Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 80.00 ACUITE BBB+ | Upgraded & Withdrawn - RBI
Bank Loan Ratings 0.00 150.00 - ACUITE A2 | Upgraded & Withdrawn RBI
Total Outstanding 0.00 0.00 - - -
Total Withdrawn 0.00 230.00 - - -
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­Acuite has upgraded and withdrawn its long term rating to 'ACUITE BBB+' (read as ACUITE Triple B Plus) from 'ACUITE B' (read as ACUITE B) and short term rating to 'ACUITE A2' (read as ACUITE A Two) from 'ACUITE A4' (read as ACUITE A Four) on the Rs.230.00 Cr. bank facilities of Autometers Alliance Limited (AAL).
The rating is being withdrawn on account of request received from the issuer, and NOC (No Objection Certificate) received from the banker.

The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for upgrade:
The rating upgrade and migration from 'Issuer non cooperating’ takes into account improving business risk profile, supported by healthy growth in operations driven by execution of railway and metro rail orders and a healthy order book providing near to medium term visibility. The financial risk profile is marked by healthy net worth, below unity gearing, low debt levels, and healthy debt coverage indicators, while liquidity is adequate, supported by high net cash accruals, and low reliance on borrowings. However, the rating continues to be constrained by moderation in operating margins due to higher operating expenses incurred during the year and moderately intensive working capital operations.

About the Company

­Incorporated in 1995, Autometers Alliance Limited (AAL) is engaged in manufacturing of engineering products related to Switchgear, Data Acquisition, Power Electronics, Audio & Display Systems, Escalators and UPS Systems for Metros and Railway networks and for industrial applications. The current directors of AAL are Ms. Jayshree Thirani, Ms. Aditi Jain, Mr. Virendra Gaur and Mr. Samrat Banerjee. AAL has manufacturing units located in Baddi, Himachal Pradesh and Noida, Uttar Pradesh.

 
Unsupported Rating
­Not Applicable
 
Analytical Approach

­Acuité has considered standalone business and financial risk profile of Autometers Alliance Limited (AAL) to arrive at the rating.
 
Key Rating Drivers

Strengths

Experienced management and established track record of operations
AAL, incorporated in 1995, has been engaged in the manufacture of niche engineering products catering to railways, metro projects, and various industrial applications for over five decades. The company’s operations are managed by the Thirani family, which brings more than three decades of experience in the engineering industry. This extensive experience coupled with established track record of operations have helped the company to forge healthy relationships with its customers and suppliers.

Improving scale of operations albeit decline in profitability
The revenue of the company improved by ~36% and stood at Rs.543.06 Cr. in FY2025 against Rs.400.53 Cr. in FY2024. This Revenue growth was primarily on account of execution of orders from DMRC, Indian Railways, and other metro rail projects. The operating income is backed by healthy order book position with unexecuted order in hand to the tune of Rs.600.00 Cr, which is expected to be executed in this fiscal year thereby providing healthy revenue visibility in the near to medium term. Out of this, majority of orders are from Indian railways followed by metros. The operating margin of company stood at 14.91 percent in FY2025 against 17.50 percent in FY2024. This is on account of increase in overall operating expenses incurred during the year. The net profitability margin reduced to 12.02 percent in FY2025 against 14.15 percent in FY2024.

Healthy Financial Risk Profile:
The financial risk profile of the company is marked by healthy networth, below unity gearing and healthy debt protection metrics. The net worth of the company stood at Rs. 339.34 Cr. as on March 31st, 2025, as against Rs. 275.20 Cr. as on March 31st, 2024, due to accretion of profit to reserve. The total debt of the company stood at Rs. 4.65 Cr. as on March 31, 2025, as against Rs. 14.44 Cr. as on March 31, 2024. The gearing (debt-equity) of the company stood below unity at 0.01 times as on March 31, 2025, as compared to 0.05 times as on March 31, 2024. The TOL/TNW of the company stood at 0.23 times as on March 31, 2025, as against 0.29 times as on March 31,2024. Further, the debt protection metrics of the company stood healthy reflected by debt service coverage ratio of 153.11 times for FY2025 as against 101.18 times for FY2024 and interest coverage ratio stood at 414.71 times for FY2025 as against 133.91 times for FY2024. The net cash accruals to total debt (NCA/TD) stood at 14.79 times in FY2025 as compared to 4.13 times in the previous year.


Weaknesses

­Moderately Intensive working capital operations:
The working capital management of the company is moderately intensive, as reflected by its Gross Current Assets (GCA) of 161 days in FY2025, which, although improved, yet remain high compared to 257 days in FY2024. The elevated GCA is primarily attributable to high inventory days, which stood at 94 days in FY2025 against 127 days in FY2024. The company maintains average inventory period of around 50–60 days, however, this may extend for certain products due to higher lead time associated with certain imported components. The debtor days stood at 42 days in FY2025 as against 81 days in FY2024. Whereas the creditor days stood at 45 days in FY2025 and 62 days in FY2024. Further, the average utilization for fund based limit stood low and non-fund-based limits stood moderate, averaging around 3.58 percent for fund-based limits and 82.28 percent for non-fund-based limits over the last six months ending Jan-2026.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
­Not Applicable
Potential triggers (individual or collective) for a downward rating action:
­Not Applicable
Liquidity Position
Adequate

­The company’s liquidity position is adequate, marked by sufficient net cash accruals of Rs. 68.72 Cr. in FY2025 as against lease obligations of Rs.0.23 Cr in the same tenure. The current ratio stood at 4.55 times as on March 31, 2025, as compared to 3.94 times as on March 31, 2024. The cash and bank balances and free deposits were at Rs. 126.77 Cr as on March 31, 2025. The working capital operations of the company is moderately intensive in nature marked by improved yet high Gross Current Assets (GCA) of 161 days in FY2025, with low reliance on working capital limits with average fund-based limit utilisation of ~3.58 percent and non-fund based of ~82.28 percent in the last Six months ended Jan 2026.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 543.06 400.53
PAT Rs. Cr. 65.28 56.69
PAT Margin (%) 12.02 14.15
Total Debt/Tangible Net Worth Times 0.01 0.05
PBDIT/Interest Times 414.71 133.91
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
16 Jan 2026 Letter of Credit Short Term 15.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 135.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 40.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Secured Overdraft Long Term 40.00 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
21 Oct 2024 Letter of Credit Short Term 15.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Bank Guarantee (BLR) Short Term 135.00 ACUITE A4 (Downgraded & Issuer not co-operating* from ACUITE A4+)
Cash Credit Long Term 40.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
Secured Overdraft Long Term 40.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
24 Jul 2023 Letter of Credit Short Term 15.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Bank Guarantee (BLR) Short Term 135.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 40.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
Secured Overdraft Long Term 40.00 ACUITE BB- (Reaffirmed & Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
CENTRAL BANK OF INDIA Not avl. / Not appl. Bank Guarantee (BLR) Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 135.00 Simple ACUITE A2 | Upgraded & Withdrawn ( from ACUITE A4 )
CENTRAL BANK OF INDIA Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE B )
CENTRAL BANK OF INDIA Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A2 | Upgraded & Withdrawn ( from ACUITE A4 )
CENTRAL BANK OF INDIA Not avl. / Not appl. Secured Overdraft Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE B )
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.

Contacts

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