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 ''ACUITE BBB-'' (read as ACUITE triple B minus) and short-term rating of "ACUITE A3" (read as ACUITE A three) on the Rs. 72.00 Crore bank facilities of Mira Exim Limited (MEL). The Outlook is 'Stable'.
Rational for Rating
The assigned rating factors in the promoters’ extensive experience of over three decades in the garment industry. The rating derives comfort from the company’s improving scale of operations, supported by higher sales volumes, along with improving EBITDA margins in FY 26 (Prov.), adequate liquidity position, and a moderate financial risk profile. However, these strengths are partly constrained by the company’s working capital intensive operations, reflected in elevated gross current assets (GCA) in FY26 (Prov.), as well as intense competition in the industry.
About the Company
Delhi-based Mira Exim Limited, incorporated in 1987, is an unlisted public company engaged in the manufacturing and export of woven and knitted apparel. The company primarily focuses on producing high-quality garments for women and children. It caters to a diversified clientele comprising major international fashion retailers, online fashion platforms, and mail-order catalogue companies across the US, UK, and Europe. The company’s board of directors includes Mr. Ashok Kumar Jain, Mr. Vikramaditya Jain, Mrs. Anita Jain, Mr. Sumit Dhadda, and Mr. Nityanand Singh.
Unsupported Rating
Not Applicable.
Analytical Approach
Acuite has considered the standalone business & financial risk profile of Mira Exim Limited (MIL) to derive at the rating.
Key Rating Drivers
Strengths
Extensive industry experience of the promoters
The promoters possess over three decades of experience in the garment industry, with a strong understanding of international fashion trends, buyer preferences, and supply chain dynamics. This has enabled the company to establish and maintain long-standing relationships with reputed retailers across the UK and Europe. Acuité believes that the promoters’ extensive expertise supports the company’s operational stability and augurs well for its growth prospects over the medium to long term.
Improving Scale of Operations & Profitability
The revenue from the operations of the company has improved marginally by 1.08%, thereby increasing the topline from Rs. 249.62 Cr. in FY 2025 to Rs. 252.31 Cr. in FY 2026 (Prov.). Although there was higher sales volume in the manufacturing segment, a decline in the trading segment resulted in overall operating income remaining only slightly above the previous year’s level. The operating margin of the company improved by 78 bps which stood at 7.26% in FY 26 (Prov.) against 6.47% in FY 25 mainly better cost absorption and improved pricing. The net margin improved & stood at 2.04% in FY 26 (Prov.) against 2.02% in FY 25. Acuite believes that the scale of operations & profitability will improve in near to medium term on the account of better volume sold.
Moderate Financial Risk Profile
The company’s financial risk profile is moderate marked by comfortable net worth, moderate gearing and healthy debt protection metrics. The tangible net worth of the company improved & stood at Rs. 62.41 Cr. as on March 31, 2026 (Prov.), against Rs. 57.38 Cr. as on March 31, 2025. The improvement in tangible net worth is primarily due to accretion of profits into reserves and treatment of unsecured loans from promoters as quasi equity. The gearing ratio of the company improved & stood at 1.37 times for FY 26 (Prov.) against 1.55 times for FY 25. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) improved and stood at 2.14 times for FY 26 (Prov.) against 2.72 times for FY 25. The debt coverage indicators is comfortable marked by ISCR & DSCR which stood at 2.36 & 1.90 times respectively for FY 26 (Prov.). Debt/EBITDA stood at 4.41 times for FY 26 (Prov.) against 5.12 times in FY 25. Acuite believes that going forward the financial risk profile of the company will improve in near to medium term backed by steady accruals and no debt funded capex planned.
Weaknesses
Intensive Working Capital Operations
The working capital operations of the company is intensive marked by high Gross Current Assets (GCA) of 203 days for FY 26 (Prov.). The intensiveness is mainly due to the higher inventory holding period and debtor realization days which stood and 90 & 76 days for FY 26 (Prov.) respectively. Inventory levels are expected to remain elevated due to the dual revenue model comprising both manufacturing and trading activities. However, debtor realization days improved significantly from 139 days in FY25 to 76 days in FY26 (Prov.), reflecting better collection efficiency and improved working capital management. Acuite believes the working capital operations of the company will remain intensive in near to medium term due to inherit nature of operations.
Presence in Intensely competitive garment industry
The garment industry remains highly competitive, characterized by the presence of numerous unorganized and small-scale players owing to low entry barriers, modest capital requirements, and relatively simple operational processes. Acuité believes that the company continues to face pricing pressures amid increasing competition, which may constrain margin expansion despite improving scale of operations. Further, evolving fashion trends and stringent buyer requirements also necessitate continuous product innovation and operational efficiency, thereby intensifying competitive pressures in the industry.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in scale of operations by around 20–25%, while maintaining operating margins
Improvement in financial risk profile
Potential triggers (individual or collective) for a downward rating action:
Major debt-funded capex which may adversely impact debt protection metrices.
Significant decline in the scale of operations by around 20%, and deterioration in operating margins to lower than 5%, leading to weakened cash accruals
Elongation of working capital cycle
Liquidity Position
Adequate
The liquidity profile of the company is adequate marked by generating net cash accruals of Rs. 11.18 Cr. in FY 26 (Prov.) against the maturing debt obligations of Rs. 1.99 Cr. for the same period. The company has free cash & bank balance of Rs. 7.83 Cr. as on 31st March 2026 (Prov.). The current ratio stood moderate at 1.24 times for FY 26 (Prov.). The average fund-based utilization for last six months ending March 2026 is 91.88%. Acuite believes, the liquidity of the company is expected to improve in near to medium term with steady cash accruals indicating availability of funds for any future endeavours and in the absence of any major debt funded capex plans.
Outlook - Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
252.31
249.62
PAT
Rs. Cr.
5.15
5.04
PAT Margin
(%)
2.04
2.02
Total Debt/Tangible Net Worth
Times
1.37
1.55
PBDIT/Interest
Times
2.36
2.54
Status of non-cooperation with previous CRA (if applicable)
OCRA vide its press release dated July 17th, 2025 had denoted the rating of Mira Exim Limited as A4 'Reaffirmed and Issuer not co-operating’
OCRA vide its press release dated July 30th, 2025 had denoted the rating of Mira Exim Limited as B+/Stable/ A4 'Reaffirmed and Issuer not co-operating’.
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.
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