ICRA has reaffirmed its credit ratings for Avaada Electro Ltd (AEL) and assigned ratings for enhanced borrowing limits, factoring in the company’s rapid scale-up in solar manufacturing and continued support from its parent, Avaada Ventures.
The total rated facilities have increased to INR 6,607 crore from INR 4,536 crore. Long-term fund-based facilities, including term loans and cash credit, continue to carry a [ICRA] A- (Positive) rating, while short-term non-fund-based instruments, such as letters of credit and bank guarantees, remain rated [ICRA] A2+.
The rating reaffirmation factors in the successful commissioning of five solar module manufacturing lines at AEL’s Butibori plant in Nagpur, Maharashtra, adding 7 GW of capacity. This takes the company’s consolidated operational solar module capacity to 8.5 GW, with around 8.22 GW enlisted under the government’s Approved List of Models and Manufacturers (ALMM-I).
AEL reported a steady ramp-up in operations, with capacity utilisation of 83% in FY2025 and 59% in H1 FY2026. Module production stood at 630 MW in FY2025 and increased to 1,165 MW in the first half of FY2026.
ICRA also noted that AEL is in advanced stages of installing a 6-GW solar cell manufacturing facility at the Butibori plant. The ratings further factor in a healthy order book of over 20 GW from group entity Avaada Energy Private Limited (AENPL), which is to be executed over the next four to five years, providing strong revenue visibility for AEL.
Additionally, ICRA rating is supported by the Group’s established track record in the renewable energy sector, with around 6 GW of operational renewable capacity, and the presence of an experienced sponsor with demonstrated fund-raising capability. Strong policy support for domestic solar equipment manufacturers—particularly through the ALMM framework, which restricts the use of imported modules and cells—also supports the company’s credit profile.
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