Vindhya Telelinks Limited — Credit Ratings, 10-07-2025: Credit Rating- Revision

CARE Ratings has reaffirmed Vindhya Telelinks Limited’s long-term bank facilities rating at CARE A+ while revising the outlook to Negative, and reaffirmed the short-term rating at CARE A1+. The outlook revision reflects anticipated moderation in the company’s financial profile due to a stretched operating cycle caused by delayed collections, leading to higher working capital borrowings and pressure on liquidity. Despite a healthy order book of ₹6,784 crore (~1.67x FY25 revenue) and strong backing from the MP Birla Group, profitability declined in FY25 due to lower contribution from high-margin EPC orders and subdued optical fibre cable demand. The rating action signals potential near-term challenges in coverage metrics and liquidity, though expected margin improvement and order execution remain key monitorables.