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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 10.00 | ACUITE A- | Stable | Assigned | - | RBI |
| Bank Loan Ratings | 0.00 | 41.23 | ACUITE A- | Stable | Upgraded | - | RBI |
| Bank Loan Ratings | 0.00 | 13.43 | - | ACUITE A2+ | Assigned | RBI |
| Bank Loan Ratings | 0.00 | 36.77 | - | ACUITE A2+ | Upgraded | RBI |
| Total Outstanding | 0.00 | 101.43 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |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. |
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Rating Rationale |
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Acuité has upgraded the long-term ratings to 'ACUITE A-' (read as ACUITE A minus) from 'ACUITE BBB+' (read as ACUITE Triple B plus) and the short-term ratings to 'ACUITE A2+' (read as ACUITE A Two plus) from 'ACUITE A2' (read as ACUITE A two) for bank facilities of Rs. 78 crore of Rajputana Industries Limited (Erstwhile Rajputana Industries Private Limited). The outlook is revised from 'Positive' to 'Stable'.
Acuite has assigned long term rating 'ACUITE A-' (read as ACUITE A minus) and short term rating of 'ACUITE A2+' (read as ACUITE A two plus) for bank facilities of Rs. 23.43 crore of Rajputana Industries Limited (Erstwhile Rajputana Industries Private Limited). The outlook is 'Stable'. Rational for rating The rating upgrade factors in the sustained improvement in the group's scale of operations, with revenue registering a CAGR of 33.02% during FY 2022–FY 2026, supported by a steady enhancement in profitability over the years. The group reported a 28.4% growth in net revenue in FY 2026, with the topline increasing to Rs. 1,640.05 crore from Rs. 1,277.30 crore in FY 2025. Furthermore, the group's operating profitability improved, with EBITDA increasing to Rs. 87.58 crore in FY 2026 from Rs. 58.73 crore in FY 2025. The rating also derives comfort from the group's adequate liquidity position and moderate financial risk profile. However, the rating strengths are partially constrained by the group's moderately intensive working capital requirements, as reflected by GCA days of 129 days in FY 2026. The profitability margins also remain susceptible to fluctuations in raw material prices, particularly non-ferrous metal prices, exposing the group to commodity price volatility. |
| About the Company |
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Rajputana Industries Limited (RIL), based in Jaipur, was incorporated in 2011 by Mrs. Shivani Sheikh. The company is engaged in the manufacturing of a wide range of copper, copper alloy, and cupronickel cast, extruded, and drawn products. Its product portfolio includes billets/ingots, mother shells, tubes and pipes, hollow and solid rods, sections, and profiles, among other value-added metal products. These products cater to diverse industrial applications across the engineering, electrical, and manufacturing sectors. |
| About the Group |
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The Shera Group (SG) was established in 2003 by Mr. Naseem Sheikh with the inception of Shera Metals & Engineers. Shera Energy Limited (SEL) is the flagship company of the group and is engaged in the manufacturing of winding wire products. The group has diversified operations across copper and brass based products through its subsidiaries, namely Shera Metal Private Limited (SMPL), Rajputana Industries Limited (RIL), and Shera Zambia Limited, which support the group's integrated presence in the non-ferrous metals value chain. The group serves a diversified customer base across the electrical, transformer, and industrial segments.
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| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profiles of Shera Energy Limited (SEL), Shera Metal Private Limited (SMPL), Rajputana Industries Limited (RIL), and Shera Zambia Limited to arrive at this rating. The consolidation is on account of common management, presence in the same line of business, and significant business and financial synergies between the entities. The group is herein referred to as "Shera Group (SG)".
