Press Release February 12, 2026 SYSTEM CONTROLS TECHNOLOGY SOLUTIONS PRIVATE LIMITED Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.00	ACUITE BB | Stable | Reaffirmed	-
Bank Loan Ratings	1.00	Not Applicable | Withdrawn	-
Bank Loan Ratings	6.00	-	ACUITE A4+ | Reaffirmed
Total Outstanding	11.00	-	-
Total Withdrawn	1.00	-	-

Rating Rationale

­Acuité has reaffirmed its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 11.00 Crore bank facilities of System Controls Technology Solutions Private Limited (SCTSPL). The outlook is ‘Stable’. Acuite has also withdrawn the long-term facility of Rs. 1.00 Cr. bank facilities of System Controls Technology Solutions Private Limited (SCTSPL) without assigning any rating as the instrument is fully repaid. The rating is being withdrawn on account of request received from the Company and No Dues Certificate received from the banker.  The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for rating reaffirmation The rating reaffirmation considers stable business risk profile albeit small scale of operations and moderation in profitability. The rating also considers the experience management and long track record of operations and average financial risk profile. The rating is, however, is constrained due to working capital intensive operations and highly competitive and fragmented industry.

About the Company

System Controls Technology Solutions Private Limited (SCTSPL) is a Bengaluru-based company incorporated in 2011 and promoted by Mr. Barry Anand Francis and Mrs. Meena Francis Xavier. The company is engaged in the manufacture of industrial automation and control equipment and offers motion control technologies, automation, and system integration solutions to customers across the defense, aerospace, telecom, railways, and nuclear energy sectors.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of SCTSPL to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management and reputed clientele The management has experience of over two decades in motion control technologies, automation, and providing system solutions to the defence, aerospace, aerospace, telecom, railways, and energy sectors. The company has well-established relationships with defence research and development organizations, the Indian Space Research Centre, public sector undertakings such as HAL, BEL, and BEML, and reputed private organizations including L&T and Tata Power. Acuite believes that the company will benefit from experienced management, which will help the company to maintain long-standing relations with its customers and suppliers. Steady revenues and moderation in profitability albeit small scale of operations The company has a small scale of operations which remained volatile marked by an operating income of Rs. 26.43 Cr. in FY2025 as against Rs. 33.33 Cr. in FY2024 and Rs. 26.70 Cr. in FY2023 due to slowdown in execution of order book. The company has achieved revenue of Rs. 21.00 Cr. till January 2026 and is targeting around Rs. 28.00-32.00 Cr. in FY2026. Further, company has unexecuted order book of Rs. 66.00 Cr. which gives revenue visibility for the medium term. The EBITDA margin of the company stood at 14.00 per cent in FY2025 as against 23.10 per cent in FY2024 and 13.60 per cent in FY2023. The PAT margin of the company stood at 7.52 per cent in FY2025 against 12.91 per cent in FY2024. Acuite believes,  the company would continue to achieve steady operating performance on the back of modest order book position. Average financial risk profile SCTSPL’s financial risk profile remained average marked by modest net worth, moderate gearing and debt protection metrics. The tangible net worth stood at Rs. 11.73 Cr. as on March 31, 2025 as against Rs. 9.74 Cr. as on March 31, 2024. The gearing of the company has been improving over the last 2 years ending March 31, 2025, it stood at 0.33 times as on March 31,2025 against 0.97 times as on March 31, 2024. Further, the interest coverage ratio stood at 4.55 times as on March 31, 2025 as against 6.13 times as on March 31, 2024. The debt to EBITDA of the company stood at 1.00 times as on March 31,2025 as against 1.20 times as on March 31, 2024. However, the TOL/TNW stood to 0.68 times as on March 31, 2025 as against 1.50 times as on March 31, 2024. Acuite believes that the financial risk profile is expected to remain at similar level in the medium term.

Weaknesses

Working capital intensive operations The operations of the company remained working capital intensive, marked by Gross Current Asset (GCA) of 213 days in FY2025 as against 238 days in FY2024, primarily driven by high inventory levels, which is typical for the industry. Inventory days stood at 77 days in FY2025 as against 89 days in FY2024. Debtor days improved and stood at 94 days in FY2025 as against 152 days in FY2024. Subsequently, the payable period stood at 36 days in FY2025 as against 46 days in FY2024, respectively. The average utilization of the fund based stood moderate at ~82.89 percent in the last six months ended January 2026. Acuite believes, the operations of the company would remain working capital intensive due to its nature of business. Presence in highly fragmented and competitive industry SCTSPL operates in a competitive and fragmented industry. The company faces tough competition from various large and small players in the market.

Rating Sensitivities

Improvement in the scale of operations and profitability Further elongation in the working capital leading cycle Significant increase in debt levels leading to deterioration in the financial risk profile

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by adequate net cash accrual as against the maturing debt obligation. The company generated adequate net cash accrual of Rs. 2.13 Cr. in FY2025 as against the current portion of long-term debt (CPTLD) of Rs. 0.33 Cr. and expected to generate cash accruals in the range of Rs. 2.00-3.00 Cr. The unencumbered cash and bank balances stood at Rs. 0.03 Cr. as on March 31, 2025. The current ratio of the company stood at 1.95 times as on March 31, 2025. The average utilization of the fund based stood moderate at ~82.89 percent in the last six months ended January 2026. Acuite believes that SCTSPL's liquidity will remain sufficient over the medium term backed by repayment of its debt obligations and improving accruals.

Outlook

­Stable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	26.43	33.33
PAT	Rs. Cr.	1.99	4.30
PAT Margin	(%)	7.52	12.91
Total Debt/Tangible Net Worth	Times	0.33	0.97
PBDIT/Interest	Times	4.55	6.13

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 14 Nov 2024 Bank Guarantee/Letter of Guarantee Short Term 6.00 ACUITE A4+ (Upgraded from ACUITE A4) Working Capital Demand Loan (WCDL) Long Term 1.00 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable) Cash Credit Long Term 5.00 ACUITE BB | Stable (Upgraded from ACUITE BB- | Stable) 17 Aug 2023 Bank Guarantee/Letter of Guarantee Short Term 6.00 ACUITE A4 (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 1.00 ACUITE BB- | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE BB- | Stable (Reaffirmed)

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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 Canara Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE A4+ | Reaffirmed Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BB | Stable | Reaffirmed Canara Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE Not Applicable | Withdrawn

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani 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.