MC EXCLUSIVE IPO-bound Apollo Green Energy faces payment delays, credit ratings downgrade debt facilities

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Renewable energy firm Apollo Green Energy is facing potential financial stress, with payments overdue to bondholders and credit rating agencies downgrading its debt.

In a communication last week, the company assured some bondholders that interest payments would be made shortly, while principal repayments, including overdue interest, are expected to be paid within the next 70–75 days.

The communication, which Moneycontrol has reviewed,  was with regard to a two-year non-convertible debenture (NCD), which expired on July 19, 2025. It was to raise Rs 6 crore for an issue price of Rs 1 lakh, sources said.

"We are pleased to inform you that the interest amount will be paid shortly (coming week), and we are in the final stages of processing this payment. Regarding the principal amount, including interest on overdue payments, we are committed to making the payment within the next 70 to 75 days. We understand the importance of timely payments and remain fully committed to honoring all obligations towards our valued debenture holders," the company told its debenture holders in an email.

Apollo Green did not immediately respond to requests for a comment. The story will be updated when the response comes in.

According to National Securities Depository Limited (NSDL) data, at least 10 debenture series from IL&FS group entities and Future Consumer have defaulted on redemption since the beginning of 2025.

The EPC firm was mulling approaching the public markets to support its expansion and secure new projects, Moneycontrol had reported in November last year. In FY 25,  the company clocked 50 percent YoY increase in net profit at Rs 44.36 crore and recommended a 15 percent dividend for shareholders for the financial year.

With over 400 megawatt (MW) of solar capacity in its portfolio across multiple states and an order book of Rs 3,000 crore, the company has set a target of reaching an EPC order book of 1 GW by 2026.

Credit ratings agencies cautious  

Despite the seemingly robust financials and orderbook, credit rating agencies have sounded caution over the company's long term and short-term debt facilities, while downgrading ratings on AGL's debt to D. The rating signifies that the company is in default or expected to be in default.
Rating Agencies Crisil. Infomerics say that the company is not responding to queries.

Credit rating agency Crisil has flagged irregularities in what the ratings agency referred to as its account conduct , downgrading the ratings of its bank facilities worth Rs 330 crore.

"Based on the publicly available information, Crisil understands that the company had irregularity in its account conduct," Crisil said in its rating rationale published on September 22. Long term ratings were downgraded to Crisil D  (issuer not cooperating) from Crisil B (issuer not cooperating). (Crisil D and Crisil B appears to be the same.

While the "issuer not cooperating" tag remains, the downgrade from Crisil B to Crisil D reflects a shift from weak repayment capacity to outright default on obligations.

Crisil Ratings has been consistently following up with Apollo Green Energy for obtaining information through letters and emails dated September 09, 2025 and September 19, 2025, apart from telephonic communication. However, the issuer has remained non cooperative, the agency said. The lenders to AGL listed by Crisil include State Bank of India, Indian Bank and Bank of India.

Infomerics, too, downgraded the ratings on bank facilities and non-convertible debentures “due to lack of availability of adequate information, non-receipt of No Default Statement since May 2025 and the resultant uncertainty around its credit risk".

" The outlook continues to be Negative.  Despite the repeated requests by Infomerics, the company’s management has not submitted the requested information for monitoring the ratings," Infomerics said in its rationale on September 18.  The ratings for the bank facilities aggregating Rs 322.83 crore and non-convertible debentures aggregating Rs 100 crore of AGEL have been continued in "issuer not cooperating" category by Infomerics.

In August, Apollo Green sought shareholder approval to extend Rs 1,500 crore in loans, guarantees, and securities to subsidiaries, associates, and other group entities, meant to help related entities with working capital, expansion, or debt needs.

This is in addition to the board resolution passed in January, announcing a Rs 4,110 crore private placement.  The company had planned to issue 13.7 crore equity shares at Rs 300 per share (Rs 10 face value + Rs 290 premium).  However, according to reports, the company managed to raise only Rs 78 crore as of July 2025.

Apollo Green, initially known as Apollo International Ltd, was set up in 1994 in Gurgaon, Haryana. It used to be an export arm of Apollo Tyres Limited to lead the firm's marketing and exports worldwide. Later, it forayed into manufacturing and export of leather garments and construction & infrastructure development. In 2023, the company changed its name to Apollo Green Energy Limited to focus on green and sustainable EPC projects including renewables and sustainable development projects.