Press Release

Press Release

February 04, 2026

MANGALAM WORLDWIDE LIMITED
Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	14.00	ACUITE A- \| Stable \| Assigned	-
Bank Loan Ratings	192.00	ACUITE A- \| Stable \| Upgraded	-
Bank Loan Ratings	1.00	-	ACUITE A2+ \| Assigned
Bank Loan Ratings	44.00	-	ACUITE A2+ \| Upgraded
Total Outstanding	251.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to ‘ACUITE A-’ (read as ACUITE A minus) from ‘ACUITE BBB+’ (read as ACUITE triple B plus) and short-term rating to 'ACUITE A2+' (read as ACUITE A two plus) from 'ACUITE A2' (read as ACUITE A two) on Rs. 236.00 Cr. bank facilities of Mangalam Worldwide Limited (MWL). The outlook is ‘Stable’.
Also, Acuité has assigned its long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and short-term rating of 'ACUITE A2+' (read as ACUITE A two plus) on Rs. 15.00 Cr. bank facilities of Mangalam Worldwide Limited (MWL). The outlook is ‘Stable’.

Rationale for rating upgrade
The rating upgrade takes into account the overall improvement in the business risk profile of the company in FY2025 and 9MFY2026 driven by increased focus on value added products and exports leading to increase in volume and margins. The rating further continues to draw comfort from extensive experience of promoters in manufacturing industry for more than three decades, healthy financial risk profile supported by capital infusion in the form of share warrants, despite increase in debt levels. These strengths are however, partly offset by moderate working capital operations, susceptibility of the margins to volatility in raw material prices, intense competition and inherent cyclical nature of steel industry.

About the Company

Incorporated in 1995, Mangalam Worldwide Limited (MWL) is engaged in the manufacturing of steel products such as stainless steel (S.S.) billets, flat and round bars, ingots, bright bars, seamless pipes & tubes, etc. along with trading of steel scrap and ferro alloys. The company has multiple integrated manufacturing units comprising steel melting shops, rolling mills, and finishing lines situated at Halol, Changodar, and Kapadvanj (Gujarat). The managing directors of the company are Mr. Chanakya Prakash Mangal, Mr. Chandragupt Prakash Mangal, and Mr. Vipin Prakash Mangal. Furthermore, the company is listed on National Stock Exchange (NSE) with a current market cap of Rs. 819.74 Cr. as on January 28, 2025.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of MWL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations along with experienced management
Being in operations for more than 30 years, MWL has established a significant market presence in the domestic and international markets leading to a healthy relationship with its suppliers and customers. The promoter of the company, Mr. Vipin Prakash Mangal has over 30 years of experience in the manufacturing business and is ably supported by the second generation of the family. Moreover, the company is currently undergoing capex at Halol unit in order to diversify the product mix at a total cost of Rs. 31.50 Cr., to be funded through term loan (debt tied up) and balance through internal accruals. Further, the company has 1.2 MW of captive solar plant at Kapadwanj unit and going forward has plans to lease 10.4 MW DC solar power plant for captive consumption at Halol unit.

Continuous improvement in the operating performance
The operating revenue of the company stood at Rs. 1060.71 Cr. in FY25 as compared to Rs. 818.11 Cr. in FY24 and Rs. 644.49 Cr. in FY23, registering a CAGR of 28.29 percent over the past two years. The growth in the scale of operations is driven by the company’s focus on diversification of product mix supported by improving sales realisations. In FY25, the operating margin grew marginally to 5.24 percent in FY25 (4.79 percent in FY24) driven majorly by increasing sales of value-added products having better margins along with increase in contribution from the exports. The export sales have rose to 4.37 percent of net sales in H1FY26 as against 2.72 percent in FY25 and 1.87 percent in FY24. Further, in 9MFY2026, the company has recorded a revenue of Rs. 943.03 Cr. (Rs. 736.66 Cr. in 9MFY2025) with operating margin of ~7.19 percent.

Healthy financial risk profile
The company’s financial risk profile is marked by healthy net worth of Rs. 247.47 Cr. as on March 31, 2025 (Rs. 172.02 Cr. as on March 31, 2024), owing to accretion of profits to reserves, issuance of share warrants along with revaluation of the investment in group entity (Mangalam Globa Enterprise Limited) at fair value. However, on account of incremental working capital borrowings, the total debt of the company stood increased at Rs. 191.33 Cr. as on March 31, 2025, as compared to Rs. 102.19 Cr. as on March 31, 2024. Therefore, the gearing (debt-equity) stood increased at 0.77 times in FY25 (0.59 times in FY24), though it remained below unity. Further, the debt protection metrics remained moderate marked by interest coverage ratio of 2.55 times in FY25 (2.77 times in FY24) and debt service coverage ratio of 2.27 times in FY25 (2.62 times in FY24).

