Credit Ratings
Ba1 (Positive)
Moody’s
BB (Rating watch positive)
Fitch
A- (Stable)
Japanese Credit Rating Agency (JCRA)
A- (Stable)
Research & Investment Inc (R&I)
AA (Watch with Positive Implications)
ICRA
AA (Watch with Positive Implications)
IndRa
AA (Stable)
CARE
Diverse funding;
Global reach
Securing diverse liquidity streams to support strategic agility.
Partnering with top-tier domestic and global financial institutions to secure capital access across market cycles.
Strong financial
profile and ratings
Mr. Swayam Saurabh
Chief Financial Officer
“Our strategy is firmly anchored in value-accretive growth—growth that translates scale into superior, sustainable returns. By prioritising a higher-margin product mix, operational efficiencies and disciplined project execution, we are charting a clear pathway to sustained margin expansion across our portfolio.
This growth pathway is underpinned by meaningful balance sheet deleveraging through FY 2025-26, which has strengthened our credit metrics and lowered our cost of capital. That added financial headroom allows us to pursue high-return opportunities without compromising resilience, while every decision remains anchored in improving capital efficiency and asset productivity.
We continue to sharpen our capital allocation with a clear preference for the India growth opportunity, directing resources towards capacity expansion, downstream value-addition and high-return domestic projects that reinforce our competitive position in the world's fastest-growing steel market. This disciplined prioritisation ensures every rupee deployed strengthens both scale and profitability.
Backed by a diversified funding base, strong liquidity and proactive risk management, we remain committed to sustained balance sheet discipline as a non-negotiable guardrail across cycles. Every capital decision is ultimately measured against one test: does it enhance returns and create lasting value for our shareholders and stakeholders.”
Material issues addressed
- Business ethics
- Economic Performance
Strong financial discipline, robust cash flows and significantly improved leverage continue to power growth, enhance resilience and drive consistent value creation. This positions us to confidently navigate market cycles while continuing to invest ahead of the curve. Capital deployment remains sharply focused on high-impact growth opportunities, with disciplined allocation toward strategic initiatives that deliver enhanced returns and reinforce our competitive advantage. At the same time, we uphold a prudent risk management framework, ensuring that leverage remains firmly within our defined thresholds and financial guardrails. Together, these principles reinforce our financial strength and position us to respond with agility while consistently delivering sustainable value.
Net debt to equity
Net debt to EBITDA
Financial discipline and focus on return profile
Our approach to financial discipline is guided by a clear commitment to value creation and prudent capital allocation. We have strengthened our balance sheet through disciplined deleveraging, accelerated by the BPSL transaction resulting in net debt reduction of ~₹37,250 crore (Tranche I and expected Tranche II) alongside calibrated capital expenditure and active management of funding costs, including a reduction in the weighted average cost of debt.
Guided by a well-defined capital allocation policy and strengthened financial guardrails, Net debt to EBITDA 3.0x (previously 3.75x) and Net debt to equity of 1.25x (previously 1.75x), each investment is evaluated against rigorous return thresholds to ensure growth is aligned with profitability and cash flow generation while preserving financial flexibility across cycles.
We remain firmly focused on enhancing our return profile by improving asset efficiency, optimising operating performance, and prioritising high-return opportunities across the portfolio. The joint venture with JFE for CRGO project is a testament to that effect. Through continuous cost rationalisation, productivity improvements, and portfolio optimisation, we are driving sustainable improvement in key return metrics. Our objective is to consistently deliver superior returns on capital employed, while maintaining a disciplined risk framework and reinforcing long-term shareholder value.
Debt profile
Our debt strategy is underpinned by a robust liquidity framework, anchored by longstanding relationships with leading domestic and international financial institutions. This foundation has enabled us to maintain consistent and reliable access to domestic and global loan and debt capital markets supporting tapping diversified liquidity at an optimal cost.
Since 2014, we have successfully raised US$3.84 billion through international bond issuances, reflecting strong investor confidence in our credit profile. Notably, in September 2021, we further strengthened our sustainability credentials by launching the global steel industry’s first USD Sustainability-linked Bond, reinforcing our commitment to integrating ESG principles into our financing strategy.
