Press Release March 05, 2026 MANBHUM ISPAT PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	236.72	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	6.33	-	ACUITE A3+ | Assigned
Total Outstanding	243.05	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned long term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs. 236.72 Cr. bank facilities and short term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs. 6.33 Cr. bank facilities of Manbhum Ispat Private Limited. The outlook is 'Stable'. Rationale for rating The rating takes into account long track record of operations, significant increase in revenues of the company albeit slight decline in operating profitability in FY 25, moderate financial risk profile by improving net worth, gearing and comfortable debt protection metrices, adequate liquidity with sufficient net cash accruals to repay debt obligation, moderate bank limit utilisation and moderate current ratio. However these strengths are partly offset by moderately intensive working capital cycle.

About the Company

Incorporated in September 2003, Manbhum Ispat Private Limited (MIPL) (erstwhile Baba Smelters Private Limited) is engaged in manufacturing of heavy structural steel products such as mild steel angles, channels and joists. Additionally in FY 25, it has also started manufacturing black pipes. The company operates 62,500 MTPA (Unit 1) of heavy structural re-rolling mill and 1,24,800 MTPA (Unit 2) tube/ pipe mill in West Bengal which has commenced from July 2024. Further, the management had acquired steel plant in FY 2025 located in Bardhman, West Bengal (Unit 3) which was previously owned by Maheshwary Ispat Limited with a DRI plant of 60,000 MTPA, Steel Melting Shop of 45,000 MTPA and Rolling Mill of 60,000 MTPA .  The operations of the company are managed by Mr. Gopal Kumar Agarwal, Mr. Ravindra Kumar Chaudhary, Mr. Rahul Agarwal and Mrs. Shikha Agarwal.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has taken standalone business and financial risk profile of Manbhum Ispat Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Benefits derived from experienced promoters The operations of the company are managed by Mr. Gopal Kumar Agarwal, Mr. Ravindra Kumar Chaudhary, Mr. Rahul Agarwal and Mrs. Shikha Agarwal who have more than a decade of experience in the iron and steel industry. The customers of the company include Utkarsh Tubes Limited, New Modern Technomech Private Limited among others. Over the years, the company has set up semi integrated steel manufacturing facilities and has recently acquired a DRI and SMS plants which is expected to improve their operating efficiency over the medium term. Acuite believes that benefits of the promoters experience and long standing relationship with the customers will support the company going forward. Significant Increase in Revenues albeit decline in operating profitability The revenues of the company have increased to Rs. 601.69 Cr. in FY 25 as compared to Rs. 454.46 Cr. in FY 24 majorly on account of increase in sales of black pipes in Unit 2 from July 2024. The company achieved revenues of about Rs. 820 Cr. of revenues up to January 2026. The operating profitability has declined to 2.99 percent in FY 25 as compared to 4.87 percent in FY 24 on account of dip in price realisations across all the product verticals in steel. The company is in process of revamping the acquired DRI and rolling mill in Unit 3 for a project cost of Rs.74.80 Cr. to be funded in a mix of term loan of Rs. 47.50 Cr. (sanctioned with Punjab National Bank) balance to be funded by promoter's contribution. DRI unit has been operational since January 2026 and the rolling mill is expected to be operational by June 2026. Acuite believes with FY 2026 being the first full year of operations of Unit II (black pipe) and DRI unit operational from January 2026, the revenues and operating profitability are expected to increase in the near term. Moderate financial risk profile The financial risk profile of the company is moderate marked by improving net worth, gearing and moderate debt protection metrices. The tangible net worth of the company stood at Rs. 129.74 Cr. Cr as on March 31, 2025 as compared to Rs. 125.31 Cr. as on March 31, 2024 due to small accretion to reserves. The gearing of the company stood at 1.49 times as on March 31, 2025 and 0.69 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.07 times as on March 31, 2025 as compared to 0.79 times as on March 31, 2024. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio (ICR) of 2.57 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 1.54 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.03 times as on March 31, 2025 as compared to 0.18 times as on March 31, 2024.  Debt/ EBITDA stood high at 8.65 times as on March 31, 2025 as compared to 3.61 times as on March 31, 2024. Acuité believes that the financial risk profile is expected to remain in similar levels with slight moderation in the capital structure due to the ongoing capex of the company.

