Press Release

Press Release

September 17, 2026

KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	450.00	ACUITE A \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	450.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE A’ (read as ACUITE A) on the Rs. 450.00 Cr. bank facilities of KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED (KSIDC). The outlook is 'Stable'.

Rationale for the rating
The rating continues to factor in Government of Kerala’s (GoK) support and KSIDC’s strategic importance in the development of physical and social infrastructure required for industrial growth in the state. The rating factors in KSIDC’s role as a nodal agency for foreign and domestic investments in Kerala. The rating reaffirmation factors the healthy capitalization levels marked by net worth of Rs. 1,232.42 Cr. as on March 31, 2026 (Prov.) with an overall and Capital Adequacy Ratio (CAR) of 63.91 percent with Tier one consisting of 62.96 percent. The entity maintains comfortable gearing levels at 0.21 times as on March 31, 2026 (Prov.) and 0.24 times as on March 31, 2025. KSIDC registered AUM of Rs. 1706.73 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 1,889.36 Cr. as on March 31, 2025. The disbursements for FY2026 (Prov.) were to the tune of Rs. 315.18 Cr.
The rating is however constrained by decline in the earning profile and high levels of GNPA of KSIDC. The entity reported a PAT of Rs. 6.76 Cr. during FY2026 (Prov.) as compared to Rs. 52.76 Cr. during FY2025. The decline is attributed to high provisioning to the tune of Rs. 52.17 Cr. due to reclassification as per RBI DCCO guidelines and fresh slippages. Subsequently, the corporation’s GNPA as on March 31, 2026 (Prov.) stood at 18.32 percent and at 20.31 percent as on March 31, 2025. However, the NNPA as on March 31, 2026 (Prov.) stood at 3.90 percent with PCR of 82.13 percent during the year.
KSIDC’s ability to continue to demonstrate growth in loan assets while containing asset quality risks will be key credit monitorable.

About the company

KSIDC was incorporated in 1961, by Government of Kerala (GoK) with the objective of facilitating and financing medium to large scale industries in the State. KSIDC offers financial assistance and support to service sectors like tourism, star category hotels, resorts, hospitals, infrastructure projects etc. In addition to project financing, KSIDC is also involved in creation of infrastructure facilities and investment promotion activities in the State. At present, KSIDC has 3 Industrial Growth Centres and 2 industrial parks in various parts of the State. Government of Kerala has 100 per cent holding in KSIDC. The head office of the Corporation is at Thiruvananthapuram and the Branch office is operated at Cochin and Calicut. KSIDC provides services across all districts in Kerala. KSIDC is categorized as a Systemically Important Non-Deposit taking NBFC (NBFC-ND-SI) as per the norms of the RBI. Moreover, KSIDC falls under the Middle Layer NBFC category as per the Scale-Based Regulation (SBR) framework of RBI. The managing director of the company is Shri Snehil Kumar Singh (IAS).

Unsupported Rating

Not applicable

Analytical Approach

Acuité has considered a standalone approach while assessing the business and financial risk profile of KSIDC and has factored in financial, operational and managerial support it receives from Government of Kerala by virtue of being a state owned entity. The rating factors in the high degree of State Government holding in KSIDC along with the systemically important role played by the corporation in implementing the key financial and developmental objectives of the state.

Key Rating Drivers

Strength

Ownership and Support from Government of Kerala
KSIDC is a state-owned corporation incorporated in 1961. The board of KSIDC includes representation from Government of Kerala (GoK). The Board of Directors comprises of bureaucrats appointed by the Government of Kerala. This indicates a strong level of managerial support from the Government of Kerala. KSIDC’s funding profile is supported by the State Government’s moral obligation to support the capitalisation levels both on an ongoing basis and in the event of distress. The Government of Kerala is a 100 percent stakeholder in the corporation as on March 31, 2026 and is expected to support the corporation given its systemic importance in the government’s efforts to step up industrial and economic activity in the state.
KSIDC is a Nodal Agency for several policy initiatives by the State Government of Kerala and is responsible to implement the policies announced in the annual state budget. The Corporation has, in the past, operationalised various policy initiatives of the Government of Kerala, such as EoDB, KSWIFT, Startup Scheme, Women Entrepreneur Mission Scheme, etc. The support from GoK is critical to the rating and therefore the credit profile of the state is of key importance.
Acuité believes that KSIDC will continue to benefit from strong financial and managerial support from the State Government on an ongoing basis over the medium term.

