Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 206.00 ACUITE A- | Stable | Reaffirmed -
Non Convertible Debentures (NCD) 100.00 Provisional | ACUITE A+ | Stable | Assigned -
Bank Loan Ratings 45.00 - ACUITE A2+ | Reaffirmed
Total Outstanding 351.00 - -
Total Withdrawn 0.00 - -
 
Rating Rationale

­Acuité has reaffirmed its long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) and short-term rating of 'ACUITE A2+' (read as ACUITE A two plus) on Rs. 251.00 Cr. bank facilities availed by Mangalam Worldwide Limited (MWL). The outlook is ‘Stable’.
Also, Acuité has assigned its long-term rating of ‘Provisional ACUITE A+’ (read as Provisional ACUITE A plus) on Rs. 100.00 Cr. proposed Non-Convertible Debentures (NCD) of Mangalam Worldwide Limited (MWL). The outlook is ‘Stable’.

The rating on Rs. 100 Cr. proposed NCD is provisional and the final rating is subject to receipt of the following pending documentation:

  • Final Term Sheet / Placement Memorandum
  • Debenture Trustee Agreement (DTA) and Debenture Trust Deed (DTD)
  • Deed of Hypothecation / Pledge
  • Document related to Security (DSRA) which shall be created upfront out of the proceeds of NCD
  • Any other document relevant to the issue

Rationale for rating
The rating takes into account the overall improvement in the business risk profile of the company in FY2025 and 9MFY2026 driven by increased focus on value added products and exports leading to increase in volume and margins. The rating further continues to draw comfort from extensive experience of promoters in manufacturing industry for more than three decades, healthy financial risk profile supported by capital infusion in the form of share warrants. However, the proposed NCDs to be availed for meeting the working capital requirements of growing value chain products is expected to moderate the financial risk profile over the near to medium term. Further, moderate working capital operations, susceptibility of the margins to volatility in raw material prices, intense competition and inherent cyclical nature of steel industry continue to constrain the rating.

About the Company

­Incorporated in 1995, Mangalam Worldwide Limited (MWL) is engaged in the manufacturing of steel products such as stainless steel (S.S.) billets, flat and round bars, ingots, bright bars, seamless pipes & tubes, etc. along with trading of steel scrap and ferro alloys. The company has multiple integrated manufacturing units comprising steel melting shops, rolling mills, and finishing lines situated at Halol, Changodar, and Kapadvanj (Gujarat). The managing directors of the company are Mr. Chanakya Prakash Mangal, Mr. Chandragupt Prakash Mangal, and Mr. Vipin Prakash Mangal. Furthermore, the company is listed on National Stock Exchange (NSE) with a current market cap of ~Rs. 795 Cr. as on March 02, 2026.
 
Unsupported Rating

­Acuite A-/Stable
 
Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of MWL to arrive at the rating.
 
Key Rating Drivers

Strengths

­Established track record of operations along with experienced management
Being in operations for more than 30 years, MWL has established a significant market presence in the domestic and international markets leading to a healthy relationship with its suppliers and customers. The promoter of the company, Mr. Vipin Prakash Mangal has over 30 years of experience in the manufacturing business and is ably supported by the second generation of the family. Moreover, the company is currently undergoing capex at Halol unit in order to diversify the product mix at a total cost of Rs. 31.50 Cr., to be funded through term loan (debt tied up) and balance through internal accruals. Further, the company has 1.2 MW of captive solar plant at Kapadwanj unit and going forward has plans to lease 10.4 MW DC solar power plant for captive consumption at Halol unit.

Continuous improvement in the operating performance
The operating revenue of the company stood at Rs. 1060.71 Cr. in FY25 as compared to Rs. 818.11 Cr. in FY24 and Rs. 644.49 Cr. in FY23, registering a CAGR of 28.29 percent over the past two years. The growth in the scale of operations is driven by the company’s focus on diversification of product mix supported by improving sales realisations. In FY25, the operating margin grew marginally to 5.24 percent in FY25 (4.79 percent in FY24) driven majorly by increasing sales of value-added products having better margins along with increase in contribution from the exports. The export sales have rose to 4.37 percent of net sales in H1FY26 as against 2.72 percent in FY25 and 1.87 percent in FY24. Further, in 9MFY2026, the company has recorded a revenue of Rs. 943.03 Cr. (Rs. 736.66 Cr. in 9MFY2025) with operating margin of ~7.19 percent.

