Press Release January 08, 2026 AIC IRON INDUSTRIES PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	750.00	ACUITE A | Stable | Assigned	-
Bank Loan Ratings	182.68	ACUITE A | Stable | Reaffirmed	-
Bank Loan Ratings	83.00	-	ACUITE A1 | Reaffirmed
Total Outstanding	1015.68	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­Acuite has reaffirmed the long-term rating of  ‘ACUITE A’ (read as ACUITE A)  and the short-term rating  of 'ACUITE A1' (read as ACUITE A one) on the Rs.265.68 Cr. bank facilities of AIC Iron Industries Private Limited (AIIPL). The outlook is 'Stable'. ­Acuite has assgined the long-term rating of  ‘ACUITE A’ (read as ACUITE A)  on the Rs.750.00 Cr. bank facilities of AIC Iron Industries Private Limited (AIIPL). The outlook is 'Stable'. Rationale for rating The rating reaffirmation reflects the continued improvement in the overall business risk profile of the company marked by increase in the operating income and profitability driven by fully integrated operations. The rating also factors in its experienced management, efficient working capital operations and the healthy financial risk profile of the group characterized by healthy net worth and steady debt coverage indicators. However, the rating remains constrained by its cyclical nature of the steel industry and the susceptibility of profitability to volatility in raw material prices.

About the Company

­AIC Iron Industries Private Limited (AIIPL) was incorporated in December 2003. Current directors of the company are Mr. Gyan Adukia, Mr. Sheo Pujan Singh, Mr. Dinesh Adukia, Mr. Vivek Adukia. In February 2008, the company was taken over by Adukia group of West Bengal. The company has integrated operations with capacities to produce sponge iron, billets, MS strips/pipe and Silico Manganese across merged companies – AIIPL, NNIPL and RISPPL, AIC casting Pvt. Ltd. The aggregate installed capacity of the company is 3,75,000 MT of sponge iron, 7,10,000 MT of billets and 1,00,000 MT of MS Strips/pipes& TMT  and 13,100 MT Silico Manganese. The company also has a captive power plant of 41.5 MW.

Unsupported Rating

­Not applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profile of AIIPL to arrive at the rating. Earlier, rating was based on consolidation of N.N. Ispat Private Limited (NNIPL), AIC Iron Industries Private Limited (AIIPL) and Raic Integrated Sponge and Power Private Limited (RISPPL). Further on the back of merger of N.N. Ispat Private Limited (NNIPL), AIC Iron Industries Private Limited (AIIPL) and Raic Integrated Sponge and Power Private Limited (RISPPL) into AIC Iron Industries Private Limited w.e.f. from FY2024. Acuité has changed the approach to standalone.

