The Birla Corporation credit rating was reaffirmed by CARE Ratings on October 1, 2026, according to a BSE filing published on October 2. The assessment retained the company's long-term rating at CARE AA with a Stable outlook and its short-term rating at CARE A1+.

The rated long-term bank facilities increased to Rs 696 crore from Rs 526 crore. CARE's assessment covered the following facilities and instruments:

  • Long-term bank facilities of Rs 696 crore: CARE AA; Stable, reaffirmed.
  • Long-term/short-term bank facilities of Rs 960 crore: CARE AA; Stable/CARE A1+, reaffirmed.
  • Non-convertible debentures of Rs 80 crore and Rs 20 crore: CARE AA; Stable, reaffirmed. Both had nil outstanding as of September 30, 2026.

Operating gains support credit profile

CARE cited Birla Corporation's geographically diversified cement operations, established distribution network and access to captive limestone, coal and power sources. Installed cement capacity stood at 21.4 MTPA as of March 31, 2026, following the addition of 1.4 MTPA at the Kundanganj grinding unit in Uttar Pradesh during FY26.

Consolidated total operating income increased to Rs 9,662 crore in FY26 from Rs 9,212 crore in FY25. Profit after tax rose to Rs 563 crore from Rs 295 crore. Lower power and fuel costs helped improve operating profitability during the year.

Net debt to profit before interest, lease rentals, depreciation and taxation improved to 2.17 times in FY26 from 2.97 times in FY25. CARE assessed liquidity as strong, citing a liquid balance of Rs 832 crore as of March 31, 2026.

Expansion spending and fuel costs remain monitorables

The rating report outlined expected capital expenditure of Rs 4,300–4,500 crore during FY27–FY29, including plans to increase cement grinding capacity to 27.6 MTPA by FY29. Projects include grinding units at Prayagraj, Gaya and Aligarh, alongside clinker capacity expansion at Maihar.

Funding is expected through debt and internal accruals in a 2:1 ratio. CARE expects net debt to operating earnings to potentially rise to 3–3.3 times as execution progresses, and will monitor project completion and improvements in scale and profitability.

The agency also flagged exposure to cement industry cyclicality, volatile input costs and selling prices. Long-term fuel contracts and raw material inventories covering two to three months of operations partly mitigate fuel-price risks.