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
Acuité has reaffirmed its long-term rating of ‘ACUITE BB-’ (read as ACUITE Double B minus) and short term rating of ‘ACUITE A4+’ (read as ACUITE A Four plus) on the Rs.25.00 Cr. bank facilities of Elixir Met Form Private Limited (EMFPL). The outlook is ‘Stable’.
Rationale for Rating The rating reaffirmation factors in the moderation in operating scale with comfortable profitability matrices. The rating also factors in the extensive experience of the promoters with long track record of operations and moderate financial risk profile. However, the rating remained constrained due to working capital intensive operations, along with presence in highly competitive and fragmented industry and susceptibility to cyclicality in end user industry.
About the Company
Incorporated in 2005, Elixir Met Form Private Limited (EMFPL) is engaged in the manufacturing, engineering and installation of Roll Forming Sections (UPVC windows, Pre-painted steel windows and Door Frames) & undertaking civil construction project predominantly pre-engineered buildings of lightweight and heavyweight structures for commercial, industrial and residential purpose for clients across private sector, state government departments (mainly in the states of Telangana and Andhra Pradesh) and central government departments (mainly DRDO and CPWD contracts) on tender basis. The Company has two manufacturing facilities, one in Hyderabad and one in Bonthapally Village, Medak District Telangana. The directors include Mr. Venkata Narasimha Raju Penmatcha, Mr. Karthik Penmatcha, Ms. Penmacha Krishna Kumari and Mr. Praneeth Penmatcha.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of EMFPL for arriving at the rating.
Key Rating Drivers
Strengths
Extensiveexperience of promotersandlong trackrecordof operations Incorporated in 2005, EMFPL is promoted by Mr. P.V. Narasimha Raju along with his family members. Mr. P.V. Narasimha Raju is an engineer with nearly thirty-five years of industry experience. He oversees the business, along with his sons, Mr. P. Karthik, Mr. P. Praneeth, both are Postgraduates. All of them are actively involved in day-today operations of the entity. Acuité believes that EMFPL will continue to benefit from the extensive experience of its promoters and long track record of operations.
Moderation in operating scale albeit comfortable profitability The operating scale of the company has moderated with revenue of Rs.36.95 crore in FY26 (Prov.) as against Rs.28.03 crore in FY25 and Rs.69.05 crore in FY24. The decline in revenue during FY25 and FY26 compared to FY24 was primarily attributable to the change in government in Andhra Pradesh and Telangana. As several projects undertaken under the previous administrations were kept on hold for nearly a year, the company witnessed a significant slowdown in project execution, resulting in lower revenues. Additionally, the company has strategically shifted its focus towards the sale of window frames and profiles rather than complete window systems, with the objective of reducing debtor ageing and improving working capital efficiency. The company has booked revenue of around Rs.15 crore in 4MFY27 and is expecting to achieve revenue in the range of Rs.50-60 crore supported by increased orders from solar units, door units and window frames with an unexecuted order book of ~Rs.135 crore as of June 2026. The EBITDA margin of the company declined and stood at 11.99 per cent in FY26 (Prov.) as against 15.08 per cent in FY25 and 11.01 per cent in FY24. The high EBITDA margin in FY25 was on the account of low manufacturing expenses. Further, the PAT margin stood at 4.77 per cent in FY26 (Prov.) as against 5.35 per cent in FY25. Acuite believes that the operating performance would improve steadily over the medium term on the back of comfortable order book position.
Above average financial risk profile The financial risk profile of the company stood above average due to modest net worth, low gearing and comfortable debt protection metrics. The net worth of the company remained modest and stood at Rs.27.44 crore as of March 31, 2026 (prov.), as against Rs.25.75 crore as of March 31, 2025. The improvement in the net worth is due to accretion of profits into reserves. The gearing of the company stood at 0.42 times in FY2026 (Prov.) as against 0.52 times in FY2025. The debt protection metrics of the company stood comfortable, the debt service coverage ratio (DSCR) stood at 2.08 times in FY2026 (prov.) as against 1.91 times in FY2025 while the interest coverage ratio (ICR) stood at 2.85 times in FY2026 (prov.) as against 2.72 times in FY2025. The TOL/TNW stood at 0.74 times in FY2026 (prov.), and NCA/TD stood at 0.21 times during the same period. Debt to EBITDA of the company stood at 2.59 times in FY26 (Prov.) as against 3.12 times in FY25. Acuite believes, that the financial risk profile of the company is expected to remain above average over the medium term due to absence of major debt funded capex.
