­Acuité has considered the consolidated business and financial risk profiles of Mittal Appliances Limited and Mittal Coin Private Limited, together referred to as 'Mittal Group (MG)'. The consolidation is in view of the common promoters, significant operational and financial synergies within the group.

­Established track record of operations and Experienced management
The Mittal Group has an established track record of operation of more than 10 decades in the Indian market. The group is promoted by the Mittal family, led by Mr. Dinesh Chand Mittal. The promoters have an experience of more than four decades in the copper and copper alloy product industry. The extensive experience of the promoters and established track record of operation have helped the group to maintain healthy relationships with its customers and suppliers. The group supplies the coin blanks majorly to the Indian and other Government Mints (export) for the minting of currency coins. In the past, the group traditionally derived a significant portion of its revenue from the minting requirements of the Government of India. However, with an intent to mitigate this concentration risk, the group has been focusing on diversifying its customer base by tapping international mints across multiple geographies such as the Royal Mint, Thailand Mint, Peru Mint, and Colombia Mint. Besides this, the group also supplies medals, copper billets and strips made up of copper, nickel, and zinc, bullet cups, etc. to other private entities like PLR Systems (India) Limited, North America Trade LLC, etc. Acuite believes that the group will continue to derive benefit from the established track record of operations, reputable clientele base, and experienced management’s strong understanding of market dynamics.

Strategic restructuring of operations
The group has undertaken a strategic restructuring of its manufacturing operations within the group companies, pursuant to which all manufacturing activities related to the coils/blanks stage have been centralized with Mittal Coins Private Limited. Following this realignment, MCPL will execute manufacturing orders for Mittal Appliances Limited on a job work basis, in addition to servicing orders for other clientele. In the past, both entities operated with significant intercompany transactions involving raw material exchange and the sale of finished goods. The revised restructuring is aimed at streamlining operations and is expected to improve resource optimization and cost efficiencies, thereby enhancing operational efficiency and productivity across the group in the near to medium term.

Improvement in scale of operations
The operating income of the group stood at Rs.946.31 Cr. in FY2025 as against Rs.959.21 Cr. in FY2024. Despite an increase in the group’s overall sales volumes, revenue witnessed a marginal decline during FY2025, primarily due to lower average price realizations compared to the previous year. However, there has been a significant increase in scale of operations in FY2026, wherein the group has registered revenue of Rs.1267.80 Cr. till 10M FY2026 as against Rs.1022.25 Cr. till 10M FY2025 (both figures before intercompany transaction adjustments). The increase in revenue is driven by higher sales volume and improvement price realizations. The stability in revenue is further backed by the group’s unexecuted order book of over Rs.1000 Cr. as on 20 March 2026. Further, the EBITDA margin of the group stood at 3.82% in FY2025 as against 5.11% in FY2024 on account of an increase in raw material procurement costs and other operating expenses during the year. However, despite the moderated operating profitability, the PAT margin stood at 1.49% in FY2025 as against 1.46% in FY2024. Acuite expects the revenue and profitability of the group to improve over the medium term on the back of the execution of orders in hand coupled with the incremental order book of the group. However, the ability of the group to improve its profitability margins while scaling up its operations will remain a key monitorable factor.

Moderate Financial Risk Profile
The financial risk profile of the group is moderate marked by a steady increase in net worth, moderate gearing and debt protection metrics. The tangible net worth of the group stood at Rs.186.23 Cr as on 31st March 2025 as against Rs.178.35 crore as on 31st March 2024 on account of accretion of profits into reserves. The gearing stood at 1.23 times as on 31st March 2025 as against 1.87 times as on 31st March 2024. Moreover, the coverage indicators of the group improved as reflected by the interest coverage ratio, which stood at 2.80 times as on 31st March 2025 as against 1.97 times as on 31st March 2024 and the debt service coverage ratio, which stood at 2.39 times as on 31st March 2025 as against 1.78 times as on 31st March 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.61 times as on 31st March 2025 as against 2.22 times as on 31st March 2024 and the Debt/EBITDA stood at 5.65 times as on 31st March 2025 against 6.01 times as on 31st March 2024. Acuite expects the financial risk profile of the group to remain at moderate levels backed by steady accruals and no major debt-funded capex plans in the near to medium term.

Moderately Intensive working capital operations
The working capital operations of the group improved yet remained moderately intensive, marked by GCA days of 146 days as on 31st March 2025 as against 186 days as on 31st March 2024 owing to the high inventory days which stood at 68 days as on 31st March 2025 as against 47 days as on 31st March 2024. The group maintains adequate inventory as and when required for order execution. Additionally, the other current assets stood high at Rs.80.19 Cr. as on 31st March 2025 as against Rs.39.72 Cr. as on 31st March 2024 which majorly includes balance with Government authorities, advances to suppliers, prepaid expenses, etc. Further, the debtor days stood at 52 days as on 31st March 2025 as against 130 days as on 31st March 2024 and the creditor days stood at 4 days as on 31st March 2025 as against 26 days as on 31st March 2024. Acuite expects the working capital operations of the group to remain on similar levels in the near to medium term owing to the nature of operations.

Susceptibility of profitability margins to fluctuations in prices of raw materials
The group’s operating margins remain exposed to volatility in raw material prices, primarily copper, nickel, zinc and copper alloy scrap, which are procured from both domestic and international markets. The prices of these commodities are cyclical in nature and linked to global demand-supply dynamics. Any sharp or sustained fluctuation in raw material prices and foreign currency could adversely impact profitability, particularly in phases of subdued demand or intense competition.

• Substantial growth in operating income of the group by 35%.
• Improvement in operating profitability margins.
• Improvement in capital structure and debt protection metrices.

• Decline in scale of operations and profitability of the group.
• Moderation in the capital structure with overall gearing ratio moderated to over 2.5 times.
• Stretch in the working capital cycle.