Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 42.59 ACUITE BBB- | Upgraded & Withdrawn - RBI
Bank Loan Ratings 0.00 18.91 Not Applicable | Withdrawn - RBI
Bank Loan Ratings 0.00 36.50 - ACUITE A3 | Upgraded & Withdrawn RBI
Bank Loan Ratings 0.00 12.00 - Not Applicable | Withdrawn RBI
Total Outstanding 0.00 0.00 - - -
Total Withdrawn 0.00 110.00 - - -
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­Acuite has upgraded and withdrawn its long-term rating to 'ACUITE BBB-'(read as ACUITE triple B minus) from 'ACUITE BB+'(read as ACUITE Double B plus) on Rs. 42.59 Cr. bank facilities and the short-term rating to 'ACUITE A3' (read as ACUITE A three) from 'ACUITE A4+' (read as ACUITE A four plus) on Rs. 36.50 Cr. bank facilities of KBS Industriies Limited.
The rating has been withdrawn on account of the request received from the issuer and No Objection Certificate (NOC) received from the lenders.

Acuite has also withdrawn the long-term rating on Rs. 13.19 Cr. and short-term rating Rs. 12.00 Cr. bank loan facilities without assigning any rating as the instrument is fully repaid of KBS Industriies Limited. The rating is being withdrawn on account of request received from the issuer and No Due Certificate received from the lender.

Acuite has withdrawn its proposed long-term bank facilities of Rs. 5.72 Cr. without assigning any rating as it is a proposed facility of KBS Industriies Limited. The rating has been withdrawn on account of the request received from the Issuer.

The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument. 
Acuite has received latest information from the issuer along with latest No Default Statement, leading to transition from Issuer Not Co-operating to Co-operative issuer.

Rationale for Upgrade:

The rating reflects the benefit derived from the extensive experience of the promoters, which continues to support the company’s business stability and strengthen its long-standing relationships with customers. The rating also factors in the company’s steady growth in revenue during FY2026 (Est.) and FY2025. However, operating margins witnessed a marginal moderation, primarily due to higher raw material costs and increased administrative expenses. The financial risk profile remains moderate, supported by an improving net worth position, healthy gearing and average debt protection metrics. The liquidity position is adequate, backed by steady accruals against minimal repayment, moderate current ratio and depends on bank limit for funding working capital. However, the company’s operations remain working capital intensive, evidenced by high gross current asset (GCA) days of 185 days as on March 31, 2025. The rating is further constrained by the highly fragmented and competitive nature of the industry, which exerts pressure on margins and limits pricing flexibility.

About the Company

­KBS Industriies Limited (Erstwhile KBS Industries Private Limited) (KBSIL), incorporated in 2012. The company is engaged in manufacturing of copper products i.e., Copper rod, Ingot, etc. The present directors of the company are Mr. Achala Anand, Mr. Arjun and Mr. Anil Anand. The registered office of the company is in Mumbai.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach

­Acuité has taken the standalone view on the business and financial risk profile of KBS Industriies Limited to arrive at this rating.
 
Key Rating Drivers

Strengths

­Experienced management and established track record of operations

KBS Industriies Limited (Erstwhile KBS Industries Private Limited) was incorporated in 2012, promoted by Mr. Arjun Anand, is engaged in the business of manufacturing of high-quality semifinished copper and copper alloy products like copper wire rods, ingots etc which are widely used in engineering, electrical and manufacturing industries. The company is having a longstanding relationship with reputed clients. It serves a diverse clientele across a wide range of industries, supported by its comprehensive product portfolio. The company caters to sectors such as renewable energy, electricals and electronics, telecommunications, automotive and transportation, construction and infrastructure, industrial machinery, manufacturing, among others.

Improvement in Revenue albeit decline in Profitability
The company reported a revenue of Rs. 615.45 crore in FY25 and Rs. 536.86 crore in FY24. The significant growth in revenue is primarily attributable to increased business from key customers. Further, the company has achieved a revenue of Rs. 1,046.77 crore in FY26(Estd.) due to higher orders from a few reputed clients. The EBITDA margin declined marginally to 5.32% in FY25 from 5.81% in FY24 and is expected to remain in FY26 owing to a  increase in copper prices, employee expenses, and power costs. Similarly, the PAT margin stood at 2.49% in FY25 from 2.59% in FY24. 

Moderate Financial Risk Profile
The financial risk profile of the company is improving marked by net-worth of Rs. 139.24 Crore in FY25 against Rs. 91.98 Crore in FY24 due to treatment of unsecured loans as quasi equity basis subordination clause in sanction letter. Further, the Net worth increased in FY26 (Est.) following an equity infusion of Rs. 11.00 crore through conversion of unsecured loans into equity, the total debt of the company stood at Rs. 110.87 Crore in FY25. Further, the debt-equity ratio of the company is low and stood at 0.80 times in FY25 against 1.06 times in FY24. Further, the interest coverage ratio of the company stood at 2.83 times in FY25 as against 2.51 times in FY24. The DSCR of the company stood at 1.63 times in FY25 against 1.67 times in FY24 and TOL/TNW ratio stood at 1.53 times in FY25 against 1.66 times in FY24.


