Press Release March 25, 2026 KUNDAN CONCENTRATES PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	148.00	-	ACUITE A2+ | Assigned
Total Outstanding	148.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned the Short-term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs.148.00 crore bank facilities of Kundan Concentrates Private Limited (KCPL). Rationale for Rating assigned The rating assigned factors in the established presence of the Kundan group in the gold business. The rating also factors in the moderate financial risk profile with low external debt, moderate working capital operations and adequate liquidity position of the company. However, the rating remains constrained on account of nascent stage of operations commencing from Q3 FY25, along with a low profitability margin. Additionally, the rating remains exposed to demand volatility in the gold sector and the inherent regulatory risks associated with the industry.

About the Company

­Incorporated on 4 January 2023, KCPL is a wholly owned subsidiary of Kundan Minerals and Metals Limited, a BSE-listed entity and is engaged in the processing of gold concentrates and the manufacturing of gold dore bars. The company has an established a gold ore concentrate treatment plant in Kachchh, Gujarat, having an installed capacity of around 100 tons per day. The current directors of the company are Mr. Deepak Gupta, Mr. Siddharth Gogia and Mr. Sangram Keshari Das.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profiles of KCPL for arriving at the rating.

Key Rating Drivers

Strengths

­Strong and reputed group The Kundan Group, headquartered in Delhi, is a diversified conglomerate with a legacy spanning over two decades with interests in gold refining, precious metals, mining and energy. The group already operates a refinery business through Kundan Refinery Private Limited (KRPL) and has now diversified into the concentrate business via KCPL, will function as a backward integration to KRPL’s operations. The Group also owns a gold mine, Gurhar Pahar Gold Mine, located in Madhya Pradesh, which is expected to commence operations in approximately 1.5 years from now. Currently, the Kundan Group through Kundan Minerals and Metals holds 99.99% shareholding in KCPL. Moderate financial risk profile The financial risk profile of the company remained moderate, marked by moderate net worth, gearing and debt protection metrics. The net worth of the company stood moderate at Rs.152.39 crore (Prov.) as on December 31, 2025 as against Rs.54.92 crore as on March 31, 2025. The net-worth constitutes of non-convertible redeemable preference shares issued to promoter entity in FY24 amounting to Rs.30 crores. The company’s debt profile consists of borrowings from group NBFC – Gogia Leasing Limited, keeping the gearing ratio moderate. Moderate working capital operations The company’s working capital position remains moderate, as reflected in GCA days of 111 during FY2025. This was largely driven by inventory holding, which accounted for 100 days. The working capital cycle is closely linked to the quality of ore procured, typically ranging from 5 to 90 days depending on the gold content. Higher grade ores shorten the cycle substantially, as reduced processing time enables quicker conversion and release of funds.

Weaknesses

­Nascent stage of operations and low profitability margins  KCPL commenced operations in Q3 FY25, recording sales of Rs.321.63 crore in its first year. Further, in the current year, the company has achieved provisional sales of Rs.3,330.54 crore in the first nine months of FY26. Despite this growth, the business operates on low profitability margins of approximately 2–3%. These margins are highly dependent on the quality of ore procured, and any inefficiency in the gold extraction process can materially impact operating performance. Demand volatility in the gold sector and inherent regulatory risk KCPL’s operations, which involve procuring ores and converting them into doré, are exposed to demand volatility in the gold sector and significant regulatory risk. Gold price fluctuations directly influence consumer demand, particularly in the jewellery segment, often causing buyers to defer purchases in anticipation of lower prices, thereby impacting sales volumes. Further, any adverse revision in the duty regime could materially compress operating margins and impair the company’s profitability.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Increase in the sales quantity leading to higher operating profits for the company Growth in net cash accruals above Rs 130 crore

Potential triggers (individual or collective) for a downward rating action:

Lower than expected extraction of gold leading to decline in operating margins below 2%. Higher than expected working capital borrowings, impacting the financial risk profile

Liquidity Position

Adequate

­The liquidity position of the company is marked adequate backed by no fixed debt obligations to serve. Further the company is expected to generate healthy net cash accruals (NCA) of ~Rs.100. crore in FY26. It also reported a cash and bank balance of ~Rs.13 crore as on December 31, 2025 (Prov.). Acuite believes that the liquidity position of the company will continue to remain adequate on account improving cash accruals against the no debt repayment obligations for the company.

Outlook - Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	321.63	1.15
PAT	Rs. Cr.	2.14	(0.25)
PAT Margin	(%)	0.67	(22.14)
Total Debt/Tangible Net Worth	Times	1.76	0.01
PBDIT/Interest	Times	1.19	(0.64)

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

­None

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 :

­Not Applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 148.00 Simple ACUITE A2+ | Assigned

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior 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.