Runaya Achieves 'A-' Rating, Driven by Sustainable Manufacturing Growth

Runaya, a sustainable manufacturing company known for its partnerships with global technology leaders across a diverse portfolio of recycled products, has received a significant credit rating upgrade from India Ratings.

As per the firm's statement, the rating has been raised to 'A-' from 'BBB+', with a stable outlook, reflecting the company's strong financial fundamentals and robust credit metrics.

The upgrade is primarily attributed to the impressive operating and financial performance of Runaya's recycling business. In the first nine months of FY25, the business generated revenue of INR 329 crore, a remarkable 62 percent year-on-year increase. This strong revenue growth is coupled with a significant improvement in the gross interest coverage ratio, which now stands at 8.4x, demonstrating the company's strong cash flow generation and prudent financial management.

India Ratings also cited Runaya's strategic expansion into minor metal recovery and its commitment to transitioning to 100 percent renewable energy as positive factors contributing to the upgrade. These initiatives align with the company's stated vision of adhering to global environmental and governance standards, further strengthening its long-term investment appeal.

Naivedya Agarwal, Managing Director of Runaya, expressed his satisfaction with the upgrade. "Runaya’s credit rating upgrade to the 'A' category is a validation of our strong financial fundamentals and operational resilience," he commented. "Our 62 percent revenue growth demonstrates the scalability of our business model. This upgrade reinforces our position as a financially robust and innovation-driven company, creating long-term value for our stakeholders," he added.

India Ratings' decision also acknowledges the improved financial flexibility and strengthened liquidity of Runaya's key counterparty, which has positively impacted Runaya's own liquidity and operational efficiency. The company is currently undertaking capital expenditure of INR 168 crore, which is being largely funded through internal accruals and advances, demonstrating its financial strength and ability to invest in future growth.