Cloudextel credit rating upgraded two notches to CARE A+; Stable

MUMBAI: Cloudextel has just received a signal boost and this time, it’s from the credit rating agency. Cloudextel, a leading Network-as-a-Service (NaaS) provider in India, announced that CARE Ratings has upgraded the rating for its long-term bank facilities to ‘CARE A+; Stable’ from ‘CARE A-; Stable’. This two-notch improvement reflects the company’s sustained growth momentum, improving profitability, and significantly strengthened financial profile.

The upgrade recognises Cloudextel’s consistent scale-up across its core segments, including small cell hosting, fiber network deployment, and Fiber-to-the-Home (FTTH) connectivity. Over the past two years, the company has delivered robust revenue growth, driven by surging demand for high-speed data infrastructure and the rapid rollout of 5G across India.

CARE Ratings highlighted the stability provided by long-term master service agreements with leading telecom operators and ISPs. These contracts, often featuring lock-in periods and exit penalties, offer high revenue visibility. The company’s improving operating performance and margin expansion, particularly from better realisations in small cells and robust fiber projects, were also key factors.

Cloudextel, CEO & Co-Founder Kunal Bajaj, of said, “This two-notch upgrade reflects our consistent focus on disciplined execution, financial prudence, and long-term vision. We have delivered robust growth while steadily reducing leverage.”

He added that the company has significantly expanded its footprint and strengthened ecosystem partnerships, positioning it well to support India’s digital transformation.

The rating action also takes into account Cloudextel’s disciplined capital management and reduced reliance on external debt, backed by continued equity support from marquee investors Macquarie Capital and Advencap.

In a sector where connectivity is everything, Cloudextel has strengthened its own signal with investors and lenders. The upgraded rating underscores the company’s emergence as a reliable and fast-growing player in India’s critical digital infrastructure space.