Reliance Infrastructure, led by Anil Ambani, has skilled a major uplift in its credit standing, reflecting a elementary shift in its monetary well being. India Rankings and Analysis has upgraded the corporate’s ranking from ‘IND D’ to ‘IND B/Secure/IND A4’, marking a pivotal change following intensive efforts in debt discount. This marks a vital turnaround for the corporate, which had been rated on the default stage for six years.
The brand new ranking, which applies to Reliance Infrastructure’s non-fund-based working capital limits of Rs 1,860.23 crore, showcases the corporate’s profitable monetary restructuring. The ranking company additionally withdrew assessments on some proposed fund-based limits that weren’t utilised, underscoring a streamlined monetary method.
The corporate had issued Rs 3,010 crore value of warrants in October 2024, with plans to additional increase capital by overseas forex convertible bonds and fairness placements.
Reliance Infrastructure’s credit score profile has strengthened significantly as a result of its deleveraging efforts, which resulted in a net-zero debt place with banks and monetary establishments. By slicing its standalone debt to Rs 470 crore by March 2025, from over Rs 3,060 crore a 12 months prior, the agency has improved its monetary stability. This deleveraging was facilitated by long-term capital infusion, together with the issuance of warrants that eased liquidity pressures.
The corporate’s well timed servicing of standalone debt obligations for 3 consecutive months as much as June 2025 additional contributed to the optimistic ranking consequence. By executing one-time settlement agreements with the lenders of its subsidiaries, Reliance Infrastructure resolved assured debt points, reinforcing its monetary resilience. These efforts haven’t solely improved the corporate’s credit score standing but in addition enhanced its operational framework, offering a strong basis for future progress.
Regardless of these developments, India Rankings highlights ongoing challenges, together with a weak monetary threat profile and publicity to arbitration proceedings and contingent liabilities. These elements stay key areas for monitoring as they may affect future monetary stability. Nevertheless, the corporate’s strategic give attention to addressing these dangers is clear in its proactive measures, which intention to mitigate potential setbacks.
Assist for the upgraded ranking stems from Reliance Infrastructure’s substantial deleveraging of its stability sheet and improved income visibility, notably within the engineering and development (E&C) section. The corporate’s longstanding presence within the infrastructure sector, mixed with administration’s give attention to new-age enterprise order flows, positions the E&C enterprise for a possible turnaround in FY26.
Reliance Infrastructure’s strategic give attention to deleveraging and addressing monetary dangers, whereas capitalising on its operational strengths, underpins its improved credit score standing. It holds a 24.9% stake in Reliance Energy and operates throughout sectors resembling roads, metro rail, defence, and engineering companies, contributing to its diversified portfolio.
