Experienced management and established track record of operations
The company is managed by Mr. Sanjay Mandhania and Mr. Satish Mandhania, along with a team of experienced personnel. The directors have over 20 years of experience in the industry. Their experience, combined with the company’s long-standing operations, has supported the development of stable relationships with key suppliers and customers. Acuite believes that company shall continue to benefit from its established presence and track record along with a healthy relationship with customers.

Stable Growth in Revenue and Operations
AIPL’s revenue increased to Rs. 814.61 Cr. in FY2025 from Rs. 796.11 Cr. in FY2024 and Rs. 727.97 Cr. in FY2023, primarily driven by higher sales of fly ash. For the four months ended July FY2026, the company reported revenue of Rs. 297.65 Cr., compared to Rs. 254.85 Cr. during the same period in the previous year. As of August 25, cumulative revenue stood at approximately Rs. 373 Cr. The operating margin for FY2025 was 7.89 per cent, slightly higher than 7.62 per cent in FY2024. However, the PAT margin declined to 3.65 per cent in FY2025 from 4.11 per cent in FY2024. Acuité expects AIPL’s operating performance to remain stable over the medium term.

Healthy Financial Risk Profile
The financial risk profile of the company remains healthy, marked by a strong net worth, low gearing, and comfortable debt protection metrics. Acuité has considered Rs. 16.00 Cr. of CCDs as quasi-equity. The net worth of the company increased to Rs. 236.33 Cr. as on March 31, 2025, from Rs. 206.60 Cr. as on March 31, 2024, primarily due to profit retention. The gearing level remained healthy at 0.70 times as on March 31, 2025, compared to 0.47 times as on March 31, 2024. Debt protection metrics were comfortable, with an interest coverage ratio (ICR) of 5.66 times in FY2025, compared to 7.76 times in the previous year. The Debt/EBITDA ratio stood at 2.40 times as on March 31, 2025, against 1.57 times as on March 31, 2024. Net Cash Accruals to Total Debt (NCA/TD) stood at 0.29 times in FY2025, compared to 0.48 times in the previous year. The company is undertaking two capital expenditure initiatives. The first involves the development of a logistics infrastructure solution at Singhaji, Madhya Pradesh, under a BOOT (Build, Own, Operate, Transfer) model. This project includes the construction of a fly ash handling system, which the company will operate for a period of 15 years before transferring ownership to the government. The estimated project cost is approximately Rs. 50.00 Cr. The second initiative pertains to the establishment of a grinding mill at Butibori, near Nagpur, for the production of ultrafine Ground Granulated Blast Furnace Slag (GGBS).The estimated cost of this project is around Rs. 45.00 Cr. The company has availed term loans of Rs. 30.00 Cr. for the Singhaji Project and Rs. 33.50 Cr. for the Butibori Project to fund capital expenditure. The drawdown of these loans is planned during FY2026. Acuité believes that, despite the capex-related borrowings, the company’s financial risk profile likely to remain healthy over the medium term.

Moderately intensive working capital operations
The working capital operations of the company remain moderately intensive, as reflected in Gross Current Assets (GCA) of 153 days in FY2025, compared to 145 days in FY2024. The debtor collection period stood at 113 days in FY2025, against 110 days in FY2024. The company generally extends credit of up to 90 days to its customers. Inventory holding remained stable at 6 days in both FY2025 and FY2024, while creditor days declined to 55 days in FY2025 from 71 days in FY2024. Furthermore, the average utilisation of fund-based working capital limits remained moderate, at around 75 per cent over the 12 months ending July 2025. Acuité believes that AIPL’s working capital operations are likely to remain moderately intensive over the medium term, given the nature of its business.

Susceptibility of profitability to cyclicality in construction materials Industry and intense competition
The demand for products is intricately tied to the level of activity in commercial and residential real estate, as well as infrastructure segments. These sectors are influenced by the broader economic context, resulting in their cyclical nature. The major raw material of the company is Fly Ash. The company operates in a highly competitive and fragmented industry characterised by low entry barriers, which results in intense competition from the large number of organised and unorganised players present in the downstream segment providing similar products and services. Hence, the bargaining power of the company remains low due to the competitive nature of the industry. Any volatility in the prices of the raw materials has a direct impact on the profitability margins of the company.