Sanstar Limited — Credit Ratings, 02-05-2025: Credit Rating- Revision

CARE Ratings has upgraded Sanstar Limited’s long-term bank facilities from BBB; Stable to BBB+; Stable and its short-term facilities from A3+ to A2. The upgrade reflects a stronger net worth of ₹618.08 Cr post-IPO in FY24, up from ₹217.51 Cr in March 2024, significantly improving capital structure and debt coverage with total debt to gross cash accruals improving to 0.88x from 2.22x. Steady profitability and effective working capital management also supported the action. The stable outlook indicates business stability and timely capacity expansion, boosting investor confidence and potentially lowering Sanstar’s borrowing costs.