Press Release July 02, 2026 POLYSET PLASTICS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	24.00	ACUITE BBB+ | Stable | Assigned	-	RBI
Total Outstanding	0.00	24.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

­Acuite has assigned its long-term rating of ‘ACUITÉ BBB+' (read as ACUITE Triple B plus) on the Rs. 24.00 Cr. bank facilities of Polyset Plastics Private Limited (PPPL). The outlook is ‘Stable’. Rationale for Rating The rating assigned reflects the extensive experience of the promoters and management team in the plastics manufacturing industry, along with the company’s established operational track record. The rating further factors in PPPL’s established brand presence in the houseware segment with brand ‘Polyset’, and improving scale of operations. The rating also draws comfort from the company’s healthy financial risk profile and adequate liquidity. However, the rating is constrained by moderately working capital-intensive operations, exposure to sizeable advances absorbed pursuant to amalgamation with Mehul Finance & Investment Private Limited and susceptibility of profitability to volatility in raw material prices in a highly competitive and fragmented industry.

About the Company

Incorporated in 1973, Polyset Plastics Private Limited (PPPL) is engaged in manufacturing injection-moulded plastic products. The company has established presence across household, defense, and railway sectors. Mehul Finance & Investment Private Limited, a promoter group company, was amalgamated with PPPL with effect from April 01, 2024. The amalgamation was undertaken to simplify the group structure, eliminate crossholdings between the entities and improve operational efficiency, as both entities were under common promoter ownership. PPPL is based in Maharashtra and currently the directors of the company are Mrs. Anjuu Shailesh Baafna, Mr. Bhupesh Premraj Bafna and Mrs. Priti Bhupesh Bafna.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Polyset Plastics Private Limited (PPPL) to arrive at this rating.

Key Rating Drivers

Strengths

­Established operational track record and extensive promoter experience along with established brand presence PPPL has been operating for more than five decades, reflecting an established track record. The company is promoted and managed by the Bafna family, which has over five decades of experience in the industry and is supported by an experienced management team. The company operates through two manufacturing facilities located at Daman and Talasari and is engaged in the manufacturing of plastic products catering to household, railway and defence segments. Its product portfolio comprises household utility products such as buckets, mugs, laundry baskets, dustbins, food storage containers, lunch boxes and bottles marketed under the ‘Polyset’ brand, along with specialised plastic components such as liners, bushes and washers supplied to the railway segment and select approved components supplied to the defence segment. The company’s longstanding presence in the industry has supported the establishment of relationships with customers and suppliers across its key business segments. Acuité believes that the extensive experience of the promoters and the company’s established presence in the plastic products industry will continue to support its business operations and relationships with key customers and suppliers. Healthy financial risk profile PPPL’s financial risk profile is healthy, marked by low gearing, moderate net worth and healthy debt protection metrics. The net worth of the company stood at Rs. 145.53 Cr. in FY26(Prov.) (FY25: Rs. 125.79 Cr.), primarily driven by retention of profits. The gearing (debt-to-equity) remained low at 0.12 times as on March 31, 2026(Prov.) and 0.12 times as on March 31, 2025. Debt protection indicators are healthy, with the interest coverage ratio (ICR) at 27.39 times in FY26(Prov.) (FY25: 27.78 times) and the debt service coverage ratio (DSCR) stood at 19.28 times in FY26(Prov.) (FY25: 22.25 times). Further, the net cash accruals to total debt (NCA/TD) ratio stood at 1.39 times in FY26(Prov.) (FY25: 1.29 times), while Debt-to-EBITDA ratio stood low at 0.55 times in FY26(Prov.) (FY25: 0.59 times). The company incurred capex during FY26(Prov.) towards machinery additions and capacity augmentation for its railway segment of ~Rs. 10.00 Cr., which was funded through internal accruals. The company does not have any major debt-funded capex plans over the near to medium term. Acuité believes that the company’s financial risk profile is expected to remain healthy, supported by its comfortable capital structure and healthy  debt protection metrics. Improving scale of operations and profitability In FY26(Prov.), the company reported revenue of Rs. 162.13 Cr., compared with Rs. 139.82 Cr. in FY25 and Rs. 119.59 Cr. in FY2024. The growth was driven by higher revenue from the railway and defence segment, supported by increased execution of railway orders and supplies of recently approved products. The company reported EBITDA of Rs. 27.46 Cr. in FY26-(Prov.) (FY25: Rs.18.51 Cr.; FY24: Rs. 5.53 Cr.). EBITDA margins stood at 16.94 per cent in FY26(Prov.) (FY25: 13.24 per cent; FY24: 4.62 per cent). Profitability in FY24 was impacted by bad debts write-offs of around Rs. 7.4 Cr. Subsequently, profitability improved in FY25 and FY26(Prov.) owing to favourable business mix following the exit from certain low-margin business segments and increased contribution from the relatively higher-margin railway and defence segments. Consequently, PAT increased to Rs. 20.02 Cr. in FY26(Prov.) (FY25: Rs.13.94 Cr.), supported by higher operating profitability. Going forward, the management has projected revenue of ~Rs. 180 Cr. in FY27, driven by expected growth in railway segment and steady demand from household products segment. Acuité believes the  company’s improving scale of operations and profitability are expected to support its business risk profile over the near to medium term.

