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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 263.36 | ACUITE AA- | Positive | Assigned | - |
| Total Outstanding | 263.36 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has assigned its long-term rating of 'ACUITE AA-' (read as ACUITE Double A minus) on the Rs.263.36 Cr. bank facilities of Eastman New Energy Private Limited (ENEPL). The outlook is "Positive".
Rationale for Rating Assigned The positive outlook considers propose IPO which is expected to reduce debt burden significantly thereby expected to improve overall financial risk profile of the group. The rating reflects the group’s sustained improvement in operational performance, supported by the progressive ramp-up of capacities across its subsidiaries contributed to the improved margins in current fiscal year. The rating also factors in the established market position of the Eastman Group in the e-rickshaw segment and replacement market, along with the experienced management team, long operational track record, and moderate working capital management. However, the rating remains constrained by the group’s moderate financial risk profile, susceptibility of profitability to volatility in raw material prices, regulatory changes, evolving customer preferences, and foreign exchange risks. |
| About the Company |
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Delhi based, Eastman New Energy Private Limited (ENEPL) was incorporated in 2020. The company is the manufacturer, supplier of Lithium Batteries (Three-Wheeler) with manufacturing and research units in Haryana, India with a capacity of nearly 60,000 units per month. Mr. Shekhar Singal, Mr. Suraj Sharma, Mrs. Manjusha Bhatnagar and Mr. Anubrata Saha are directors of the company.
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| About the Group |
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Eastman Auto and Power Limited
Eastman Auto and Power Limited is a New Delhi based company and was incorporated in 2000. EAPL is promoted by Eastman Industries Limited (EIL) holding 92.87 per cent as on March 31, 2025. The company was initially involved in trading activity till 2008. The company leased out plant in Nalagarh district, Himachal Pradesh for manufacturing of invertor Battery. In 2018, the company set up another plant (own unit) in Baddi district, Himachal Pradesh for the same. It operates three integrated manufacturing units in Himachal Pradesh with a combined capacity of about 6,00,000 units per month. EAPL has wide product range including inverter batteries, E-rickshaw batteries, solar batteries, tubular batteries etc. EAPL sell its batteries under brand name; ‘Addo’ and ‘Eastman’ catering to solar, E-Rickshaws and home UPS, contributes ~ 99 per cent in its revenues, whereas the company also undertakes contract manufacturing for reputed corporate clients which accounts for rest ~1 per cent in revenues. Mr. Jagdish Rai Singal, Mr. Shekhar Singal, Mr. Sanjeev Gupta, Mr. Manjusha Bhatnagar, Mr. Rajat Diwakar, Mr. Satpal Kumar Arora, Mr. Goutam Kumar and Mr. Ashok Kumar Jain are directors of the company. Eastman Power Technologies Private Limited Delhi based, Eastman Power Technologies Private Limited was incorporated in 2021. The company is manufacturing home Inverter, Solar Inverter, E-rickshaw Charger, Grid Tie Inverter and Solar Charge Controller in Haryana, India and sells to Eastman Auto & Power Limited with a monthly capacity of around 1,00,000 units. Mr. Vishal Puri, Mr. Ashok Kumar Jain, Mrs. Manjusha Bhatnagar, Mr. Satpal Kumar Arora and Mr. Shekhar Singal are directors of the company. Eastman Green Technologies Private Limited Delhi based, Eastman Green Technologies Private Limited was incorporated in 2021. The company is the manufacturer, supplier of Solar Panel with manufacturing and research units in Haryana, India with a sizeable manufacturing capacity of approximately 800 MW. The company has Monthly Capacity 1.21 Lac panel and Yearly capacity is 14.54 Lac Panel. The company commenced operations in November 2025. Mr. Anubrata Saha, Mr. Hemant Nagpal and Mr. Prakash Ranjan Thakur are directors of the company. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has evaluated the consolidated business and financial performance of Eastman Auto and Power Limited (EAPL), Eastman Green Technologies Private Limited (EGTPL), Eastman New Energy Private Limited (ENEPL), and Eastman Power Technologies Private Limited (EPTPL) and its other subsidiaries as mentioned in the annexure 2 below while arriving at the rating. This approach has been adopted as EAPL is the parent company, with ENEPL and EGTPL being its wholly owned subsidiaries, and EPTPL being a 90 Percent subsidiary. All the entities operate within a similar line of business and common management.
