Press Release

Press Release

July 28, 2026

CHOPRA ALLOYS 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	129.50	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	10.50	-	ACUITE A3 \| Assigned	RBI
Total Outstanding	0.00	140.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 the 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.140.00 Crore bank loan facilities of Chopra Alloys Private Limited (CAPL). The outlook is 'Stable'.

Rationale for rating
The assigned rating draws comfort from the experience of the management in the same line of business over decades and established relationships with customers and suppliers. The rating further factors in the company’s improved operating income, which stood at Rs. 673.65 Cr. in FY2026 (Prov.) as against Rs. 600.95 Cr. in FY2025, driven by the higher sales volume across key product segments. Moreover, the rating takes into account the company's efficient working capital operations and adequate liquidity position despite ongoing debt-funded capex project to set up a solar power plant. However, the abovementioned strengths are partly offset by the company’s financial risk profile marked by average net worth, gearing, and debt protection metrics. Additionally, the company's profitability moderated with EBITDA margin at 2.78% in FY2026 (Prov.) as against 3.17% in FY2025, due to higher operating expenses. The ability of the company to maintain its profitability margins while scaling up its operations in the near to medium term will remain a key monitorable factor. Acuite further notes that the rating remains constrained by susceptibility of operating margins to volatility in raw material prices and presence in a highly competitive and fragmented industry.

About the Company

Ludhiana based, Chopra Alloys Private Limited (CAPL) was established in 2006 as a partnership firm and was registered as a private limited company in March 2026. CAPL manufactures a diversified range of steel products, including ERW steel pipes, HR coils and billets, among others, to meet the growing demands of infrastructure, industrial, and structural applications across India. Mr. Pankaj Chopra, Mr. Vinay Chopra, Mr. Sukhwinder Pal Chopra, Mr. Baldev Raj Chopra, Mr. Anshul Chopra, Mr. Deepak Chopra, and Mr. Aman Chopra are directors of the company.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profiles of Chopra Alloys Private Limited (CAPL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management and Established track of operations
CAPL was established in 2006 as a partnership firm and was registered as a private limited company in March 2026. The company manufactures a diversified range of steel products, including ERW steel pipes, HR coils, and billets, among others. Its products find applications in construction, agricultural, and utility projects, as well as industrial and structural engineering applications. The company’s management has experience of more than four decades in the steel industry, which has benefited the company in building established relationships with customers and suppliers. Acuite believes that the company will continue to derive benefit from the established track record of operations and experienced management’s strong understanding of market dynamics.

Improved operating income, albeit moderated profitability margins
The operating income of the company stood at Rs. 673.65 Cr. in FY2026 (Prov.) as against Rs. 600.95 Cr. in FY2025, driven by the higher sales volume across key product segments. The growth in revenue was primarily supported by increased sales of HR coils, while ERW pipes continued to remain the largest contributor to the company's overall revenue mix. In addition, the growth also reflects an improvement in domestic steel market dynamics during FY2026 (Prov.) after subdued demand conditions across the industry in FY2025. The EBITDA margin, however, stood at 2.78% in FY2026 (Prov.) as against 3.17% in FY2025 on account of higher operating expenses incurred during the year. Additionally, the PAT margin stood at 0.50% in FY2026 (Prov.) against 0.69% in FY2025, primarily due to recognition of tax expenses, following the company's conversion into a private limited company from a partnership firm during March 2026. Acuite expects the company to maintain its revenue profile in the near to medium term, however, the ability of the company to improve its profitability margins while scaling up its operations in the near to medium term will remain a key monitorable factor.

Efficient Working Capital Operations
The working capital operations of the company are efficient, marked by GCA days of 53 days as on 31st March 2026 (Prov.) as against 57 days as on 31st March 2025. The company maintains adequate inventory as and when required for order execution, despite this, the inventory days stood at 29 days as on 31st March 2026 (Prov.) as against 34 days as on 31st March 2025. Further, the debtor days stood at 11 days as on 31st March 2026 (Prov.) as against 12 days as on 31st March 2025 reflecting the company's efficient receivables management and timely realization from customers. The creditor days stood at 9 days as on 31st March 2026 (Prov.) as against 2 days as on 31st March 2025. Acuite expects the working capital operations to remain at similar levels in the near to medium term supported by effective inventory and receivables management by the company.

