Press Release

Press Release

November 03, 2025

IONISATION FILTRATION INDUSTRIES PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	11.44	ACUITE BB \| Stable \| Reaffirmed	-
Bank Loan Ratings	18.56	-	ACUITE A4+ \| Reaffirmed
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BB’ (read as ACUITE double B) and the short-term rating of ‘ACUITE A4+’ (read as ACUITE A four plus) on the Rs. 30.00 crore bank facilities of Ionisation Filtration Industries Private Limited (IFIPL). The outlook remains ‘Stable'.

Rational for rating reaffirmation
The rating reaffirmation is on account of stable operating performance marked by marginal growth in revenues and improved profitability along with moderate financial risk profile. The rating continues to draw comfort from the management’s extensive experience and its longstanding relationships with clients. Additionally, the rating factors in the company’s adequate liquidity position. However, it remains constrained by the moderately intensive nature of working capital operations. Going forward, the company’s ability to scale up revenue substantially, along with improvement in profitability margins and working capital cycle, will remain a key rating monitorable.

About the Company

Incorporated in 2001, Ionisation Filtration Industries Private Limited (IFIPL) is a Pune-based company engaged in the manufacturing and trading of air pollution control equipment. It also provides allied services such as application engineering, design, supervision of erection and commissioning, and maintenance contracts for various equipment. IFIPL’s solutions cater to a wide range of industries including Power, Cement, Steel, Pulp and Paper, Fertilizer, Sugar, and Glass.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of IFIPL to arrive at the rating

Key Rating Drivers

Strengths

Experienced management with an established track record of operations and reputed clientele
IFIPL, incorporated in 2001, is a Pune-based company with an operational track record of over two decades. It is promoted by Mr. Vivek Joshi, who possesses extensive experience of over three decades in the air pollution control equipment industry. He is supported by his wife, Mrs. Swati Joshi (Executive Director), who has nearly two decades of experience in the same field. The promoter and director are backed by a team of experienced professionals who manage the day-to-day operations of IFIPL. The management’s deep industry experience has enabled the company to build strong relationships with reputed clients such as ACC Cement, Ambuja Cement, Ultratech Cement, Jaypee Group, Larsen & Toubro, JSW Steel, Thyssenkrupp, Beumer Group, among others.

Acuité believes that IFIPL will continue to benefit from its experienced management, established operational track record, and reputed clientele.

Improvement in profitability margins albeit stable revenues
The company’s revenue increased to Rs. 71.82 crore in FY25 from Rs. 70.17 crore in FY24. IFIPL reported revenue of Rs. 33.36 crore in H1FY2026 and anticipates closing FY26 with revenue in the range of Rs. 80–85 crore. While revenue remained rangebound compared to FY24, operating and net profit margins showed notable improvement. The operating profit margin rose to 10.57 per cent in FY25 from 7.58 per cent in FY24, primarily due to a reduction in raw material costs during the year. The PAT margin also improved, standing at 5.09 per cent in FY25 as against 3.16 per cent in FY24. The company is also diversifying into the Pre-Engineered Buildings segment and has begun receiving orders from Ultratech Cement for this line. Moreover, IFIPL will be undertaking projects related to OLBC (Over Land Belt Conveyor) systems, highlighting the company’s ongoing diversification strategy.

Acuité believes that, going ahead, the company’s ability to further improve its revenue substantially and sustain its profitability margins would be a key rating monitorable.

Moderate Financial Risk Profile
IFIPL has a moderate financial risk profile, marked by low net worth, average gearing, and modest debt protection metrics. The company’s net worth marginally improved to Rs. 10.87 crore as of March 31, 2025, from Rs. 7.39 crore as of March 31, 2024, due to profit accretion to reserves. Its gearing stood at 1.73 times as on March 31, 2025, compared to 2.76 times as on March 31, 2024, owing to a reduction in total debt and an increase in tangible net worth during the year. The company’s total debt as on March 31, 2025, stood at Rs. 18.79 crore, compared to Rs. 20.41 crore as on March 31, 2024. The total debt for FY25 comprises long-term debt of Rs. 3.65 crore, short-term debt of Rs. 10.65 crore, unsecured loans from promoters/directors of Rs. 3.57 crore, and maturing debt repayment obligations of Rs. 0.92 crore. TOL/TNW stood at 3.46 times as on March 31, 2025. The interest coverage ratio (ICR) improved to 4.79 times in FY25 from 3.41 times in FY24. Similarly, the debt service coverage ratio (DSCR) improved to 2.26 times in FY25 from 1.97 times in FY24.

