Kennametal India Limited has received a credit rating affirmation from India Ratings and Research, with the rating agency maintaining the company's long-term issuer rating at IND AA- with a stable outlook. The rating decision was communicated through an official report dated December 16, 2025.

Credit Rating Details

India Ratings and Research affirmed Kennametal India's credit rating following their comprehensive evaluation. The rating reflects the agency's assessment of the company's financial strength and creditworthiness.

Regulatory Compliance

The company disclosed this rating development to BSE Limited on December 17, 2025, demonstrating adherence to regulatory requirements. Managing Director Vijaykrishnan Venkatesan signed the disclosure letter, ensuring proper corporate governance protocols were followed.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material developments including credit rating changes.

Rating Agency Communication

India Ratings and Research, part of the Fitch Group, issued the rating letter to Kennametal India's Chief Financial Officer Suresh Reddy. The rating agency emphasized that their methodology involves factual information verification from multiple sources and reasonable investigation procedures.

The rating agency noted that their ratings are based on established criteria and methodologies that undergo continuous evaluation and updates. Senior Director Abhishek Bhattacharya signed the rating communication on behalf of India Ratings and Research.

Corporate Information

Kennametal India Limited operates from its registered office at 8/9 Mile, Tumkur Road, Bangalore 560073. The company maintains transparency in its financial disclosures and continues to meet its listing obligations as required by securities market regulations.

The affirmation of Kennametal India's long-term issuer rating at IND AA- with a stable outlook reflects the company's strong credit profile. This rating decision underscores the company's financial stability and creditworthiness in the market.

Kennametal India Limited (KIL) has reported a strong financial performance for the second quarter, demonstrating significant growth across key financial metrics. Additionally, the company has approved a new greenfield project and released its first quarter results.

Financial Highlights

Kennametal India has delivered a robust performance in Q2, with revenue climbing to ₹2,960.00 crore, marking a 9.47% increase from ₹2,704.00 crore in the same quarter last year. The company's net profit saw a substantial rise of 25.60%, reaching ₹314.00 crore compared to ₹250.00 crore in the previous year's Q2.

Operational Performance

The company's operational efficiency is evident in its improved EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which grew by 24.30% year-over-year to ₹527.00 crore. The EBITDA margin expanded by 212 basis points, from 15.68% to 17.80%, indicating enhanced operational profitability.

Segment Performance

Kennametal India's performance was driven by strong results across its business segments:

1. Hard Metal and Hard Metal Products: This segment continued to be the primary revenue generator, contributing ₹2,639.00 crore to the total revenue.

2. Machining Solutions: The Machining Solutions segment reported revenue of ₹321.00 crore, showing growth and diversification in the company's product offerings.

Strategic Initiatives and New Developments

The Board of Directors has approved pre-project activities and capital expenditure of approximately ₹68 crore for setting up a greenfield project in India for the MSG (Machining Solutions Group) Business. This initiative includes various initial studies, land identification, and preparation of a detailed feasibility report, signaling the company's commitment to long-term growth and expansion in the Indian market.

In a separate development, Kennametal India's Board of Directors approved unaudited financial results for the first quarter ended September 30, during a meeting held on November 5. The statutory auditors M/s. PriceWaterhouse Co Chartered Accountants LLP issued a limited review report with no qualifications or adverse remarks.

Management Commentary

Vijaykrishnan Venkatesan, Managing Director of Kennametal India, commented on the Q2 performance: "Our Q2 performance is driven largely by continued momentum in key end markets, strategic growth initiatives, and disciplined operational execution. The strength of our differentiated portfolio across the Hard Metal segment as well as the Machining Solutions Group enabled our customers to solve their most complex manufacturing challenges."

Future Outlook

Kennametal India remains focused on advancing manufacturing excellence, expanding its market presence, and delivering value to shareholders. The company's strategic investments, including the new greenfield project, and strong performance across segments position it well for continued growth.

The robust Q2 results, strategic initiatives, and approval of the new greenfield project underscore Kennametal India's strong market position and its ability to capitalize on growth opportunities in the industrial technology sector.