Weaknesses

Average Financial Risk Profile
The financial risk profile of the company is marked by average net worth, gearing and debt protection metrics. Tangible net worth of the company stood at Rs. 40.38 Cr as on 31st March 2026 (Prov.) as against Rs. 27.65 crore as on 31st March 2025 on account of accretion of profits into reserves and treatment of unsecured loans as quasi equity. The capital structure is marked by gearing ratio at 2.05 times as on 31st March 2026 (Prov.) as against 3.77 times as on 31st March 2025. Moreover, the coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 3.22 times and 1.67 times, respectively, as on 31st March 2026 (Prov.). The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.97 times as on 31st March 2026 (Prov.) as against 4.47 times as on 31st March 2025 and Debt/EBITDA stood at 4.31 times as on 31st March 2026 (Prov.) as against 5.38 times as on 31st March 2025. Moreover, the company is currently undergoing capex to set up a 30 MW solar power plant with an estimated project cost of Rs. 100.95 Cr. The funding structure comprises a term loan from bank (Rs. 75.00 Cr.) and the balance from the promoter's contribution in the form of equity share capital. Acuite expects the financial risk profile of the company to remain in similar range in the near to medium term on account of ongoing debt-funded capex project.

Highly competitive industry and Susceptibility of margins to fluctuations in raw material prices
The company remains exposed to the inherent challenges of operating in a highly competitive steel processing industry, where the presence of numerous organized and unorganized players limits pricing power and often compresses operating margins. In this environment, sustaining differentiation becomes difficult, especially as customer preferences are price-sensitive and market cycles can shift quickly. Further, the company’s profitability is also susceptible to volatility in the prices of key raw materials. In case of any sharp raw material cost fluctuations, the ability of the company to pass on such adverse impact to its customers and sustain its operating profitability will be a key rating monitorable factor.

Rating Sensitivities

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

Consistent growth in operating income by more than 25%.
Significant improvement in the operating profitability position.
Improvement in capital structure and debt protection metrics.

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

Decline in revenue y-o-y and/or operating profitability margins below 1.7%.
Stretch in liquidity profile on account of ongoing debt-funded capex.
Deterioration in the financial risk profile owing to larger than expected debt-funded capex.

Liquidity Position

Adequate

The liquidity position of the company is adequate, as reflected by net cash accruals of Rs. 11.34 Cr. in FY2026 (Prov.) as against debt repayment obligations of Rs. 4.39 Cr. during the same period. Additionally, the cash and bank balance of the company stood at Rs. 3.77 Cr. in FY2026 (Prov.). The promoters are also financially backed to infuse funds as and when required, thus providing an additional cushion to the liquidity. The current ratio stood at 1.04 times in FY2026 (Prov.). Moreover, fund based and non fund based working capital limits stood utilized at 81.17% and 84.91% for the last six months ended April 2026. Acuite expects the company to maintain adequate liquidity position supported by sufficient accruals against debt repayment obligations, flexibility to infuse funds by the directors/ promoters, albeit ongoing debt-funded capex project.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	673.65	600.95
PAT	Rs. Cr.	3.34	4.16
PAT Margin	(%)	0.50	0.69
Total Debt/Tangible Net Worth	Times	2.05	3.77
PBDIT/Interest	Times	3.22	2.75

Status of non-cooperation with previous CRA (if applicable)

Other Credit Rating Agency, vide its press release dated May 30th, 2026 had denoted the rating of Chopra Alloys Private Limited as OCRA B/ Stable/A4 'Downgraded and Issuer not co-operating’.

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

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	35.00	Simple	ACUITE BBB- \| Stable \| Assigned
YES BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Stable \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Derivative Exposure	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.50	Simple	ACUITE A3 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3 \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE BBB- \| Stable \| Assigned
YES BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Aug 2025	Not avl. / Not appl.	31 Jul 2035	75.00	Simple	ACUITE BBB- \| Stable \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Mar 2024	Not avl. / Not appl.	31 Jan 2029	3.00	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. 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.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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