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 upgraded its long-term rating to 'ACUITE BBB (read as ACUITE Triple B) from 'ACUITE BBB-' (read as ACUITE Triple B Minus) and the short-term rating to 'ACUITE A3+' (read as ACUITE A three plus) from 'ACUITE A3' (read as ACUITE A Three) on the Rs.18.00 crore bank facilities of Mask Polymers Private Limited (MPPL). The outlook remains 'Stable'.
Rationale for Rating The rating upgrade reflects the company’s sustained improvement of operating performance, marked by steady growth in revenues and profitability. The rating also factors in company’s established track record, experienced management and sustenance of low gearing and healthy debt protection metrics. The rating, however, remains constrained by customer concentration risk, working capital-intensive operations, and susceptibility of profitability to volatility in raw material prices amidst a competitive industry environment.
About the Company
Pune-based, Mask Polymers Private Limited (MPPL) was incorporated in 1997. The company is engaged in manufacturing of rubber molded components and Teflon products which are used for automobile and industrial applications. MPPL has a manufacturing facility at Talegaon in Pune with an installed capacity of 12.75 crore units per annum. The management is vested in the hands of Mr. Rajesh R. Mhaske, Mr. Rajaram Y and Mrs. Rajshree Mhaske.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has taken a standalone view of the business and financial risk profile of MPPL to arrive at the rating.
Key Rating Drivers
Strengths
Experienced management and long operational track record MPPL has been operational since 1997, led by promoters Mr. Rajesh R. Mhaske, Mr. Rajaram Mhaske, and Mrs. Rajshree Mhaske, who bring over two decades of industry experience. The extensive experience of promoters has helped MPPL to establish a healthy long term working relations with reputed customers of two-wheeler & three-wheeler automotive segment such as Bajaj Auto Limited, Tata Motors Limited, Fiat India Automobiles Private Limited and among others.
Sustained improvement in operating performance along with profitability margins amidst modest operating scale The company has reported an operating income of Rs. 122.11 Cr in FY26 (prov.) as compared to Rs.107.36 Cr in FY2025 and Rs.104.23 Cr in FY2024. The revenue in FY2026 (prov.) and FY2025 has increased majorly due to increase in sales to its key customers in the automobile sector. Further in Q1 FY27 the company recorded revenue of Rs. 35.04 Cr. The operating margin of the company stood at 12.65 per cent in FY26 (prov.) as against 11.12 per cent in FY2025 and 9.18 per cent in FY2024. The PAT margins of the company stood at 7.43 per cent in FY2026 (prov.) as compared to 4.93 per cent in FY2025 and 4.66 per cent in FY2024. The margins have improved due to better absorption of costs (administration expenses, power and fuel cost and other manufacturing costs and increased other income (mainly comprising of interest income). Acuite believes that the company would sustain its steady growth in operating performance on the back of stable demand.
Moderate Financial Risk Profile The financial risk profile of the company stood moderate, marked by moderate net worth, gearing (debt to equity) and comfortable debt protection metrics. The tangible net worth stood modest at Rs. 48.69 Cr as on 31 March 2026 (prov.) as compared to Rs.39.61 Cr. as on 31 March 2025. The total debt of the company stood at Rs. 11.62 Cr as of March 2026 (prov.) as compared to Rs. 15.26 as on March 2025. The total debt includes short- term debt of Rs. 8.54 Cr, long-term debt of Rs. 2.17 Cr, unsecured loans of Rs.0.13 Cr and CPLTD of Rs. 0.78 Cr as on 31 March 2026 (prov.) The gearing (debt-equity) stood low at 0.24 times as on 31 March 2026 (prov.) as against 0.39 times as on 31 March 2025. The Interest Coverage Ratio (ICR) stood healthy at 14.76 times for FY26 (prov.) as compared to 9.53 times for FY25. Further, the Debt Service Coverage Ratio (DSCR) stood at 4.44 times for FY26 (prov.) as compared to 6.54 times in FY25. Total outside Liabilities/Total Net Worth (TOL/TNW) stood at 0.58 times as on 31 March 2026 (prov.) as compared to 0.77 times as on 31 March 2025. The Debt/EBTDA stood at 0.64 times as on 31 March 2026 (prov.) as against 1.16 times as on 31 March 2025. Net Cash Accruals to Total Debt (NCA/TD) stood at 1.17 times for FY26 (prov.) as against 0.62 times for FY25. Acuite believes that company’s financial risk profile would remain moderate over the medium term on account of absence of any major debt funded capex and modest net worth base.
