Akar Auto Industries Gets Credit Rating Upgrade from Infomerics

Infomerics Valuation and Rating Private Limited upgraded Akar Auto Industries Limited's credit ratings. The long-term bank facilities rating was upgraded to IVR BBB/Stable from IVR BBB-/Stable, while short-term bank facilities were upgraded to IVR A3 from IVR A3. The upgrade reflects strengthening of the company's business profile driven by revenue diversification and anticipated benefits from backward integration through solar power generation. The company operates in manufacturing precision engineered forging components, hand tools, toolkits and leaf springs for auto and non-auto OEMs. Total operating income grew 2% to Rs. 377.17 crore in FY25, with EBITDA improving 10% to Rs. 26.63 crore. The ratings are supported by locational advantages, diversified revenue streams across domestic and export markets, and established clientele including Ashok Leyland, Volvo Eicher Commercial Vehicles, and Bajaj Auto. However, ratings remain constrained by leveraged capital structure and exposure to cyclical auto industry trends.

Akar Auto Industries Approves Quarterly Results, Recommends 12% Dividend and Key Board Appointments

Akar Auto Industries Limited's Board approved unaudited financial results for the quarter ended June 30, 2025. The Board recommended a 12% dividend (Rs. 0.60 per equity share of Rs. 5 each) for financial year 2024-2025, subject to shareholder approval. The company appointed M/s Singh Mundada & Associates as statutory auditors for one year from the 36th to 37th Annual General Meeting. The Board also approved re-appointment of Mr. Sunil Todi as Managing Director for 5 years from September 16, 2025 to September 15, 2030. The 36th Annual General Meeting is scheduled for September 30, 2025 via video conference.