Weaknesses

Moderately intensive working capital operations
The working capital operations of the company are moderately intensive in nature marked by gross current assets (GCA) days of 169 days in FY25 as compared to 132 days in FY24, majorly driven by inventory and debtor levels. The company needs to maintain higher inventory levels of 102 days in FY25 (68 days in FY24) to support its expanding product mix and ensure timely delivery of orders. Further, the debtor’s collection period stood at 58 days in FY25 (44 days in FY24) and the creditor days stood at 69 days in FY25 (61 days in FY24).
Acuité believes that the working capital operations of the company shall remain at similar levels over the medium term.

Susceptibility to volatility in raw material prices and cyclicality inherent in the steel industry
The company’s performance remains vulnerable to growing competition and the inherently cyclical nature of the steel industry, which is closely linked to both domestic and global economic conditions. The key end-user sectors like real estate, infrastructure, and engineering also exhibit cyclical trends. Consequently, fluctuations in economic cycles such as slowdowns and seasonal variations in demand and supply can affect steel demand and its pricing, thereby exerting pressure on the company’s operating margins and cash flows, and shall continue to remain key rating monitorable. Additionally, the company faces intense competitive pressures from a large number of organised and unorganised players.

Rating Sensitivities

Scaling up of operations while maintaining its profitability margin
Any significant increase in debt levels thereby impacting the financial risk profile
Timely completion of the capex plans without major time and cost overrun
Any further elongation in the working capital operations

Liquidity Position

Adequate

The company has adequate liquidity position marked by sufficient net cash accruals of Rs. 34.59 Cr. in FY25 as against its maturing debt obligations of Rs. 3.00 Cr. for the same period. Going forward, the cash accruals of the company are estimated to remain in the range of Rs. 40-50 Cr. during FY26-27 against repayment obligations ranging in the range of Rs. 3-6 Cr. for the same period. The average utilisation for the fund-based facility remains moderate at ~84.01 percent for the past six months ended Dec 2025, and the outstanding LC limit stood at Rs. 35.68 Cr. out of sanctioned limits of Rs. 40 Cr. as on Dec 31, 2025. Furthermore, the company maintained unencumbered cash and bank balances of Rs. 0.25 Cr. as on March 31, 2025, and the current ratio stood moderate at 1.40 times as on March 31, 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1060.71	818.11
PAT	Rs. Cr.	29.42	20.10
PAT Margin	(%)	2.77	2.46
Total Debt/Tangible Net Worth	Times	0.77	0.59
PBDIT/Interest	Times	2.55	2.77

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
27 Jan 2025	Letter of Credit	Short Term	14.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	11.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	4.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	5.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	10.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	80.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	61.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	10.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	7.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	5.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2.50	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	12.50	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	11.50	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2.50	ACUITE BBB+ \| Stable (Reaffirmed)
02 Jan 2025	Letter of Credit	Short Term	5.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	14.00	ACUITE A2 (Assigned)
	Bank Guarantee/Letter of Guarantee	Short Term	4.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	10.00	ACUITE A2 (Assigned)
	Letter of Credit	Short Term	11.00	ACUITE A2 (Assigned)
	Cash Credit	Long Term	30.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	50.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	10.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	7.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	12.50	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	2.50	ACUITE BBB+ \| Stable (Reaffirmed)
	Term Loan	Long Term	2.50	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	50.00	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	11.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	11.50	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	5.00	ACUITE BBB+ \| Stable (Reaffirmed)
24 Jul 2024	Letter of Credit	Short Term	5.00	ACUITE A2 (Assigned)
	Bank Guarantee/Letter of Guarantee	Short Term	5.00	ACUITE A2 (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.70	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	50.00	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	50.00	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	25.30	ACUITE BBB+ \| Stable (Assigned)

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.	4.00	Simple	ACUITE A2+ \| Upgraded ( from ACUITE A2 )
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	80.00	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Canara Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	61.00	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.50	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Indian Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.50	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
State Bank of India	Not avl. / Not appl.	Credit Exposure Limit (FCNR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A2+ \| Assigned
State Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A2+ \| Upgraded ( from ACUITE A2 )
Canara Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	14.00	Simple	ACUITE A2+ \| Upgraded ( from ACUITE A2 )
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A2+ \| Upgraded ( from ACUITE A2 )
Indian Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.00	Simple	ACUITE A2+ \| Upgraded ( from ACUITE A2 )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.80	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	14.00	Simple	ACUITE A- \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	25 Apr 2029	8.46	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Canara Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2029	4.36	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Punjab National Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Apr 2029	2.22	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )
Indian Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	15 Apr 2029	2.16	Simple	ACUITE A- \| Stable \| Upgraded ( from ACUITE BBB+ )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshit Agrawal
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.

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