Key Rating Drivers

Strengths

Long operational track record and experienced management ­The promoters of the AIC,  the Adukia family of West Bengal, have more than two decades of experience in the iron and steel industry. The extensive experience of the promoters has helped them understand market dynamics and establish strong relationships with their customers and suppliers. The overall affairs of the AIC  are being managed by Mr. Dinesh Adukia and his brothers. The promoters are resourceful and have also supported the group companies by infusing unsecured loans as and when required to support the business operations. Acuité believes that the long-track record of operations will benefit the company going forward, resulting in steady growth in the scale of operations. Improving scale of operations The operating income of the company improved and stood at Rs.2729.67 Cr in FY2025 with YOY growth of 15.15 percent as against Rs.2370.59 Cr in FY2024. The company generates its revenues from manufacturing of sponge iron, billet, silico manganese, TMT and other rolled steel products. The growth in operating income is attributed to increase in capacity utilisation across all its product segments. The company has shown improvement in the EBIDTA margin in FY2025 which stood at 8.33 percent as against 7.65 percent in FY2024, 5.11 percent in FY2023. The improvement in the EBIDTA margin is driven by fully integrated operation and decline in the raw material cost and power cost and savings in transportation costs. Acuite believes, the group’s operating performance would improve steadily over the medium term backed by completed capex and augmentation in the volumes. Healthy financial risk profile The company’s financial risk profile is healthy with marked by healthy net worth, steady gearing and moderate debt protection metrics. The net worth of the company stood at Rs.554.27 Cr. as on March 31, 2025 against Rs.409.28 Cr. as on March 31, 2024. The net worth is improved due to accretion of net profit in the reserve and team has considered unsecured loans of Rs.111.00 Cr as on March 31, 2025. The gearing (debt to equity) of the company stood at 1.33 times as on March 31, 2025, against 1.37 times as on March 31, 2024. Debt protection metrics – Interest coverage ratio (ICR) and debt service coverage ratio (DSCR) stood at 3.58 times and 1.73 times as on March 31, 2025, respectively as against 3.82 times and 1.83 times as on March 31, 2024, respectively. Tol/ TNW stood at 1.85 times as on March 31, 2025, as against 2.12 times as on March 31, 2024. The debt to EBITDA of the group in stood at 3.13 times as on March 31, 2025, as against 2.93 times as on March 31, 2024. The calibrated capex of Rs. 150 Cr which has been undertaken by the group in FY2025, funded through internal accruals and debt. Total capex will be capitilized by FY2026. Acuité believes the financial risk profile to remain healthy over the medium term on account of the company healthy capital structure and stable operations. Moderately efficient  working capital operations The company’s operations are moderately efficient in terms of working capital marked by Gross Current Asset (GCA) days of 110 days in FY2025, 94 days in FY2024 respectively. The working capital cycle remained in the said range on account of limited credit period offered to the debtors and moderate levels of inventory maintained by the company. Inventory days stood at 69 day in FY2025, as against 60 days in FY 2024. The reason for the slight increase in the inventory days is due to group need to maintain raw material inventory (iron ore coal stock) for uninterrupted production and to mitigate the raw material price fluctuations risk. The debtor day stood at 31 days in FY2025 as against 27 days in F2024.  Further, the average bank utilization limit in the last six months ended August 24 remained at ~78 percent for fund based. Acuite believes the working capital requirement is likely to remain at similar levels over in the medium term due to the nature of business.

Weaknesses

­Susceptibility of profitability to volatility in raw material prices in an intensely competitive and cyclical steel industry The group faces strong competitive forces from both organized and unorganized participants, compounded by the cyclicality inherent in the steel industry. Moreover, the government’s emphasis on steel-intensive sectors like railways and infrastructure increases vulnerability; any prolonged drop in demand would negatively affect steel group’s performance. Furthermore, the fluctuation in prices of raw materials and goods is considerably unstable. While any major fluctuation in prices can be passed on to the customers with a lag, the company would remain exposed to volatility in raw material prices in case of weak demand.

Rating Sensitivities

­Sustainability in revenue growth and profitability margins Elongation of working capital cycle Any deterioration of its financial risk profile owing to higher-than expected debt funded capex.

Liquidity Position: Adequate

Company’s Liquidity is adequate with adequate net cash accruals (NCAs) to its repayment obligations. The company has generated cash accruals of Rs.140.08 Cr. in FY2025, while its maturing debt obligations stood at Rs.53.26 Cr. during the same period. Going forward, the company is expected to generate adequate net cash accruals against maturing repayment obligations. However, the reliance on working capital limits stood moderate marked by average 78 percent utilization of the fund-based limits used over the past six months ending in August 2025. The company has maintained unencumbered cash and bank balances Rs.1.83 Cr. and the current ratio stood at 1.26 times as on March 31, 2025. Acuité expects that the liquidity of the company is likely to remain adequate over the medium term on account of expected healthy cash accruals to its maturing debt obligations.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	2729.67	2370.59
PAT	Rs. Cr.	77.70	77.20
PAT Margin	(%)	2.85	3.26
Total Debt/Tangible Net Worth	Times	1.33	1.37
PBDIT/Interest	Times	3.58	3.82

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

­Not Applicable

Any other information

On the back of scheme of amalgamation entities namely Raic Integrated Sponge And Power Private Limited, N N Ispat Private Limited, AIC Casting Private Limited. AIC Realtors Private Limited, Adukia Industries Private Limited amalgamated into AIC Iron Industries Private Limited w.e.f. FY2024.