Weaknesses
Working capital intensive operations EMFPL’s operations remained working capital intensive in nature, marked by high Gross current assets (GCA) of 334 days in FY2026 (Prov.) as against 519 days in FY2025. The debtor days of the company stood at 190 days in FY2026 (Prov.) as against 336 days in FY2025 and inventory days stood at 143 days in FY2026 (Prov.) and 150 days in FY2025. The creditor days stood at 166 days in FY26(Prov.) as against 230 days in FY25. The fund-based bank utilization stood high at 97.98 per cent in last six months ended June 2026. Acuite believes that the working capital operations of the company is going to improve in near to medium terms marked by improved collection cycle due to collection of advance payments from its clients, thus, easing the company's working capital operations.
Fragmented nature of the industry The industry is highly fragmented and unorganized in nature thereby putting pressure on the profitability margins of the companies engaged in the industry. Furthermore, due to low entry barriers, the competition gets intensified, which put pressure on profitability of the existing as well as new players. Accordingly, the margins of the company may fluctuate, depending upon price movement and level of competition.
Exposure to cyclicality in the real estate sector
EMFPL's business performance remains closely linked to the real estate sector, which is inherently cyclical and sensitive to macroeconomic conditions. As demand from the real estate industry fluctuates with economic growth, interest rates, and investment sentiment, the company's revenue and sales volumes remain vulnerable to industry downturns.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in revenues surpassing Rs.75 Cr on a sustained basis.
Improvement in working capital management.
Improvement in financial risk profile.
Potential triggers (individual or collective) for a downward rating action:
Decline in the revenue or profitability with revenue falling below Rs.30 crores
Significant increase in debt levels leading to deterioration in financial risk profile.
Elongation in working capital cycle, exerting pressure on liquidity.
Liquidity Position
Adequate
EMFPL has an adequate liquidity position marked by sufficient net cash accruals (NCAs) of Rs.2.38 crore against maturing debt obligation of Rs.0.34 crore in FY2026 (prov.). Further the cash accruals are expected to be in the range of Rs.3.00 – Rs.4.50 crore against maturing debt obligation of less than Rs.0.50 crore during FY27-28. The current ratio stood at 1.66 times and the cash and bank balance stood at Rs.0.07 crore as on March 31, 2026 (prov.). The fund-based bank limits utilisation for 6 months ended June 2026 stood high at 97.98 per cent. Acuite believes, that the liquidity of the company is going to remain adequate marked by adequate net cash accruals.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
36.95
28.03
PAT
Rs. Cr.
1.76
1.50
PAT Margin
(%)
4.77
5.35
Total Debt/Tangible Net Worth
Times
0.42
0.52
PBDIT/Interest
Times
2.85
2.72
Status of non-cooperation with previous CRA (if applicable)
ACUITE A4
(Downgraded & Issuer not co-operating* from ACUITE A4+)
Bank Guarantee/Letter of Guarantee
Short Term
3.50
ACUITE A4
(Downgraded & Issuer not co-operating* from ACUITE A4+)
Cash Credit
Long Term
14.50
ACUITE B+
(Downgraded & Issuer not co-operating* from ACUITE BB-)
Proposed Long Term Loan
Long Term
4.00
ACUITE B+
(Downgraded & Issuer not co-operating* from ACUITE BB-)
06 Dec 2023
Letter of Credit
Short Term
3.00
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee
Short Term
3.50
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Cash Credit
Long Term
14.50
ACUITE BB-
(Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
Proposed Long Term Loan
Long Term
4.00
ACUITE BB-
(Downgraded & Issuer not co-operating* from ACUITE BB | Stable)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Union Bank of India
Not avl. / Not appl.
Bank Guarantee/Letter of Guarantee
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
8.00
Simple
ACUITE A4+ | Reaffirmed
Union Bank of India
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
12.80
Simple
ACUITE BB- | Stable | Reaffirmed
Union Bank of India
Not avl. / Not appl.
Letter of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
3.00
Simple
ACUITE A4+ | Reaffirmed
Not Applicable
Not avl. / Not appl.
Proposed Long Term Loan
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
1.20
Simple
ACUITE BB- | Stable | Reaffirmed
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
List of instruments and names of regulators of the instruments
