CARE Ratings Limited (CARE) has reaffirmed and assigned ratings to The India Cements Limited's (ICL) bank facilities and commercial paper on June 23, 2025. The ratings are as follows:

• Long-term Bank Facilities: ₹1,077.56 crore, rated CARE AAA; Stable (Reaffirmed)
• Long-term / Short-term Bank Facilities: ₹1,112.61 crore, rated CARE AAA; Stable / CARE A1+ (Reaffirmed)
• Commercial Paper (Carved out): ₹250.00 crore, rated CARE A1+ (Assigned)

The ratings reflect ICL's strong parentage under UltraTech Cement Limited (UltraTech) and its strategic importance to UltraTech. ICL is expected to benefit from operational synergies, and UltraTech has announced a capital expenditure plan of ₹1,500 crore to improve ICL's operational efficiencies.

ICL has an established market position in South India with 14.45 metric tonne per annum (MTPA) cement capacity. The company's capital structure significantly improved in FY25, with gross debt reducing from ₹3,286 crore as on March 31, 2024, to ₹1,886 crore by March 31, 2025. This reduction was primarily due to a ₹2,300 crore inflow from recoupment of loans, sale of the Parlie grinding unit, reduction in capital advances, and disposal of non-core assets.

Despite these strengths, ICL faces challenges from the cyclicality of the cement industry and overcapacity in the Southern India market. The company reported a total revenue from operations of ₹4,149 crore in FY25, a 19% decrease from ₹5,112 crore in FY24, and incurred an operating loss in FY25. The outlook for ICL's bank facilities is 'Stable', reflecting the belief that ICL will continue to benefit from its strong linkages with UltraTech and improve its business profile.