Weaknesses

Intensive Working Capital Cycle
The working capital operations of the company is intensive marked by GCA days of 185 days in FY25 against 139 days in FY24. The deterioration was mainly on account of higher inventory levels and elongated debtor days. Debtor days increased to 73 days in FY25 as compared to 34 days in FY24, mainly on account of higher year end booking. However as per FY26 (estd) debtors outstanding reduced to Rs. 108.83 crore, indicates reduction in debtor days to 38 days for the same period. Inventory days increased to 100 days in FY 25 as compared to 94 days in FY 24. However, the inventory position has been improved in FY 26 (estd) to 60 days. The creditors days of company is increased stood at 55 days in FY25 against 33 days in FY24.

Customer Concentration Risk
The company caters to multiple industries; however, revenue concentration remains high, with over 70% of FY26 revenue derived from two to three reputed customers. Any adverse change in demand from these key customers may impact revenues, though this risk is partly mitigated by their strong market standing and credibility and repeat orders from such customers.

Susceptibility all margins to fluctuations in raw material prices
The company’s profitability remains susceptible to fluctuations in copper prices, given the inherently raw material-intensive nature of its operations, with raw material costs accounting for nearly ~94-95% of total operating costs. Copper scrap, being the key input, is subject to significant price volatility, and the company may not always be able to pass on increases in raw material costs to its customers in a timely manner. Consequently, any sharp adverse movement in copper prices could impact the company’s operating margins and profitability.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
­Not Applicable
Potential triggers (individual or collective) for a downward rating action:
­Not Applicable
Liquidity Position
Adequate

The liquidity profile of the company is adequate marked by the net cash accruals of company stood at Rs. 16.62 Cr. as on FY25 as against long term debt repayment of Rs. 5.70 Cr. over the same period. The company has cash and bank balance of Rs. 1.44 Cr. as on March 31, 2025 as compared to Rs. 1.35 Cr. as on March 31, 2024. Further, the current ratio of the company is moderate and stood at 1.53 times as on March 31, 2025 as compared to 1.47 times as on March 31, 2024. The average bank utilisation limit of the company for 05 months ended May 2026 is 87 percent.
 
Outlook­
­Not Applicable
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 615.45 536.86
PAT Rs. Cr. 15.32 13.93
PAT Margin (%) 2.49 2.59
Total Debt/Tangible Net Worth Times 0.80 1.06
PBDIT/Interest Times 2.83 2.51
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
06 Oct 2025 Letter of Credit Short Term 12.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
Letter of Credit Short Term 14.50 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
Letter of Credit Short Term 22.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+)
Cash Credit Long Term 12.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Working Capital Term Loan Long Term 1.19 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Cash Credit Long Term 17.50 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Working Capital Term Loan Long Term 1.09 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Cash Credit Long Term 24.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Proposed Long Term Bank Facility Long Term 5.72 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
17 Jul 2024 Letter of Credit Short Term 14.50 ACUITE A3+ (Reaffirmed)
Letter of Credit Short Term 12.00 ACUITE A3+ (Reaffirmed)
Letter of Credit Short Term 22.00 ACUITE A3+ (Reaffirmed)
Cash Credit Long Term 17.50 ACUITE BBB | Stable (Reaffirmed)
Cash Credit Long Term 12.00 ACUITE BBB | Stable (Reaffirmed)
Cash Credit Long Term 24.00 ACUITE BBB | Stable (Reaffirmed)
Working Capital Term Loan Long Term 1.09 ACUITE BBB | Stable (Reaffirmed)
Working Capital Term Loan Long Term 1.19 ACUITE BBB | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 5.72 ACUITE BBB | Stable (Reaffirmed)
26 Apr 2023 Letter of Credit Short Term 14.50 ACUITE A3+ (Reaffirmed)
Letter of Credit Short Term 12.00 ACUITE A3+ (Reaffirmed)
Letter of Credit Short Term 22.00 ACUITE A3+ (Reaffirmed)
Cash Credit Long Term 17.50 ACUITE BBB | Negative (Reaffirmed)
Cash Credit Long Term 12.00 ACUITE BBB | Negative (Reaffirmed)
Cash Credit Long Term 24.00 ACUITE BBB | Negative (Reaffirmed)
Working Capital Term Loan Long Term 3.30 ACUITE BBB | Negative (Reaffirmed)
Working Capital Term Loan Long Term 2.40 ACUITE BBB | Negative (Reaffirmed)
Working Capital Term Loan Long Term 2.30 ACUITE BBB | Negative (Reaffirmed)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
Canara Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 17.50 Simple ACUITE BBB- | Upgraded & Withdrawn ( from ACUITE BB+ )
Bank Of Baroda Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE Not Applicable | Withdrawn
State Bank of India Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple ACUITE BBB- | Upgraded & Withdrawn ( from ACUITE BB+ )
Canara Bank Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.50 Simple ACUITE A3 | Upgraded & Withdrawn ( from ACUITE A4+ )
Bank Of Baroda Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE Not Applicable | Withdrawn
State Bank of India Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.00 Simple ACUITE A3 | Upgraded & Withdrawn ( from ACUITE A4+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.72 Simple ACUITE Not Applicable | Withdrawn
Canara Bank Not avl. / Not appl. Working Capital Term Loan Unlisted RBI 13 Jun 2025 Not avl. / Not appl. 30 Mar 2026 1.09 Simple ACUITE BBB- | Upgraded & Withdrawn ( from ACUITE BB+ )
Bank Of Baroda Not avl. / Not appl. Working Capital Term Loan Unlisted RBI 03 Apr 2024 Not avl. / Not appl. 30 Mar 2026 1.19 Simple ACUITE Not Applicable | Withdrawn
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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