Press Release October 14, 2025 RAIC INTEGRATED SPONGE AND POWER PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	241.43	ACUITE A | Stable | Reaffirmed	-
Bank Loan Ratings	95.00	-	ACUITE A1 | Reaffirmed
Total Outstanding	336.43	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­ACUITE has reaffirmed the long-term rating of ‘ACUITE A’ (read as ACUITE A) and the short term rating of 'ACUITE A1' (read as ACUITE A one) on the Rs.336.43 Cr. bank facilities of RAIC Integrated Sponge and Power Private Limited (RISPPL). The outlook  is 'Stable'. Rationale for reaffirmation: The rating reaffirmation reflects the continued improvement in the overall business risk profile of the company marked by increase in the operating income and profitability driven by fully integrated operation. The rating also factors in its experienced management, efficient working capital operations and the healthy financial risk profile of the group characterized by healthy net worth and steady debt coverage indicators. However, the rating remains constrained by its cyclical nature of the steel industry and the susceptibility of profitability to volatility in raw material prices.

About Company

Incorporated in 2003, Raic Integrated Sponge And Power Private Limited (RISPPL) manufactures sponge iron, billets, TMT steel and silico manganese at its facility in Burdwan district, West Bengal. Unit has installed capacity of 2,25,000 tons per annum (MTPA) of sponge iron, 2,25,000 MTPA of billets, 2,00,000 MTPA of TMT steel, 12,250.00 MTPA of silico manganese and captive power plant with a capacity of 18.5 MW.

About the Group

AIC Iron Industries Private Limited (AIIPL) was incorporated in December 2003. Current directors of the company are Mr. Gyan Adukia, Mr. Sheo Pujan Singh, Mr. Dinesh Adukia, Mr. Vivek Adukia. In February 2008, the company was taken over by Adukia group of West Bengal. The company is presently engaged in manufacturing sponge iron, Billets and MS Strips/pipes with installed capacity of 1,50,000 MTPA, 2,37,000 MTPA and 2,25,000 MTPA respectively. Its manufacturing facility is located at Purulia (West Bengal). Incorporated in 2004, N. N. Ispat Private Limited (NNIPL) manufactures billets and thermo- mechanically treated (TMT) steel. The manufacturing facility is located in Burdwan district of West Bengal with installed capacity of 2,50,000 MTPA of billets and 2,36,000 MTPA of TMT.

Unsupported Rating

­Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has consolidated the financial and business risk profile of N N Ispat Private Limited (NNIPL), AIC Iron Industries Private Limited (AIIPL) and Raic Integrated Sponge And Power Private Limited (RISPPL). The consolidation is on account of the common management, same line of operations and significant operational and financial fungibility.

