Press Release

Press Release

March 31, 2026

NAMO ALLOYS PRIVATE LIMITED
Rating Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE B+ \| Reaffirmed & Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	50.00	-	-

Rating Rationale

Acuite has reaffirmed and withdrawn its long-term rating to 'ACUITE B+' (read as ACUITE B plus) on Rs. 50.00 Cr. bank facilities of Namo Alloys Private Limited. The rating is being withdrawn on account of request received from the issuer and No Objection Certificate received from the banker.
The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument
Acuité has received latest information from the issuer along with February 2026 NDS, leading to transition from Issuer Not Co-operating to Co-operative issuer.

Rationale for Rating
The rating reaffirmation factors the company’s established operational track record and experienced management. The company’s topline has declined over the past two years, primarily due to volatility in international prices and the absence of export revenues in FY2025. Although the company reported losses in FY2025 , NAPL is expected to return to profitability in FY2026 by focusing on domestic sales. The company’s financial risk profile remains below average, marked by low net worth and moderate gearing. The liquidity is stretched, the company is managing its debt servicing through effective receivables management and maintains an efficient working capital cycle, marked by GCA days of 61 days. Acuité expects the company to be able to return to profitability over the medium term. The rating is constrained by highly Volatile and competitive nature of business.

About the Company

New Delhi–based Namo Alloys Private Limited (NAPL) was incorporated in 1996 by Mr. Neeraj Kumar Jain and Mr. Jaiprakash. The company is engaged in the manufacturing of Aluminium and Zinc alloy ingots used in pressure die-casting equipment. NAPL caters to leading automobile and auto-component manufacturers, including Maruti Suzuki India Limited, Honda Motorcycle and Scooter India, Minda Industries Limited, and FCC India Manufacturing Limited, among others.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone financial and business risk profile of Namo Alloys Private Limited in order to arrive at the rating.

Key Rating Drivers

Strengths

Established track record along with Reputed Clientele
NAPL has an established operating track record of nearly three decades, supported by the extensive industry experience of its promoters, Mr. Naresh Jain and Mr. Neeraj Jain, who possess around two decades of experience in ingots manufacturing and trading. The company enjoys a reputed clientele base in the domestic market and has maintained long-standing relationships with key customers for over a decade, reflecting its consistent product quality and reliability.
Efficient Working Capital Management
NAPL operations exhibit efficient working capital cycle, as indicated by its low gross current asset (GCA) days of 61 as on 31st March 2025 compared to 91 days in FY2024. Moreover, the debtor period of the company also stood at 17 days in 31st March 2025 as compared to 19 days in the FY2024, the inventory holding stood at 30 days in 31st March 2025 as compared to 48 days in 31st March 2024. Creditors stood at 1 days as on March 31, 2025.

Weaknesses

Decreased scale of operations and incurred losses in FY2025
NAPL has witnessed declined in its turnover to Rs.378.78 Cr. in 31st March 2025 from Rs. 420.72 Cr. in 31st March 2024. NAPL has recorded Rs. 280 Cr. sales as of February, 2026 of. The company’s profitability weakened in 31st March 2025, with the operating profit margin declining to -0.82% from 2.42% in 31st March 2024. Additionally, it reported a net loss of Rs.10.91 crore in 31st March 2025, compared to a net profit of Rs.0.33 crore in 31st March 2024. The downturn was largely due to volatility in international prices, which adversely impacted order volumes and led to the company not recording any export revenue in FY2025.

Below Average financial risk profile
The financial risk profile of the company is marked by low net worth, moderate gearing and below average debt protection metrics. The tangible net worth of the company stood at Rs. 28.59 Cr. as on 31st March 2025 as compared to Rs. 39.51 Cr. as on 31st March 2024 due to losses booked in FY2025. The company’s gearing Stood at 1.72 times in 31st March 2025 from 1.91 times in 31st March 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) decreased to 1.81 times in 31st March 2025 from 2.10 times in 31st March 2024. The Interest Coverage Ratio (ICR) stood at -0.14 times in 31st March 2025 from 1.38 times in 31st March 2024. The Debt Service Coverage Ratio (DSCR) stood at -0.14 times in 31st March 2025 from 1.26 times in 31st March 2024.

Presence in a fragmented and competitive nature of industry
The company is exposed to the competitive pressure from big organized players as well as the small unorganized players in the industry affecting its bargaining power with the customers and in turn its operating margins.

Exposure to volatility in raw material prices and foreign currency fluctuation risk
The raw material forms the major component of the overall cost of the company. The basic raw material for production of Aluminium Ingot is aluminium scrap and Zinc metal, prices of which are volatile in nature which results in price fluctuation risk on the margins of the company. NAPL imports almost 80-90 percent of its raw material form the European and Middle East countries making it exposed to the Foreign Currency fluctuation risk.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Not Applicable

Potential triggers (individual or collective) for a downward rating action:

Not Applicable

Liquidity Position

Stretched

The company has Stretched liquidity marked by net cash accruals of Rs. (8.93) Cr. in 31st March 2025 as against Rs. 0.41 Cr. long term debt obligations over the same period. The current ratio of the company stood comfortable at 1.56 times in FY2025. Additionally, the Company maintains an unencumbered cash and bank balance of Rs. 1.83 crore and has almost 99.19% utilization of its sanctioned bank limits over the last six months ending February 2026.

Outlook : Not applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	378.78	420.72
PAT	Rs. Cr.	(10.91)	0.33
PAT Margin	(%)	(2.88)	0.08
Total Debt/Tangible Net Worth	Times	1.72	1.91
PBDIT/Interest	Times	(0.14)	1.38

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
04 Jun 2025	Cash Credit	Long Term	50.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)
07 Mar 2024	Cash Credit	Long Term	50.00	ACUITE BB- (Downgraded & Issuer not co-operating* from ACUITE BB \| Stable)
31 Aug 2023	Cash Credit	Long Term	50.00	ACUITE BB \| Stable (Downgraded from ACUITE BB+ \| Stable)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Canara Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE B+ \| Reaffirmed & Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

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