­Acuite has consolidated the business and financial risk profiles of Fitcast Founders and Engineers Private Limited (FFEPL) and Shaifali Rolls Limited (SRL), together the entities are referred to as ‘group’. The consolidation is in view of common management, strong operational and financial synergies between the entities.

­Experienced management and established track record of operations
The group has an established presence in the casting industry since 1999. The promoters have an experience of more than three decades in the industry, which have helped them to establish steady relationships with their suppliers and a diverse customer base across India, Europe and UK.
The experience of the management and their long record of operations will support to improve the business risk profile of the group over the medium term.

Moderate financial risk profile
The financial risk profile of the group is moderate, marked by growing networth, low gearing and comfortable debt protection metrics. The tangible networth grew to Rs. 31. 53 Cr. on March 31, 2025 from Rs. 23.47 Cr. on March 31, 2024. The gearing continues to remain below unity at 0.70 times in FY2025 (0.82 times in FY2024). Further, the TOL/TNW and Debt-EBITDA levels remain moderate at 1.53 times and 1.32 times respectively in FY2025. The coverage indicators stood comfortable with interest coverage ratio (ICR) at 4.44 times and debt service coverage ratio (DSCR) at 2.01 times in FY2025.
Despite the moderate debt funded capex plans of the group, the overall financial risk profile of the group is expected to improve going forward.

Modest scale of operations
The overall scale has remained modest on account of stagnant realisations and volumes. The group recorded a revenue of Rs. 127.99 Cr in FY2026 (Est.) in line with FY25 revenues of Rs. 123.94 Cr. However, the EBITDA margin improved significantly and stood at 12.92 percent in FY2025 from 8.57 percent in FY2024 on account of decline in the material costs and effective inventory management. In FY2026, there has been an increase in the material prices along with marginal deteriorations in the realization prices affecting the margins to some extent, however, they are estimated to remain healthy. Further PAT margin stood at 6.38 percent in FY2025 from 4.33 percent in FY2024.

­Working capital intensive operations
The operations of the group are working capital intensive and are marked by increased gross current assets (GCA) of 154 days in FY2025 from 123 days in FY2024. The GCA days are mainly drive by debtor days, which stood increased to 91 days in FY2025 from 76 days in FY2024. The inventory days also stood increased at 64 day in FY2025 from 43 days in FY2024. On the other hand creditor days stood at 98 days in FY2025. 
Going forward improvement in the working capital cycle will be a key monitorable.

Intense competition in the iron & steel industry
The iron and steel industry is highly fragmented and unorganized. The group is exposed to intense competitive pressure from large number of organized and unorganized players with low entry barriers and lack of product differentiation, which pressurizes pricing power.