Gallant Ispat shares rise 6% on credit rating upgrade, check details

Shares of Gallant Ispat rose 6% on Wednesday after the metal products firm said lndia Ratings and Research, a Fitch Group Company, has upgraded the company's long-term issuer rating. The rating has been changed to 'lND AA-'Stable and short-term issuer rating at'lND A1+' has been re-affirmed. 

Gallant Ispat stock rose 6% to Rs 754 in the current session against the previous close of Rs 712.65 on BSE. Market cap of the firm  rose to Rs 17,836 crore. 

The rating agency has upgraded the long term ratings of the bank loan facilities worth Rs 850 crore to IND AA-/Stable/lN D A1+. 

"The upgrade reflects the improvement in the EBITDA per tonne (excluding subsidy) in FY25 and 1QFY26, led by the successful ramp  up of operations post capacity enhancement, and better-than-lnd-Ra-estimated operational and financial performance in FY25, which is likely to sustain over the medium term," said India Ratings.

"The rating action also factors in enhanced visibility of further improvement in the EBITDA per tonne (excluding subsidy) in FY26 due to cost efficiencies, improved subsidy realisation from FY25, providing additional liquidity buffer, and entirely self- funded capex over the next three years, which would result in continued healthy credit metrics. GIL also received -three new captive virgin iron ore mines over FY25-1QFY26, which shall commence operations over the next three to four years and shall offer higher backward integration. However, the rating is constrained by the inherent cyclicality of the industry," added the credit rating agency.  

Gallant Ispat is a partially integrated re-rolled products (TMT bars, 950,400tpa) manufacturer with an in-house pellet (792,000 tpa), sponge iron (1,033,500 tpa) and mild steel billets production (1,03'1,250 tpa) with two facilities located at Kutch (Gujarat) and Gorakhpur (UP).