Adequate Capital Structure
KSIDC’s capitalisation levels remained adequate marked by a networth of Rs. 1,232.42 Cr. (Prov.) as on March 31, 2026. The overall Capital Adequacy Ratio (CAR) at 63.91 percent as March 31, 2026 (Prov) with Tier one consisting of 62.96 percent (Prov.). The entity maintains comfortable gearing levels at 0.21 times as on March 31, 2026 (Prov.) and 0.24 times as on March 31, 2025.

Weakness

Weak asset quality metrics
KSIDC’s loan portfolio is concentrated towards the hospitality and the manufacturing segment which exposes KSIDC’s performance to risks associated with the said sectors. The asset quality of KSIDC remains weak as reflected in elevated Gross NPA of 18.32 percent as on March 31, 2026 (Prov.) and 20.31 percent as on March 31, 2025. This is mainly due to due to reclassification as per RBI DCCO guidelines and fresh slippages. KSIDC made accelerated one-time provisioning against the NPAs as the Net NPA stood at 3.90% as on March 31, 2026 (Prov.) as against 10.51% on March 31, 2025.
Acuité believes the ability of the corporation to control slippages and increase the loan portfolio will be one of the key rating monitorables.

Decline in earning profile
KSIDC registered AUM of Rs. 1706.73 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 1,889.36 Cr. as on March 31, 2025. The entity’s PAT declined to Rs. 6.76 Cr. during FY2026 (Prov.) as compared to Rs. 52.76 Cr. during FY2025, due to high provisioning to the tune of Rs. 52.17 Cr. As the asset quality continues to be weak, the Return on Average Assets (RoAA) declined to 0.35 percent in FY2026 (Prov.) as against 2.65 percent in FY2025.
Acuité believes the ability of the entity to profitably scale its operations will be one of the key rating monitorables.

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

Improvement in earning profile as denoted by ROAA above 2.5 percent on a sustained basis
Improvement in credit profile of Kerala Government and timely support via capital infusion

Potential triggers (individual or collective) for a downward rating action:

Gearing greater than 4 times and low liquidity buffers
Deterioration in asset quality metrics, collection efficiency and increase in restructured assets

Liquidity Position

Adequate

The company’s liquidity position remains adequate, supported by its comfortable capitalization profile. As per the ALM statement dated June 30, 2026 (provisional), total debt obligations stood at Rs. 89.39 Cr. up to a one-year period against expected inflows of Rs. 252.29 Cr. over the same period, resulting in a cumulative positive mismatch of Rs. 162.90 Cr. up to one year. Further, the company reported total borrowings of Rs. 255.30 Cr. and maintained a comfortable net worth of Rs. 1,232.42 Cr. as on March 31, 2026 (provisional) , with a healthy CRAR of 63.91 percent. The company maintains a cash and cash equivalents of Rs. Rs. 7.39 Cr. and unencumbered Fixed Deposits of Rs. 18.33 Cr. as on March 31, 2026 (provisional).

Outlook: Stable

Other Factors affecting Rating

None

Key Financials - Standalone / Originator

Particulars	Unit	FY26 (Provisional)	FY25(Actual)
Total Assets	Rs. Cr.	1,803.91	2,047.16
Total Income*	Rs. Cr.	100.00	93.68
PAT	Rs. Cr.	6.76	52.76
Net Worth	Rs. Cr.	1,232.42	1,357.82
Return on Average Assets (RoAA)	(%)	0.35	2.65
Return on Average Net Worth (RoNW)	(%)	0.52	4.08
Total Debt/Tangible Net worth (Gearing)	Times	0.21	0.24
Gross NPA	(%)	18.32	20.31
Net NPA	(%)	3.90	10.51

*Total income equals to Total Income net off interest expense

Status of non-cooperation with previous CRA (if applicable):

Not applicable

Any other information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm
• State Government Ratings : https://www.acuite.in/view-rating-criteria-26.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
19 Jun 2025	Proposed Long Term Bank Facility	Long Term	123.00	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	134.50	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	182.50	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE A \| Stable (Reaffirmed)
22 Mar 2024	Term Loan	Long Term	187.00	ACUITE A \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	63.00	ACUITE A \| Stable (Reaffirmed)
	Term Loan	Long Term	200.00	ACUITE A \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	202.50	Simple	ACUITE A \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2031	145.00	Simple	ACUITE A \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	10 Aug 2028	92.50	Simple	ACUITE A \| Stable \| Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No	Name of the companies
1	KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED
2	Government of Kerala (GoKe)

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Nivedita Gokul
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.