Weaknesses
Working capital intensive operations The operations of the company remained working capital intensive with gross current assets (GCA) stood at 132 days in FY26 (prov.) as compared to 134 days in FY25. The debtor days stood at 52 days in FY26 (prov.) as compared to 60 days in FY2025. The company generally gives a credit period of 60 days to its customers. The Creditor days stood at 37 days in FY26 (prov.) as compared to 54 days in FY2025. The company generally allows a credit period of 90 days from its suppliers. The inventory days stood at 17 days in FY26 (prov.) as compared to 19 days in FY2025. The company generally maintains an inventory holding period of 25-30 days on average. The average of utilization of the working capital facilities at the consolidated level stood at 57.39 per cent per cent for past 06 months ended September 2026. Acuité believes that the company’s ability to maintain its working capital efficiently will remain critical to maintain a stable credit profile.
Customer concentration risk
Acuite believes the company remains exposed to customer concentration risk, with sales largely concentrated among a few customers. The top 10 customers accounted for around 90.16% of total revenue in FY2026 (87.61% in FY2025). However, the company’s longstanding relationships with reputed OEMs and a diversified customer portfolio within the automotive sector provide some comfort against the concentration risk.
Susceptibility of profitability to input price volatility The margins of MPPL remain partially exposed to any adverse movement in the prices of key raw materials viz. rubber, as the company has limited pricing flexibility owing to intense competition in the industry, any adverse movement in raw material costs could directly affect the margins.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Significant improvement in revenues surpassing Rs. 300 Cr aiding to scaling up of operations while maintaining healthy profitability.
Improvement in working-capital management.
Sustained improvement in the financial risk profile
Potential triggers (individual or collective) for a downward rating action:
Significant decline in revenue or profitability
Deterioration in the financial risk profile due to higher-than-expected debt-funded capital expenditure or working-capital borrowings.
Elongation in the working-capital cycle, with GCA days exceeding 150 days, leading to pressure on liquidity.
Liquidity Position
Adequate
The company’s liquidity position is adequate, marked by moderate net cash accruals (NCAs) against its maturity debt obligations. The company generated net cash accruals of Rs. 13.56 Cr in FY26 (prov.) against its maturity repayment obligations of Rs. 2.11 Cr during the same tenure. Further, it is expected to generate sufficient cash accrual of Rs.14.24 Cr against repayment debt obligation of Rs. 0.78 Cr in FY27 and Rs.17.42 Cr NCA against repayment obligation of Rs. 0.31 Cr in FY28. The operations of the company remained working capital intensive even though there is an improvement in GCA days which stood at 132 days in FY26 (prov.) as compared to 134 days in FY25. The average of utilization of the working capital facilities at the consolidated level stood at 57.39 per cent per cent for past 06 months ended September 2026. The company maintains cash and bank balances of Rs.0.37 Cr as on March 31, 2026 (prov.). The current ratio stands at 1.22 times as on March 31, 2026 (prov.) as against 1.02 times as on 31 March 2025. Acuite believes that liquidity profile is expected to remain adequate on account of adequate cash accruals against moderate repayment obligations.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
122.11
107.36
PAT
Rs. Cr.
9.08
5.29
PAT Margin
(%)
7.43
4.93
Total Debt/Tangible Net Worth
Times
0.24
0.39
PBDIT/Interest
Times
14.76
9.53
Status of non-cooperation with previous CRA (if applicable)
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.
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