| Experienced management
The company is promoted and led by Mr. Avnish Gajera (MD & Chairman), having long-standing experience of more than a decade in the metal casting and aluminium industry. He played a key role in transitioning the company from a hardware trading business into an engineered-product design and manufacturing company. The company's management profile is further supported by a professional team overseeing key business and operational functions. The company's product portfolio comprises over 1,400 SKUs, including various profiles, bars, tubes, channels and sections, catering to diverse end-use industries such as transportation, construction, architectural hardware, automotive, marine, electrical and mechanical engineering. Moreover, the company has established healthy relationships with its stakeholders. Further, the company commissioned a sales depot at Rajkot in March 2026, enabling direct sales to end customers, which is expected to support customer diversification and enhance profitability.
Improving operating performance
The company recorded an operating income of Rs. 225.19 Cr. in FY26 as compared to Rs. 162.57 Cr. in FY25 and Rs. 112.12 Cr. in FY24, reflecting CAGR of ~41.70 percent over the past two years. The growth was driven by a volume CAGR of 30.1 percent over the past two years, supported by improved realizations. Moreover, the company's operating margin improved to 14.41 percent in FY26 from 10.71 percent in FY25, driven by better price realizations and increase in contribution from value-added products. Consequently, the PAT margin of the company also improved to 9.53 percent in FY26 (6.30 percent in FY25).
The company has recently commissioned the expansion of its melting unit capacity from 5 TPD to 15 TPD along with homogenised processing unit having yearly capacity of 24,000 MT in July 2026, with the project being primarily funded through initial public offer (IPO) proceeds. Further, the company has proposed an additional capex for expanding its aluminium extrusion press capacity to 18,000 MTPA from the current 9,800 MTPA, at an estimated cost of ~Rs. 15 Cr. The proposed capex is expected to commence operations from January 2027 and shall be funded through a mix of internal accruals (~Rs. 10 Cr.) and debt (~Rs. 5 Cr.); however, the debt funding is yet to be tied up. Therefore, timely completion of proposed capex and resultant improvement in the scale of operations with sustained margins shall remain key rating monitorable.
Healthy financial risk profile
The financial risk profile of the company stood healthy marked by growing net worth of Rs. 98.34 Cr. in FY26 as compared to Rs. 33.97 Cr. in FY25. The net worth of the company improved on account of accretion of profits to reserves along with equity infusion of funds via IPO in August 2025 (amounting to Rs. 42.91 Cr. post deduction of issue related expenses). Further, total debt stood at Rs. 48.74 Cr. as of March 31, 2026 (Rs. 34.33 Cr. as of March 31, 2025) which increased owing to higher utilization of working capital limits. However, gearing (debt/equity) ratio of the company stood improved and below unity at 0.50 times in FY26 (1.01 times in FY25). The debt protection metrics stood healthy marked by interest coverage ratio (ICR) of 11.12 times in FY26 (6.67 times in FY25) and debt service coverage ratio (DSCR) of 5.93 times in FY26 (3.62 times in FY25). Furthermore, TOL/TNW stood below unity at 0.86 times in FY26 and debt/EBITDA stood moderate at 1.50 times in FY26.
Additionally, the company has availed working capital term loan (under ECGLS 5.0) of Rs. 8.76 Cr. in FY27 and plans to avail further Rs. 5 Cr. of capex debt in FY27, however, with expected improvement in net cash accrual, the financial risk profile is expected to remain at similar levels.
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| Intensive working capital operations
The working capital operations of the company stood intensive marked by gross current assets (GCA) days increasing to 263 days in FY26 from 187 days in FY25, primarily on account of higher inventory and receivables. Inventory days increased to 133 days in FY26 (82 days in FY25), largely reflecting higher inventory maintained at the company’s own depot to support business growth and uninterrupted customer servicing, coupled with higher-value inventory arising from elevated input costs. Further, to support customer acquisition, the company offers extended credit terms of 90-120 days to its customers, resulting in debtor days increasing to 110 days in FY26 from 81 days in FY25. The increase in working capital intensity is partly inherent to the company’s business model and its growth strategy. Further, procurement directly from manufacturers is generally undertaken against advance payments, while supplier credit remains in the range of 30–60 days, resulting in creditor days of 46 days in FY26 (62 days in FY25).
Going forward, working capital operations are expected to remain broadly on similar lines, with improvement dependent on better inventory rotation and receivable management, alongside the pace of business growth.
Susceptibility to volatility in raw material prices and inherent cyclicality in the aluminium extrusion industry
The company remains exposed to fluctuations in aluminium prices, its key raw material, as well as cyclicality in key end-user segments such as infrastructure, automotive, solar and engineering, which could impact operating margins and cash flows during periods of sharp commodity price movements or demand slowdown. However, the impact of raw material price volatility is largely mitigated by the company’s established pricing mechanism, which enables pass-through of a significant portion of changes in aluminium prices. Further, the company’s diversified presence across multiple end-user segments reduces dependence on any single sector and provides resilience against sector-specific demand fluctuations. Additionally, the company faces high competitive pressures with the presence of several organised and unorganised players in the aluminium extrusion industry.
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