Runaya secures credit rating upgrade to ‘A’ family with strong financial growth

By Staff Report February 11, 2025 5:10 pm IST

The upgrade is backed by the Recycling Business’s impressive operating and financial performance, with revenue surging to INR 329 Crs. in the first nine months of FY25, marking a 62% year-on-year growth. 

Runaya a pioneer and leader in sustainable manufacturing having alliances with global technology leaders across a portfolio of diverse recycled products, has been upgraded by India Ratings to A- (From BBB+) with a stable outlook highlighting its strong fundamentals including all credit financial ratios.

The upgrade is backed by the Recycling Business’s impressive operating and financial performance, with revenue surging to INR 329 Crs. in the first nine months of FY25, marking a 62% year-on-year growth. Significant improvement in gross interest coverage ratio at 8.4x, which further reflects the strong cash flow generation and disciplined financial management.

Runaya’s expansion into minor metal recovery and transition towards 100% renewable energy, aligned with our stated vision towards global environment and governance standards and therefore enhancing its long-term investment case.

Naivedya Agarwal, Managing Director of Runaya, commented “Runaya’s credit rating upgrade to the ‘A’ category is a validation of our strong financial fundamentals and operational resilience. Our 62% revenue growth demonstrates the scalability of our business model. This upgrade reinforces our position as a financially robust and innovation-driven company, creating long-term value for our stakeholders.” 

India Ratings’ decision also acknowledges the strengthened liquidity and improved financial flexibility of Runaya’s key counterparty, which has contributed to Runaya’s strengthened liquidity and operational efficiency. The company’s ongoing capital expenditure of INR 168 Crs., is largely funded through internal accruals and advances.