Crisil Ratings upgrades Rajputana Stainless to 'BBB+/A2' with 'stable' outlook

Crisil Ratings stated that the upgrade reflects an improvement in the business and financial risk profile of the company in the past two fiscals which is expected to sustain over the medium term.

RSL?s operating performance has improved with a steady increase in volume of sales. Further, better procurement policy and increasing scale of operations has led to the improvement of operating margins to 9.26% in fiscal 2026 as against 8.05% in fiscal 2025 and 6.80% in fiscal 2024. The Group?s operating performance is expected to sustain over the medium term.

The financial risk profile of the group is also on an improving trajectory with reduction of debt from Rs 100 crore as on 31 March 2025 to Rs 67 crore as on 31 March 2026. The company has paid off its external debt in April 2026.

The improvement in capital structure coupled with improved operating profitability has also led to comfortable debt protection metrics for fiscal 2026.

The rating reflects extensive experience of the promoters in steel industry, integrated operations and operating efficiency and comfortable financial risk profile.

These strengths are partially offset by working capital-intensive operations, susceptibility of operations to volatile steel prices.

Rajputana Stainless is engaged in manufacturing and export of high-quality stainless-steel billet, black bars, and bright bars, wire rods, etc. in various grades and sizes.

The scrip shed 0.08% to currently trade at Rs 130.15 on the BSE.

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