K2 Infragen has secured an ACUITE BBB- rating with a Stable outlook for its long-term bank facilities and an ACUITE A3 rating for its short-term facilities from Acuité Ratings & Research, covering total bank facilities of Rs 2 billion.

The rating comprises Rs 1.27 billion of long-term borrowings and Rs 730 million of short-term working capital facilities.

According to the rating agency, the investment-grade rating reflects K2 Infragen's business risk profile, revenue growth, execution capabilities and financial discipline. The assessment is also supported by the company's order book, which provides medium-term revenue visibility, and its improving financial risk profile, including comfortable gearing and debt protection metrics.

The company said the rating is expected to strengthen its borrowing capacity, optimise working capital costs and improve its ability to bid for larger public and private infrastructure projects.

Priyanka Pareek, Chief Financial Officer, K2 Infragen, said the investment-grade rating validates the company's financial discipline and operational resilience, while enhancing its ability to support future growth in India's infrastructure sector.

K2 Infragen operates across power distribution, water management, roads and civil engineering projects.