India News : CRISIL Ratings has reaffirmed ESL Steel Limited’s long-term credit rating at CRISIL AA/Stable and removed the company from “Rating Watch with Developing Implications,” citing confidence in the company’s strategic role within the newly restructured Vedanta Group.
The rating action follows CRISIL’s review of Vedanta Group after the completion of its demerger. The agency said ESL Steel is an integral part of Vedanta Iron & Steel Limited (VISL) and is expected to become the largest contributor to the parent company’s earnings over the medium term.
According to CRISIL, the rating reflects continued operational, managerial and financial support from VISL, including unconditional and irrevocable corporate guarantees for ESL Steel’s long-term debt.
The ratings agency also noted an improvement in ESL Steel’s operating performance during the fourth quarter of FY26. The company reported a sharp recovery in operations, with management expecting the momentum to continue as expansion plans progress. Cash reserves also increased significantly during the period compared with the previous year.
Commenting on the reaffirmation, Ravish Sharma, CEO and Whole-Time Director of ESL Steel Limited, said the rating validates the company’s improving operational performance, financial resilience and strategic importance within Vedanta Iron & Steel.
“The reaffirmation of our AA/Stable rating by CRISIL is a strong endorsement of ESL Steel’s improving operational performance, financial resilience and strategic importance within Vedanta Iron & Steel. As we continue to enhance efficiencies, strengthen our balance sheet and pursue sustainable growth, we remain committed to creating long-term value for our stakeholders,” Sharma said.
CRISIL’s review forms part of a broader assessment of the Vedanta Group following its corporate restructuring. Alongside reaffirming ESL Steel’s rating, the agency also reviewed ratings across several Vedanta businesses, including Vedanta Limited, Vedanta Aluminium, Vedanta Oil & Gas and guaranteed facilities of Vedanta Power.
In its rationale, CRISIL highlighted the group’s diversified metals portfolio, covering zinc, silver, lead, aluminium, copper and nickel, as well as its large operational scale, healthy market share and cost-efficient operations.
ESL Steel, a subsidiary of Vedanta Iron & Steel Limited, operates a 1.5-million-tonne-per-annum integrated steel plant at Siyaljori in Bokaro, Jharkhand. The company manufactures pig iron, billets, TMT bars, wire rods and ductile iron pipes for the infrastructure, construction and engineering sectors.
If this is for a digital news portal, I can also rewrite it in a sharper Economic Times/Business Standard-style format with a stronger headline and SEO-friendly intro.
