RattanIndia Power Credit Rating Upgrade: CRISIL Raises Short-Term Rating to ‘A2’

What Happened ?

RattanIndia Power informed the stock exchanges on August 10, 2026 that CRISIL Ratings had upgraded the rating on its short-term bank facilities to ‘CRISIL A2’ from ‘CRISIL A3+’. The total rated bank facilities were simultaneously enhanced to ₹650 crore from ₹550 crore. 

CRISIL attributed the upgrade primarily to improved operating performance. RattanIndia Power’s PLF increased to 82% in FY26 from 78% in FY25, while PAF remained above 85%. Higher offtake from Maharashtra State Electricity Distribution Company Limited (MSEDCL), together with improved coal availability and quality, supported operating profitability despite lower PPA-linked tariffs. 

key details

Credit Rating & Operating Performance:

• Short-term bank facilities upgraded to CRISIL A2 from CRISIL A3+.
• Total rated bank facilities increased to ₹650 crore from ₹550 crore.
• FY26 PLF improved to 82% from 78%.
• FY26 PAF increased to 88% from 82%.
• CRISIL expects PLF to remain above 75% and PAF above 85% over the medium term.
• CRISIL expects EBITDA to remain above ₹400 crore from FY27 onwards, assuming sustained operating performance and adequate fuel availability. 

Debt & Liquidity Position:

• RattanIndia Power has nil long-term external debt.
• Fund-based working capital facilities of ₹400 crore saw their interest rate decline to 11% p.a. in 2026 from 11.5% in 2025.
• Cash balance stood at ₹276 crore as of March 31, 2026.
• All operating cash flows are escrowed under a Trust and Retention Account (TRA) and follow a defined waterfall mechanism.
• The company does not have major near-term capex plans. 

Revenue Visibility:

RattanIndia Power operates a 1,350 MW thermal power plant at Amravati, Maharashtra. It has a long-term 25-year PPA with MSEDCL for 1,200 MW, covering almost its entire net capacity, along with a fuel supply agreement with South Eastern Coalfields Limited (SECL) for 6.10 MTPA of coal. 

The long-term PPA reduces offtake risk and provides revenue visibility, while the fuel supply arrangement supports plant availability and generation. 

Key Credit Considerations:

CRISIL identified the following supporting factors:

• Long-term PPAs covering almost the entire net capacity.
• Adequate coal linkage through SECL.
• Improved PLF and PAF.
• Nil long-term external debt.
• Improving collection of regulatory receivables.
• Escrowed operating cash flows and lender-controlled waterfall mechanism. 

Note:

• The rating upgrade does not represent an improvement in FY26 profitability.
• FY26 EBITDA declined to ₹410 crore from ₹598 crore and PAT declined to ₹47 crore from ₹216 crore.
• The upgrade primarily reflects improved operating parameters, stronger debt profile and liquidity considerations. 

Risk Analysis

Summary:

• The rating upgrade strengthens RattanIndia Power’s credit profile, but its financial risk remains sensitive to plant operating performance, coal availability, receivable collections and ongoing legal matters.

Key Risks:

• MSEDCL receivables stood at 297 days as of March 31, 2026.
• Approximately 77% of total receivables were regulatory receivables.
• Profitability remains dependent on adequate coal availability and fuel quality.
• Sustained PAF below 85% could weaken operating cash flows.
• Pending litigation could result in material cash outflow.
• The company has ₹1,450 crore of promoter inter-corporate deposits subordinated to rated debt, alongside RPS/OCCRPS obligations. 

Worst Case:

• A sustained decline in plant operating performance, delayed counterparty payments or adverse litigation outcomes could weaken liquidity and the company’s financial risk profile, potentially putting downward pressure on its credit rating. 

Risk Level: Medium

Company Commentary

• RattanIndia Power informed the exchanges that CRISIL Ratings upgraded its short-term bank facility rating to ‘CRISIL A2’ from ‘CRISIL A3+’.
• The rated short-term bank facilities were enhanced to ₹650 crore from ₹550 crore.
• The company stated that the rating update was being disclosed pursuant to Regulation 30 of the SEBI Listing Regulations.