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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 92.00 | ACUITE A | Stable | Upgraded | - |
| Bank Loan Ratings | 463.00 | - | ACUITE A1 | Reaffirmed |
| Total Outstanding | 555.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has upgraded its long-term rating to 'ACUITE A' (read as ACUITE A) from 'ACUITE A-' (read as ACUITE A minus) on the Rs. 92.00 Cr. bank facilities and reaffirmed short-term rating of 'ACUITE A1' (read as ACUITE A one) on Rs 463.00 Cr. bank facilities of Kryfs Power Components Limited (KPCL). The outlook is 'Stable'.
Rationale for Rating: The rating upgrade reflects the sustained improvement in operating income and the increase in absolute EBITDA over the last two financial years ending FY2025. It considers the group’s consistently healthy financial risk profile, characterized by a strong net worth, low gearing, and robust debt protection metrics. The rating is further supported by its strong liquidity profile, backed by healthy cash accruals. Additionally, it takes into account the healthy order book position of Rs.1,130.74 crore as of June 30, 2025. Furthermore, the rating benefits from KPCL’s established track record of over three decades in manufacturing CRGO laminations, transformers, and transformer cores, along with its experienced management team. |
| About the Company |
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KRYFS Power Components Limited (KPCL) was established in 1991 and commenced operations in December 1992 as a manufacturing and trading company, with its first manufacturing plant located in Palghar, Maharashtra, approximately 110 km from Mumbai. In response to the growing demand for electricity across the country, KPCL began by manufacturing one of the most critical raw materials for transformer production—CRGO laminations and transformer cores. KRYFS is India’s leading transformer core manufacturing company, with the capacity to process 40,000 MTPA of CRGO electrical steel. The company manufactures and supplies high-quality, low-loss amorphous core loops for both single-phase and three-phase distribution transformers, using amorphous metal imported from prominent sources. Currently, KPCL operates three units in Silvassa dedicated to the manufacturing of CRGO laminations and transformers. |
| About the Group |
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The Kryfs Group comprises KRYFS Power Components Limited (KPCL), KRYFS Transformers Private Limited (KTPL), and KRYFS Fabrication Private Limited (formerly Satyam (Fab) Industries Private Limited) (KFPL). KPCL is primarily engaged in the manufacturing of CRGO laminations, transformer cores, and transformers, with one unit located in Palghar and three units in Silvassa, having a total capacity of 40,000 MTPA and 2,000 MVA. KTPL’s unit, located in Baroda, was acquired in 2012 from Pratik Transformers Pvt. Ltd. and is dedicated to transformer manufacturing. KFPL, acquired in 2018, specializes in the fabrication of transformer tanks (steel fabrication) with a manufacturing capacity of 5,000 MTPA. |
| Unsupported Rating |
| Not applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
The team has considered a consolidated approach for the rating exercise of Kryfs Power Components Limited. The following 100% subsidiaries have been consolidated:
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| Key Rating Drivers |
| Strengths |
KPCL was established in 1992 and has been engaged in the manufacturing of CRGO laminations, transformers, and transformer cores since then, giving it a track record of over three decades in the business. The company’s directors, Mr. Rauzat Saifuddin Qureishi and Mr. Saifuddin Fakhruddin Qureishi, have over 22 years and 12 years of experience respectively in this line of business.The group’s established track record and experienced management have enabled it to maintain longstanding relationships with reputed customers and suppliers. Its customers include Transformers and Rectifiers Ltd, Bharat Bijlee Ltd, ECE Industries Ltd, South Bihar Distribution, and Retrasib SA, among others. The group procures materials from suppliers such as Toyota Tsusho Corporation, NLMK Group, and ThyssenKrupp, who together cater to nearly 70% of its raw material requirements. While there are no formal contracts with these vendors, the group maintains strong relationships with them, based on a mutual understanding for the supply of 10,000–12,000 MT of raw materials annually. Acuité believes that KPCL will continue to benefit from its established track record, market presence, and relationships with reputed customers and suppliers.
