IRM Energy Limited — Credit Ratings, 21-05-2025: Credit Rating

Crisil has reaffirmed IRM Energy Limited’s long-term rating at Crisil AA- but changed the outlook to Negative from Stable, while maintaining the short-term rating at Crisil A1+. The outlook shift reflects slower business growth expected in fiscal 2025 due to reduced access to lower-cost APM gas, impacting input costs, volumes, and operating margins. Despite these challenges, IRM Energy’s strong financial health is evident with a net cash position of around Rs 258 crore and low adjusted gearing of 0.13 times, supported by IPO proceeds and minimal debt. The Negative outlook indicates potential pressure on cash flows and leverage, underscoring the importance of improving volume growth, margins, and timely capex to maintain credit strength.