Key Rating Drivers

Strengths

Long operational track record and experienced management The promoters of the AIC group, the Adukia family of West Bengal, have more than two decades of experience in the iron and steel industry. The extensive experience of the promoters has helped them understand market dynamics and establish strong relationships with their customers and suppliers. The overall affairs of the AIC group are being managed by Mr. Dinesh Adukia and his brothers. The promoters are resourceful and have also supported the group companies by infusing unsecured loans as and when required to support the business operations. Acuité believes that the long-track record of operations will benefit the company going forward, resulting in steady growth in the scale of operations. Steady growth in revenues and profitability The operating income of the group improved and stood at Rs.2678.72 Cr (Est) with YOY growth of 18.64 percent in FY2025(Est) as against Rs.2257.91 Cr in FY2024. The group generates its revenues from manufacturing of sponge iron, billet, silico manganese, TMT and other rolled steel products. The growth in operating income attributed to increase in capacity utilisation across all its product segments. The group has shown improvement in the EBIDTA margin in FY2025(Est.) which stood at 8.41 percent in FY2025(est) as against 7.82 percent in FY2024, 6.09 percent in FY2023. The improvement in the EBIDTA margin is on account of improvement is driven by fully integrated operation and decline in the raw material cost and power cost and savings in transportation costs. The calibrated capex of Rs. 100 Cr which has been undertaken by the group in FY2025, funded through internal accruals and debt. Total capex will be capitilized by FY2026. Acuite believes, the group’s operating performance would improve steadily over the medium term backed by completed capex and augmentation in the volumes. Healthy financial risk profile The Group’s financial risk profile remained healthy marked by healthy net worth, steady gearing and moderate debt protection metrics. The net worth of the group stood at Rs.377.09 Cr. as on March 31, 2024 against Rs.297.94 Cr. as on March 31, 2023, and Rs.523.96 Cr. as on March 31, 2025(Est). The net worth is improved due to due to accretion of net profit in the reserve and Acuité has considered unsecured loans of Rs.111.00 Cr as on March 31, 2025(Estimated) as quasi equity. The gearing of the group stood at 1.64 times as on March 31, 2024, against 1.56 times as on March 31, 2023. The estimated gearing for FY2025 is around 1.27 t imes. Debt protection metrics – Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 3.78 times and 1.79 times as on March 31, 2024, respectively as against 3.93 times and 1.79 times as on March 31, 2023, respectively. The estimated ICR and DSCR for FY2025 is around 3.69 times and 1.81 times. Tol/ TNW stood at 2.27 times as on March 31, 2024, as against 2.22 times as on March 31, 2024. The estimated TOL/TNW for FY2025 is around 1.99 times. The debt to EBITDA of the group in stood at 3.34 times as on March 31, 2024, as against 3.39 times as on March 31, 2023 and estimated to be around 2.90 times as on March 31st 2025. Acuité believes the financial risk profile would remain healthy over the medium term on account of the group's healthy capital structure and stable operations. Efficient Working capital operations Group’s working capital operations remained efficient marked by Gross Current Asset (GCA) of 118 days in FY2025 (Est.) as against 95 days in FY2024. The reason for moderation in GCA days in FY2025 is on account of high other current assets. The Inventory days stood at 68 day in FY2025 (Est.), as against 61 days in FY 2024. The reason for the increase in the inventory days is due to group need to maintain raw material inventory (iron ore coal stock) for uninterrupted production and to mitigate the raw material price fluctuations risk. The debtor day stood at 33 days in FY2025 (Est.)  as against 28 days in F2024. Further, the average bank utilization limit in the last six months ended August 24 remained at ~78 percent for fund based. Acuite believes the working capital requirement is likely to remain at similar levels over in the medium term due to the nature of business.

Weaknesses

­Susceptibility of profitability to volatility in raw material prices in an intensely competitive and cyclical steel industry The group faces strong competitive forces from both organized and unorganized participants, compounded by the cyclicality inherent in the steel industry. Moreover, the government’s emphasis on steel-intensive sectors like railways and infrastructure increases vulnerability; any prolonged drop in demand would negatively affect steel group’s performance. Furthermore, the fluctuation in prices of raw materials and goods is considerably unstable. While any major fluctuation in prices can be passed on to the customers with a lag, the company would remain exposed to volatility in raw material prices in case of weak demand.

ESG Factors Relevant for Rating

­AMS has minimised environmental impact essentially by adopting environmentally friendly manufacturing practices, technologically advanced machineries, and optimum resource utilization. This helped AMS to reduce carbon emissions and minimising the ecological footprint. Further, the company focuses on reducing  carbon footprint and implemented efficient inventory and logistics management for the same. Further, it promotes material reuse and recycling to reduce waste. Promoted women’s empowerment; encouraged representation from diverse  background and regions. The board comprises of a strong team of promoters and experienced industry professionals. Also, to manage the corporate governance, anti bribery, and anti corruption a whistleblower policy has been framed. The group ensures efficient credit risk management and indulges in data privacy and data security practices

Rating Sensitivities

­Sustainability in revenue growth and profitability margins Elongation of working capital cycle Any deterioration of its financial risk profile owing to higher-than expected debt funded capex

