Crisil Ratings stated that the ratings continue to factor in the established track record of the KCP group in the cement segment in southern India and sugar segment in Vietnam, and its healthy financial risk profile.

These strengths are partially offset by sub-par, albeit improving, operating performance of the cement and engineering segments, susceptibility to changing business cycles and the continued demand-supply mismatch in the cement market in south India.

The company has a healthy financial risk profile and remains net cash positive. It is undertaking capital expenditure (capex) for implementation of WHRS and railway siding in the cement segment which will be partly debt-funded.

Additionally, it is expanding its sugarcane crushing capacity in Vietnam by 4,000 tonne per day (TPD) and biomass plant capacity by 45 MW which is expected to be funded entirely through internal accrual.

Despite the total expected capex of Rs 750-850 crore over fiscals 2026-2028, KCP will remain net cash positive over the medium term.

Debt protection metrics should remain healthy, too. Liquidity is supported by consolidated cash and equivalents of Rs 1,089 crore as on September 30, 2025. The KCP group operates a cement business, a sugar business and a heavy engineering division. The engineering division undertakes casting, fabrication and machining of heavy equipment for core industries (sugar, cement, steel and power). The KCP group also has a 127-room four-star hotel in Hyderabad named Mercure.

For the first half of fiscal 2026, the group reported operating income and profit after tax of Rs 1,278 crore and Rs 137 crore, compared with Rs 1,293 crore and Rs 151 crore, respectively, for the corresponding period of the previous fiscal.

The scrip shed 0.92% to currently trade at Rs 183.35 on the BSE.