Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 19.27 ACUITE BBB- | Stable | Downgraded - RBI
Bank Loan Ratings 0.00 88.00 - ACUITE A3 | Downgraded RBI
Total Outstanding 0.00 107.27 - - -
Total Withdrawn 0.00 0.00 - - -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

­Acuité has downgraded its long-term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) from ‘ACUITE BBB’ (read as ACUITE triple B) and its short-term rating to 'ACUITE A3' (read as ACUITE A three) from 'ACUITE A3+' (read as ACUITE A three plus) on the Rs. 107.27 Cr. bank facilities of Megaa Moda Private Limited (MMPL). The outlook is revised from ‘Negative’ to ‘Stable’.

Rationale for rating


The rating downgrade considers the decline in operating performance in FY2026 (E), marked by a contraction in revenue due to external trade disruptions, particularly elevated tariffs in key export markets i.e., USA, which significantly impacted demand and scale of operations. The lower scale has also affected profitability, with muted net margins reflecting limited operating leverage. The financial risk profile remains constrained, characterised by elevated leverage and weakening coverage indicators. Further, the working capital-intensive nature of operations is reflected in high inventory holding and elongated operating cycle. The pending buyback or conversion of optionally convertible debentures also remains a key monitorable. These
Weaknesses are partly mitigated by the company’s established track record, experienced management, diversified export presence and gradual shift towards alternative geographies.


Key Rating Drivers

Rating Sensitivities

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 244.12 237.15
PAT Rs. Cr. 2.97 3.38
PAT Margin (%) 1.22 1.43
Total Debt/Tangible Net Worth Times 2.24 2.36
PBDIT/Interest Times 1.93 2.09
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.