CRISIL Ratings reaffirmed Kalpataru Projects International Limited’s ratings at ‘CRISIL AA/Stable/CRISIL A1+’, with an enhanced rating for bank loan facilities now at Rs. 26,329 crore. This reflects the company’s strong business risk profile, established market position in the T&D and B&F segments, diversified revenue streams, and healthy financial risk profile. The ratings are tempered by large working capital needs and exposure to subsidiaries and road SPVs.
Ratings Reaffirmed
CRISIL Ratings has reaffirmed its ‘CRISIL AA/Stable/CRISIL A1+’ ratings for Kalpataru Projects International Limited (KPIL). This decision is underpinned by KPIL’s robust business model and financial health. The total bank loan facilities rated have been enhanced to Rs. 26,329 crore.
Key Rating Drivers
The reaffirmed ratings reflect KPIL’s:
- Strong position in the Transmission and Distribution (T&D) and Buildings and Factories (B&F) segments.
- Diversified revenue streams across various EPC segments.
- Substantial order book worth Rs 65,475 crore as of June 30, 2025, offering strong medium-term revenue visibility.
- Improved operating income, up 13% year-on-year in fiscal 2025, reaching Rs 19,004 crore.
- Reduction in net debt during fiscal 2025, supported by a Rs. 1000 crore qualified institutional placement (QIP) in December 2024.
Financial Highlights
KPIL’s financial performance shows positive trends:
- Adjusted interest coverage ratio improved to 3.3 times in fiscal 2025.
- Total outside liabilities to tangible net worth (TOL/TNW) ratio improved to 2.18 times as of March 31, 2025.
- Unencumbered cash and cash equivalents stood at more than Rs 845 crore as of June 30, 2025.
ESG Focus
KPIL is committed to environmental stewardship, aiming for carbon neutrality by 2040 and water neutrality by 2032. The company has already achieved carbon neutrality for its international T&D electrical business in fiscal 2025.
Source: BSE