Press Release July 06, 2026 SHREE RAMDEV METALEX LLP 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	150.00	ACUITE BBB | Stable | Assigned	-	RBI
Total Outstanding	0.00	150.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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) on the Rs. 150.00 Cr. bank facilities of Shree Ramdev Metalex LLP (SRML). The outlook is ‘Stable’. Rationale for Rating The assigned rating factors in the firm’s gradual improvement in scale of operations while maintaining stable profitability margins, supported by its established operational track record, experienced management, and diversified customer profile. The rating also considers the firm’s moderate financial risk profile and moderately efficient working capital operations. However, the rating is constrained by the susceptibility of profitability to volatility in raw material prices and forex risk along with intense competition and inherent cyclicality in the steel industry.

About the Company

Mumbai-based Shree Ramdev Metalex LLP (SRML) is part of the Shree Ramdev Group, a four-decade-old industrial conglomerate founded in 1972 by Mr. Prabhudayal Dharamji Purohit. Incorporated as a Limited Liability Partnership in 2015, SRML is engaged in the manufacturing and processing of stainless-steel products, having transitioned from its earlier trading operations starting FY2021–22. The firm specializes in processing stainless steel of 200, 300, and 400 series grades through cutting, slitting, and shearing as per client-specific requirements, supplying customized materials without maintaining finished goods inventory. SRML caters primarily to three end-user segments: auto OEMs (including Tier-1 vendors for exhaust systems, silencers, and tube assemblies), the elevator industry, and the utensil/cookware segment. The firm is led by partners Mr. Bhagwati Prasad P. Purohit, Mr. Mukesh P. Purohit, Mr. Prabhudayal D. Purohit, Ms. Laxmidevi B. Purohit, and Ms. Meena M. Purohit.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Shree Ramdev Metalex LLP (SRML).

Key Rating Drivers

Strengths

Experienced management with established track record SRML is supported by an experienced and stable management team led by the Purohit family, which brings together over four decades of collective industry expertise in the stainless-steel segment. The founding partner, Mr. Prabhudayal D. Purohit, with more than 50 years of experience in the industry and continues to leverage long-standing relationships with domestic and international suppliers. The day-to-day operations are overseen by Mr. Bhagwati Prasad P. Purohit, who has over 35 years of experience and has been instrumental in strengthening procurement channels, maintaining key supplier relationships, and driving the firm’s transition from trading to manufacturing. Supporting him, Mr. Mukesh P. Purohit, with 25 years of experience, manages sales, commercial strategy, and key client relationships, particularly within the auto OEM segment, enhancing the firm’s presence among Tier-1 vendors. The management team is further complemented by experienced professionals bringing significant domain expertise. The partners’ strong understanding of industry dynamics, together with long-standing customer relationships and execution capabilities, has enabled SRML to establish a stable market position and secure repeat business from reputed clients. Steady growth in operating performance and healthy profitability margins SRML has demonstrated consistent improvement in its scale of operations, with operating income improving to Rs. 701.72 crore in FY26 (prov.) as compared to Rs. 529.10 crore in FY25 and Rs. 483.28 Cr. in FY24, registering strong growth of 32.63% in FY26, driven by volume growth in the auto parts segment and supported by geographical expansion through its Chennai and Ahmedabad branches. Further, absolute EBITDA increased to Rs. 40.65 crore in FY26 (Prov.) from Rs. 30.59 crore in FY25, although operating margins have largely remained stable at 5.79% in FY26 (prov.) as compared to 5.78% in FY25. PAT Margin of the firm stood at 1.74 percent in FY26 (prov.) as compared to 1.89 percent in FY25. Margins remain modest due to the inherently low margins of processing activities such as cutting, slitting, and shearing of stainless-steel coils and sheets. PAT improved correspondingly to Rs. 12.18 crore in FY26 (prov.) as compared to Rs. 9.98 crore in FY25. Acuite believes that the increasing focus on the relatively higher-margin auto segment, along with scale benefits and diversification, is expected to support gradual improvement in profitability over the medium term. Moderate financial risk profile The firm’s has moderate financial risk profile is marked by improving net worth, average gearing and comfortable debt protection metrics. The tangible net worth of the company improved to Rs. 77.28 Cr. as on March 31, 2026 (Prov.) from Rs. 61.44 Cr. as on March 31, 2025, due to accretion of profits in the partners’ capital account. The tangible net worth of the company includes Rs. 7.00 crore considered as quasi-equity, representing long-term promoter infusion, which is subordinated to bank debt. The gearing of the firm stood at 1.87 times as on March 31, 2026 (Prov.), as compared to 1.51 times as on March 31, 2025. The increase is primarily attributable to higher working capital utilisation in line with the expanded scale of operations, along with an increase in long-term debt availed for capacity expansion-related capex. The total debt of the company stood at Rs. 144.49 Crore as on March 31, 2026 (Prov.), comprising of Rs. 17.08 crore of long-term debt, Rs. 8.07 crore of USL from promoters/relatives, Rs. 116.34 Crore of short-term debt and Rs. 3.00 Crore of CPLTD as against total debt of Rs. 92.68 Crore as on March 31, 2025. The comfortable debt protection metrics of the firm are marked by Interest Coverage Ratio (ICR) at 2.37 times in FY2026 (prov.) compared to 3.07 times in FY2025 and Debt Service Coverage Ratio (DSCR) at 1.84 times in FY2026 (prov.) compared to 2.21 times in FY2025. Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.49 times as on March 31, 2026 (Prov.) as against 3.14 times as on March 31, 2025. Debt to EBITDA stood at 3.50 times as on March 31, 2026 (Prov.) as compared to 2.96 times as on March 31, 2025. Acuite believes that the firm’s financial risk profile to remain moderate over the near to medium term, supported by the absence of any debt-funded capex plans.