Liquidity Position: Strong

Group’s liquidity is Strong with strong net cash accruals (NCA) to its repayment obligations. It is estimated that group has generated cash accruals of Rs. 145.99 Cr in FY2025(Estimates) as against its long-term debt obligations of Rs. 52.42 Cr. for the same period.  Going forward, the group is expected to generate adequate net cash accruals against maturing repayment obligations. However, the reliance on working capital limits stood moderate marked by average 78 percent utilization of the fund-based limits used over the past six months ending in August 2025. The group has maintained unencumbered cash and bank balances Rs.0.78 Cr. and the current ratio stood at 1.19 times as on March 31, 2024. Estimated current ratio stood at 1.18 times as on March 31st, 2025. Acuité expects that the liquidity of the group is likely to remain strong over the medium term on account of expected healthy cash accruals to its maturing debt obligations.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	2257.91	2195.20
PAT	Rs. Cr.	73.48	53.31
PAT Margin	(%)	3.25	2.43
Total Debt/Tangible Net Worth	Times	1.64	1.56
PBDIT/Interest	Times	3.78	3.93

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 • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 16 Jul 2024 Term Loan Long Term 19.51 ACUITE A | Stable (Assigned) Term Loan Long Term 0.23 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 17.65 ACUITE A | Stable (Assigned) Cash Credit Long Term 27.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 23.00 ACUITE A | Stable (Assigned) Cash Credit Long Term 50.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 5.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 15.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 2.61 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 9.03 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 9.75 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Covid Emergency Line. Long Term 6.40 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Covid Emergency Line. Long Term 2.72 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Covid Emergency Line. Long Term 2.87 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 20.29 ACUITE A | Stable (Assigned) Term Loan Long Term 22.61 ACUITE A | Stable (Assigned) Term Loan Long Term 2.76 ACUITE A | Stable (Assigned) Letter of Credit Short Term 35.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 23.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 14.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 16.00 ACUITE A1 (Upgraded from ACUITE A2+) Bank Guarantee (BLR) Short Term 7.00 ACUITE A1 (Upgraded from ACUITE A2+) 19 Apr 2023 Cash Credit Long Term 5.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 25.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 30.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 30.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 10.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 9.47 ACUITE A- | Stable (Assigned) Term Loan Long Term 16.39 ACUITE A- | Stable (Assigned) Term Loan Long Term 12.87 ACUITE A- | Stable (Assigned) Covid Emergency Line. Long Term 6.40 ACUITE A- | Stable (Assigned) Covid Emergency Line. Long Term 3.98 ACUITE A- | Stable (Assigned) Covid Emergency Line. Long Term 6.50 ACUITE A- | Stable (Assigned) Letter of Credit Short Term 15.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 10.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 23.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 14.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 11.00 ACUITE A2+ (Assigned) Bank Guarantee (BLR) Short Term 2.00 ACUITE A2+ (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A1 | Reaffirmed Axis Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE A | Stable | Reaffirmed Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A | Stable | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 30 Apr 2028 4.67 Simple ACUITE A | Stable | Reaffirmed Yes Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE A1 | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 23.00 Simple ACUITE A1 | Reaffirmed Axis Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE A1 | Reaffirmed Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 16.00 Simple ACUITE A1 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.56 Simple ACUITE A | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 28 Feb 2029 14.94 Simple ACUITE A | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Nov 2028 16.98 Simple ACUITE A | Stable | Reaffirmed Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Mar 2029 14.63 Simple ACUITE A | Stable | Reaffirmed Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Mar 2029 14.61 Simple ACUITE A | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Apr 2026 0.86 Simple ACUITE A | Stable | Reaffirmed Axis Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Mar 2026 1.68 Simple ACUITE A | Stable | Reaffirmed Yes Bank Ltd Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Mar 2027 6.50 Simple ACUITE A | Stable | Reaffirmed

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

Sr. No. Company name 1 AIC Iron Industries Private Limited 2 Raic Integrated Sponge And Power Private Limited 3 N N Ispat Private Limited ­

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Moparthi Anuradha Devi Senior Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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.