Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 355.85 ACUITE BBB+ | Upgraded & Withdrawn - RBI
Bank Loan Ratings 0.00 32.00 - ACUITE A2 | Upgraded & Withdrawn RBI
Total Outstanding 0.00 0.00 - - -
Total Withdrawn 0.00 387.85 - - -
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Acuité has upgraded and withdrawn its long-term rating to 'ACUITE BBB+' (read as ACUITE triple B plus) from 'ACUITE BB+' (read as ACUITE double B plus) and short-term rating to ‘ACUITE A2’ (read as ACUITE A two) from ‘ACUITE A4+’ (read as ACUITE A four plus) on Rs. 387.85 Cr. bank facilities of Narbheram Power and Steel Private Limited (NPSPL). The rating is being withdrawn on account of the request received from the company and No Objection Certificate (NOC) received from the bankers. The rating has been withdrawn as per Acuite's policy of withdrawal of ratings as applicable to the respective instrument/facility.

Rationale for rating
The rating upgrade and migration from ‘Issuer not co-operating’ takes into account the established track record of operations of the company along with long-standing experience of the management in the mining and steel industry. Further, while the operating performance stood moderated in FY25 owing to transportation challenges in the mining segment leading to reduced volumes, however, significant improvement is witnessed in FY26 with the stabilisation of operations. Further, the financial risk profile of the company remains healthy marked by below unity gearing (debt/equity) ratio and healthy debt service coverage ratios. The rating also factors adequate liquidity position along with minimal utilisation of banking limits. However, the rating is constrained on account of moderately intensive working capital operations, susceptibility of the margins to volatility in raw material prices, intense competition and inherent cyclical nature of mining and steel industry along with the company’s exposure to its group companies.

About the Company

I­ncorporated in 1999, Narbheram Power and Steel Private Limited (NPSPL) is engaged in the manufacturing of sponge iron and billets. The company’s manufacturing plant has an installed capacity of ~1,00,000 TPA for sponge iron and 60,000 TPA for billets at Dhenkanal, Odisha. Currently, the company is operating an iron ore mine with a maximum permitted pace of 35,00,000 TPA, which they are operating at a set pace of 28,50,000 TPA in Keonjhar, Odisha along with six railway rakes. Additionally, the company has an 8 MW waste heat recovery based captive power plant. The directors of the company are Mr. Vishal Atha, Mr. Gaurav Atha, Mr. Devendra Kumar Dave and Mr. Vishal Vithlani.
 
Unsupported Rating

­­Not Applicable
 
Analytical Approach

­Acuité has considered the standalone business and financial risk profiles of NPSPL to arrive at the rating.
 
Key Rating Drivers

Strengths

Established track record of operations along with experienced management
NPSPL is being led by experienced promoters and management team which has helped the company establishing its track of operations of more than two decades. The company primarily operates under three major business verticals – mining, steel and railway rakes. Further, being part of the Kolkata based Atha Group which is having more than six decades of experience in the mining sector, the company has built healthy relationships with their stakeholders. The group has diversified their presence across mining, power & steel, renewable energy, railway rakes, calcined petroleum coke, etc. and currently are diversifying into cathode and anode material manufacturing segment.

Healthy scale of operations albeit volatile margins
While the company marked a decline in operating revenue in FY25 that stood at Rs. 1344.10 Cr. as compared to Rs. 1551.79 Cr. in FY24 due to lower volumes from the mining segment owing to transportation issues faced by the company, however, the operations of the company have ramped up significantly in FY26 marked by operating revenue of ~Rs. 1808 Cr. in FY26. Further, the operating margin of the company stood volatile, improved to 8.79 percent in FY25 (3.17 percent in FY24) owing to reduced mining expenses and commencement of operations under the rakes segment in FY25 that exhibits healthy margins as compared to the mining and steel segment. However, in FY26, the absolute EBITDA stood moderated at ~Rs. 73 Cr. (Rs. 118.10 Cr. in FY25) on account of increase in contribution from the mining segment leading to decline in the overall operating margin.

