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Hind Rectifiers Ltd. — Audit Report / Information 2026
Sep 3, 2025
62363_rns_2025-09-03_ebb96382-c314-42eb-8b56-babda14b0d0b.pdf
Audit Report / Information
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Ref. No. HIRECT/SEC/2025-26/44 September 3, 2025
To, To, The General Manager, The General Manager, National Stock Exchange Limited BSE Limited, Exchange Plaza, Bandra-Kurla Complex, Phiroze Jeejeebhoy Towers, Dalal Street, Bandra (East), Mumbai-400051. Mumbai- 400 001.
NSE Symbol: HIRECT BSE Scrip Code: 504036 Type of Security: Equity
Subject: Intimation of Credit Rating Issued by CRISIL under Regulation 30 of SEBI Listing Regulations, 2015
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI Listing Regulations, 2015, read with Schedule III, Part A, Para A, we hereby inform you that CRISIL Ratings Limited has issued the following credit rating for Hind Rectifiers Limited:
Details of Credit Rating :
| Details of Credit Rating: | |
|---|---|
| Total Bank Loan Facilities Rated | Rs.228.9 Crore (Enhanced from Rs.150.05 Crore) |
| Long Term Rating | Crisil BBB+/Stable (Upgraded from 'Crisil BBB/Stable') |
| Short Term Rating | Crisil A2 (Upgraded from 'Crisil A3+') |
The aforementioned rating has been published by CRISIL on its website and is expected to be disseminated to the stock exchanges through the system-driven disclosure mechanism, as per SEBI Circular No. SEBI/HO/DDHS/DDHSPoD-3/P/CIR/2024/97 dated July 4, 2024. This intimation is being made to ensure compliance and transparency with respect to the disclosure requirements under Regulation 30.
We request you to take the above information on record and disseminate it on your respective platforms, if not already covered under the system-driven disclosure framework.
Kindly take this information on your records.
For Hind Rectifiers Limited
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Meenakshi Anchlia Company Secretary M. No. A30545
Encl: As above
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Rating Rationale
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Rating Rationale
September 02, 2025 | Mumbai
Hind Rectifiers Limited
Ratings upgraded to 'Crisil BBB+/Stable/Crisil A2'; Rated amount enhanced for Bank Debt
Rating Action
| RatingAction | |
|---|---|
| Total Bank Loan Facilities Rated | Rs.228.9 Crore(Enhanced from Rs.150.05 Crore) |
| Long Term Rating | Crisil BBB+/Stable(Upgraded from 'Crisil BBB/Stable') |
| Short Term Rating | Crisil A2(Upgraded from 'Crisil A3+') |
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities
Detailed Rationale
Crisil Ratings has upgraded its ratings on the bank facilities of Hind Rectifiers Ltd (HRL) to ‘Crisil BBB+/Stable/Crisil A2’ from ‘Crisil BBB/Stable/Crisil A3+’.
The ratings upgrade reflects sustained improvement in the business risk profile of the company. Revenues have increased to around Rs 655 crore in fiscal 2025 from Rs 518 crore in fiscal 2024, driven by healthy demand as well as continuous product addition. The company has further achieved revenues of Rs 215 crore in the first quarter of fiscal 2026 and is expected to sustain its growth driven by all time higher orderbook of Rs 1000 crore as on 30th June, 2025, which provides revenue visibility over the medium term. The operating margins have also improved to around 10.9% in fiscal 2025 from 8.5% in fiscal 2024 due to improved product mix as well as backward integration measures implemented by the company. The operating margins continues to remain stable in the first quarter of fiscal 2026 and are expected to remain steady in the range of 10-11% over the medium term. The financial risk profile continues to remain comfortable with adequate liquidity.
The ratings continue to reflect the extensive experience of the promoters in the power electronic equipment industry, strong order book providing revenue visibility and comfortable financial risk profile of the company. These strengths are partially offset by large working capital requirement and exposure to risk posed by the tender-based nature of business and concentration in the end-user industry base.
Analytical Approach
Crisil Ratings has evaluated the standalone business and financial risk profiles of HRL.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.
Key Rating Drivers & Detailed Description
Strengths:
Extensive experience of the promoters: The company continues to benefit from the five-decadelong experience of the promoters in the power electronic equipment industry, which has provided them with a deep understanding of the market dynamics and further established strong relationships with customers and suppliers, which will continue to support the business. The clientele includes the Indian Railways and Bharat Heavy Electricals Ltd (rated ‘Crisil AA-/Stable/Crisil A1+’). The company has continuously been developing new products in keeping with the changing market demand. This has led to an increase in revenue to Rs 655 crore in fiscal 2025 as compared to Rs 517 crore a year ago. The company has achieved revenues of Rs 215 crore in the first quarter of fiscal 2026 and the scale is further expected to grow over the medium term. Extensive experience of the promoters would continue to support the business profile of the company.