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| Key Rating Drivers |
| Strengths |
| Experienced management and long track record of operations
EAPL was initially incorporated in 2000 by Mr. Jagdish Rai Singal, as a subsidiary of Eastman group. During the time the promoters were engaged in industrial manufacturing and automobile industry. The day-to-day operation of the company are currently managed by Mr. Shekhar Singal (Managing Director) S/o Mr. Jagdish Rai Singal. The management is ably supported by qualified and experienced professionals that has resulted in maintaining strong relationship with their reputed corporate clients. Acuite believes that the company would continue to benefit from the extensive experience of the directors and long track record of the company. Established Market Position of Eastman Group in the E Rickshaw Segment and Replacement Market Eastman Group holds an established market position in India’s E rickshaw battery segment, driven by its early entry, product innovation, and a reputation for reliability. The company has achieved growth, supported primarily by the rapid expansion of the e rickshaw sector and its leadership in last mile mobility solutions. Notably, Eastman commands a substantial share of the market, underscoring its strong foothold across both OEM and aftermarket channels. In the replacement market, Eastman enjoys a robust presence due to its extensive distribution network and strong brand acceptance among operators. Consistent improvement in scale of operations and profitability which is expected to continue on the back of ramp up of capacities The consolidated operating income of the Eastman Group increased to Rs. 4,221.91 Cr. in FY25, compared with Rs. 3,539.09 Cr. in FY24 and Rs. 2,567.15 Cr. in FY23, reflecting a year on year growth of 19.3 Percent in FY25. Further, the group has reported revenue of Rs. 4,149.81 Cr. for 9M FY26 and is expected to close the fiscal year at around Rs. 6,000 Cr. This growth has been primarily supported by continued expansion in manufacturing capacity and diversification into newer product segments such as lithium-ion batteries, solar panels, and energy storage solutions. The incremental revenue traction was also driven by a higher proportion of own brand sales, deeper penetration in domestic markets, and steady improvement in realisation levels across product categories. The absolute EBITDA improved to Rs. 246.25 Cr in FY25 compared with Rs. 225.52 Cr. in FY24, Further, EBITDA for 9MFY26 stood at Rs. 339.61 Cr. However, the EBITDA margin slightly moderated to 5.83 Percent in FY25 as against 6.37 Percent in FY24. Nevertheless, the Group reported a higher EBITDA margin of ~8 Percent during 9MFY26 due to stronger governance and compliance, induction of professional management, automation of internal processes, improved pricing discipline through margin benchmarking against competitors and the benefit of in house solar panel manufacturing that was previously outsourced. Additionally, subsidiaries that were earlier loss making are now gradually turning profitable. Although absolute EBITDA increased, the margin contraction in FY25 was primarily due to scale up costs associated with newly operational capacities across subsidiaries. The PAT margin also moderated to 1.90 Percent in FY25 from 2.59 Percent in FY24. Going forward, the Group is expected to further enhance its scale of operations and strengthen profitability margins, supported by the benefits arising from recent capital expenditure. Moderate Working Capital Management The working capital operations of the group remained moderated during FY25. The Gross Current Asset (GCA) days increased to 141 days in FY25, compared to 109 days in FY24 due to higher inventory days and other current assets. The receivable days stood at 37 days in FY25 as against 27 Days in FY24. The inventory days for the group stood at 84 days in FY2025, compared to 64 days in FY2024. Additionally, the creditor days stood at 36 days in FY2025, compared to 33 days in the previous year. Furthermore, In EAPL, the utilization for fund-based limits remained moderate at 59.98% over the last 12 months ending December 2025 whereas on a consolidated basis it is at ~ 62 per cent in last 12 months. Going Forward, the working capital operations are expected to remain similar in near to medium term owing to its nature of the business. |
| Weaknesses |
| Moderate financial risk profile, expected to improve substantially with IPO issue by reduction of debt levels
