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 reaffirmed its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs.76.25 Crore bank facilities of Miraj Multi Colour Private Limited (MMCPL). The outlook is revised from 'Stable' to 'Negative'.
Rationale for rating
The revision in outlook reflects the deterioration in the company's actual operational and financial performance vis-à-vis estimated expectations for FY2025, marked by EBITDA and PAT losses of Rs. 1.35 Cr. and Rs. 21.74 Cr., respectively. Additionally, the company's liquidity remains stretched marked by low current ratio at 0.92 times as on March 31, 2026 (Prov.) coupled with highly utilised fund-based working capital limits at 92.46% during the six months ended April 2026, indicating limited liquidity cushion. The rating further remains constrained by intensive working capital operations, operations in a highly competitive industry and susceptibility of profitability margins to volatility in raw material prices.
The rating derives comfort from the growth in operating revenue, which increased to Rs. 159.73 Cr. in FY2026 (Prov.) from Rs. 121.79 Cr. in FY2025. The EBITDA margin also increased to 12.51% in FY2026 (Prov.) from (1.11)% in FY2025 supported by improved price realizations. Any major deviation from the provisional vis-à-vis actual operational and financial performance of FY2026 will remain a key monitorable. Further, the financial risk profile remained moderate, marked by average net worth, gearing below unity, and moderate debt protection metrics. Acuité notes that going forward, the company’s ability to maintain sufficient cash accruals against its debt repayment obligations coupled with improvement in profitability margins while scaling up its operations will remain a key rating sensitivity factors.
About the Company
Incorporated in 1995, Udaipur, Rajasthan based, Miraj Multi Colour Private Limited is engaged in the business of manufacturing and selling paper-based school as well as office stationery and offset printing job work. The company also manufactures duplex mono-carton and corrugated boxes used for packaging applications across FMCG, pharmaceutical, garment, and electrical sectors, among others. The directors of the company are Mr. Krishna Gopal Sharma and Mr. Rakesh Mali.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has considered the standalone financial and business risk profiles of Miraj Multi Colour Private Limited to arrive at the rating.
Key Rating Drivers
Strengths
Long track record of operations and Experienced management
The company's business profile spans both the paper stationery segment (exercise notebooks and printing products) and the paper-based packaging segment (mono-cartons and corrugated boxes). The company’s management has experience of more than two decades in the packaging and stationery industry, which has benefited the company in building established relationships with customers and suppliers. Acuite believes that the company will continue to derive benefit from the long track record of operations and experienced management’s strong understanding of market dynamics.
Improvement in revenue and profitability margins
The company reported growth in operating income to Rs.159.73 crore in FY2026 (Prov.) from Rs.121.79 crore in FY2025, primarily driven by increase in export sales, while the domestic segment continued to remain the largest contributor to the overall revenue. The EBITDA margin increased to 12.51% in FY2026 (Prov.) from (1.11)% in FY2025 and 9.66% in FY2024. The improvement in operating performance during FY2026 (Prov.) is largely attributable to improved price realizations across key product categories on the back of increased focus on value-added products and execution of orders carrying relatively higher margins. Further, the PAT Margin stood at 0.67% in FY2026 (Prov.). Acuite expects the company to maintain its topline in the near to medium term supported by the execution of orders with focus on commanding better realizations. However, the ability of the company to improve its profitability margins while scaling up its operations will remain a key rating sensitivity.
Moderate Financial Risk Profile
The financial risk profile of the company is moderate, marked by average net worth, gearing below unity, and moderate debt protection metrics. The tangible net worth of the company reduced to Rs. 52.05 Cr. as on 31st March 2026 (Prov.) as against Rs. 56.85 Cr. as on 31st March 2025 due to partial withdrawal of the quasi equity i.e. unsecured loans from director/promoters/related parties in FY2026 (Prov.). This primarily reflects a change in funding composition rather than any weakening of the company's underlying financial profile. The company continues to benefit from directors/promoter/related parties support through outstanding subordinated unsecured loans retained in the business. The capital structure is marked by gearing ratio, which stood at 0.92 times as on 31st March 2026 (Prov.) against 1.07 times as on 31st March 2025. Further, the coverage indicators reflected by the interest coverage ratio and debt service coverage ratio, stood at 2.44 times and 1.21 times, respectively, as on 31st March 2026 (Prov.). The TOL/TNW ratio of the company stood at 1.95 times as on 31st March 2026 (Prov.) and DEBT-EBITDA stood at 2.40 times as on 31st March 2026 (Prov.). Acuité expects the financial risk profile of the company to remain moderate with no major debt-funded capex plans in the near to medium term.
