| Experienced management and established track record of operations
CSIPL has an established operating presence spanning over two decades. Moreover, the company's promoters, Mr. Anish Rajgopal and Mr. Varghese Kurian, have extensive experience of more than a decade in the industrial products industry. Their extensive experience has enabled CSIPL to establish and maintain strong relationships with both customers and suppliers.
Acuité believes that CSIPL will continue to benefit from its established track record of operations and the extensive experience of its management.
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| Modest scale of operations:
The revenue of company declines and stood at Rs. 19.20 Cr. in FY2026 (Prov.) as against Rs. 23.17 Cr. in FY2025. The decline in revenue was primarily due to delays in the execution of orders during the year. The company's revenue profile remains largely domestic, with exports accounting for approximately 5%-7% of total sales. The operating margin of company declined and stood at 8.51 percent in FY2026 (Prov.) against 8.98 percent in FY2025. This is on account of increase in operating expenses incurred during the year. However, the net profitability margin reduced to 1.10 percent in FY2026 (Prov.) against 2.34 percent in FY2025. During Q1FY27, company has reported revenue of approximately Rs. 4.80 Cr.
Acuité believes that the ability of the company to scale its operations with improvement in margins shall be a key rating monitorable.
Below average financial risk profile:
Financial risk profile of CSIPL stood below average marked by low net worth, high gearing and average debt protection metrics. The net worth of the company stood at Rs. 3.53 Cr. as on 31 March 2026 (Prov.) as against Rs. 3.34 Cr. as on 31 March 2025. The total debt of the company stood at Rs. 8.74 Cr. as on March 31, 2026 (Prov), as against Rs. 8.27 Cr. as on March 31, 2025, and comprised entirely of short-term borrowings. The gearing (debt-equity) of the company stood at 2.47 times as on 31 March 2026 (Prov.) as against 2.48 times as on 31 March 2025. The TOL/TNW stood of the company stood at 4.99 times as on 31 March 2026 (Prov) as against 5.39 times as on 31 March 2025. Further, the debt protection metrics of the company stood average as reflected by debt service coverage ratio (DSCR) of 1.25 times for FY2026 (Prov) as against 1.43 times for FY2025 and interest coverage ratio (ICR) stood at 1.25 times for FY2026 (Prov.) as against 1.49 times for FY2025. The Net Cash Accruals to Total debt stood at of 0.04 times for FY2026 (Prov) compared to 0.09 times in the previous year.
Going forward, the company’s ability to improve its financial risk profile will remain a key monitorable over the medium term.
Intensive working capital operations
The company's working capital operations remain intensive, as reflected by high Gross Current Asset (GCA) days of 325 days in FY2026 (Prov.) against 269 days in FY2025. The elongated working capital cycle is primarily driven by high inventory holding and collection periods. The receivable cycle remained stretched, with debtor days increasing to 181 days as on March 31, 2026 (Prov.) from 173 days in previous year. The collection period varies across business segments, with product sales typically realizing payments within 30-45 days, while system orders have longer collection cycles of 90-110 days due to milestone-based payments linked to installation and commissioning. The inventory days stood at 129 days as on March 31, 2026 (Prov.), as against 90 days as on March 31, 2025, while the creditor days increased and stood at 264 days in FY2026 (Prov) as against 233 days in FY2025. Further, the average utilization for fund-based limits remained high, averaging around 101.74 percent (overutilisations were regularised within 30 days) and non-fund based around ~91.77 percent over the last six months ending May 2026.
Acuite believes that working capital operations of the company will continue to remain in similar range over medium term considering the nature of business.
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