Press Release September 22, 2026 MANOJ CERAMIC LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	50.00	ACUITE BBB | Stable | Assigned	-	RBI
Total Outstanding	0.00	50.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned its long-term rating of ‘ACUITÉ BBB' (read as ACUITE Triple B) on the Rs. 50.00 Cr. bank facilities of Manoj Ceramic Limited (MCL). The outlook is ‘Stable’.   Rationale for Rating The rating assigned factors in the long operational track record of the company and extensive promoters experience. The rating further factors in the modest but improving scale of operations and moderate financial risk profile marked by modest net worth, low gearing and moderate coverage indicators. However, the rating is constrained by the company’s intensive working capital operations, customer, supplier and geographical concentration risk and susceptibility of profitability to raw material price volatility and intense competition in a fragmented industry.

About the Company

Manoj Ceramic Limited (MCL) was originally established in 1991 as Manoj & Company and was reconstituted as private limited company in 2006, subsequently in 2019 became a public limited company as Manoj Ceramic Limited (MCL). MCL was listed on BSE in 2024. The directors of the company are Ms. Anjana Manoj Rakhasiya, Mr. Manoj Dharamshi Rakhasiya, Mr. Dhruv Rakhasiya, Mr. Aakash Manoj Rakhasiya.  MCL is engaged in the trading, wholesale, and retail distribution of ceramic tiles, with manufacturing outsourced on a contract basis. The company offers a wide range of wall and floor tiles, natural & artificial stones, tiles adhesive and sanitaryware catering to residential and commercial customers. It has established a presence across Western and Southern India through a network of over 800 dealers and sub-dealers, supported by depots in Morbi, Mumbai, Thane, Pune and Bangalore. The company also operates retail showrooms in Mumbai, Bangalore, and Pune. Further, MCL has strengthened customer engagement through its AI-powered "Studio" platform and expanded its international presence through its wholly owned subsidiary, MCPL Ceramic Limited.

About the Group

­MCPL Ceramic Limited (UK) MCPL Ceramic Limited (UK) was incorporated on July 5, 2023, as a wholly owned subsidiary of Manoj Ceramic Limited and is registered in England & Wales, United Kingdom. The subsidiary is engaged in the trading, distribution, and retail sale of ceramic tiles and allied building products. It was established to support the parent company's international expansion strategy and strengthen its presence in the United Kingdom and European markets. Through the subsidiary, the group markets and distributes ceramic and porcelain tiles to overseas customers, thereby enhancing its export capabilities and global reach. The board of directors comprises Mr. Aakash Manoj Rakhasiya, Mr. Dhruv Manoj Rakhasiya, and Mr. Saad Tokatly.

Unsupported Rating

­­­­­­Not Applicable­

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has considered the consolidated financials of Manoj Ceramic Limited (MCL) and MCPL Ceramic Limited (UK) to arrive at the rating. The consolidation is in the view of MCPL Ceramic Limited (UK) being wholly owned subsidiary of MCL and high operational linkages.

Key Rating Drivers

Strengths

Experienced management and long operational track record The company has an established operating track record of over three decades, with the business having commenced operations in 1991 as a partnership firm promoted by Mr. Manoj D. Rakhasiya. Mr. Manoj D. Rakhasiya, the promoter and chairman, has over 35 years of experience in the ceramic tiles industry, while Mr. Dhruv M. Rakhsasiya, Managing Director and CEO, has over 15 years of experience and oversees the company’s operations and strategic functions. MCL is engaged in the ceramic and surface-solutions business, with ceramic and vitrified wall and floor tiles as its key products, supported by a network of dealers, sub-dealers, depots and showrooms. The company primarily caters to dealers, distributors, builders, contractors and project customers. Further, MCL has a wholly owned subsidiary, MCPL Ceramic Limited, in the UK, incorporated in 2023 to support its international business operations. Acuité believes that the promoter’s extensive industry experience, established operating track record and distribution network will continue to support the company’s business profile over the medium term.   Modest but improving scale of operations On a consolidated basis, MCL reported revenue of Rs. 202.61 Cr. in FY26 (FY25: Rs. 164.30 Cr.; FY24: 95.82 Cr.). The growth in FY26 was driven by higher volumes in the core tile business, along with increased contribution from serviced/turnkey contracts. The company derives the majority of its revenue from B2B channels, comprising dealers, distributors and project customers. EBIDTA stood at Rs. 24.75 Cr. in FY26 (FY25: 23.02 Cr.), with EBITDA margin moderating to 12.22 per cent in FY26(FY25: 14.01 per cent), mainly due to the higher contribution from the relatively lower margin serviced/turnkey contracts and associated execution costs. PAT stood at Rs.12.01 Cr. in FY26 (FY25: Rs.10.91 Cr.; FY24: Rs.5.34 Cr.) and was supported by higher operating profitability, partly offset by higher finance costs. Accordingly, PAT margin stood at 5.93 per cent in FY26(FY25: 6.64 per cent). Further, the company has maintained the growth momentum during 5M FY27, with the revenues witnessing steady improvement over the corresponding period of FY26. Management expects FY27 revenue to be in the range of Rs.270-280 Cr., supported by continued growth in the core tile business, increased contribution from premium/customised products and further scaling of the serviced/turnkey segment. Acuité believes that the company’s established distribution network, growing product portfolio and increasing scale of operations will support the business profile over the medium term, while the ability to sustain operating margins amid the evolving business mix remains a key monitorable.    Moderate financial risk profile MCL’s financial risk profile is moderate, marked by low gearing, modest net worth and moderate debt protection metrics. The net worth of the company stood at Rs. 138.54 Cr. as on March 31, 2026. (As on March 31, 2025: Rs. 106.54 Cr.), primarily due to fresh equity infusion, accretion of securities premium, conversion of warrants and retention of profits during the period. The gearing (debt-to-equity) is low at 0.51 times as on March 31, 2026 (March 31, 2025: 0.55 times). Debt protection indicators are moderate, with the interest coverage ratio (ICR) at 3.18 times in FY26 and FY25, while the debt service coverage ratio (DSCR) stood at 1.61 times in FY26 (FY25: 1.44 times). The net cash accruals to total debt (NCA/TD) ratio stood at 0.18 times in FY26 (FY25: 0.19 times). The Debt-to-EBITDA ratio is moderate at 2.86 times in FY26 (FY25: 2.55 times). Acuité believes, that the company’s financial risk profile is expected to remain moderate over the medium term, supported by the absence of any major debt-funded capex and expected accretion to net worth through internal accruals.

