Press Release

Press Release

January 12, 2026

MNE COMPONENTS INDIA PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	28.93	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	8.00	-	ACUITE A3 \| Assigned
Total Outstanding	36.93	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short term rating of 'ACUITE A3' (read as ACUITE A three) on Rs. 36.93 Cr. bank facilities of MNE Components India Private Limited (MCIPL). The outlook is ‘Stable’.

Rationale for rating

MCIPL’s rating reflects steady improvement in operating scale, supported by integrated manufacturing capabilities and favourable realisations, resulting in stable operating performance. The financial risk profile remains moderate, driven by moderate net worth, comfortable gearing and healthy coverage indicators. Ongoing capacity expansion funded through promoter support, internal accruals and term borrowings is expected to further enhance scale and efficiency. However, the rating is constrained by moderately high working capital intensity arising from elevated receivables and exposure of margins to raw material price volatility in an intensely competitive industry.

About the Company

Based in Nashik, MNE Components India Private Limited (MCIPL), incorporated in December 2019, is a precision component and engineering solutions manufacturer with in-house capabilities across toolroom, stamping, plating, insulation and sub-assemblies. The company produces copper, aluminium, nickel, stainless steel and clad components. Its product range includes high precision tools, stamped parts, motor laminations, busbars, cell connectors, steel bands and switchgear components. The company caters to sectors such as electric vehicles, transmission and distribution, renewable energy and energy storage systems. The company is currently promoted by Ms. Usha Vijay Vedmutha, Ms. Aakansha Yash Vedmutha and Mr. Yash Vijay Vedmutha.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profile of MCIPL to arrive at the rating.

Key Rating Drivers

Strengths

Extensive management experience with moderate operational track record
The company has ~ six years of operational track record into manufacturing of precision component and engineering solutions. The company offers integrated in-house capabilities across toolroom, stamping, plating, insulation and sub-assemblies, producing a diversified range of copper, aluminium, nickel, stainless-steel and clad components. It caters to key sectors including electric vehicles, transmission and distribution, renewable energy and energy storage systems. The company is promoted by Ms. Usha Vijay Vedmutha, Ms. Aakansha Yash Vedmutha and Mr. Yash Vijay Vedmutha, who collectively bring over a decade of experience and industry understanding with operational expertise. Acuité believes the promoters’ experience and the company’s growing capabilities will continue to support its business profile over the medium term.

Steady operating performance with modest scale of operations
The revenue of the company stood at Rs. 84.99 Cr. in FY2025 as against Rs. 74.97 Cr. in FY2024. The improvement in revenue is mainly due improved realisations driven by increase in copper prices. MCIPL reported revenue of ~Rs. 64.00 crore in H1FY26 as compared to ~Rs. 34.00 crore in H1FY25 and is expected to achieve revenues of ~Rs. 120 crore in 2025-26. The growth is supported by favourable realisations and increasing demand for the products. The operating profit margin has improved to 14.73 per cent in FY2025 as against 12.16 per cent in FY2024. The improvement is mainly due to absorption of employee and other fixed costs. The profit after tax (PAT) margin stood at 9.40 per cent in FY2025 as against 7.58 per cent in FY2024. Acuite believes, the operating performance would improve steadily over the medium term on the back of surge in realisations and ramping up of capex.

