Rationale

 The reaffirmation of ratings for Krishna Maruti Limited (KML) factors in the expectation of sustained healthy operational performance, aided by its strong share of business in both seat sets and plastics divisions, with Maruti Suzuki India Limited (MSIL), the leading passenger vehicle (PV) original equipment manufacturer (OEM) in the domestic market. KML recorded revenues of Rs. 4,255.7 crore with strong YoY growth of 12% in FY2025, aided by healthy demand in the PV industry. However, the operating profit margin (OPM) moderated to 9.8% in FY2025 from 10.6% in FY2024 due to higher bought out parts (BOP) in the premium variants and increased manpower costs. The company mainly procures leather, seatbelt reminder systems, airbags, recliner adjusters, seatbelts, and ventilation systems from external vendors. In 9M FY2026, the revenues remained at Rs 3,600-3,650 crore with an OPM of around 8.5%. With steady demand in the PV segment, KML is expected to continue generating healthy earnings, helping maintain a strong credit profile. Over the years, KML has continued to gain business for MSIL’s new model launches in its seat set division, helping it maintain a strong 60–70% share of business (SOB) in seat sets and a higher 80–85% in door trims under the OEM’s plastics division. New business wins and better performance of served models have aided KML in maintaining a strong credit profile, characterised by strong return indicators, negligible debt (apart from lease liabilities) and unencumbered liquidity of around Rs. 800 crore as on December 31, 2025. Its Kharkhoda (Haryana)ss plant, set up at an outlay of approximately Rs. 250 crore, became operational in Q1 FY2026, and has been supplying for two models of MSIL. Even as the company has capex plans of Rs. 150- 200 crore in FY2026 towards expansion at its Gujarat plants, routine maintenance, investments in the plastics division of plants acquired earlier from Trim India, along with solar installation capex, its reliance on debt is expected to remain negligible, supporting its robust financial risk profile. The ratings continue to consider the favourable ownership of KML with nearly 45% of its stakes held by MSIL and Suzuki Motor Corporation (SMC), Japan, along with board representation. The availability of technical assistance from SNIC Corporation, Japan, has aided the company’s product development and ensured revenue visibility for KML over the medium term. However, KML remains exposed to significant segment and client concentration risks as most of the revenues emanate from MSIL. The risk, however, is mitigated to an extent by the strong SOB enjoyed by KML in MSIL, and the market leadership position of the latter in the Indian PV industry. The company also faces significant product concentration risk as around 75% of its revenues in FY2025 were driven by seat sets. ICRA further notes that the company’s board had approved the extension of a corporate guarantee (CG) of up to Rs. 500 crore for bank facilities availed by Group entities, SKH Metals Limited and SKH Sheet Metal Components Private Limited (board approval in FY2021), along with extension of loan of up to Rs. 150 crore to Krisumi Corporation (non-automotive entity, board approval in FY2022). As of January 2026, the loan to Krisumi stood at nil, while the CG exposure had reduced YoY to around, Rs. 110 crore, which provides comfort. The extended CGs cover a portion of SKH Metals Limited’s debt and, accordingly, ICRA has consolidated SKH Metals Limited’s financials with that of KML, while arriving at its ratings. Although the support extended to weaker Group entities has not materially impacted KML’s credit metrics due to availability of surplus cash and liquid investments, extension of further support to Group entities would remain a key monitorable, going forward.

he Stable outlook on the long-term rating reflects ICRA’s opinion that KML will continue to benefit from its established relationship with MSIL and technical collaboration with SNIC Corporation, helping it generate healthy cash accruals and maintain a robust credit profile over the medium term.