Weaknesses

­Moderately intensive working capital operations The working capital operations of the company are moderately intensive, marked by Gross Current Asset (GCA)  of 257 days in FY26 (Prov.) (FY25: 285 days). The elevated GCA days are primarily due to sizeable other current assets, which largely comprises advances recoverable, and loans /advances absorbed pursuant to the amalgamation of Mehul Finance & Investment Private Limited with the company. The debtor collection period improved and stood at 80 days in FY26 (Prov.) (FY25: 89 days), broadly in line with the average collection cycle of around 90 days. Inventory holding improved and stood at 95 days in FY26 (Prov.) (FY25: 107 days). The creditor payment period increased and stood at 70 days in FY26 (Prov.) (FY25: 39 days). Further, the average utilisation of consolidated fund-based limits remained low at around 30.23 per cent over the 6 months ended March 2026. Acuité believes the working capital operations of the company will remain moderately intensive, given the nature of business. Exposure to sizeable advances absorbed pursuant to amalgamation Pursuant to the amalgamation of Mehul Finance & Investment Private Limited (MFIPL) with the company during FY25, loans and advances of the erstwhile entity were incorporated into the company’s balance sheet, resulting in advances recoverable of Rs. 30.91 Cr. as on March 31,2025. Further the balance increased to Rs. 42.53 Cr. as on March 31, 2026(Prov.) due to additional advances extended during the year. Given the materiality of these advances, timely recovery and realisation of the outstanding amounts will remain a key monitorable. Management has indicated that no further material advances are proposed to be extended, and the existing outstanding balances are expected to be recovered over time. Susceptibility of profitability to volatility in raw material prices in a highly competitive and fragmented industry The company’s profitability remains exposed to fluctuations in raw material prices, primarily plastic polymers and granules, which constitute a major portion of its operating costs. Any sharp movement in raw material prices may impact profitability, particularly in cases where cost increases cannot be passed on immediately to customers. Further, the household plastics industry remains highly competitive and fragmented, with the presence of several organised and unorganised players, limiting pricing flexibility. Although the company has improved its profitability through an increasing contribution from relatively higher-margin railway segment and exit from certain low-margin businesses, its operating performance remains susceptible to raw material price volatility and competitive intensity in the industry. Acuité believes that the company’s profitability will remain vulnerable to fluctuations in raw material prices and competitive pressures inherent in the plastic products industry.

Rating Sensitivities

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

Significant improvement in scale of operations while maintaining healthy profitability Improvement in working capital management with GCA below 150 days on a sustained basis

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

Significant deterioration in revenue and profitability Elongation in working capital cycle, with GCA above 350 days, exerting pressure on liquidity Deterioration in financial risk profile due to addition of debt

Liquidity Position

Adequate

The company’s liquidity position is adequate, supported by net cash accruals of Rs. 24.82 Cr. in FY2026(Prov.) against maturing debt obligations of Rs.0.15 Cr., during the year.  Further, the company is expected to generate cash accruals in the range of Rs. 28.19 – 31.28 Cr., against repayment obligations of Rs. 0.28 – 0.33 Cr. over the medium term. Reliance on fund-based working capital limits is low, with an average utilisation of 30.23 per cent over the 6 months ending March 2026. The cash and bank balance stood at Rs. 0.16 Cr. and the current ratio stood at 3.46 times as of March 31, 2026(Prov.). Liquidity is expected to remain adequate, supported by steady accrual generation in the near to medium term.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	162.13	139.82
PAT	Rs. Cr.	20.02	13.94
PAT Margin	(%)	12.35	9.97
Total Debt/Tangible Net Worth	Times	0.12	0.12
PBDIT/Interest	Times	27.39	27.78

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

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Amay Gupta Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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