Mumbai, July 9 -- The agency has assigned 'IND A1' rating to the short-term facilities of the company.

India Ratings and Research stated that the rating factors in KPL's healthy business profile with integrated operations, a diversified feedstock mix and improved operating efficiencies with the investments made over FY20-FY21, which have likely resulted in healthy EBITDA margins and cash flows through the cycle.

The EBITDA margins declined in FY25, owing to an industry-wide fall in the sales realisation, driven by an increase in the import of paper; however, the fall was lower than that of the industry average due to the company's dual feedstock mix (wood and agro residues).

Nevertheless, the threat of import persists due to geopolitic...