| Green Infra Clean Solar Energy Limited | ||||
| Rating reaffirmed at 'Crisil AA+ / Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its 'Crisil AA+/Stable’ rating on the long term bank facilities of Green Infra Clean Solar Energy Limited (GICSEPL; part of the Sembcorp Green Infra [SGI] group).
The ratings factor the healthy business risk profile, driven by benefits from the scale and diversity of the assets of SGI across technology, locations and counterparties, strong revenue visibility aided by track record of timely receipt of payments and long-term power purchase agreements (PPAs). The ratings also factor the healthy financial risk profile of the SGI group, marked by healthy debt service coverage ratio (DSCR) and sufficient liquidity.
The ratings remain constrained by exposure to risks inherent in operating renewable energy assets. Some of the underlying wind assets of the group have performed below expectation. The solar portfolio, where generation is more stable than wind, has a healthy operating track record.
The ratings also remain constrained by the considerable under-construction projects, which stood at 4.1 gigawatt (GW) of proposed installed capacity as on October 31, 2025. The under-construction portfolio is fairly diversified across solar and wind hybrid projects as well as BESS, FDRE and RTC capacities. However, the ratings factor the group’s track record of successful execution. Nevertheless, timely completion within estimated cost would remain monitorable. SGIPL has successfully commissioned 0.54 GW of capacity in the last 12 months across solar and wind.
SGIPL has recently completed the acquisition of 300 megawatt (MW) solar power asset, ReNew Sun Bright Pvt Ltd for a total consideration of ~Rs 1700 crore. The ability of the group to prudently fund its growth while maintaining sufficient liquidity will be monitorable.
Further, the group has bullet maturities over the next few years that exposes the portfolio to ongoing refinancing risk. However, the long tenure of the PPAs for operational assets provides cash flow visibility enhancing the ability to refinance debt. Further, SGI has exhibited a successful track record of competitive and timely refinancing
The ratings continue to reflect the managerial and financial support that SGIPL and its special purpose vehicles (SPVs) derive from being strategically important to its ultimate parent, Sembcorp Industries (SCI). |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of SGIPL and its SPVs. This is because all the entities, collectively referred to as the SGI group, are engaged in the renewable power generation business in India, have common management and are critical to the group. The SGI group has a track record of supporting its entities, and excess cash flow after debt servicing in each SPV is typically available for use across the group. Crisil Ratings has also factored support from the ultimate parent, SCI, to arrive at the ratings of the SGI group.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Diversified portfolio with healthy financial risk profile The group derives strength from its diverse portfolio of commissioned capacity of ~ 3.3 GW as on October 31, 2025, which includes ~ 2.1 GW of wind and ~1.2 GW of solar power. The portfolio is also diversified in terms of location and counterparty, with assets across Karnataka, Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu and Andhra Pradesh. Majority of the assets have long-term PPAs at predetermined tariffs with central and state counterparties, leading to healthy revenue visibility. At present, around ~7% of the overall total portfolio caters to commercial and industrial customers. Payments are generally being received on time, especially after the implementation of the late payment surcharge scheme.
In the past, the group utilised its cash accrual to reduce debt and refinanced debt at a lower interest rate, thereby improving DSCR. The consolidated debt per MW remains healthy at ~Rs 3.5-4.0 crore. Given the sizeable under construction pipeline, consolidated debt is likely to increase. However, financial risk profile should remain strong over the medium term, given the diversified portfolio and revenue visibility through long-term PPAs.
The group has assets of ~4.1 GW in the pipeline across various stages of development, including recently won bids for solar and wind hybrid projects as well as BESS, FDRE and RTC capacities. The ability to prudently fund capital expenditure (capex) is a rating sensitivity factor.
Managerial and financial support from the ultimate parent, SCI SCU has a track record of supporting its assets globally and in India when needed and has infused funds for acquisition and supporting growth. The global parent has also extended corporate guarantee in the past, which has been progressively reducing and now accounts for less than half of the existing debt. However, SGI group is expected to remain critical to SCI, as it folds into the long-term growth strategy for its renewable energy platform.