Strong order pipeline: Orders worth around Rs 1000 crore as of June 2025 which is an all time higher orderbook of the company driven by healthy demand in the industry, which are to be executed in the next 18 months, provide near-term revenue visibility and will help sustain growth in revenue. This is driven by continuous development of new products, strong execution capabilities and the addition of customers.
Strong financial profile: Networth was healthy at Rs 139 crore as on March 31, 2025. Gearing and total outside liabilities to adjusted networth (TOLANW) ratio were comfortable at 1.1 times and 1.9 times, respectively, as on March 31, 2025, aided by healthy networth and moderate debt. The capital structure is expected to remain comfortable, over the medium term, despite a debt funded capex due to steady accretion to reserves. Debt protection metrics have also improved with interest coverage and net cash accrual to adjusted debt ratios of 5.3 times and 0.3 time, respectively, in fiscal 2025 (compared to 3.3 times and 0.2 time, respectively, in fiscal 2024), driven by improvement in operating margin. The debt protection metrics are expected to remain comfortable over the medium term.
Weaknesses:
Exposure to risks posed by the tender-based nature of operations and concentration in the end-user industry base: The company derives 80-90% of its revenue from the Indian Railways, and thus, growth in revenue and profitability remain linked to the prospects of the railways. Any slowdown or stretch in receivables could impact HRL’s performance. Furthermore, as majority of its revenue is tender-based, income and profitability also depend upon the ability of the company to bid successfully for contracts floated by the Indian Railways and other government agencies. While the operating margins
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Rating Rationale
witnessed volatility historically with margins dipping to 4.3% in fiscal 2023, the margins have witnessed steady growth over the past two fiscals. The company has achieved operating margins of 10.9% fiscal 2025 which continues to remain stable in the first quarter of fiscal 2026. Sustained growth in revenue along with stability in operating margins would be a key monitorable over the medium term.
- Large working capital requirement: HRL's operations are working capital intensive, as reflected in gross current assets (GCA) of 146 days as on March 31, 2025, driven by debtors and inventory of 63 days and 80 days, respectively. The company extends moderate credit period of 60-90 days to its customers and has been receiving timely payment from them. Also, HRL has to maintain a large inventory of raw materials to meet customer demand on time because of its long processing cycle. This has led to reliance on external debt to support the working capital cycle. The working capital cycle is expected to remain stretched over the medium term.
Liquidity: Adequate
Expected annual cash accrual of Rs 50-60 crore would be sufficient against debt obligation of Rs 10- 15 crore in fiscals 2026 and 2027. Bank limit utilisation was 81% on average for the 7 months through April 2025. Cash and bank balance were Rs 10 crore as on March 31, 2025. Moderate gearing and healthy networth provide the financial flexibility required in case of any adverse conditions or downturn in the business.
Outlook: Stable
Crisil Ratings believes the business profile of HRL will continue to be supported by the extensive experience of the promoters.
Rating sensitivity factors
Upward factors:
- Significant increase in revenue of around 25-30% while maintaining stable operating margin, leading to higher cash accruals Improvement in the working capital cycle leading to improved liquidity
Downward factors:
Decline in revenue or operating margin below 8.5-9% leading to lower cash accrual
Stretched working capital cycle affecting the financial profile and liquidity of the company
About the Company
HRL was incorporated in April 1958 by Mr Sushil Kumar Nevatia. The company is currently managed by Mr Saurabh Nevatia and Mr Suramya Nevatia. The company manufactures power electronic equipment, railway transformation equipment like IGBT propulsion systems, hotel load converters, battery chargers, vehicle control units and electromechanical systems, which includes panels, traction motors and HVAC systems. The manufacturing facilities are in Mumbai and Nasik, Maharashtra, and Dehradun, Uttarakhand, and its registered office is in Mumbai. The company is listed on the Bombay Stock Exchange and National Stock Exchange.
Key Financial Indicators
| Key Financial Indicators | ||||
|---|---|---|---|---|
Particulars |
Unit | Q1 2026 | 2025 | 2024 |
| Revenue | Rs crore | 214.8 | 655.4 | 517.6 |
| Profit after tax(PAT) | Rs crore | 12.8 | 32.3 | 12.51 |
| PAT margin | % | 6.0 | 5.7 | 2.4 |
| Adjusted debt/adjusted networth | Times | - | 1.12 | 1.3 |
| Interest coverage | Times | 6.8 | 5.3 | 3.3 |
Any other information: Not applicable
Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.
Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.
For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)
| ISIN | Name Of Instrument |
Date Of Allotment |
Coupon Rate (%) |
Maturity Date |
Issue Size (Rs. Crore) |
Complexity Levels |
Rating Outstanding with Outlook |
|---|---|---|---|---|---|---|---|
| NA | Bank Guarantee | NA | NA | NA | 38.00 | NA | Crisil A2 |
| NA | Cash Credit | NA | NA | NA | 91.55 | NA | Crisil BBB+/Stable |
| NA | Overdraft Facility |
NA | NA | NA | 33.00 | NA | Crisil BBB+/Stable |
| NA | Working Capital Facility |
NA | NA | NA | 10.00 | NA | Crisil BBB+/Stable |
| NA | Term Loan | NA | NA | 30-Jun-26 | 1.85 | NA | Crisil BBB+/Stable |
| NA | Term Loan | NA | NA | 31-Mar-28 | 51.75 | NA | Crisil A2 |
| NA | Term Loan | NA | NA | 31-Mar-26 | 2.75 | NA | Crisil A2 |
Annexure - List of entities consolidated
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| Names of Entities Consolidated | Extent of Consolidation | Rationale for Consolidation |
| Hind Rectifiers Ltd | Full | Parent company |
| Hirect FZ-LLC | Full | 100% subsidiary |
| Coincade Studios Private Limited | Full | 100% subsidiary |
Annexure - Rating History for last 3 Years
| Current | Current | Current | 2025 (History) | 2025 (History) | 2024 | 2024 | 2023 | 2023 | 2022 | 2022 | Start of 2022 |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Instrument | Type | Outstanding Amount |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating | Rating |
| Fund Based Facilities |
LT/ST | 190.9 | Crisil BBB+/Stable / Crisil A2 |
06-01-25 | Crisil BBB/Stable |
10-07-24 | Crisil BBB/Stable |
30-06-23 | Crisil BBB-/Stable |
25-11-22 | Crisil BBB-/Stable |
Crisil BBB-/Stable |
| -- | -- | 18-01-24 | Crisil BBB-/Stable |
13-02-23 | Crisil BBB-/Negative |
30-05-22 | Crisil BBB-/Positive |
-- | ||||
| -- | -- | -- | -- | 19-05-22 | Crisil BBB-/Positive |
-- | ||||||
| Non-Fund Based Facilities |
ST | 38.0 | Crisil A2 | 06-01-25 | Crisil A3+ | 10-07-24 | Crisil A3+ | 30-06-23 | Crisil A3 | 25-11-22 | Crisil A3 | Crisil A3 |
| -- | -- | 18-01-24 | Crisil A3 | 13-02-23 | Crisil A3 | 30-05-22 | Crisil A3 | -- | ||||
| -- | -- | -- | -- | 19-05-22 | Crisil A3 | -- |
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
| Facility | Amount (Rs.Crore) | Name of Lender | Rating |
|---|---|---|---|
| Bank Guarantee | 14.35 | ICICI Bank Limited | Crisil A2 |
| Bank Guarantee | 13 | Standard Chartered Bank | Crisil A2 |
| Bank Guarantee | 5 | IDFC FIRST Bank Limited | Crisil A2 |
| Bank Guarantee | 5.65 | ICICI Bank Limited | Crisil A2 |
| Cash Credit | 14 | IDFC FIRST Bank Limited | Crisil BBB+/Stable |
| Cash Credit | 40.65 | TJSB Sahakari Bank Limited | Crisil BBB+/Stable |
| Cash Credit | 36.9 | ICICI Bank Limited | Crisil BBB+/Stable |
| Overdraft Facility | 33 | Standard Chartered Bank | Crisil BBB+/Stable |
| Term Loan | 51.75 | Saraswat Bank | Crisil A2 |
| Term Loan | 2.75 | Apna Sahakari Bank Limited | Crisil A2 |
| Term Loan | 1.85 | IDFC FIRST Bank Limited | Crisil BBB+/Stable |
| Working Capital Facility | 6.5 | Standard Chartered Bank | Crisil BBB+/Stable |
| Working Capital Facility | 3.5 | Thane Janata Sahakari Bank limited |
Crisil BBB+/Stable |
Criteria Details
Links to related criteria
Basics of Ratings (including default recognition, assessing information adequacy) Criteria for manufacturing, trading and corporate services sector (including approach for financial ratios)
Criteria for consolidation
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Rating Rationale
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