Press Release March 05, 2026 SAGAR BUSINESS PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	28.00	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	73.05	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	14.00	-	ACUITE A3 | Assigned
Bank Loan Ratings	10.32	-	ACUITE A3 | Reaffirmed
Total Outstanding	125.37	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 73.05 Cr. bank facilities and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 10.32 Cr. bank facilities of Sagar Business Private Limited (SBPL). The outlook is 'Stable'. Further, Acuite has assigned long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 28 Cr bank facilities and short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 14 Cr. bank facilities of Sagar Business Private Limited (SBPL). The outlook is 'Stable'. Rationale for rating The rating reflects the increase in scale of operations marked by improvement of revenues while maintaining profitability margins on similar lines during FY25 and 9MFY26. The rating also draws comfort from the management’s long-standing experience, moderate financial risk profile characterized by improving net worth and comfortable capital structure. The liquidity remains adequate on account of adequate net cash accruals as against debt repayment, moderate current ratio albeit high bank limit utilization along with moderate working capital cycle. However, these strengths are partly offset by volatility in profitability margins that are susceptible to price fluctuations and supplier concentration risk.

About the Company

­­Sagar Business Private Limited was incorporated in 1983. The business activities started in 2009. The company is engaged in the trading of Tata Steel Limited's diverse range of iron and steel products. The Company also undertakes downstream value addition on products and fabrication works (on-site and off-site). The Company has two manufacturing units- at Kharagpur (West Bengal) and at Cuttack (Odisha).The operations are managed by Mr. Sunil Kishorepuria, Mr Sriyash Kishorepuria and Mrs Radha Kishorepuria

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Sagar Business Private Limited (SBPL) to arrive at the rating

Key Rating Drivers

Strengths

­Benefits derived from experienced management The operations of the company are managed by Mr. Sunil Kishorepuria, Ms. Radha Kishorepuria, and Mr. Sriyash Kishorepuria who have prior experience in trading of iron and steel for almost two decades. The company also holds strong relationship with Tata Steel Limited as distributor of their products It also has dealer network of 400 dealers which helps the company cater to the clientele base. The Company also undertakes downstream value addition on products and fabrication works (on-site and off-site). This has aided the Company in improving their scale of operations over the year while providing a steady customer base and improved margins. Acuite believes that the experience of the promoters coupled with their relationship with Tata Steel Limited will benefit the company going forward. Increasing Revenues with largely stable operating margins The revenues have increased to Rs. 644.93 Cr. as on March 31, 2025 as compared to Rs. 402.69 Cr. as on March 31, 2024 on account of increase in quantity sold and addition in the Tiscon Retail in FY 2025. The company has achieved revenues of about Rs. 564 Cr. upto December 2025. The operating profitability have largely remained stable at 4.10 percent as on March 31, 2025 as compared to 4.23 percent as on March 31, 2024 on account of higher trade discounts given. The company is undergoing capex towards increasing the capacity for fabrication and erection services in the Cuttack and West Bengal unit with a project cost of Rs. 27.28 Cr. The means of finance of the project is term loan of Rs. 20 Cr. (sanctioned with Bandhan Bank) and balance to be funded by internal accruals. It is expected to be operationalised by March 2026. Acuite believes that scale of operations and operating profitability is expected to improve over the medium term with the stabilisation of the capex. Moderate Financial Risk Profile The financial risk profile of the company is marked by improving net worth, moderate gearing and debt protection metrics. The tangible net worth of the company stood at Rs. 76.68 Cr. as on March 31, 2025 as compared to Rs. 28.14 Cr. as on March 31, 2024 due to accretion to reserves. Acuite has considered unsecured loans as quasi equity amounting to Rs. 41.57 Cr, and the same has been subordinated to bank loans. The gearing of the company improved to 1.82 times as on March 31, 2025 as compared to 3.83 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.16 times as on March 31, 2025 as compared to 4.00 times as on March 31, 2024. The debt protection metrices of the company remain moderate marked by Interest coverage ratio (ICR) of 1.92 times and debt service coverage ratio (DSCR) of 1.26 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.08 times as on March 31, 2025 as compared to 0.06 times as on March 31, 2024. Acuité believes that the financial risk profile will remain moderate over the medium term, with steady cash accruals. Moderate Working Capital Cycle The working capital cycle of the company is moderate as reflected by Gross Current Assets (GCA) of 105 days for March 31, 2025 as compared to 91 days for March 31, 2024. The debtor period stood at 30 days as on March 31, 2025 as compared to 34 days as on March 31, 2024. For B2B customers, payments are received within 30-45 days. For fabrication, the payments are received on an average of 30 days. Further, the inventory days of the company stood at 60 days as on March 31, 2025 as compared to 44 days in FY2024. The increase in inventory days is because there was a period for maintenance at Tata Steel Limited for 3 months from April-June 2025, hence the company had maintained larger inventory up to March 2025 to cater to its customer demand. The creditors stood at 8 days as on March 31, 2025 as compared to 2 days as on March 31, 2024. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Weaknesses