Weaknesses

Moderately Intensive Working Capital Cycle The working capital cycle of the company is moderately intensive as reflected by Gross Current Assets (GCA) of 120 days for March 31, 2025 as compared to 101 days for March 31, 2024. The debtor period stood at 39 days as on March 31, 2025 as compared to 23 days as on March 31, 2024. The increase is on account of comparative higher last quarter sales which stood at 35% of total sales as compared to 25% on a q-o-q basis. Further, the inventory days of the company stood at 71 days as on March 31, 2025 as compared to 48 days in FY2024. The company maintains inventory of finished goods of 35-60 days of heavy structural products and pipes. The creditors stood at 42 days as on March 31, 2025 as compared to 2 days as on March 31, 2024. The increase was pertaining to related raw materials and finished goods of expanded capacity of Unit II from FY 2025. Acuité believes that the working capital operations of the company is expected to remain at similar levels over the medium term.

Rating Sensitivities

­Movement in revenues and operating profitability Working Capital Cycle Larger than expected debt funded capex

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs 6.52 Cr. as on FY2025 as against long term debt  repayment of Rs. 1.19 Cr. over the same period. The company also maintains free deposits with bank of Rs. 2.87 Cr. in FY 25.  The cash and bank balance stood at Rs. 3.31 Cr. as on March 31, 2025 and Rs. 29.60 Cr. March 31, 2024. Further, the current ratio of the company stood at 1.10 times as on March 31, 2025 as compared to 2.27 times as on March 31, 2024. The management has financial flexibility to infuse funds as and when required to support the business. The company also has capex plans of about Rs. 74.80 Cr. of which the DRI plant has been operational since January 2026 and the rolling mill is expected to be operational from June 2026. The average bank utilization limit of the company for 7 months ended December 2025 is 84 percent. Acuité believes that the liquidity of the company is likely to remain adequate over the near to medium term on account of steady cash accruals albeit moderate bank limit utilisation.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	601.69	454.46
PAT	Rs. Cr.	4.44	13.51
PAT Margin	(%)	0.74	2.97
Total Debt/Tangible Net Worth	Times	1.49	0.69
PBDIT/Interest	Times	2.57	6.31

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

­IVR, vide its press release dated December 19th, 2025 had denoted the rating of Manbhum Ispat Private Limited as 'IVR BBB-/Negative/A3; DOWNGRADED AND ISSUER NOT CO-OPERATING’.

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:Not Applicable

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating H D F C Bank Limited Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.33 Simple ACUITE A3+ | Assigned H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 70.00 Simple ACUITE BBB | Stable | Assigned Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.50 Simple ACUITE BBB | Stable | Assigned State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 34.00 Simple ACUITE BBB | Stable | Assigned H D F C Bank Limited Not avl. / Not appl. Covid Emergency Line. 29 Nov 2024 Not avl. / Not appl. 07 Jun 2027 2.39 Simple ACUITE BBB | Stable | Assigned Punjab National Bank Not avl. / Not appl. Term Loan 19 Jan 2026 Not avl. / Not appl. 07 Jun 2034 47.50 Simple ACUITE BBB | Stable | Assigned H D F C Bank Limited Not avl. / Not appl. Term Loan 29 Nov 2024 Not avl. / Not appl. 07 Sep 2030 28.33 Simple ACUITE BBB | Stable | Assigned H D F C Bank Limited Not avl. / Not appl. Term Loan 29 Nov 2024 Not avl. / Not appl. 07 Dec 2031 42.00 Simple ACUITE BBB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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. 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.