The group reported significant year-on-year growth of 27.96 percent in FY2025 compared to FY2024. Revenues stood at Rs.1,444.97 Cr. in FY2025, up from Rs.1,129.23 Cr. in FY2024. This improvement was driven by increased volumes and better price realization for transformers, along with the execution of an EPC order received from West Bengal. Capacity utilization for transformers improved significantly in FY2025, rising to 50.06 percent from 26.73 percent in FY2024, supported by higher demand and increased order inflow. However, CRGO lamination utilization declined due to lower demand and reduced price realizations. The group exports only lamination products. Export revenue contributed approximately 20–25% of the total revenue in both FY2024 and FY2025. Operating margins improved to 8.84 percent in FY2025, up from 6.95% in FY2024. This improvement was primarily driven by a decline in raw material prices and better realizations from transformer sales, along with the execution of a high-margin EPC contract. The group has a healthy order book position of Rs 1130.74 Cr. as of June 30th 2025. Acuite believes that the scale of operations may continue to improve over the medium term backed by a healthy order book position and demand prospects for the power system equipment.
The group’s financial risk profile is healthy, supported by a strong capital structure, low gearing, and healthy debt protection metrics. The net worth of the group stood at Rs.469.44 Cr. and Rs.391.68 Cr. as on March 31, 2025, and 2024, respectively. The improvement in net worth is due to the accretion of reserves. Gearing of the group stood at 0.06 times on March 31, 2025, against 0.04 times as on March 31, 2024. Debt protection metrics—interest coverage ratio and debt service coverage ratio stood at 8.27 times and 6.51 times as on March 31, 2025, respectively, as against 5.65 times and 4.51 times as on March 31, 2024, respectively. TOL/TNW (Total outside liabilities/Total net worth) stood at 0.89 times and 0.75 times as on March 31, 2025, and 2024, respectively. The debt to EBITDA of the group stood at 0.20 times as on March 31, 2025. Acuité believes the financial risk profile of the group will continue to remain healthy over the medium term in view of the completion of capex in FY2026 and no further debt funded capex plan over the medium term. |
| Weaknesses |
The group's working capital operations remain intensive, as reflected in gross current Asset (GCA) of 172 days in FY2025, as against 172 days in FY2024. The GCA days are mainly led by debtor days. Inventory days stood at 63 days in FY2025 as against 60 days in FY2024. The group needs to maintain an inventory of raw material for 60-90 days as they are importing majority of their requirements. Further, the lead-time for manufacturing CRGO lamination and transformer is 10-15 days and 40-45 days respectively. The receivable days stood at 103 day in FY2025 compared to 99 days in FY2024. Subsequently, the payable period stood at 106 days in FY2025 as against 94 days in FY2024 respectively. Acuité expects the group's working capital intensity to persist at similar levels over the medium term.
The group’s profitability margins remain vulnerable to fluctuations in raw material prices. Steel, being the major raw material for this industry, poses a risk to profitability if its prices vary significantly. Additionally, the level of competition is fairly high for government tenders. At the lower end of the distribution transformer market, there is some fragmentation, although the segment is largely dominated by organized players such as Toshiba, BHEL, ABB, CG Power, and others.
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| Rating Sensitivities |
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| Liquidity Position: Strong |
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The group generated healthy cash accruals of Rs. 88.82 Cr. in FY2025, against nominal maturing repayment obligations of Rs. 0.13 Cr. during the same period. Going forward, the group is expected to continue generating strong net cash accruals against minimal repayment obligations. The current ratio stood at 1.68 times, and the group maintained unencumbered cash and bank balances of Rs. 19.99 Cr. in FY25 Furthermore, average bank limit utilization over the nine months ended May 2025 remained at 30 percent for fund-based limits and 75 percent for non-fund-based limits. Acuité believes that the group’s liquidity will remain strong, supported by healthy net cash accrual generation and liquid investments. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 1444.97 | 1129.23 |
| PAT | Rs. Cr. | 79.19 | 44.03 |
| PAT Margin | (%) | 5.48 | 3.90 |
| Total Debt/Tangible Net Worth | Times | 0.06 | 0.04 |
| PBDIT/Interest | Times | 8.27 | 5.65 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| 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 |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
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