Birla Cable Limited — Credit Ratings, 10-07-2025: Credit Rating- Revision

CARE Ratings has reaffirmed Birla Cable Limited’s (BCL) long-term bank facilities rating at CARE BBB+ with a stable outlook, while maintaining the short-term rating at CARE A1+. The rating reflects BCL’s moderate financial risk profile supported by the experienced MP Birla Group, improved gearing, and expected operational recovery driven by a gradual revival in optical fibre cable (OFC) demand and better capacity utilisation in structured cables. However, the company faces challenges from subdued OFC market conditions, high client concentration (top 10 customers contributing ~94% of revenue), and working capital-intensive operations with an operating cycle of 125 days. BCL’s moderate reliance on bank borrowings (average fund-based utilisation ~40%) and group financial support underpin its liquidity. Sustained improvement in scale, profitability, and working capital management will be key to maintaining credit quality.