Press Release

September 16, 2026

KSQUARE METALS TRADING PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	171.90	ACUITE BBB \| Positive \| Assigned	-	RBI
Bank Loan Ratings	0.00	120.00	ACUITE BBB \| Positive \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	8.10	-	ACUITE A3+ \| Assigned	RBI
Total Outstanding	0.00	300.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 reaffirmed its long-term rating at ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.120 Cr. bank facilities of KSquare Metals Trading Private Limited. The outlook is revised from ‘Stable’ to 'Positive’.
Acuite is assigning its long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.171.90 Cr. bank facilities of KSquare Metals Trading Private Limited . The outlook is 'Positive’.
Acuite is assigning its short-term rating of ‘ACUITE A3+’ (read as ACUITE A Three Plus) on the Rs.8.10 Cr. proposed short-term facility of KSquare Metals Trading Private Limited.

Rationale for Rating

The outlook has been revised to Positive considering the significant improvement in business risk profile owing to additional supply volumes from key supplier and the addition of new sourcing arrangements with Middle Eastern counterparties, which are expected to enhance the company's scale of operations and revenue visibility over the medium term.
The company has demonstrated strong growth in operating income during FY2026, with the same momentum continuing in FY2027, as reflected in the turnover of Rs. 731.01 crore achieved in 4MFY2027 (Provisional), coupled with improved profitability owing to better realizations and favourable procurement prices, and an above average financial risk profile supported by equity infusion and subordinated unsecured loans. Further, the company's liquidity position remains adequate, supported by healthy cash accruals to meet its debt repayment obligations and a comfortable current ratio.
The rating is constrained by the working capital-intensive nature of operations, reflected in high receivables and substantial advances to suppliers, along with exposure to volatility in metal prices, economic cyclicality, and intense competition in the trading industry. Further, the company’s moderately high gearing levels, driven by dependence on working capital borrowings, and concentration risk arising from reliance on key suppliers may continue to exert pressure on its financial risk profile, liquidity position, and profit margins.

About the Company

Ksquare Metals Trading Private Limited (KMTPL), incorporated in 2017, is headquartered in Delhi. The company is engaged in the trading of aluminium foil and other aluminium products, catering primarily to industrial customers in India. Its product portfolio includes aluminium foils, aluminium ingots, aluminium wire rods, and packaging materials, enabling it to serve a diversified customer base. The company is promoted by Himanshu Kothari, who has around 10 years of experience in the aluminium trading industry. KMTPL operates across multiple aluminium and packaging segments, with aluminium foil remaining the key contributor to its revenue.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of Ksquare Metals Trading Private Limited (KMTPL)

Key Rating Drivers

Strengths

Experienced promoter with established Industry background

Ksquare Metals Trading Private Limited (KMTPL), incorporated in 2017, is led by its promoter, Himanshu Kothari, who has over a decade of experience in aluminium trading. He has a background in business and professional qualifications, with exposure to operations, finance, and strategy. The promoter is actively involved in the company’s business activities and decision-making. Acuité notes that his industry relationships and operational understanding support KMTPL’s business continuity and growth prospects.

Increased scale of operations and healthy margins

KMTPL’s revenue increased significantly to Rs. 767.60 Cr. in FY2026 from Rs. 402.12 Cr. in FY2025. The growth in FY2026 was primarily driven by the introduction of new product lines, namely aluminium ingots, coils, and wire rods, along with improved realisations amid favourable aluminium price trends. The company achieved revenue of Rs. 731.01 crore during 4MFY2027 (Provisional), supported by higher trading volumes following an increase in offtake volumes from key supplier under the revised supply agreement, along with new sourcing arrangements with Middle Eastern counterparties and favourable aluminium price trends. The operating profit margin stood at 4.23% in FY2026 as compared to 4.30 % in FY2025. Furthermore, the company reported PAT margin of 2.00 % in FY2026 as compared to 1.15 % in FY2025. Acuité believes the company's scale of operations and profitability are expected to remain at healthy levels over the medium term.

