company’s business and financial risk profiles.
- Expectation of sustained performance and healthy accruals.
- Technology-focused service platform with high profitability.
- Fresh equity infusion of ₹550 crore via Initial Public Offering (IPO).
Business Performance
Blackbuck’s app is noted as India’s largest digital platform for truck operators, offering services related to tolling, fueling, and vehicle monitoring. The average monthly transacting truck operators on the platform have increased at a CAGR of 28%, reaching 7.87 lakh over FY2022-H1 FY2026.
Financial Highlights
The company reported:
- Operating profits in FY2025.
- Revenue of ₹289.6 crore and a Profit After Tax (PAT) of ₹62.9 crore in H1 FY2026.
Blackbuck’s interest coverage stood at 30.9 times, and gearing was at 0.04 times as of September 30, 2025. The company’s liquidity position is strong with cash and bank balances of ₹1,025.3 crore as of the same date.
Rating Sensitivities
Positive Factors: Sustained growth in revenues and earnings, while maintaining a comfortable liquidity position, could lead to a further rating upgrade.
Negative Factors: A material decline in revenues and operating margins or any large investment that depletes liquidity could result in a rating downgrade.
Source: BSE
