Rane (Madras) gets CRISIL rating upgrade to AA-
CRISIL lifts long-term bank loan rating to 'CRISIL AA-/Stable' from 'A+/Stable', covering ₹1,085 cr facilities across eight banks.
— 2 earlier stories on Rane (Madras) Ltd. →What's new
- CRISIL upgraded Rane (Madras)'s long-term rating to 'AA-/Stable' from 'A+/Stable'.
- Short-term rating also upgraded to 'A1+' from 'A1'.
- Upgrade covers total bank facilities of ₹1,085 cr across SBI, HDFC Bank, Standard Chartered.
Why this matters
The one-notch upgrade signals improved credit profile for a company with debt/equity of 1.13 and a recent ₹370 cr acquisition. It could lower borrowing costs and ease access to fund future growth, especially as it integrates the Hindustan Composites friction unit.
What we're watching
- Impact on interest costs on the ₹1,085 cr bank facilities.
- Whether the upgrade aids the Hindustan Composites acquisition integration.
- Any further rating actions as debt levels evolve post-acquisition.
The full read
CRISIL has upgraded Rane (Madras)'s long-term bank loan rating to 'CRISIL AA-/Stable' from 'A+/Stable', and its short-term rating to 'A1+' from 'A1'. The new ratings apply to ₹1,085 crore of bank facilities spread across eight lenders, including State Bank of India and HDFC Bank. While a one-notch long-term upgrade is measured (the analyst rationale gives it a score of 6), it's a clear positive signal for a company carrying a debt/equity of 1.13 and digesting a ₹370 crore acquisition. No detailed rationale was provided, but the move likely reflects improved financial risk profile. The upgrade could lower borrowing costs and ease lender appetite as Rane integrates the Hindustan Composites friction business. For a small-cap auto ancillary, this is a constructive step, not a catalytic one.
Questions answered
- What exactly did CRISIL upgrade for Rane (Madras)?
- CRISIL upgraded the long-term bank loan rating to 'CRISIL AA-/Stable' from 'CRISIL A+/Stable' and the short-term rating to 'CRISIL A1+' from 'CRISIL A1'. It covers ₹1,085 cr of bank facilities.
- Why is this upgrade considered only a one-notch move?
- The long-term upgrade is a single notch, from 'A+' to 'AA-'. Under CRISIL's scale, this reflects an improvement but not a multi-notch shift, keeping the score moderate (6/10) per the analyst rationale.
- How does the upgrade relate to Rane (Madras)'s recent acquisition?
- The acquisition of Hindustan Composites' friction business for ₹370 cr increased debt. The upgrade suggests CRISIL views the combined entity's credit profile as stronger, despite the higher debt.
Rane (Madras) Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on RML →- 9 Jul 2026 · 8:19 PM IST Rane (Madras) gets CRISIL rating upgrade to AA-
- 10d ago Rane Madras buys Hindustan Composites' friction unit for ₹370 cr
- 46d ago Rane (Madras) Q4 call transcript adds nothing new