GK Energy Limited has received comprehensive credit rating upgrades from Infomerics Valuation and Rating Ltd, reflecting the company's strong operational performance and improved financial metrics. The upgrades announced on December 12, 2025, cover all bank facilities totaling ₹300.00 crores.
Credit Rating Upgrades Overview
Infomerics has upgraded ratings across multiple facility categories, demonstrating confidence in GK Energy's creditworthiness and operational capabilities.
| Facility Type |
Previous Rating |
New Rating |
Amount (₹ crores) |
| Long Term Bank Facilities |
IVR BBB/Stable |
IVR BBB+/Stable |
153.86 |
| Short Term Bank Facilities |
IVR A3+ |
IVR A2 |
30.00 |
| Long-term/Short-term Bank Facilities (Proposed) |
IVR BBB/Stable: IVR A3+ |
IVR BBB+/Stable: IVR A2 |
56.14 |
The stable outlook reflects expected growth in revenue and profitability with stable debt protection metrics over FY26-FY28.
Strong Financial Performance Drives Upgrades
The rating upgrades are primarily attributed to GK Energy's exceptional revenue growth and improved profitability metrics. The company achieved remarkable revenue growth of 166% year-on-year, reaching ₹1,094.83 crores in FY25, driven by timely execution of solar pump installations with steady government allocations.
| Financial Metric |
FY24 |
FY25 |
Change |
| Total Operating Income |
₹411.09 crores |
₹1,094.83 crores |
+166% |
| EBITDA |
₹53.82 crores |
₹200.40 crores |
+272% |
| PAT |
₹36.14 crores |
₹133.22 crores |
+269% |
| EBITDA Margin |
13.09% |
18.30% |
+520 bps |
| PAT Margin |
8.77% |
12.12% |
+335 bps |
During H1 FY26, the company maintained strong momentum with revenue of ₹653 crores compared to ₹421 crores in H1 FY25, while EBITDA margins further improved to 19.63%.
Robust Order Book and Market Position
GK Energy maintains a strong market position with a substantial order book of ₹863.98 crores as of September 30, 2025, representing 0.79 times of FY25 revenue. The order book composition demonstrates geographic diversification:
- Maharashtra: ₹853 crores
- Haryana and Madhya Pradesh: Remaining portion
The company derives majority revenue from solar pump installations under the PM-KUSUM Scheme funded by the central government. GK Energy has secured supply of domestically manufactured solar cells sufficient to meet requirements through March 2027, ensuring assured raw material availability.
Enhanced Capital Structure and Liquidity
The company's financial risk profile has strengthened significantly following strategic capital initiatives. Fresh equity infusion of ₹19.30 crores by promoters during FY25 improved the capital structure, with adjusted gearing and TOL/ATNW ratios at 0.97x and 1.70x respectively as of March 31, 2025.
| Capital Structure Metrics |
March 31, 2024 |
March 31, 2025 |
September 30, 2025 |
| Total Net Worth |
₹55.92 crores |
₹209.11 crores |
₹779 crores |
| Gearing Ratio |
0.94x |
0.97x |
0.50x |
| TOL/TNW |
2.44x |
1.70x |
0.74x |
The September 2025 IPO, comprising fresh issue of ₹400 crores and offer for sale of ₹64.26 crores, along with pre-IPO rounds of ₹100 crores, substantially enhanced the company's financial flexibility with ₹300 crores of unutilized IPO proceeds available for working capital requirements.
Key Rating Strengths and Risk Factors
Infomerics highlighted several key strengths supporting the rating upgrade:
- Strong execution capabilities with experienced promoters and long track record since 2008
- Comfortable debt protection metrics with interest coverage ratio of 8.97x as of March 31, 2025
- Government sector focus providing revenue stability through PM-KUSUM scheme participation
- Operational leverage benefits from bulk procurement enabling substantial cost reductions
However, the rating agency noted certain risk factors including working capital intensive operations with collection days of 86 in FY25, though improved from 117 days in FY24. The tender-based nature of operations and competition from organized and unorganized players remain ongoing challenges, partially mitigated by the company's strong market position in the solar pumps segment.
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