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| Key Rating Drivers |
| Strengths |
| Experienced management and established track record of operations
The group's operational profile benefits from the extensive industry experience of its promoters, led by Mr. Naseem Sheikh, who has been associated with the non-ferrous metals industry for over two decades. Over the years, the group has established a diversified product portfolio comprising copper and aluminium winding wires, bus bars, and various copper, brass, and copper-alloy products. The group caters to a diversified customer base across industries such as electrical equipment, power, automobiles, marine, LPG valve manufacturing, and forgings. Acuite belives that he long operational track record, coupled with established customer relationships and product diversification, will continue to support the group's business profile over the medium term. Improving Scale of Operations & Profitability The group's scale of operations witnessed a healthy improvement in FY 2026, with operating income increasing by 28.40% to Rs. 1,640.05 crore from Rs. 1,277.30 crore in FY 2025. The growth was primarily driven by higher sales volumes across key product segments, supported by improved realizations. The sustained growth reflects the group's expanding scale of operations, increased market penetration, and growing demand for its products. The group's operating profitability also strengthened, with EBITDA increasing to Rs. 87.58 crore in FY 2026 from Rs. 58.73 crore in FY 2025. Consequently, the EBITDA margin improved by 74 bps to 5.34% from 4.60% in the previous year, supported by better operating leverage arising from increased scale of operations. Accordingly, the group's net profit improved to Rs. 36.97 crore in FY 2026 from Rs. 22.40 crore in FY2025, while the net profit margin increased to 2.25% from 1.75% during the same period. Acuite believes going forward, the scale of operations & profitability of the group will improve on account of expected higher sales volume & demand. Moderate Financial Risk Profile The group has moderate financial risk profile marked by high net worth, moderate gearing and comfortable debt coverage indicators. The total tangible net worth of the group improved & stood at Rs. 247.01 Cr. as on 31st March 2026 against Rs. 199.05 Cr. as on 31st March 2025. The improvement in net worth is mainly due to accretion of profits into reserves and increase in non-controlling interest (minority) in FY 26. The gearing ratio stood at 1.06 times in FY 26 deteriorated marginally against 0.93 times in FY 25. The deterioration is mainly due to increase in working capital facilities and increase in long term debt due to ongoing debt funded capex within the group. The group was setting up a manufacturing facility for CTC Conductors, Super Fine Copper Wires, and Copper Ribbons under Shera Metal Private Limited. The project has been funded through mix of external debt & internal accruals. The trail runs are ongoing and commercial production is expected to commence from end of July 2026. the TOL/TNW slightly moderated & stood at 2.21 times as on FY 2026 against 2.08 times in FY 2025. Debt/EBITDA improved & stood at 2.78 times for FY 26 against 3.07 times for FY 25. Further, Debt coverage indicators marked by ISCR & DSCR stood comfortable at 2.55 & 1.52 times for FY 26 respectively. ROCE stood at 19.17% for FY 26. Acuite believes that financial risk profile of the group is expected to improve in near to medium term on the account of steady accruals and further no debt funded capex planned in near to medium term. |
| Weaknesses |
| Moderately intensive working capital operations
The group's working capital operations remained moderately intensive, albeit with some improvement, as reflected in GCA days of 129 days in FY 2026 as against 133 days in FY 2025. The debtor collection period remained healthy at 44 days, while inventory holding stood at a moderate 76 days during FY 2026. Supported by efficient management of receivables and inventory, the group maintained a healthy working capital cycle of 56 days in FY 2026. Acuité believes that the group's working capital position is likely to witness gradual improvement over the near to medium term, aided by its growing scale of operations and established customer relationships. Susceptibility of profitability to volatility in raw material prices The group's profitability remains susceptible to fluctuations in raw material prices, particularly copper, aluminium, and other non-ferrous metals, which constitute a significant portion of its cost structure. Any sharp adverse movement in metal prices or a mismatch in the timing of raw material procurement and pass through of price changes to customers could exert pressure on margins. Nevertheless, the diversified product portfolio and established customer relationships provide some cushion against such volatility. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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The liquidity profile of the group is adequate marked by generating net cash accruals of Rs. 43.64 Cr. in FY 26 against the maturing debt obligations of Rs. 16.10 Cr. for the same period. The group has free cash & bank balance including free fixed deposits of Rs. 23.50 Cr. as on 31st March 2026. The current ratio stood moderate at 1.30 times for FY 26. The average fund based and non-based facility for last six month ended April 2026 is 77.42% and 83.38% respectively. Acuite believes, the liquidity of the group is expected to improve in near to medium term with steady cash accruals indicating availability of funds for any future endeavours.
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| Outlook - Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 26 (Actual) | FY 25 (Actual) |
| Operating Income | Rs. Cr. | 1640.05 | 1277.30 |
| PAT | Rs. Cr. | 36.97 | 22.40 |
| PAT Margin | (%) | 2.25 | 1.75 |
| Total Debt/Tangible Net Worth | Times | 1.06 | 0.93 |
| PBDIT/Interest | Times | 2.55 | 2.49 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
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| 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. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