As part of our ongoing efforts to optimise the capital structure and diversify funding sources, we secured US$1.8 billion over the past 24 months through syndicated External Commercial Borrowing (ECB) loans and ₹2,250 crore in the domestic debt capital market through issuance of non-convertible debentures. These transactions have enhanced financial flexibility, extended maturity profiles and reduced overall cost of capital.
Looking ahead, the transfer by way of slump sale of Bhushan Power & Steel Limited (BPSL) assets into a 50:50 strategic joint venture with JFE have significantly strengthened our balance sheet. Executed in two phases, this transaction will deliver ~₹37,250 crore of deleveraging. The first tranche, completed in March 2026, is reflected in current debt levels, with the second tranche of ₹7,875 crore expected in June 2026, further strengthening leverage and underpinning long-term growth.
Consolidated net debt movement in FY 2025-26
Diversified funding sources (%)
Net Gearing (ND/Equity) within the stated cap of 1.75x
Leverage (ND/EBITDA) within the stated cap of 3.75x
Strong liquidity
We maintain a strong liquidity position, with cash and cash equivalents amounting to ₹41,662 crore as at March 31, 2026. This robust liquidity profile enhances financial resilience, supports operational flexibility and enables timely capital deployment towards strategic growth opportunities.
Credit ratings
Our Company continues to maintain strong credit ratings across both international and domestic agencies. Internationally, it is rated Ba1 (Positive) by Moody’s and BB (Rating Watch Positive) by Fitch, while the Japanese Credit Rating Agency (JCRA) and Research & Investment Inc.(R&I) have assigned ratings of A- (Stable), both one notch above India’s sovereign rating of BBB+. Domestically, we hold ratings of AA (Watch with Positive Implications) from ICRA and India Ratings (Ind-Ra) and AA (Stable) from CARE.
Sustainability-linked bonds
In September 2021, we became the first steel company globally to issue Sustainability-linked Bonds (SLBs) in the US market, successfully raising US$1 billion through equal 5.5-year and 10.5- year tranches. The issuance attracted strong interest from ESG-focused investors and included a commitment to reduce carbon emissions to 1.95 tonnes of CO2 per tonne of crude steel by March 2030, representing a 23% reduction from 2020 levels, with a pricing step-up applicable if the target is not achieved.
This innovative financing structure aligns financial performance with sustainability objectives, enabling investors to support responsible businesses while reinforcing our Company’s commitment to continuous environmental improvement and long-term decarbonisation.
Risk management – Forex and Commodity
Our Company follows a Board approved Risk management policy which enables a proactive and disciplined approach to managing market risks across FX, interest rates and commodities with a clear focus on protecting margins and cash flow visibility. Hedging strategies are closely aligned with underlying exposures with derivatives used solely as risk mitigation tools.
A structured gross hedging programme covers export receivables, import payables and foreign currency debt through forwards, options, and swaps. Interest rate risk is dynamically managed through portfolio mix decisions while commodity risk is mitigated through medium- to long-term hedging aligned with supply contracts and global benchmarks. We are also investing in automation initiatives to enhance execution efficiency and enable real-time exposure management.
Near-term
- Maintain a strong liquidity position to navigate volatility and support growth.
- Expand and deepen domestic/ international partnerships to enhance funding flexibility, strengthen trade finance access and diversify risk at an optimal cost.
- Actively manage and hedge key financial risks, including foreign exchange, commodity and interest rate exposures.
- Pursue a credit rating upgrade from current levels following structural deleveraging.
Long-term
- Deliver growth within defined financial guardrails: Net Debt/EBITDA: <3.0x; Net Debt/Net Worth: <1.25x.
- Maintain a resilient, investmentgrade financial profile through market cycles.
- Drive sustainable value creation while balancing shareholder returns, strategic reinvestment priorities and balance sheet strength.
- Embed advanced analytics and integrated systems to enhance financial planning and decision-making.