Press Release October 30, 2025 MAHALAXMI POLYPACK PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	67.00	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	8.00	-	ACUITE A3 | Reaffirmed
Total Outstanding	90.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

ACUITE has reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs.75.00 Crore bank facilities of Mahalaxmi Polypack Private Limited (MPPL). The outlook is 'Stable'.­ ACUITE has assigned its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.15.00 Crore bank facilities of Mahalaxmi Polypack Private Limited (MPPL). The outlook is 'Stable'. Rationale for Rating The rating factors in the experience management and established track record of operations since last three decades in the same industry. Further, the company has shown improvement in the scale of operations which stood at Rs. 455.07 Cr. in FY25 against Rs. 382.03 Cr. in FY24. In addition, the financial risk profile of the company is moderate marked by gearing of the company which stood at 1.12 times as on 31st March 2025 albeit below average which DSCR stood at 1.07 times as on 31st March 2025. The Company has a lean working capital cycle marked by GCA days which stood at 94 days in FY25. The above mentioned strengths are partly off-set by the volatility in raw material prices which will remain a key sensitive factor in near to medium term.

About the Company

­Incorporated in 2005, Mahalaxmi Polypack Private Limited is engaged in manufacturing of PP/HDPE woven sack fabric/bags and FMB/Polymer Compound/ Colour master Batch/Yarn. The registered office in New Delhi. The directors include Mr. Deenanath Khandelwal, Mr. Kuldeep Khandelwal and Mr. Abhishek Khandelwal.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuite has considered the standalone financial and business risk profiles of Mahalaxmi Polypack Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

­Experience management and established track record of operations The company started its operations in the year 2007 and has a long track record of operations. Over the years, it has been able to successfully establish itself as a leading woven bag and fabric manufacturer with the help of experienced management. Further, the company benefits from the long-term experience of the promoters in this industry including key promoters who are Mr. Deenanath Khandelwal and Mr. Kuldeep Khandelwal and have more than three decades of experience in this field and oversee the overall operations of the company. Acuite believes that the long track record of business has enabled in developing established customer and supplier network. Improvement in scale of operations The company has witnessed the growth in the revenue from operations by ~19.12% which stood at Rs. 455.07 Cr. in FY25 against Rs. 382.03 Cr. in FY24. The improvement in revenue is due to increase in the volume sales. Operating margin of the company stood at 3.18% in FY25 against 2.89% in FY24. There is a slight improvement in the operating margin of the company which is due to the decrease in the raw material cost. The Net margin stood at 0.98% in FY25 against 0.37% in FY24. Company has achieved the revenue of Rs. 184.96 Cr. in 5MFY26. Acuite believes the company is expected to showcase an increase in the scale of operations along with improvement in margins in near to medium term. Moderate Financial Risk Profile The company has moderate financial risk profile marked by Total Tangible net worth stood at Rs. 66.58 Cr. as on 31st March 2025 against Rs. 62.09 Cr. as on 31st March 2024, increase in net worth is on account of profit accretion. Debt to Equity ratio stood at 1.12 times in FY25 against 1.01 times in FY24. Interest coverage ratio stood at 2.52 times for FY25 as against 2.09 times in FY24. Debt Service coverage ratio stood at 1.07 times for FY25 as against 0.85 times in FY24. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.31 times as on March 31, 2025 as against 1.43 times as on March 31, 2024. The company is currently undertaking capex of Rs. ~6 Cr. in 2.5 MW solar power plant within its premises in FY26, which will be funded through a mix of external debt and internal accruals. Acuite believes that financial risk profile of the company is expected to improve in near to medium term despite the presence of debt-funded capex. Efficient working capital operations The working capital operations of the company is moderately efficient marked by GCA days of 94 days in FY25 against 111 days in FY24. There is an improvement in the GCA days due to the debtor days of the company which stood at 38 day in FY25 against 57 days in FY24 whereas inventory days of the company stood at 45 days in FY25 against 38 days in FY24 however creditor days stood at 7 days in FY25 against 27 days in FY24. Going forward, the working capital operations of the company is expected to remain at similar level over the medium term.

Weaknesses

Exposed to Volatility in the raw material prices fluctuations and foreign exchange fluctuations The company faces several Weaknesses in the manufacturing of PP/HDPE woven sack fabric, bags, FMB, polymer compounds, colour masterbatch, and yarn, including a heavy dependency on fluctuating raw material prices, intense competition that pressures profit margins, and the need for constant technological upgrades to stay relevant. Additionally, stricter environmental regulations could increase operational costs, while supply chain vulnerabilities and labour shortages may disrupt production. Further, it is exposed to adverse fluctuations in foreign currency exchange rates. However, MPPL generally enters into forward contracts, which partially mitigate the forex risk.

Rating Sensitivities

­Movement in the scale of operations and profitability Movement in Working capital operations

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 7.49 Cr. in FY25 against the debt obligation of Rs. 6.57 Cr. for the same period. Current ratio stood at 1.44 times for FY25 against 1.42 times in FY24. The company has cash & bank position of Rs. 0.18 Cr. The average fund based bank limit utilization is at 93.63% and non-fund based bank limit utilization is at 71.11% for the 12 months’ period ending August 2025. Acuité believes that the liquidity position of the company will remain adequate on account of steady net cash accruals against matured debt obligations albeit debt funded capex plans over the medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	455.07	382.03
PAT	Rs. Cr.	4.48	1.40
PAT Margin	(%)	0.98	0.37
Total Debt/Tangible Net Worth	Times	1.12	1.01
PBDIT/Interest	Times	2.52	2.09

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

­Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 15 Oct 2024 Bills Discounting Short Term 2.00 ACUITE A3 (Assigned) Bank Guarantee/Letter of Guarantee Short Term 8.00 ACUITE A3 (Assigned) Cash Credit Long Term 50.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 1.39 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 2.51 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 9.73 ACUITE BBB- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 1.37 ACUITE BBB- | Stable (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 State Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A3 | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BBB- | Stable | Assigned State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A3 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.89 Simple ACUITE BBB- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 28 Feb 2026 Not avl. / Not appl. 31 Aug 2035 5.10 Simple ACUITE BBB- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 30 Apr 2019 Not avl. / Not appl. 31 Mar 2026 0.28 Simple ACUITE BBB- | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 29 Feb 2024 Not avl. / Not appl. 31 Jan 2028 6.73 Simple ACUITE BBB- | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate 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.