­Supplier Concentration risk The company is exposed to supplier concentration risk since Tata Steel Limited is the sole supplier of products to the company. Any adverse change in MoU terms might impact the company, since it has limited bargaining power. Any change in the availability of products or pricing might directly impact SBPL's earning profile. However, the company has not witnessed any such un-toward risk in the past years track record with them. Acuite believes the company will be exposed to the supplier concentration risk over the medium term. Margins are susceptible to price fluctuations The company's performance remains vulnerable to cyclicality in the steel sector as demand for steel depends on performance of end user segments such as construction and real estate. Indian steel sector is highly competitive due to presence of large number of players. Acuite believes that the operating margin of the company will continue to remain exposed to fluctuations in the prices of raw materials as well as price realization from finished goods.

Rating Sensitivities

­­Movement in revenues and operating profitability Working Capital cycle Debt funded capex

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs 11.66 Cr. as on FY2025 as against long term debt repayment of Rs. 6.01 Cr. over the same period. The cash and bank balance stood at Rs. 5.57 Cr. as on March 31, 2025 and Rs. 0.42 Cr. as on March 31, 2024. Further, the current ratio of the company stood at 1.30 times as on March 31, 2025 as compared to 1.12 times as on March 31, 2024. The average fund-based bank limit utilization of the company is 96 percent utilized for the last six months ended in December 2025. Acuité believes that the liquidity of the company is likely to remain adequate over the medium term on account of steady cash accruals, moderate current ratio albeit high bank limit utilization.

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.	644.93	402.69
PAT	Rs. Cr.	6.97	2.93
PAT Margin	(%)	1.08	0.73
Total Debt/Tangible Net Worth	Times	1.82	3.83
PBDIT/Interest	Times	1.92	1.65

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 03 Jun 2025 Bank Guarantee (BLR) Short Term 7.00 ACUITE A3 (Assigned) Proposed Bank Guarantee Short Term 2.82 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 0.50 ACUITE A3 (Assigned) Cash Credit Long Term 25.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 10.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 1.08 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 1.26 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 0.75 ACUITE BBB- | Stable (Assigned) Cash Credit Long Term 29.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 5.96 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 Bandhan Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE A3 | Reaffirmed KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A3 | Reaffirmed Bandhan Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 29.00 Simple ACUITE BBB- | Stable | Reaffirmed KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BBB- | Stable | Reaffirmed KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.82 Simple ACUITE A3 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.69 Simple ACUITE A3 | Assigned Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.31 Simple ACUITE A3 | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.19 Simple ACUITE BBB- | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan 29 Jun 2024 Not avl. / Not appl. 01 Apr 2030 5.17 Simple ACUITE BBB- | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan 29 Jun 2024 Not avl. / Not appl. 01 Feb 2027 0.48 Simple ACUITE BBB- | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan 29 Jun 2024 Not avl. / Not appl. 01 May 2026 1.08 Simple ACUITE BBB- | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan 29 Jun 2024 Not avl. / Not appl. 01 Mar 2028 0.97 Simple ACUITE BBB- | Stable | Reaffirmed KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Term Loan 24 Sep 2024 Not avl. / Not appl. 20 Jul 2030 9.16 Simple ACUITE BBB- | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan 28 Nov 2025 Not avl. / Not appl. 01 Feb 2032 20.00 Simple ACUITE BBB- | Stable | Assigned

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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.