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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 14 Oct 2025 Cash Credit Long Term 32.00 ACUITE A | Stable (Reaffirmed) Term Loan Long Term 8.18 ACUITE A | Stable (Reaffirmed) Cash Credit Long Term 31.00 ACUITE A | Stable (Reaffirmed) Term Loan Long Term 4.46 ACUITE A | Stable (Reaffirmed) Term Loan Long Term 7.63 ACUITE A | Stable (Reaffirmed) Term Loan Long Term 14.78 ACUITE A | Stable (Reaffirmed) Cash Credit Long Term 15.00 ACUITE A | Stable (Reaffirmed) Cash Credit Long Term 22.00 ACUITE A | Stable (Reaffirmed) Term Loan Long Term 15.00 ACUITE A | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE A | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 27.63 ACUITE A | Stable (Reaffirmed) Letter of Credit Short Term 1.75 ACUITE A1 (Reaffirmed) Letter of Credit Short Term 23.00 ACUITE A1 (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A1 (Reaffirmed) Letter of Credit Short Term 23.25 ACUITE A1 (Reaffirmed) Bank Guarantee (BLR) Short Term 10.00 ACUITE A1 (Reaffirmed) Letter of Credit Short Term 10.00 ACUITE A1 (Reaffirmed) Bank Guarantee (BLR) Short Term 5.00 ACUITE A1 (Reaffirmed) 16 Jul 2024 Cash Credit Long Term 31.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 15.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 32.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 6.66 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 1.92 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 11.82 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Cash Credit Long Term 22.00 ACUITE A | Stable (Assigned) Term Loan Long Term 20.00 ACUITE A | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE A | Stable (Assigned) Term Loan Long Term 9.65 ACUITE A | Stable (Assigned) Term Loan Long Term 0.33 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) Term Loan Long Term 22.30 ACUITE A | Stable (Assigned) Letter of Credit Short Term 23.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 1.75 ACUITE A1 (Upgraded from ACUITE A2+) Bank Guarantee (BLR) Short Term 10.00 ACUITE A1 (Upgraded from ACUITE A2+) Letter of Credit Short Term 10.00 ACUITE A1 (Assigned) Bank Guarantee (BLR) Short Term 5.00 ACUITE A1 (Assigned) Letter of Credit Short Term 28.25 ACUITE A1 (Assigned) Bank Guarantee (BLR) Short Term 10.00 ACUITE A1 (Assigned) 19 Apr 2023 Cash Credit Long Term 11.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 15.00 ACUITE A- | Stable (Assigned) Cash Credit Long Term 22.00 ACUITE A- | Stable (Assigned) Term Loan Long Term 18.87 ACUITE A- | Stable (Assigned) Term Loan Long Term 2.65 ACUITE A- | Stable (Assigned) Term Loan Long Term 44.23 ACUITE A- | Stable (Assigned) Covid Emergency Line. Long Term 7.98 ACUITE A- | Stable (Assigned) Letter of Credit Short Term 10.00 ACUITE A2+ (Assigned) Letter of Credit Short Term 1.75 ACUITE A2+ (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating H D F C Bank Limited Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1 | Reaffirmed Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A1 | Reaffirmed INDUSIND BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1 | Reaffirmed Bandhan Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.00 Simple ACUITE A | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 31.00 Simple ACUITE A | Stable | Reaffirmed ICICI BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A | Stable | Reaffirmed AXIS BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 32.00 Simple ACUITE A | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 23.00 Simple ACUITE A1 | Reaffirmed AXIS BANK LIMITED Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.75 Simple ACUITE A1 | Reaffirmed Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A1 | Reaffirmed INDUSIND BANK LIMITED Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 23.25 Simple ACUITE A1 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 27.63 Simple ACUITE A | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 750.00 Simple ACUITE A | Stable | Assigned AXIS BANK LIMITED Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Jul 2028 8.18 Simple ACUITE A | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Aug 2027 4.46 Simple ACUITE A | Stable | Reaffirmed Bandhan Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Jan 2029 15.00 Simple ACUITE A | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 Apr 2029 7.63 Simple ACUITE A | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 07 May 2027 14.78 Simple ACUITE A | Stable | Reaffirmed

Contacts

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

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. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.