Press Release

Press Release

March 05, 2026

RAKON INDIA PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	7.50	ACUITE BB \| Stable \| Reaffirmed	-
Bank Loan Ratings	7.50	-	ACUITE A4+ \| Reaffirmed
Total Outstanding	15.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating to ‘ACUITE BB’ (read as ACUITE Double B) and short term rating to ‘ACUITE A4+’ (read as ACUITE A Four Plus) on the Rs.15 Cr. bank facility of Rakon India Private Limited. The outlook is 'Stable'.
Acuite has received latest information from the issuer along with January NDS, leading to transition from Issuer Not Co-operating (Since March 2024) to Co-operative issuer.

Rationale for rating
The rating of RIPL considers the established track record of the company and benefits derived from experienced management in the manufacturing of frequency control products (FCP) largely used in telecom industry. The rating remains constrained by the continuous decline in revenue in FY 24 and FY 25 from FY23 levels net loss reported in FY2025, the working-capital-intensive nature of operations, and the company’s high revenue concentration risk as almost 80% of the revenues is contributed by its parent Rakon New Zealand. In the near term, the company is expanding its product profile to cater to aerospace nuclear and defence industry (which was earlier being outsourced) by shifting production in-house; this is expected to support revenue growth over the medium term. The credit risk profile is also supported by benefits derived from the parent company in the form of orders received from them and financial flexibility to support working capital cycle.

About the Company

Based in Karnataka, Rakon India Private Limited (RIPL) was incorporated in 2007. RIPL is a wholly owned subsidiary of Rakon Limited, New Zealand, holding a 99.99% stake. The company is engaged in the manufacturing of frequency control products such as OCXO, TCXO, VCXO and other crystal oscillators. It is managed and directed by Mr. Brent John Robinson, Mr. Arun Mukund Parasnis and Mr. Palakkal Mavilavalappil Unnikrishnan.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of RIPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management

Rakon India Private Limited was incorporated in 2007 by Rakon New Zealand. The company has operational track record of over a decade in manufacturing frequency control products. The company benefits from the experience of its directors, Mr. Brent John Robinson, Mr. Arun Mukund Parasnis and Mr. Palakkal Mavilavalappil Unnikrishnan who have an experience of over two decades. The long track record of operations and experience of management has helped the company develop healthy relationship with its customers and suppliers. The company was earlier catering to telecom industry but is now gradually also diversifying into AND industry. Acuité believes that the company will sustain its existing business profile on the back of established track record of operations and experienced management.

Average financial risk profile
The financial risk profile of the company is marked by declining but comfortable net worth, low gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs.93.57 crore as on FY2025 vis-a vis Rs.100.90 crore in FY 24 due to net losses reported during the year. For FY2025, the gearing of the company increased slightly to 0.55 times in FY2025 from 0.50 times in FY2024 and in FY2025 the debt include USL from parent company of Rs.51.28 crore The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) also increased marginaly to 1.15 times in FY2025 from 1.11 times in FY2024. The Interest Coverage Ratio (ICR) decreased to 1.26 times in FY2025 from 10.41 times in FY2024. Also, the Debt Service Coverage Ratio (DSCR) decreased to 1.88 times in FY2025 from 9.38 times in FY2024. The net cash accruals to total debt (NCA/TD) stood at 0.05 times in FY2025 from 0.22 times in FY2024. The financial risk profile of the company is expected to remain at same level, in absence of any significant debt funded capex in the near term.

Weaknesses

Reduced scale of operations
RIPL has witnessed decrease in its turnover to Rs.92.20 Cr. in FY2025 from Rs. 145.08 Cr. as they faced raw-material procurement challenges during that year due to geopolitical tensions since key materials are sourced from China, Taiwan, and several European countries. The YTD sales were Rs.70 Cr. upto January 2026 and expected to be around Rs. 100 cr. by March 2026. The company’s profitability deteriorated, with the operating profit margin declining sharply to 0.08% in FY2025 from 9.25% in FY2024. The steep reduction was primarily driven by lower production volumes during the year, which curtailed the company’s ability to absorb fixed costs. Furthermore, the company reported PAT loss of Rs 7.90 Cr. in FY2025 in FY2025 as compared to profit of Rs 3.66 Cr. in FY2024. Acuite belive over the medium term, the company’s profitability margins are expected to sustain at current levels, underpinned by consistent operational and financial support from the parent entity.

Intensive Working Capital Management
RIPL’s operations exhibit intensive working capital cycle, as indicated by its high gross current asset (GCA) days of 367 day in FY2025 compared to 274 days in FY2024. The debtor period of the company also stood at 128 days in FY2025 as compared to 47 days in the FY2024 as in FY2025. RIPL’s inventory days increased slightly to 218 days in FY2025 from 213 days in FY2024. The elevated inventory levels are primarily attributable to the long gestation cycle of nearly six months, spanning from raw-material procurement to final product delivery. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Exposure to risks related to technology changes and risk related to revenues concentration
RIPL is exposed to technology changes, as any change in technology by the end-user will require a realignment of RIPL's products, with the end user's technology. Any delays in such readjustments could adversely impact the competitive position. RIPL is significantly exposed to risks related to revenue concentration from telecom industry which contributes almost 80% of its revenues and majorly from its parent company. The company is expected to curtail this risk slightly by entering into Aerospace and defense industry.

Rating Sensitivities

Working capital management
Movement in Scale of operations and profitability
Larger than expected debt funded capex plan

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs. 2.72 Cr. in FY2025 as against Rs. nil debt obligations over the same period. The current ratio of the company stood average at 1.58 times in FY2025. Additionally, the Company maintains an unencumbered cash and bank balance of Rs. 3.76 crore and has almost nil utilization of its sanctioned bank limits over the last six months ending December 2025. The company receives support for its working capital from unsecured loans provided by its parent which stood at Rs. 51.28 Cr. as on March 2025. Acuité believes that the Company’s liquidity profile is expected to remain same over the medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	92.20	145.08
PAT	Rs. Cr.	(7.90)	3.66
PAT Margin	(%)	(8.57)	2.52
Total Debt/Tangible Net Worth	Times	0.55	0.50
PBDIT/Interest	Times	1.26	10.41

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
05 Jun 2025	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
05 Jun 2025	Cash Credit	Long Term	5.00	ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+)
12 Mar 2024	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
12 Mar 2024	Cash Credit	Long Term	5.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
04 Jan 2023	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A3+ (Assigned)
04 Jan 2023	Cash Credit	Long Term	5.00	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
HSBC Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.50	Simple	ACUITE A4+ \| Reaffirmed
HSBC Limited	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.50	Simple	ACUITE BB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
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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