Shyam Metalics and Energy Limited (SMEL) said CRISIL Ratings has reaffirmed its long-term credit rating at ‘CRISIL AA+/Stable’ and short-term rating at ‘CRISIL A1+’.

The rating agency has also enhanced the company's rated bank debt facilities to Rs. 4,500 crore from Rs. 3,600 crore. Additionally, the rating for its Rs. 50 crore Commercial Paper programme has been reaffirmed at ‘CRISIL A1+’.

The reaffirmation reflects the company's established position in the steel sector, strong financial risk profile, healthy operating performance and operational efficiencies supported by its integrated manufacturing operations.

The company said its operating performance and revenue growth continue to improve, driven by higher sales volumes across key product segments. Its ongoing capacity expansion and diversification into flat steel, pig iron, stainless steel and aluminium foils are also expected to strengthen its market presence.

SMEL's integrated operations, captive power generation, waste heat recovery plants, coal washeries and dedicated railway sidings support cost efficiencies. The planned operationalisation of coal blocks is expected to further strengthen its long-term energy and raw material security.

The company also highlighted its strong balance sheet, conservative leverage, healthy liquidity position and disciplined approach towards funding capital expenditure through internal accruals and cash reserves.

On the sustainability front, SMEL continues to increase renewable energy consumption, maintain Zero Liquid Discharge (ZLD) operations and follow international standards for emissions reporting.

Commenting on the development, Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics and Energy, said the rating reaffirmation and enhancement of bank facilities reflect the company's strong business strategy, balance sheet and execution capabilities. He added that the company remains focused on prudent capital allocation, maintaining liquidity and creating long-term stakeholder value while pursuing capacity expansion and product diversification.