Visakhapatnam | 10-Oct-2025, 09:45 IST — Filed on 08-Oct-2025, 18:30 IST via BSE Filing / CareEdge Release
Steel Exchange India Ltd (SEIL) said that CareEdge Ratings has upgraded its credit ratings across bank facilities and debentures, citing improvements in financial profile, refinancing measures, and stronger promoter backing. The upgrade comes against the backdrop of a broadly resilient credit environment in India Inc.
Facility-wise Upgrades
CareEdge Ratings announced the following changes:
- Non-Convertible Debentures (NCDs) worth ₹230.91 crore: CARE BB+; Stable (upgraded from CARE BB-; Stable).
- Long-Term Bank Facilities (Cash Credit, ₹10 crore): CARE BB+; Stable (upgraded from CARE BB-; Stable).
- Short-Term Bank Facilities (Letter of Credit, ₹40 crore): CARE A4+ (upgraded from CARE A4).
The outlook remains Stable, indicating that CareEdge expects SEIL to maintain its current financial trajectory in the near term.
Key Drivers Behind Upgrade
CareEdge’s rationale pointed to a combination of factors:
- Revenue Momentum: SEIL recorded improved operating income in FY25, led by higher rebar volumes and a more profitable product mix.
- Debt Refinancing: The company refinanced ~₹350 crore of debt, including NCDs and term loans, lowering interest costs and extending repayment schedules.
- Improved Leverage: Overall gearing improved to ~0.74× as of March 31, 2025, compared to 0.88× in the previous year, aided by internal accruals and equity warrant conversion.
- Promoter Commitment: CareEdge highlighted the promoters’ track record in the steel industry and their support through timely capital infusion.
Caution Flags
Despite the upgrade, certain challenges remain:
- Working Capital Stretch: Inventory build-up and elongated receivables continue to pressure liquidity.
- Moderate Coverage Metrics: Interest coverage has improved but remains moderate relative to sector leaders.
- Sector Cyclicality: SEIL is exposed to volatility in raw material prices and demand swings in the steel market.
- Competition: The company faces pricing pressure from larger integrated steel producers and regional players.
CareEdge also emphasised that sustained improvement in debt coverage and efficient working capital management will be key for future upgrades.
Company Profile
Steel Exchange India Ltd, headquartered in Visakhapatnam, operates in the long steel products segment. Its portfolio includes billets, bars, rods, and wire rods. SEIL also runs an integrated steel plant with captive power facilities.
- Promoters: Led by the Vizag Profiles group, with over three decades of steel industry experience.
- Revenues: For FY25, SEIL reported consolidated income of ~₹3,500 crore (approx), driven by demand recovery in infrastructure and construction.
- Margins: EBITDA margins improved modestly on account of better product realisation, though still below larger peers.
- Capital Structure: Following debt refinancing and equity infusions, gearing improved and liquidity buffers strengthened.
Market Context
India’s credit environment has improved notably in FY26, with rating upgrades outpacing downgrades by more than 2.5 times in H1. Agencies like CareEdge cite healthy corporate balance sheets, lower leverage, and refinancing activity as key drivers.
SEIL’s upgrade mirrors this broader trend — companies across infrastructure, steel, and manufacturing sectors are seeing improved ratings after years of restructuring and deleveraging.
Ticker Snapshot — Steel Exchange India (NSE: STEELXIND)
| Metric | Value |
|---|---|
| Price | ₹9.10 |
| Change | +0.25 (+2.82%) |
| 52-Week Range | ₹7.06 – ₹12.85 |
| Promoter Holding | ~52.9% |
Outlook
The rating upgrade is a morale boost for SEIL, especially after years of volatile earnings and tight liquidity. With refinancing done and leverage improving, the company is better placed to fund growth.
However, the road ahead depends on consistent cash flow, margin stability, and tighter control on working capital. For investors, the development could signal reduced credit risk and stronger fundamentals, but the stock remains subject to sector cycles and execution discipline.