Acuité believes that IFIPL’s ability to improve its financial risk profile over the medium to long term will remain a key rating sensitivity factor.

Weaknesses

Moderately Intensive Working Capital Operations
IFIPL has moderately intensive working capital operations, with average gross current assets (GCA) standing at over 128 days during FY23 to FY25. GCA days increased to 137 days in FY2025 from 118 days in FY2024 due to a rise in the receivables cycle. Debtor days stood lower at 60 days for FY25 compared to 50 days for FY24. The average credit period allowed to customers is around 45 days. The creditor days of the company stood at 81 days for FY25 as against 77 days for FY24. The average credit period allowed by suppliers is around 60–90 days. Inventory days stood at 21 days in FY2025 against 24 days in FY2024, owing to faster execution of orders due to better and more efficient machinery. The average bank limit utilisation for the five-month period ended August 2025 stood at approximately 67.30 per cent for fund-based limits.

Acuité believes that IFIPL’s ability to improve its working capital cycle over the medium term will remain a key rating sensitivity factor.

Rating Sensitivities

Ability to improve scale of operations along with its profitability margins
Ability to improve financial risk profile
Any elongation in its working capital cycle

Liquidity Position

Adequate

Liquidity is adequately backed by IFIPL’s net cash accruals, which stood at Rs. 5.67 crore as on March 31, 2025, against maturing debt repayment obligations of Rs. 1.48 crore for the same period. Going forward, the Net Cash Accruals are expected to be in the range of Rs. 6.00 to Rs. 7.00 crore for the period FY2026–FY2027, against repayment obligations of around Rs. 0.92 crore during the same period. The cash and bank balances of the company stood at Rs. 9.20 crore as on March 31, 2025. The current ratio stood at 0.88 times as on March 31, 2025. The working capital operations of the company are moderately intensive, marked by gross current asset (GCA) days of 137 days for FY2025 as against 118 days for FY2024. The average bank limit utilization for the fund-based limits stood around ~65 to 67 per cent for the 5-month period ended August 2025.

Acuité believes that, going forward, the liquidity of IFIPL is likely to remain adequate over the medium term on account of sufficient cash accruals against its maturing debt repayment obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	71.82	70.17
PAT	Rs. Cr.	3.66	2.22
PAT Margin	(%)	5.09	3.16
Total Debt/Tangible Net Worth	Times	1.73	2.76
PBDIT/Interest	Times	4.79	3.41

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
05 Aug 2024	Bank Guarantee/Letter of Guarantee	Short Term	7.00	ACUITE A4+ (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	11.56	ACUITE A4+ (Assigned)
	Cash Credit	Long Term	2.00	ACUITE BB \| Stable (Reaffirmed)
	Cash Credit	Long Term	2.50	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	6.94	ACUITE BB \| Stable (Assigned)
08 May 2023	Bank Guarantee/Letter of Guarantee	Short Term	7.00	ACUITE A4+ (Reaffirmed)
	Cash Credit	Long Term	2.00	ACUITE BB \| Stable (Upgraded from ACUITE BB- \| Stable)
	Cash Credit	Long Term	2.50	ACUITE BB \| Stable (Upgraded from ACUITE BB- \| Stable)
21 Feb 2022	Bank Guarantee/Letter of Guarantee	Short Term	7.92	ACUITE A4+ (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.36	ACUITE BB- \| Stable (Reaffirmed)
	Term Loan	Long Term	0.22	ACUITE BB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Bank Of Baroda	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE A4+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.56	Simple	ACUITE A4+ \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.50	Simple	ACUITE BB \| Stable \| Reaffirmed
Bank Of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.94	Simple	ACUITE BB \| Stable \| Reaffirmed
Saraswat Bank	Not avl. / Not appl.	Term Loan	22 Sep 2023	Not avl. / Not appl.	22 Sep 2030	4.00	Simple	ACUITE BB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dheeraj Salian
Associate 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.

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