Moderate financial risk profile
The company’s financial risk profile is marked by healthy net worth of Rs. 247.47 Cr. as on March 31, 2025 (Rs. 172.02 Cr. as on March 31, 2024), owing to accretion of profits to reserves, issuance of share warrants along with revaluation of the investment in group entity (Mangalam Globa Enterprise Limited) at fair value. However, on account of incremental working capital borrowings, the total debt of the company stood increased at Rs. 191.33 Cr. as on March 31, 2025, as compared to Rs. 102.19 Cr. as on March 31, 2024. Therefore, the gearing (debt-equity) stood increased at 0.77 times in FY25 (0.59 times in FY24), though it remained below unity. Further, the debt protection metrics remained moderate marked by interest coverage ratio of 2.55 times in FY25 (2.77 times in FY24) and debt service coverage ratio of 2.27 times in FY25 (2.62 times in FY24). Going forward, the financial risk profile is expected to moderate on account of additional NCD debt to be raised, however, the steady cash accruals is expected to drive adequate liquidity.


Weaknesses

­Moderately intensive working capital operations
The working capital operations of the company are moderately intensive in nature marked by gross current assets (GCA) days of 169 days in FY25 as compared to 132 days in FY24, majorly driven by inventory and debtor levels. The company needs to maintain higher inventory levels of 102 days in FY25 (68 days in FY24) to support its expanding product mix and ensure timely delivery of orders. Further, the debtor’s collection period stood at 58 days in FY25 (44 days in FY24) and the creditor days stood at 69 days in FY25 (61 days in FY24).

Susceptibility to volatility in raw material prices and cyclicality inherent in the steel industry
The company’s performance remains vulnerable to growing competition and the inherently cyclical nature of the steel industry, which is closely linked to both domestic and global economic conditions. The key end-user sectors like real estate, infrastructure, and engineering also exhibit cyclical trends. Consequently, fluctuations in economic cycles such as slowdowns and seasonal variations in demand and supply can affect steel demand and its pricing, thereby exerting pressure on the company’s operating margins and cash flows, and shall continue to remain key rating monitorable. Additionally, the company faces intense competitive pressures from a large number of organised and unorganised players.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)
  • ­12.60% of the issue size to be maintained in FD or securities rated AA and above by SEBI registered Rating Agency and to be lien marked in favour of the debenture trustee, throughout the tenure of the NCD
  • Interest and/or Principal repayment amount to be deposited in a separate escrow account at least 5 days prior to the repayment date.
  • In case the required amount is not deposited in escrow account by T-5, T being the due date of interest/ principal repayment, then debenture trustee will invoke DSRA to ensure timely repayment of interest/ principal.
  • In case of the Utilization of DSRA as mentioned above, the issuer must replenish the required DSRA account within T+7 days.

Stress Case Scenario
A­cuité has sensitised its projections during the NCD tenure, even after which the interest and debt service coverage ratios are expected to remain comfortable to meet the debt obligations. Over and above this, the company is expected to maintain DSRA of 12.6% of the issue amount which is to be replenished in a time bound manner in case of meeting any exigency and shortfall.
 
Rating Sensitivities
  • ­Scaling up of operations while maintaining its profitability margin
  • Any significant increase in debt levels thereby impacting the financial risk profile
  • Timely completion of the capex plans without major time and cost overrun
  • Any further elongation in the working capital operations
 
All Covenants

‘Covenants’ are not part of the draft term sheet made available to Acuité. However, the following ‘Security’ is captured in the draft Term Sheet.­

  1. 50% to be provided in form of hard collateral at Fair Market value
  2. 50% Share pledge of issue size with 1.5x security cover (Price for this to be calculated as: Average par of 6 months closing price)

Acuité shall disclose the Covenants once the Final Term Sheet is made available to it.
 
Liquidity Position
Adequate

­The company has adequate liquidity position marked by sufficient net cash accruals of Rs. 34.59 Cr. in FY25 as against its maturing debt obligations of Rs. 3.00 Cr. for the same period. Going forward, the cash accruals of the company are estimated to remain in the range of Rs. 40-50 Cr. during FY26-27 against repayment obligations ranging in the range of Rs. 3-6 Cr. for the same period. The average utilisation for the fund-based facility remains moderate at ~84.01 percent for the past six months ended Dec 2025, and the outstanding LC limit stood at Rs. 35.68 Cr. out of sanctioned limits of Rs. 40 Cr. as on Dec 31, 2025. Furthermore, the company maintained unencumbered cash and bank balances of Rs. 0.25 Cr. as on March 31, 2025, and the current ratio stood moderate at 1.40 times as on March 31, 2025.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 1060.71 818.11
PAT Rs. Cr. 29.42 20.10
PAT Margin (%) 2.77 2.46
Total Debt/Tangible Net Worth Times 0.77 0.59
PBDIT/Interest Times 2.55 2.77
Status of non-cooperation with previous CRA (if applicable)
­Not Applicable
 
Any other information

Supplementary disclosures for Provisional Ratings 

A. Risks associated with the provisional nature of the credit rating
In case there are material changes in the terms of the transaction after the initial assignment of the provisional rating and post the completion of the issuance (corresponding to the part that has been issued). Acuite will withdraw the existing provisional rating and concurrently, assign a fresh final rating in the same press release, basis the revised terms of the transaction. 

