­Experienced management and established track record of operations-
Chandi Steel Industries Limited (CSIL), incorporated in 1978, is managed by Mr. Aditya Jajodia and Mr. Harsh Jajodia and a team of experienced personnel. The company is engaged in manufacturing of Cathode Collector Bar, Anode Bar, Copper Inserted Cathode Bar Assembly, Anode Stub and Grinding Media Rod for the aluminium industry. The directors possess over two decades of experience in this line of business. The long-standing experience of the promoter and long track record of operations has helped the company to establish comfortable relationships with key suppliers and customers. Acuite believes, the company will benefit from the extensive experience of the promoters in maintaining long standing relations with suppliers and customers.

High entry barrier and Limited clientele:
Copper cathode manufacturing involves a highly complex and critical production process requiring advanced technology, specialized expertise, and stringent process controls, resulting in high entry barriers for new entrants. Copper cathodes are predominantly used in the aluminium conductor and cable industry, with demand closely linked to growth in the infrastructure and power sectors. Given the relatively limited customer base and stringent quality requirements, established players benefit from long-standing customer relationships and repeat orders, ensuring continuous order flow and making it difficult for new entrants to establish a meaningful presence in the industry.

Healthy Financial Risk Profile:
The company’s financial risk profile moderated slightly in FY26 (Prov.) compared to FY25 due to lower profitability; however, it continued to remain healthy, supported by a strong net worth, low gearing, and comfortable debt protection metrics. Total net worth has been increased to Rs.215.68 Cr. from Rs.208.79 crore mainly on account of accretion to reserves. Gearing stood low at 0.06 times in FY 26 (Prov.) as compared to 0.00 times in FY 25. As of now the Company is having total sanctioned Cash Credit limit of Rs.30 crore which is fully backed by FD and the outstanding debt stood at 13.43 crore in FY 26 (Prov.). Debt protection metrics remained at healthy levels. The interest coverage ratio and debt service coverage ratio (DSCR) stood at 4.76 times and 3.93 times, respectively, in FY26 (Prov.), as against 7.39 times and 5.80 times in FY25. ToL/TnW stood at 0.43 times in FY 26 (Prov.) as compared to 0.26 times in FY 25. Debt/EBITDA stood at 0.82 times in FY 26 (Prov.) as compared to 0.01 times in FY 25. Acuite believes financial risk profile will remain healthy supported by absence of debt funded capex plan.

­Subdued operating performance in FY 26 (Prov.) with expected improvement in profitability:
The company’s operating performance moderated in FY26 (Prov.), with revenue declining to Rs. 502.94 crore from Rs. 542.25 crore in FY25 due to lower export demand arising from geopolitical disruptions. Further, operating profitability declined sharply to 2.65% in FY26 (Prov.) from 9.71% in FY25, primarily on account of elevated copper prices and higher logistics costs, which could not be immediately passed on to customers. However, the company witnessed an improvement in performance during H1FY27, achieving revenue of Rs. 378.38 crore, supported by a healthy order book of Rs. 738.10 crore as on September 30, 2026, providing strong medium-term revenue visibility. Further, the company has adopted copper price hedging mechanisms through MCX and has also started mentioning price escalation clause in their contracts to pass on the increases in raw material and freight costs to customers. These measures are expected to reduce earnings volatility and support a gradual improvement in operating margins and profitability over the medium term.

Intensive Working Capital cycle:
The working capital cycle remains intensive on account of increase in gross current asset days stood at 172 days in FY 26 (Prov.) as compared to 131 days in FY 25 on account of other current assets. Other current assets increased to Rs. 120.11 crore in FY 26 (Prov.) from Rs. 56.06 crore in FY 25 driven by increase in advance to suppliers, Lien Marked FD whose maturity is less than 12 months balances with Govt. authorities. Debtor days stood at 28 days in FY 26 (Prov.) compared to 27 days in FY 25 in line with their average collection period of 30-45 days. Inventory days has improved to 59 days in FY 26 (Prov.) 74 days in FY 25 the avg inventory holding period is 2-2.5 months. Creditor days has been increased to 61 days in FY 26 (Prov.) from 41 days in FY 25. Acuite believes working capital is likely to remain same in line with FY 26 (Prov.) in the medium term.

Susceptibility of profitability to fluctuations in the raw material prices:

The company remains exposed to fluctuations in copper and steel prices, which are its key raw materials. Demand for these commodities is linked to the performance of end-user industries, making raw material prices inherently cyclical. Consequently, any significant volatility in copper and steel prices can have a direct impact on the company's operating margins and profitability. However, the company has implemented risk mitigation measures, including a hedging policy for copper procurement, which is expected to reduce the impact of price fluctuations and support greater stability in profitability over the medium term.

1. Scale of operation increases to Rs. 650 crore or more along with improvement in EBITDA margin 10% or more
2. Improvement in working capital cycle

1. Scale of operation decline to Rs.480 crore or less along with decline in EBITDA margin as compared to current level
2. Any further elongation in working capital cycle