HBL Engineering Limited announced that CARE Ratings Limited has reaffirmed its ratings following a reduction in the company’s overall credit limits. The long-term facilities rating was reaffirmed at CARE A+; Positive, while the short-term facilities rating remains CARE A1+. These actions were based on a review of the company’s FY25 audited and 9MFY26 unaudited financial performance, effective as of February 17, 2026.
Credit Rating Review Confirmation
HBL Engineering Limited (formerly HBL Power Systems Limited) has formally communicated the updated credit ratings assigned by CARE Ratings Limited in a submission dated February 18, 2026. The rating review was conducted on February 17, 2026, based on the operational and financial performance for FY25 (Audited) and 9MFY26 (Unaudited).
Updated Credit Ratings Summary
The rating committee decided to reaffirm the existing ratings despite adjustments to the overall credit limits. The key ratings assigned are as follows:
- Long Term Bank Facilities: Reaffirmed at CARE A+; Positive. The assigned limit for this category is ₹152.75 crore, which reflects a reduction from the previous limit of ₹156.50 crore.
- Short Term Bank Facilities: Reaffirmed at CARE A1+. The assigned limit for this category is ₹646.00 crore, reflecting an enhancement from the previous limit of ₹587.00 crore.
Surrender of Specific Facilities
The rating agency noted that HBL Engineering Limited has surrendered the project-specific working capital limits in full, and there were no outstanding amounts under those facilities as of the review date. Consequently, the ratings for these specific working capital facilities (both Long Term/Short Term and Short Term) were Withdrawn, effective immediately.
Details of Rated Facilities Post-Adjustment
The total revised facilities covered are detailed below:
Long Term Facilities (Total: ₹152.75 crore)
- Term Loans (₹3.75 crore): An existing loan with Axis Bank Ltd., to be repaid in 20 quarterly instalments starting September 2023.
- Fund Based Limits (₹149.00 crore): Comprising Cash Credit facilities from State Bank of India (₹65.00 crore), Axis Bank Ltd. (₹44.00 crore), and ICICI Bank Ltd. (₹40.00 crore).
Short Term Facilities (Total: ₹646.00 crore)
- Fund Based Limits (₹95.00 crore): Primarily for Purchase Bill Factoring across ICICI Bank Ltd., Axis Bank Ltd., and a proposed limit.
- Non-Fund Based Limits (₹551.00 crore): Comprising Letters of Credit/Bank Guarantees issued by State Bank of India (₹188.00 crore), Axis Bank Ltd. (₹156.00 crore), ICICI Bank Ltd. (₹129.00 crore), and a proposed limit (₹78.00 crore).
The Total Facilities rated amount is Rs.798.75 crore (Long Term ₹152.75 crore + Short Term ₹646.00 crore), though the breakdown in the letter shows the adjusted facility limits totaling these amounts.
Source: BSE