Moderate Financial Risk Profile
The financial risk profile of the company is moderate marked by modest net worth, debt-protection metrics and low gearing level. The tangible net worth of the company stood at Rs. 18.42 Cr. as on March 31, 2025 as against Rs. 10.25 Cr. as on March 31, 2024. The gearing (debt to equity) stood at 0.71 times as on March 31, 2025 as against 0.80 times as on March 31, 2024. The total debt of the company stood at Rs. 13.13 Cr. as on March 31, 2025 as against Rs. 8.22 as on March 31, 2024. The total debt comprises of long term debt of Rs. 2.13 Cr. and USL of Rs. 4.80 Cr, short term borrowings stood at Rs. 5.81 Cr. and CPLTD Rs. 0.39 Cr. The total outside liability to total net worth (TOL/TNW) stood at 1.96 times as on March 31, 2025 as against 2.34 times as on March 31, 2024. The debt protection metrics are comfortable with debt service coverage ratio (DSCR) stood at 5.95 times in FY2025 as against 5.50 times in FY2024. The interest coverage ratio (ICR) stood at 8.20 times in FY2025 as against 6.37 times in FY2024. The company is undertaking a capex of Rs. 25 crores to be completed by FY27 towards land, building and plant & machinery to expand capacity and improve operational efficiency. Not withstanding the moderation in the financial risk profile, the capex is being funded through a mix of debt to equity ratio of 1.5: 1, is expected to support higher revenues and improved scale from FY27 onwards, making the capex favourable for the company’s long-term growth.

Weaknesses

Moderately intensive working capital operations
The operations of the company are working capital intensive in marked by gross current asset (GCA) of 194 days for FY2025 as against 127 days for FY2024. The inventory days stood at 65 days for FY2025 as against 86 days for FY2024. The company maintains moderate inventory levels, ranging between 50-80 days over the years, reflecting its requirement to stock raw materials and finished goods as per customer delivery schedules. The creditor days stood at 107 days for FY2025 as against 100 days for FY2024. Supplier support remains strong, enabling the company to manage its working capital requirements without significant dependence on external working capital borrowings. The debtor days stood at 93 days for FY25 as compared to 33 days in FY24. The increased in debtor days is primarily due to the significant spike in sales at the year end which resulted in a temporary elongation of receivables. The average utilization of the fund based stood moderate at ~62 per cent for six months ending October 2025. Acuite believes, the working capital operations of the company would remain moderately intensive due to the nature of business.

Susceptibility of profitability to volatility in material prices and stiff competition in fragmented Industry
The company’s profitability remains susceptible to fluctuations in copper prices, given that copper constitutes a major share of its raw material cost. Any sharp movement in global copper prices directly affects procurement costs and operating margins. Although the company partially mitigates this risk through diversified sourcing and the ability to pass on cost increases to customers, sustained margin stability remains dependent on favourable commodity price trends. Furthermore, the company operates in a fragmented industry characterised by intense competition and limited product differentiation, which restricts pricing flexibility and exposes margins to competitive pressure.

Rating Sensitivities

Sustained growth in revenues and profitability
Stretch in working capital cycle
Sharp deterioration in debt-coverage indicators or change in overall financial risk profile due to higher than envisaged debt funded capex

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by adequate net cash accrual as against the maturing debt obligation. The company generated adequate net cash accrual of Rs. 9.32 Cr. against maturing debt obligation of Rs. 0.29 Cr. in FY2025. Going ahead, the company is expected to generate net cash accrual in the range of Rs. 12 Cr. to Rs. 19 Cr. against maturing debt obligation in the range of Rs. 3-4 Cr. The average utilization of the fund based stood moderate at ~62 per cent for six months ending October 2025. The current ratio stood at 1.62 times as on March 31, 2025. The unencumbered cash and bank balance stood at ~Rs.1.07 Cr.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	84.99	74.97
PAT	Rs. Cr.	7.99	5.68
PAT Margin	(%)	9.40	7.58
Total Debt/Tangible Net Worth	Times	0.71	0.80
PBDIT/Interest	Times	8.20	6.37

Status of non-cooperation with previous CRA (if applicable)

None

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History: Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.00	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	21.00	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	Simple	ACUITE A3 \| Assigned
State Bank of India	Not avl. / Not appl.	Term Loan	21 Feb 2024	Not avl. / Not appl.	21 Feb 2031	0.90	Simple	ACUITE BBB- \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Term Loan	27 Feb 2023	Not avl. / Not appl.	27 Jun 2028	1.03	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Anuja Bele
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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