Above average financial risk profile

The financial risk profile of the company is marked by increasing albeit modest net worth, moderate gearing and healthy debt protection metrics. The tangible net worth of the company increased to Rs 67.04 crore as on FY2026 from Rs 38.21 crore in FY2025, on account of accretion of profit in reserves and infusion in equity of amount Rs.13.50 Cr. Additionally, unsecured loans were subordinated to debt, amounting to Rs. 21.43 Cr. in FY2026. the gearing of the company stood at 1.98 times in FY2026 as compared to 1.43 times in FY2025. The increase in leverage is primarily attributable to reliance on short-term borrowings to meet the company’s working capital requirements. With the growing scale of operations, the company has availed enhanced working capital limits in the current fiscal. Further, it has also availed an ECLGS 5.0 (Working capital Loan) facility amounting to Rs. 21.90 crore. Any incremental working capital requirements are expected to be met through promoter equity infusion. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.58 times in FY2026 as compared to 2.12 times in FY2025. The Debt to EBITDA stood at 3.98 times in FY2026 as against 3.13 times in FY2025. The Interest Coverage Ratio (ICR) stood at 2.74 times in FY2026 and Debt Service Coverage Ratio (DSCR) stood at 1.37 times in FY2026 . Net cash accruals to total debt (NCA/TD) stood at 0.12 times in FY2026 from 0.09 times in FY2025. Acuité believes that the financial risk profile of the company is expected to be maintained at similar levels over the medium term driven by steady accruals and in the absence of any debt funded capex plans.

Weaknesses

Intensive Working Capital Management

KMTPL’s operations remain working capital intensive, with GCA days increasing to 112 days in FY2026 from 105 days in 2025. The elongation is largely on account of high receivables and significant advances to suppliers (around Rs 18 crore), reflected under other current assets. The debtor days stood at 81 days in FY2026 as compared to 76 days in FY2025. The company extends credit of 45–60 days for aluminium foil customers and 10–15 days for aluminium ingots, which is broadly in line with industry practices. KMTPL has availed bill discounting facilities; however, the exposure remains minimal. The inventory days stood at 22 days in FY2026 as compared to 23 days in FsY2025. The creditor period of the company stood at 16 days in FY2026 as compared to 23 days in FY2025. Supplier terms involve advance payments for imports and ingots, while relatively better credit terms are available from domestic suppliers at around 10-20 days. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term on account of nature of business.

Susceptibility to cyclical nature of industry

KMTPL’s performance remains linked to the overall economic environment, with demand for aluminium products largely driven by end-user industries such as infrastructure and industrial sectors. Any slowdown in these sectors may adversely impact the company’s revenues. Further, the company operates in a highly competitive trading industry with presence of both organized and unorganized players, exerting pressure on margins. Additionally, KMTPL has a significant reliance on key suppliers for procurement of aluminium products, exposing it to supplier concentration risk and limiting its pricing flexibility.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Revenue growth with turnover exceeding Rs. 1,500 crore
Improved margins and cash accrual generation.
Successful ramp-up in secured supply volumes.

Potential triggers (individual or collective) for a downward rating action:

Operating margins decline below 3%.
Prolonged working capital cycle pressures.
Leverage weakens due to higher debt.

Liquidity Position

Adequate

The company has Adequate liquidity marked by net cash accruals of Rs. 15.78 Cr in FY2026 as against Rs 0.54 Cr debt obligations over the same period. Going forward the Net cash accrual will lie between Rs 60 Cr to Rs 80 Cr against debt repayment obligation between Rs 3.80 Cr to Rs 4.00 Cr. The current ratio of the company stood at at 1.47 times in FY2026. Additionally, the company maintains an unencumbered cash and bank balance of Rs. 0.13 crore and has almost 84.73% utilization of its sanctioned bank limits over the last six months ending July 2026. Acuité believes that the Company’s liquidity profile will expected to remain same over the medium term.

Outlook: Positive

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	767.60	402.12
PAT	Rs. Cr.	15.34	4.62
PAT Margin	(%)	2.00	1.15
Total Debt/Tangible Net Worth	Times	1.98	1.43
PBDIT/Interest	Times	2.74	1.60

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

None

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
15 May 2026	Cash Credit	Long Term	10.00	ACUITE BBB \| Stable (Assigned)
15 May 2026	Cash Credit	Long Term	110.00	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	110.00	Simple	ACUITE BBB \| Positive \| Reaffirmed \| Stable to Positive
ICICI BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Positive \| Reaffirmed \| Stable to Positive
ICICI BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB \| Positive \| Assigned
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BBB \| Positive \| Assigned
Bandhan Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	35.00	Simple	ACUITE BBB \| Positive \| Assigned
YES BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB \| Positive \| Assigned
Bajaj Finance Ltd.	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Positive \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.10	Simple	ACUITE A3+ \| Assigned
State Bank of India	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	21 May 2026	Not avl. / Not appl.	15 May 2031	21.90	Simple	ACUITE BBB \| Positive \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.