Weaknesses
Intensive Working Capital Operations
The working capital cycle of the company although improved but remained intensive, marked by GCA days at 189 days as on 31st March 2026 (Prov.) as against 233 days as on 31st March 2025. The inventory days stood at 51 days as on 31st March 2026 (Prov.) as against 65 days as on 31st March 2025 wherein the company maintains adequate inventory as and when required for order execution. Further, the debtor days of the company stood at 125 days as on 31st March 2026 (Prov.) against 164 days as on 31st March 2025 and the creditor days stood at 159 days as on 31st March 2026 (Prov.) against 137 days as on 31st March 2025. Acuite expects that working capital operations of the company to remain in a similar range in the near to medium term owing to the nature of operations.
Operations in a highly competitive industry and susceptibility of margins to fluctuations in raw material prices
The company remains exposed to the inherent challenges of operating in a highly competitive and fragmented industry, where the presence of numerous organized and unorganized players limits pricing power and often compresses operating margins. In this environment, sustaining differentiation becomes difficult, especially as customer preferences are price-sensitive and market cycles can shift quickly. Further, the company’s profitability is also susceptible to volatility in the prices of key raw materials. Acuite notes that in case of any sharp raw material cost fluctuations, the ability of the company to pass on such adverse impact to its customers and sustain its operating profitability will be a key rating monitorable factor.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent growth in operating income by more than 30%.
Significant improvement in the operating profitability position.
Improvement in capital structure and debt protection metrics.
Potential triggers (individual or collective) for a downward rating action:
Major deviation in the actual vis-à-vis estimated operational performance of the company in FY2026.
Any substantial decline in revenue from operations coupled with persistent losses.
Stretch in the working capital cycle.
Deterioration in the financial risk profile owing to any large debt-funded capex.
Liquidity Position
Stretched
The liquidity profile of the company is marked by net cash accruals of Rs. 11.79 Cr. as on 31st March 2026 (Prov.) against the debt repayment obligations of Rs. 8.26 Cr. in the same period. However, Acuité notes that the company's net cash accruals as on 31st March 2025 were inadequate to meet its debt obligations and the debt repayments were serviced through working capital management. Moreover, the average utilization of fund-based working capital limits continues to remain high at 92.46% in the last six months ending July 2026. Further, the cash and bank balance stood at Rs. 0.05 Cr. as on 31st March 2026 (Prov.) and the current ratio stood low at 0.92 times as on 31st March 2026 (Prov.). Acuité notes that the ability of the company to maintain sufficient cash accruals against its debt repayment obligations in the near to medium term will remain a key monitorable factor.
Outlook: Negative
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
159.73
121.79
PAT
Rs. Cr.
1.07
(21.74)
PAT Margin
(%)
0.67
(17.85)
Total Debt/Tangible Net Worth
Times
0.92
1.07
PBDIT/Interest
Times
2.44
(0.16)
Status of non-cooperation with previous CRA (if applicable)
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
State Bank of India
Not avl. / Not appl.
Covid Emergency Line.
Unlisted
RBI
16 Dec 2021
Not avl. / Not appl.
05 Dec 2026
0.96
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Not Applicable
Not avl. / Not appl.
Proposed Long Term Bank Facility
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
23.21
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
State Bank of India
Not avl. / Not appl.
Term Loan
Unlisted
RBI
08 Jun 2026
Not avl. / Not appl.
31 May 2031
5.50
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Punjab National Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
20 Jul 2025
Not avl. / Not appl.
15 Jun 2031
0.62
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
State Bank of India
Not avl. / Not appl.
Term Loan
Unlisted
RBI
02 Sep 2022
Not avl. / Not appl.
02 Jan 2028
3.20
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
State Bank of India
Not avl. / Not appl.
Term Loan
Unlisted
RBI
30 Apr 2020
Not avl. / Not appl.
01 Jun 2030
3.68
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
State Bank of India
Not avl. / Not appl.
Term Loan
Unlisted
RBI
31 Aug 2023
Not avl. / Not appl.
28 Jun 2031
11.33
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
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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