B. Rating that would have been assigned in absence of the pending steps/ documentation
The rating would be equated to the standalone rating of the entity: ACUITE A-/ Stable 

C. Timeline for conversion to Final Rating for a debt instrument proposed to be issued
The provisional rating shall be converted into a final rating within 90 days from the date of issuance of the proposed debt instrument. Under no circumstance shall the provisional rating continue upon the expiry of 180 days from the date of issuance of the proposed debt instrument.
 
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
04 Feb 2026 Cash Credit Long Term 61.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Term Loan Long Term 4.36 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 11.50 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Term Loan Long Term 2.16 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 12.50 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Term Loan Long Term 2.22 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Cash Credit Long Term 80.00 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Term Loan Long Term 8.46 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Proposed Long Term Bank Facility Long Term 9.80 ACUITE A- | Stable (Upgraded from ACUITE BBB+ | Stable)
Proposed Long Term Bank Facility Long Term 14.00 ACUITE A- | Stable (Assigned)
Letter of Credit Short Term 11.00 ACUITE A2+ (Upgraded from ACUITE A2)
Letter of Credit Short Term 14.00 ACUITE A2+ (Upgraded from ACUITE A2)
Letter of Credit Short Term 10.00 ACUITE A2+ (Upgraded from ACUITE A2)
Bank Guarantee/Letter of Guarantee Short Term 4.00 ACUITE A2+ (Upgraded from ACUITE A2)
Letter of Credit Short Term 5.00 ACUITE A2+ (Upgraded from ACUITE A2)
Credit Exposure Limit (FCNR) Short Term 1.00 ACUITE A2+ (Assigned)
27 Jan 2025 Bank Guarantee/Letter of Guarantee Short Term 4.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 5.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 10.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 14.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 11.00 ACUITE A2 (Reaffirmed)
Cash Credit Long Term 80.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 61.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 7.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 5.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 2.50 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 12.50 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 11.50 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 2.50 ACUITE BBB+ | Stable (Reaffirmed)
02 Jan 2025 Letter of Credit Short Term 11.00 ACUITE A2 (Assigned)
Letter of Credit Short Term 14.00 ACUITE A2 (Assigned)
Letter of Credit Short Term 5.00 ACUITE A2 (Reaffirmed)
Bank Guarantee/Letter of Guarantee Short Term 4.00 ACUITE A2 (Reaffirmed)
Letter of Credit Short Term 10.00 ACUITE A2 (Assigned)
Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 11.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 11.50 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 5.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 30.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 10.00 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 7.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 12.50 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 2.50 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 2.50 ACUITE BBB+ | Stable (Reaffirmed)
24 Jul 2024 Letter of Credit Short Term 5.00 ACUITE A2 (Assigned)
Bank Guarantee/Letter of Guarantee Short Term 5.00 ACUITE A2 (Assigned)
Proposed Long Term Bank Facility Long Term 0.70 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 50.00 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 25.30 ACUITE BBB+ | Stable (Assigned)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
State Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A2+ | Reaffirmed
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 80.00 Simple ACUITE A- | Stable | Reaffirmed
Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 61.00 Simple ACUITE A- | Stable | Reaffirmed
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 A- | Stable | Reaffirmed
Indian Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.50 Simple ACUITE A- | Stable | Reaffirmed
State Bank of India Not avl. / Not appl. Credit Exposure Limit (FCNR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.00 Simple ACUITE A2+ | Reaffirmed
State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A2+ | Reaffirmed
Canara Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE A2+ | Reaffirmed
Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A2+ | Reaffirmed
Indian Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE A2+ | Reaffirmed
Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.30 Simple ACUITE A- | Stable | Reaffirmed
Not Applicable Not avl. / Not appl. Proposed Non Convertible Debentures Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple Provisional | ACUITE A+ | Stable | Assigned
Indian Bank Not avl. / Not appl. Term Loan 22 May 2025 Not avl. / Not appl. 22 Mar 2031 21.50 Simple ACUITE A- | Stable | Reaffirmed
State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 25 Apr 2029 8.46 Simple ACUITE A- | Stable | Reaffirmed
Canara Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 May 2029 4.36 Simple ACUITE A- | Stable | Reaffirmed
Punjab National Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 01 Apr 2029 2.22 Simple ACUITE A- | Stable | Reaffirmed
Indian Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 15 Apr 2029 2.16 Simple ACUITE A- | Stable | Reaffirmed

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