Weaknesses

Intensive working capital operations The company’s working capital operations are intensive, with Gross Current Asset (GCA) at 409 days in FY26 (FY25: 386 days). The elevated GCA days are primarily due to the increase in other current assets, which included supplier advances of Rs.100.31 Cr. as on March 31, 2026, against Rs. 39.19 Cr. as on March 31, 2025. Management attributed the increase in supplier advances primarily to advances provided to manufacturers amid production and gas related disruptions in the Morbi cluster, facilitating continuity to supplies. Inventory days stood at 128 days in FY26 (FY25: 130 days), reflecting the requirement to maintain adequate inventory across a wide product portfolio and distribution network. The debtor’s collection period was 113 days in FY26 (FY25: 161 days), supported by improved collection efficiency and tighter credit management, while the creditor payment period was 64 days in FY26 (FY25: 53 days). Further, the average utilisation of consolidated fund-based limits is high at around 90.7% over the 6 months ended July 2026. Acuité believes that the company's working capital operations is likely to remain intensive over the medium term, given the elevated GCA levels and high utilisation of working capital limits.   Customer, supplier and geographical concentration risk The company is exposed to elevated customer, supplier and geographical concentration risks. The top five customers accounted for ~82 per cent of total revenue in FY26, while the top five suppliers contributed ~68 per cent of total purchases, indicating significant dependence on a limited set of customers and suppliers. Further around ~92 per cent of the company’s revenue was derived from Maharashtra, resulting in high geographical concentration and exposing the company to regional economic and construction-related conditions. The company’s presence in other markets remains relatively limited, indicating scope for further geographical diversification. The concentration risk is partly mitigated by the company’s established relationships with its key customers and suppliers and its presence across multiple customer segments. Acuité believes that the company’s ability to diverse its customer, supplier and geographical base remains a key rating sensitivity.   Susceptibility of profitability to raw material price volatility and intense competition in a fragmented industry The company’s profitability remains exposed to fluctuations in key raw material prices, particularly natural gas and other inputs, which constitute a significant portion of its operating costs. Any sharp increase in input costs may impact profitability, particularly where such increases cannot be passed on to customers immediately, given the competitive nature of the industry. Further the ceramic and tile industry remains highly competitive and fragmented, with the presence of several organised and unorganised players, resulting in pricing pressure and limiting the company’s ability to pass on cost increases. In addition, demand for tiles and allied products is linked to construction and real estate activity, exposing the company to cyclicality in real estate sector. Although the company has demonstrated growth in its scale of operations, its operating performance remains susceptible to raw material price volatility, competitive intensity and fluctuations in real estate activity.

Rating Sensitivities

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

Significant improvement in scale of operations, while improving profitability Improvement in working capital management, with GCA below 250 days consistently

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

Significant deterioration in revenue and profitability with EBITDA below 10 per cent Elongation in working capital cycle, exerting pressure on liquidity Deterioration in financial risk profile, with DSCR below 1.20 times consistently

Liquidity Position

Adequate

The company’s liquidity position is adequate, supported by net cash accruals of Rs. 12.54 Cr. in FY2026 against maturing debt obligations of Rs. 4.81 Cr., during the year.  It is expected to generate cash accruals in the range of Rs. 15.96 – 19.64 Cr., against repayment obligations of Rs. 2.83 –1.51 Cr. over the medium term. Reliance on fund-based working capital limits is high, with an average utilisation of 90.70 per cent over the 6 months ending July 2026, indicating limited headroom in the sanctioned bank limits. The cash and bank balance stood at Rs. 1.45 Cr. and current ratio was 2.46 times as of March 31, 2026. Acuité believes that liquidity position of the company will continue to remain adequate over the near to medium term,supported by expected accrual generation and moderate repayment obligations, albeit with limited cushion in working capital limits.

Outlook: Stable

­

Other Factors affecting Rating

­­­­­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	202.61	164.30
PAT	Rs. Cr.	12.01	10.91
PAT Margin	(%)	5.93	6.64
Total Debt/Tangible Net Worth	Times	0.51	0.55
PBDIT/Interest	Times	3.18	3.18

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

­­­None

Any Other Information

­­­­­None

Applicable Criteria

• 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 • 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 :

­­­­­Not Applicable

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No Name of the company 1 Manoj Ceramic Limited 2 MCPL Ceramic Limited (UK)

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Amay Gupta Senior 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   1 Includes 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. 3 The 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. 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