The financial risk profile of the company continues to remain moderate, characterised by a moderate net worth, average gearing, and moderate debt protection metrics. The tangible net worth increased, however remained to Rs. 381.79 Cr. as on March 31, 2025, compared to Rs. 305.35 Cr. as on March 31, 2024, reflecting healthy accretion to reserves. The total debt of the Group stood at Rs. 1,186.48 Cr as on March 31, 2025, comprising Rs. 203.55 Cr of long term borrowings, Rs. 81.57 Cr. of CPLTD, and Rs. 901.36 Cr. of short term borrowings, as against the total debt of Rs. 653.85 Cr. as on March 31, 2024. The increase was primarily driven by higher working capital requirements arising from the expansion in scale of operations. Consequently, the gearing moderated to 3.11 times as on March 31, 2025, from 2.14 times as on March 31, 2024, largely due to the rise in short term debt. Debt protection indicators remained within a comfortable range, with the Interest Coverage Ratio (ICR) standing at 3.31 times in FY25 and the Debt Service Coverage Ratio (DSCR) at 1.40 times, compared with 4.33 times and 1.69 times, respectively, in FY24. EAPL filled a confidential Draft Red Herring Prospectus (DRHP) in December 2025 and subsequently received SEBI approval for the proposed issue to raise Rs. 1800-2000 cr. via an IPO on March 04, 2026, which is expected to launch by Q2 FY27, will comprise an offer for sale of approximately Rs. 500 crore by the promoters, with the remaining Rs.1,500 crore to be raised through a fresh equity issuance. Going forward, the Group’s financial risk profile is expected to improve, supported by an IPO issue, steady internal accruals and the absence of any major debt funded capex plans, the successful issue of IPO and its subsequent application would remain as a key rating sensitivity. Susceptibility of profitability to volatility in raw material prices, changes in regulations, customer preferences and forex risk The battery industry remains susceptible to changes add RM volatility in government regulations regarding the content raw material used. Further, the industry is susceptible to changes in consumer preferences. Hence, the operational performance of the company is expected to be impacted in event of any of above event. The company exports around 15 per cent of their products to foreign countries, thus its business remains exposed to fluctuations in foreign exchange rates, thereby affecting its margins. Currently there is no hedging mechanism in place, thus the company remains susceptible to foreign exchange rate fluctuations over the medium term. |
| ESG Factors Relevant for Rating |
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The group has dedicated R&D division where they have taken numerous initiatives which includes Carbon compatibility with lower water loss, Formation Program Design for reducing sulfation, Gauntlet design for leach-out reduction and better diffusion, Casting process design for corrosion reduction.
The envelope of the group’s empowerment values extends well beyond the company offices and factories. As an organization, Eastman has taken many impactful CSR initiatives through Darshana Singal Foundation. For instance, empowering women is a key mission for EAPL. The Darshana Singal Foundation’s launched Sapno Ki Sawari initiative - aimed at distributing electric rickshaws to women across India. The idea was to enable these women as the breadwinner for their families through reliable means. This CSR campaign garnered great success within the community. Eastman believes in the power of empowering lives as a principle that drives our Corporate Social Responsibility (CSR), endeavours through the Darshana Singhal Foundation (DSF). EAPLs mission is to uplift communities, foster independence, and instil hope by transforming lives one initiative at a time. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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The Group’s liquidity position is strong, marked by sufficient net cash accruals of Rs. 137.20 Cr. in FY2025 against its maturing debt obligations of Rs. 77.36 Cr. in the same year. Additionally, it is expected to generate sufficient cash accruals in the range of Rs. 250-300 Cr. against maturing repayment obligations of Rs. 80-85 Cr. over the medium term. In EAPL, the utilization for fund-based limits remained moderate at 59.98% over the last 12 months ending December 2025 whereas on a consolidated basis it is at ~ 62 per cent in last 12 months. The cash and bank balance of the group stood at Rs. 85.38 Cr. as on March 31, 2025. The current ratio stands similar at 1.03 times as of March 31, 2025. Going forward, liquidity is expected to remain strong, supported by healthy accrual generation in the near term.
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| Outlook: Positive |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 4221.91 | 3539.09 |
| PAT | Rs. Cr. | 80.21 | 91.55 |
| PAT Margin | (%) | 1.90 | 2.59 |
| Total Debt/Tangible Net Worth | Times | 3.11 | 2.14 |
| PBDIT/Interest | Times | 3.31 | 4.33 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm |
| Note on complexity levels of the rated instrument |
Rating History : |
| Not Applicable |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||
Note- Eastman New Energy Hong Kong Private Limited (ENEHKPL) was merged into Eastman Hong Kong Private Limited (EHKPL) in July 2025.
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