Transrail Lighting Limited announced that Crisil Ratings has assigned new ratings to its Non-Convertible Debentures (NCDs) and Commercial Paper (CP) and reaffirmed ratings on its bank facilities. The new ratings assigned are Crisil AA-/Stable for NCDs and Crisil A1+ for CP. Furthermore, the total rated bank loan facilities were enhanced from Rs. 6,470 crore to Rs. 7,070 crore, with long-term and short-term bank debt ratings reaffirmed at the same levels.
Rating Actions Detail for Transrail Lighting
Transrail Lighting Limited disclosed receipt of credit rating actions from Crisil Ratings Limited concerning its debt instruments and existing banking facilities as of March 5, 2026.
New Ratings Assigned:
- Rs. 100 Crore Non-Convertible Debentures: Assigned Crisil AA-/Stable.
- Rs. 100 Crore Commercial Paper: Assigned Crisil A1+.
Ratings Reaffirmed for Bank Facilities:
- Long Term Rating: Reaffirmed at Crisil AA-/Stable.
- Short Term Rating: Reaffirmed at Crisil A1+.
Bank Debt Enhancement:
The total rated bank loan facilities size has been enhanced from Rs. 6,470 crore to Rs. 7,070 crore. The rating rationale highlights that the company’s revenue is expected to grow by 26-28% in fiscal 2026, supported by a robust order book of Rs. 14,733 crore as of December 31, 2025.
Key Drivers of Financial Strength
The ratings are underpinned by Transrail’s established market position in the engineering, procurement, and construction (EPC) power sector business and a growing, robust order book ensuring revenue visibility. The company’s operating efficiency remains strong, with expected EBITDA margins maintained at recent fiscal levels, leading to a healthy return on capital employed of 35% in fiscal 2025.
Improved Financial Risk Profile:
The financial profile has significantly improved following the initial public offer (IPO) in December 2024, which generated net proceeds of approximately Rs. 425 crore. This strengthened the net worth to approximately Rs. 2,070 crore as on September 30, 2025 (up from Rs. 1,139 crore as of March 31, 2024). Adjusted gearing improved to 0.9 time, and the interest coverage ratio stood at 2.7 times in fiscal 2025.
Outlook and Monitorables
The outlook assigned to the ratings is Stable. This stability reflects the expectation that increasing scale and strong order execution will sustain steady cash generation. Key factors that will be monitored include the extent to which the company can maintain its working capital cycle, which saw Gross Current Assets (GCA) days remain high at around 345 days in the last two fiscals, largely due to receivables from the Bangladesh project.
The complete rating rationale document provided by Crisil Ratings is available for reference via the specified weblink in the official filing.
Source: BSE
