Experienced management with long track record of operations
Incorporated in 1983, Marudhar Industries Limited (MIL) has an established operational track record of over four decades in the aluminium rolling and converting industry. The company is managed by Mr. Bhavesh Santoshkumar Jain, Mr. Naresh Jain Santoshkumar, Ms. Poojan Arunbhai Bhandari, Mr. Pawan Kumar Murarka and Mr. Subhashchandra Kanhaiyalal Mandawat, who oversee the company's diverse operations. The management's extensive industry experience has enabled MIL to establish and maintain long-standing relationships with customers and suppliers across the aluminium value chain. Further, the company's integrated manufacturing facility at Vatva, Gujarat supports efficient execution of operations across aluminium coils, foils, remelting products and flexible packaging solutions. Acuité believes that MIL will continue to benefit from the management's industry knowledge, operational expertise and established business relationships, supporting its growth and business stability.

­Stable operating performance with improving operating profit margin
The company has reported a revenue of Rs.323.42 crore in FY2026 (Prov.) as against Rs.319.71 crore in FY2025 and Rs.331.50 crore in FY2024. The company's revenue remained largely stable as both manufacturing units were operating at full capacity of approximately 10,000 MT each, restricting further volume-led growth. Further the company has booked a revenue in the range of Rs.83.50 crore as on date and are expecting to close FY2027 at around Rs.365-375 crore. The improvement in the revenue is marked by the recent capex done to increase the capacity of both units from 10000MT to 12000MT which was completed in March 2026 and got operational from April 2026. Out of the total revenue booked the company generates a revenue of around ~2 per cent from its export sale which is expected to increase to ~5 per cent in FY2027 as they have received 6 months of advanced orders from US clients.

The EBITDA margins have shown a constant improvement in last 3 years which stood at 7.67 per cent in FY2026 (Prov.) as against 6.09 per cent in FY2025 and 5.19 per cent in FY2024. The improvement in the EBITDA in FY2026 (Prov.) is that the company has started doing the job work (constitutes ~0.53 per cent in sales in FY26) from its Unit 2 which has fetch relatively higher margins. Further, the PAT margins stood low at 1.08 per cent in FY2026 (Prov.) as against 0.39 per cent in FY2025 and 0.96 per cent in FY2024. The thin PAT margins are attributable to the higher interest cost. The capacity expansion is expected to support higher sales volumes and improved absorption of fixed costs, aiding profitability from FY2027 onwards. Profitability is further expected to benefit from lower interest costs due to debt reduction, a higher export contribution, and an increasing focus on the HPAC (Heat Pump and Air Conditioning) segment, particularly heat exchanger applications, which offer relatively higher margins.

Moderate working capital nature of operation
The working capital management of the company is moderate marked by moderate gross current asset (GCA) of 157 days in FY2026 (Prov.) as against 144 days in FY2025. The high GCA days are driven by high inventory days and moderate debtor days. The debtor days stood at 55 days in FY2026 (Prov.) as against 54 days in FY2025 while the inventory days stood at 104 days in FY2026 (Prov.) as against 90 days in FY2025. Further, the creditor days stood at 27 days in FY2026 (Prov.) as against 38 days in FY2025. The company has a moderate reliance on their working capital limits with an average utilisation of fund-based limits at ~85.56 per cent for 6 months ended May 2026 and non-fund-based limits are being utilised at ~38.99 per cent during the same period. The working capital operations is expected to remain in a similar range in near to medium terms.

Moderate financial risk profile
The company has a moderate financial risk profile marked by moderate net-worth, high gearings, moderate debt protection metrics. The tangible net worth of the company stood moderate at Rs.56.72 crore as of March 31, 2026 (Prov.) as against Rs.53.06 crore as of March 31, 2025, and Rs.51.58 crore as of March 31, 2024. The improvement in the networth is on the account of accretion of profits into reserves. The total debt of the company stood at Rs.129.33 crore as of March 31, 2026 (Prov.), which includes long term debt of Rs.6.96 crore, USL from directors and body corporates of Rs.39.15 crore (Rs.0.36 crore from directors and promoters while Rs.38.79 crore from body corporates), short term debt of Rs.77.64 crore and current maturities of long term debt of Rs.5.59 crore during the same period. The gearings of the company stood high at 2.28 times as of March 31 2026 (Prov.) as against 2.26 times during the previous year and the debt protection metrics stood moderate with debt service coverage ratio (DSCR) and interest coverage ratio (ICR) of 1.12 times and 1.83 times in FY2026 (Prov.) respectively as against 1.16 times and 1.75 times in FY2025. The TOL/TNW improved and stood at 2.96 times while Debt/EBITDA stood at 5.06 times while NCA/TD stood at 0.07 times in FY2026 (Prov.)
Going forward, the financial risk profile of the company is going to improve marked by reducing debt and no major debt funded capex plan.

Susceptibility of profitability to fluctuations in raw material prices in a competitive industry
The company operates in a highly competitive and fragmented industry characterised by low entry barriers, which results in intense competition from the large number of organised and unorganised players present in the downstream segment providing similar products and services. Hence, the bargaining power of the company remains low due to the competitive nature of the industry. Additionally, prices of raw materials and products are highly volatile in nature. Any volatility in the prices of the raw materials has a direct impact on the profitability margins of the company.

• Significant growth in operating revenues and profitability.
• Improvement in financial risk profile with Debt/Equity below 1.5 times.
• Improvement in working capital cycle

• Deterioration in revenue and profitability with revenue falling below Rs.300 crores and EBITDA margin falling below 5 per cent.
• Elongation in working capital operations deteriorating the liquidity position.
• Deterioration in financial risk profile with DSCR falling below 1 time.