Crisil Ratings expects as part of any new acquisition or project bid, SGI will continue to benefit from equity support from SCU for any shortfall, which minimizes the funding risk associated with the SGI portfolio. Any deviation from the policy of support will be a key monitorable.
Support derived as part of the SGI group The SPVs benefit from the demonstrated track record of the SGI group in execution and ramp-up of projects and support offered to the renewable portfolio. The group is likely to maintain adequate liquidity to meet any exigency or shortfall. The debt raised under corporate guarantee and unguaranteed/unsecured structure, does not have any formal debt service reserve account requirement. Management has articulated that the group maintains sufficient liquidity to comfortably cover the debt servicing and operations and maintenance expenses. Any significant reduction in liquidity cushion will be monitorable. |
Key Rating Drivers - Weaknesses Presence of a large under-implementation portfolio About 55% of the existing portfolio is under implementation. Further Crisil Ratings expects SGI to continue to grow its portfolio in the coming years through organic or inorganic routes. However, the group has an established execution track record and financial flexibility, which mitigates the risks associated with under-construction projects. Funding risk is mitigated by the ability of the SGI group to raise funds at competitive interest rates, internal accruals and equity support articulation from SCU, if required. However, legal delays may still occur.
Exposure to risks inherent in operating renewable assets and counterparty risk Cash flows of renewable power projects are sensitive to plant load factors (PLFs), which depend primarily on wind and solar patterns that are inherently unpredictable. This could impact cash flow generation, thereby affecting debt-servicing ability. The wind assets have shown high volatility; however, the solar portfolio has exhibited a healthier operating track record. Healthy operating cash flow amid demonstration of asset performance over the medium term will be a key monitorable.
Furthermore, renewable assets are susceptible to counterparty risk as state distribution companies have weak financial health and may delay payments. For the SGI group, this risk is mitigated by the diversity in counterparties, with 53% of the operational capacity and almost the entire under-construction capacity is tied up with strong counterparties including SECI, NTPC and GUVNL.
Further the group had cash of ~ Rs 990 crore as on October 31, 2025 and unutilised fund-based limit of ~ Rs 1860 crore. Receivables (excluding unbilled) declined to around 40 days as on March 31, 2025, from over 55 days a year earlier. |
Liquidity Strong Crisil estimates that the group’s cash accrual of, expected at Rs 2,200- 2,500 crore each in fiscals 2027 and 2028 should comfortably cover yearly debt obligation of Rs 1,800-2,000 crore assuming timely refinancing of bullet maturities. Consolidated cash and equivalent were around Rs 990 crore as on October 31, 2025, along with available fund-based limit of ~Rs 1860 crore, together equivalent to over 12 months. Liquidity is also supported by need-based funds from the global parent. The under-construction projects will require total funding of Rs ~ 20,000 crore over the next 2-3 years. Crisil expects that SCU may provide support for any equity shortfall in these projects that cannot be fulfilled through the internal accrual of the SGI group. |
Outlook Stable The credit risk profile of the SGI group should remain healthy over the medium term backed by healthy DSCR and need-based support from the parent. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company GICSEPL is a majority held step-down subsidiary of SGIPL, with a portfolio of 10-MW operational solar power projects in Gujrat. |
About the Group SGIPL is the holding entity of SPVs in the SGI group, with a portfolio of 3.3 GW operational wind and solar power projects located across multiple states including Gujarat, Tamil Nadu, Karnataka, Rajasthan and Maharashtra. The company has signed long-term PPAs with several state and central counterparties. |
Key Financial Indicators (for the SGI group) (consolidated; as reported by company)
Crisil Ratings-adjusted figures
Key financials (for GICSEPL)
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
*As on October 31, 2025 |
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||
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Criteria Details
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