Press Release February 18, 2026 CANADIAN SPECIALITY VINYLS Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	42.50	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	7.50	-	ACUITE A3 | Assigned
Total Outstanding	50.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.42.50 Cr. bank loan facilities and short-term rating 'ACUITE A3 ' (read as ACUITE A three) on the Rs. 7.50 Cr. of bank loan facilities of Canadian Speciality Vinyls (CSV). The Outlook is 'Stable'. Rationale for Rating The assigned rating reflects the firm’s established operational track record and the management’s extensive experience of over a decade. The rating also factors in the improving profitability margins, moderate financial risk profile, and adequate liquidity position. Acuite notes that the scale of operations witnessed a slight decline in FY25, primarily on account of lower units sold in the flooring PVC segment, as the firm curtailed production in response to subdued demand. However, these strengths are partially offset by the firm’s working-capital-intensive nature of operations, as evidenced by high GCA days, vulnerability of profitability margins to fluctuations in raw material prices, and the risk associated with potential withdrawal of capital from the business.

About the Company

­Delhi based Canadian Speciality Vinyls was established in 2007. The firm is engaged in production of all kinds of calendered PVC films. The partners of the firm are Mr. Anil Mahajan, Mrs. Suman Mahajan and Mr. Shikhar Mahajan.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered standalone business and financial risk profile of Canadian Speciality Vinyls (CSV) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced Management The firm is fully managed by the Mahajan family, with each partner holding an equal one-third stake. Mr. Anil Mahajan, a qualified Chartered Accountant with over four decades of experience, is actively involved in the key decision-making processes of the firm. Acuite believes that operations are expected to witness growth over the near to medium term, supported by the experienced management team and the firm’s established relationships with its customers and suppliers. Improvement in profitability margins albeit decline in revenue The firm reported net revenue of Rs. 147.52 crore in FY25, compared with Rs. 150.22 crore in FY24. The marginal decline of 1.8% in FY25 was primarily on account of lower unit sales in the flooring PVC segment. The operating profit and margins improved from Rs. 7.47 crore with an operating margin of 4.97% in FY24 to Rs. 8.52 crore with a margin of 5.77% in FY25. The improvement in operating margins was largely supported by an increase in average price realisation, which outpaced the rise in average raw material procurement costs, thereby providing a cushion to margins. Furthermore, the firm achieved revenue of Rs. 173.18 crore up to December 2025. Acuite believes that the scale of operations and profitability are expected to improve over the near to medium term, supported by volume growth at relatively higher price realisations. Moderate Financial Risk Profile The firm’s financial risk profile remains moderate, supported by its net worth position, gearing levels, and debt protection metrics. The tangible net worth improved to Rs. 48.07 crore as on March 31, 2025, from Rs. 42.85 crore as on March 31, 2024, aided primarily by the treatment of unsecured loans as quasi-equity. However, Acuite notes that the partners have withdrawn a portion of the profits during FY25. The firm’s gearing and TOL/TNW improved to 0.91 times and 1.57 times, respectively, in FY25, compared with 1.44 times and 1.85 times in FY24. Debt protection metrics, marked by ISCR and DSCR, remained comfortable at 2.15 times in FY25. The firm reported a ROCE of 7.90% for the year. Acuite believes that the firm’s financial risk profile is expected to improve over the near to medium term, supported by steady accruals and the absence of any planned debt-funded capital expenditure.

Weaknesses

Intensive Working Capital Operations The firm’s working capital operations remain intensive, as reflected in Gross Current Assets (GCA) of 271 days in FY25 compared with 256 days in FY24. The high working capital intensity is primarily driven by elevated inventory levels and elongated debtor realisation cycles. The firm maintains substantial inventory to mitigate price volatility associated with listed commodities and to ensure uninterrupted production through buffer stocking and bulk procurement. Inventory holding days improved marginally to 135 days in FY25 from 139 days in FY24. Debtor realisation days, however, increased to 130 days in FY25 from 106 days in FY24, largely due to higher sales booked in the last quarter of FY25. Acuite believes that the firm’s working capital cycle is expected to remain intensive over the medium term, owing to the inherent nature of its operations. Susceptibility of margins to raw material price fluctuation PVC resin is the major raw material required for the firm’s products. As a listed commodity, PVC resin is subject to significant price volatility. Being a crude-oil derivative, its prices are inherently linked to global crude oil movements and broader macroeconomic factors, making them highly unpredictable. Any sharp fluctuations in PVC resin prices may exert pressure on the firm’s profitability margins. Risk of capital withdrawal As a partnership firm, there remains an inherent risk of capital withdrawal by the partners. This risk materialised in FY25, wherein the partners withdrew a portion of the profits. The partnership structure also limits the firm’s financial flexibility compared with a corporate entity, particularly with respect to raising external capital. Acuité believes that any substantial withdrawal of capital by the partners may adversely impact the capital structure and, consequently, the overall credit profile.

Rating Sensitivities

Movement in scale of operations and profitability margins Elongation in the working capital operations

Liquidity Position

Adequate

The firm’s liquidity position remains adequate, supported by net cash accruals of Rs. 4.64 crore in FY 25, which were sufficient to meet its maturing debt obligations for the same year. The firm reported a cash and bank balance of Rs. 0.15 crore as on March 31, 2025. The current ratio stood at 1.47 times in FY 25. The average fund-based working capital utilisation for the nine-month period ending December 2025 remained high at 87.12%. Acuite believes the firm’s liquidity profile is expected to improve over the near to medium term, aided by steady cash accruals, which are likely to support its funding requirements for future operational and strategic initiatives.

Outlook - Stable

­

Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	147.52	150.22
PAT	Rs. Cr.	3.72	5.07
PAT Margin	(%)	2.52	3.37
Total Debt/Tangible Net Worth	Times	0.91	1.44
PBDIT/Interest	Times	2.15	2.44

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

­None.

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 Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 39.00 Simple ACUITE BBB- | Stable | Assigned Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.50 Simple ACUITE A3 | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.74 Simple ACUITE BBB- | Stable | Assigned Punjab National Bank Not avl. / Not appl. Term Loan 30 Sep 2023 Not avl. / Not appl. 30 Apr 2027 0.76 Simple ACUITE BBB- | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Kartik Arora 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.