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
Acuite has assigned long term rating of 'ACUITE BB+ (read as ACUITE double B plus)' on the Rs. 135 Cr. bank facilities and short-term rating of 'ACUITE A4+(read as ACUITE A four plus)' on Rs. 35 Cr. bank facilities of Ice Steel 1 Private Limited. The outlook is 'Stable'.
Rationale for rating
The rating takes into account long track record of operations, healthy relationship with customers and suppliers and support from strong promoters. The revenues have increased to Rs. 234.44 Cr. in FY26 (Prov.) as compared to Rs. 201.37 Cr. in FY25 with a declined yet comfortable operating profitability of 12.73 percent in FY26 (Prov.) as compared to 14.29 percent in FY25. The company has a moderate orderbook position of about Rs. 306 Cr. providing revenue visibility in the near to medium term. The company has an adequate liquidity position with sufficient net cash accruals to repay debt obligations, financial flexibility of the promoters to infuse funds and as when required to support the business albeit high bank limit utilization. However these strengths are partly offset by average financial risk profile and intensive working capital cycle.
About the Company
Mumbai based, Ice Steel 1 Private Limited was incorporated in 2007. The Company is engaged in steel processing for the transformation of steel sheets and plates to semi-finished steel products or components for yellow goods to OEMs. The Company has set up its manufacturing facilities at Ranipet, Tamil Nadu. Mr. Dhruv Sriratan Moondhra, Mr. Christophe Paul Claude Jacamon, Mr. Chandrababu Athipatla, Mr. Kalyan Ghosh and Mr. Neeraj Kumar are the present directors of the company.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of Ice Steel 1 Private Limited to arrive at the rating.
Key Rating Drivers
Strengths
Benefits derived from the promoters
The directors of the company are Mr. Dhruv Sriratan Moondhra, Mr. Christophe Paul Claude Jacamon, Mr. Chandrababu Athipatla, Mr. Kalyan Ghosh and Mr. Neeraj Kumar who bring in their experience to the company. The day-to-day operation are being managed by Mr. Dhruv Moondhra. Over the years, the company has developed healthy relationship with its customers and suppliers. Acuite believes the company will benefit from such experienced promoters over the medium term.
Increase in Revenues albeit decline in operating profitability
The revenues of the company have increased to Rs. 234.44 Cr. in FY26 (Prov.) as compared to Rs. 201.37 Cr. in FY25 due to increase in volume sold and realisation of the products. The company has achieved revenues of approximately Rs. 57.21 Cr. as of Q1FY27. The company has an unexecuted orderbook position of about Rs. 306 Cr. as of June 2026, providing revenue visibility in the near to medium term.
The operating profitability margins have declined to 12.73 percent as on March 31, 2026 (Prov.) as compared to 14.29 percent as on March 31, 2025 on account of increase in the cost of consumable stores. Acuite believes that with the moderate order book position and marquee customer base, the company is expected to improve the scale of operations and operating profitability.
Weaknesses
Average financial risk profile
The financial risk profile of the company is average, marked by improving yet low net worth, high gearing and debt protection metrics. The net worth (net of revaluation reserve) stood at Rs. 32.97 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 29.47 Cr. as on March 31,2025 on account of accretion of reserves. There has been equity infusion of about Rs. 45 Cr. in FY25 by Ice Steel 1 Enterprises Private Limited. For FY 27, it is expected infuse equity of about Rs. 15 Cr. into the business by Ice Steel 1 enterprises Pvt Ltd. Gearing stood at 4.08 times as on March 31, 2026 (Prov.) compared to 4.09 times in FY2025. The interest coverage ratio stood at 1.92 times as on March 31, 2026 (Prov.) compared to 1.62 times as on March 31, 2025. The debt service coverage ratio stood at 1.20 times as on March 31, 2026 (Prov.) as compared to 0.80 times as on March 31, 2025. The TOL/TNW stood at 6.01 times as on March 31, 2026 (Prov.) as compared to 6.22 times as on March 31, 2025. Debt/EBITDA stood at 4.51 times in FY26 (Prov.) as compared to 3.96 times in FY25. Acuite believes that the company’s financial risk profile is expected to improve slightly in the near to medium term backed by steady cash accruals.
Intensive working capital cycle
The working capital cycle of the company is intensive as reflected from Gross Current Assets of 224 days as on March 31, 2026 (Prov.) compared to 232 days as on March 31, 2025. The inventory days stood at 152 days as on March 31, 2026 (Prov.) as compared to 122 days as on March 31, 2025. The inventory days are typically high due to the nature of business wherein it has to maintain inventory depending on the customers requirement. The debtor days stood at 77 days as on March 31, 2026 (Prov.) compared to 106 days as on March 31, 2025. The creditor days stood at 169 days as on March 31, 2026 (Prov.) compared to 197 days as on March 31,2025. Acuite believes that working capital requirements are expected to remain at similar levels owing to nature of business over the near to medium term.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in the revenues
Operating profitability to increase to 14-15 percent
TOL/TNW and Debt/EBITDA to reduce below 2 times
Potential triggers (individual or collective) for a downward rating action:
Decline in revenues and operating profitability in the near term
Elongation of working capital cycle
Further deterioration in the financial risk profile
Liquidity Position
Adequate
The liquidity is adequate marked by steady net cash accruals of Rs. 13.17 Cr. as on March 31, 2026 (Prov.) as against long term debt repayment of Rs. 8.34 Cr. over the same period. The cash and bank balances stood at Rs. 0.05 Cr. as on March 31,2026 (Prov.) as compared to Rs. 2.39 Cr as on March 31, 2025. The current ratio stood low at 1.06 times as on March 31, 2026 (Prov.) as compared to 1.04 times as on March 31, 2025. The fund-based utilization ended 12 months, June 2026 is 93%. The company may undertake capex with respect to upgradation of the manufacturing facilities that will help improve operating profitability in the near term funded partially by debt and equity infusion. Acuité believes that going forward the liquidity position of the company is expected to remain adequate in the near to medium term
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
234.44
201.37
PAT
Rs. Cr.
3.17
2.01
PAT Margin
(%)
1.35
1.00
Total Debt/Tangible Net Worth
Times
4.08
4.09
PBDIT/Interest
Times
1.92
1.62
Status of non-cooperation with previous CRA (if applicable)
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.
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