Regulatory Disclosure Context
This is a regulatory filing submitted to BSE Limited and National Stock Exchange of India Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure intimates the exchanges about a credit rating upgrade announcement.
Credit Rating Upgrade Details
Infomerics Valuation and Rating Limited has upgraded Steel Exchange India Limited's credit ratings based on review of FY26 audited financial performance and recent developments:
Rating Changes:
- Long-Term Rating on bank loan facilities: Upgraded by two notches from IVR BBB-/Stable to IVR BBB+/Stable
- Short-Term Rating: Upgraded from IVR A3 to IVR A2
- Non-Convertible Debentures (Listed): Upgraded by two notches from IVR BBB-/Stable to IVR BBB+/Stable
Facility Amount Enhancements:
- Rated bank facilities enhanced from ₹200.00 crore to ₹359.63 crore
- Non-Convertible Debentures amount: ₹198.56 crore
- Total rated quantum: ₹558.19 crore
Rating Definitions and Validity
Rating Definitions:
- IVR BBB rating indicates moderate degree of safety regarding timely servicing of financial obligations with moderate credit risk
- '+' modifier reflects comparatively higher standing within the category
- Stable outlook indicates rating not expected to change significantly in near term
- IVR A2 short-term rating indicates strong degree of safety regarding timely payment with low credit risk
Validity Period: The revised ratings are valid for one year, up to September 21, 2027.
Strategic and Financial Implications
The rating upgrade represents the second successive upgrade following the previous upgrade announced in December 2025 based on FY25 audited and H1FY26 unaudited performance.
Key Benefits:
- Strengthens company's credit standing across both bank borrowings and listed debt
- Supports improved access to credit and more competitive borrowing terms
- Provides greater financial flexibility to meet working capital requirements
- Enhances ability to fund growth initiatives
Management Commentary
Mr. Bandi Satish Kumar, Director of Steel Exchange India Limited, commented: "A two-notch upgrade in our long-term rating, alongside a substantial enhancement in our rated bank facilities, is an encouraging recognition of the progress made in our operational and financial performance. The revised ratings strengthen our overall credit profile and improve our financial flexibility. As we continue to strengthen our steel manufacturing operations and execute our expansion initiatives, we remain committed to maintaining a balanced financial profile while creating sustainable long-term value for all our stakeholders."
Company Background
Steel Exchange India Limited (SEIL) is part of the Vizag Profiles Group and manufactures TMT rebars under the brand 'SIMHADRI TMT'. The company operates an Integrated Steel Plant & Power Unit in Vizianagaram District, near Visakhapatnam, with sponge iron, billet, rolling mill, and power generation capacities. The company is diversifying into specialty steels under the PLI scheme to support import substitution.