Universal Cables Limited — Credit Ratings, 10-07-2025: Credit Rating

CARE Ratings has reaffirmed Universal Cables Limited’s credit ratings at “CARE A; Stable” for long-term bank facilities (enhanced to ₹1,079 Cr) and “CARE A1” for short-term facilities (enhanced to ₹1,726 Cr). The stable outlook reflects the company’s strong backing from the financially robust MP Birla Group, a healthy and diversified order book of ₹1,792 Cr, and improving scale of operations supported by a new manufacturing facility. While profitability margins moderated in FY25 due to product mix and lower optical fibre cable sales, margins are expected to improve with higher contribution from high-margin EHV cables. The company’s moderate leverage (overall gearing 0.31x) and improved debt protection metrics support financial stability. However, working capital-intensive operations and exposure to raw material price volatility remain key challenges. The reaffirmation supports continued investor confidence and maintains access to borrowing at stable costs.