Crisil Upgrades Atlanta Electricals to ‘A/Stable’

Crisil Ratings has upgraded the long-term credit rating of Atlanta Electricals Ltd (AEL) to ‘Crisil A/Stable’ from ‘Crisil BBB+/Positive’, and its short-term rating to ‘Crisil A1’ from ‘Crisil A2’. The revision reflects the company’s enhanced financial strength, backed by a robust order pipeline and recent equity infusion through its IPO.

The agency cited the promoters’ extensive experience, established market presence, and a healthy financial risk profile as key drivers for the upgrade. AEL reported a 43% year-on-year revenue growth, reaching Rs 12.44 billion in FY2025, compared to Rs 8.68 billion in FY2024, supported by continued demand and a strong order book worth Rs 19.43 billion as of September 2025.

The company’s net worth rose to Rs 7.5 billion as of September 2025, up from Rs 3.5 billion in March 2025, due to IPO proceeds of Rs 4 billion, which were utilised to prepay term debt. This has improved the capital structure, with the TOL/TNW ratio expected to fall below 0.7x in upcoming fiscals.

Crisil noted that both AEL’s Vadod capacity expansion and its subsidiary, BTW-Atlanta Transformers India Pvt Ltd, are fully operational, providing growth momentum over the medium term.

Atlanta Electricals, with over 30 years of industry experience, manufactures a wide range of power, auto, and inverter duty transformers from its facilities in Gujarat and Karnataka. The company has supplied 4,400 transformers totalling 94,000 MVA across 19 states and three union territories.