Weaknesses

Moderately intensive working capital operations The working capital operations of SRML remained moderately intensive, as reflected by Gross Current Assets (GCA) of 154 days as on March 31, 2026 (Prov.), compared to 147 days as on March 31, 2025. Inventory days improved to 67 days in FY2026 (Prov.) from 75 days in FY2025. The firm operates an order-driven business model and does not carry any finished goods inventory. Further, the debtor cycle witnessed an increase, in line with the growing share of auto OEM clients, which typically operate on credit cycles of 60–75 days, resulting in relatively higher credit extended to customers. Creditor days stood at 66 days in FY2026 (Prov.) as against 73 days in FY2025. Further, the fund-based limit utilization stood at ~90.7 per cent for Six months ended April 2026. Acuite believes that the working capital operations of the firm will remain moderately intensive over the medium term due to its nature of business. Risk of capital withdrawal  As per the sanction terms, firm is required to maintain a minimum net worth of Rs. 71.0 crore as on March 31, 2026, and Rs. 82.0 crore as on March 31, 2027, along with maintaining unsecured loans from family members/related parties at Rs. 7.00 crore during the tenure of the availed facilities. These unsecured loans are subordinated to bank debt, thereby restricting withdrawal of funds. Nevertheless, given the partnership structure, the firm would remain exposed to risk of capital withdrawal which could adversely impact the financial risk profile.   Susceptibility of profitability to volatility in raw material prices and forex risk The firm’s profitability remains highly susceptible to volatility in key raw material prices. Any sharp increase in input costs, coupled with the firm’s inability to pass on such increases to customers in a timely manner, may adversely impact operating margins. Further, firm imports ~60-70 per cent of total purchases, wherein it hedges the exposure to some extent, thus exposing the firm to foreign exchange fluctuation risk for its unhedged exposure. Acuite believes that the firm’s profit margins are likely to remain exposed to the inherent cyclicality of the steel industry and fluctuations in raw material prices and forex.  Intense competition and inherent cyclicality in the steel industry SRML is operating in a competitive and fragmented nature of industry due to the presence of many unorganized players on account of low entry barriers. Moreover, demand for its products predominantly depends on the auto, elevator and utensil/cookware industry.  Thus, the profit margins and sales of the company remain exposed to inherent cyclicality in these sectors.

Rating Sensitivities

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

-Significant growth in revenues and profitability margins -Improvement in working capital cycle with GCA below 100 days on a sustained basis -Improvement in financial risk profile with debt to equity below 1 time on sustained basis

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

-Significant decline revenues and profitability -Deterioration in financial risk profile on the back of unexpected debt funded capex with debt to equity above 2 times and DSCR below 1.5 times -Elongation in working capital cycle

Liquidity Position

Adequate

The firm’s liquidity is adequate marked by sufficient net cash accruals against its repayment debt obligations. The net cash accruals stood at Rs. 17.33 Cr. in FY26(prov.) as against long term debt repayment of only Rs. 1.45 Cr. during the same period. Going forward, the company is expected to generate net cash accruals in the range of Rs. 20-23 Crore in FY27-28 against it its repayment obligation of Rs. 3-4 crore during the same period. Further, the fund-based limit utilization stood at ~ 90.7 per cent for Six months ended April 2026.  The current ratio also stood strong at 1.22 times as on March 31, 2026 (prov.). The cash and bank balances of the company stood at ~Rs. 0.88 Cr. as on March 31, 2026 (prov.). Acuite believes that going forward the liquidity position of the company will remain adequate owing to steady cash accruals.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	701.72	529.10
PAT	Rs. Cr.	12.18	9.98
PAT Margin	(%)	1.74	1.89
Total Debt/Tangible Net Worth	Times	1.87	1.51
PBDIT/Interest	Times	2.37	3.07

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

Contacts

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

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In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators. 4 There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. 5 These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.   B. Other activities:   Sr. No. Activity Name Regulator of the activity 1 Monitoring Agency SEBI 2 Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 Not applicable 6 permitted by SEBI vide SEBI Master Circular for CRAs. 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