Healthy financial risk profile
The financial risk profile of the company stood healthy marked by healthy net worth of Rs. 435.40 Cr. in FY25 (Rs. 358.61 Cr. in FY24), improved on account of accretion of profits to reserves. Further, the debt profile of the company consists of long-term availed for the capex of railway rakes along with working capital borrowings amounting to Rs. 174.42 Cr. as on March 31, 2025 (Rs. 133.40 Cr. as on March 31, 2024). Hence, the gearing (debt/equity) ratio stood below unity at 0.40 times in FY25 (0.37 times in FY24). Moreover, the debt protection metrics stood healthy with interest coverage ratio of 9.56 times in FY25 (8.76 times in FY24) and debt service coverage ratio of 2.60 times in FY25 (3.36 times in FY24). However, the company has extended support to the group companies in the form of equity, debentures, preference shares along with loans and advances amounting to Rs. 252.22 Cr. as on March 31, 2025 (Rs. 233.18 Cr. as on March 31, 2024) which is ~55-65 percent of its net worth.


Weaknesses

Moderately intensive working capital operations
The working capital operations of the company are moderately intensive marked by gross current assets (GCA) of 112 days in FY25 (104 days in FY24), majorly driven by other current assets (primarily consisting of loans & advances extended and balances with statutory authorities) along with debtor levels that stood at 29 days in FY25 (4 days in FY24). Further, the creditor days stood at 63 days in FY25 (37 days in FY24) which majorly consists of dues payables towards the transportation services. Moreover, the inventory levels stood at 36 days in FY25 (23 days in FY24).

Susceptibility to cyclicality inherent in the steel sector and regulatory risks in the mining industry
The company’s performance remains vulnerable to growing competition and the inherently cyclical nature of the mining and steel industry, which is closely linked to both domestic and global economic conditions. The key end-user sectors like real estate, infrastructure, and engineering also exhibit cyclical trends. Consequently, fluctuations in economic cycles such as slowdowns and seasonal variations in demand and supply can affect steel demand and its pricing, thereby exerting pressure on the company’s operating margins and cash flows, and shall continue to remain key rating monitorable. Further, the company is also susceptible to execution challenges due to regulatory hurdles, potential law and order issues in mining areas, transportation issues and changes in government policies along with the royalties levied, all of which can impact revenue.

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
Adequate

The liquidity position of the company stood adequate marked by sufficient net cash accruals of Rs. 89.23 Cr. in FY25 as against maturing debt obligations of Rs. 25.63 Cr. for the same period. Moreover, the liquidity is supported by minimal utilisation of banking limits. Further, company-maintained cash and bank balances of Rs. 25.03 Cr. as on March 31, 2025, and the current ratio stood healthy at 1.97 times in FY25.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 25 (Actual) FY 24 (Actual)
Operating Income Rs. Cr. 1344.10 1551.79
PAT Rs. Cr. 70.35 41.70
PAT Margin (%) 5.23 2.69
Total Debt/Tangible Net Worth Times 0.40 0.37
PBDIT/Interest Times 9.56 8.76
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
13 Nov 2025 Bank Guarantee (BLR) Short Term 32.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2)
Cash Credit Long Term 41.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Term Loan Long Term 18.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 40.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 62.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 40.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 15.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Term Loan Long Term 50.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Term Loan Long Term 50.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Cash Credit Long Term 20.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
Term Loan Long Term 19.85 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB+ | Stable)
28 Aug 2024 Bank Guarantee (BLR) Short Term 32.00 ACUITE A2 (Reaffirmed)
Cash Credit Long Term 41.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 18.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 40.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 40.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 62.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 15.00 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 15.60 ACUITE BBB+ | Stable (Reaffirmed)
Term Loan Long Term 34.40 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 50.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 20.00 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 19.85 ACUITE BBB+ | Stable (Assigned)
31 May 2023 Bank Guarantee (BLR) Short Term 32.00 ACUITE A2 (Assigned)
Cash Credit Long Term 65.00 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 6.85 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 40.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 40.00 ACUITE BBB+ | Stable (Assigned)
Cash Credit Long Term 62.00 ACUITE BBB+ | Stable (Assigned)
Term Loan Long Term 17.50 ACUITE BBB+ | Stable (Assigned)
Proposed Long Term Bank Facility Long Term 0.25 ACUITE BBB+ | Stable (Assigned)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
INDUSIND BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 32.00 Simple ACUITE A2 | Upgraded & Withdrawn ( from ACUITE A4+ )
AXIS BANK LIMITED Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 41.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
YES BANK LIMITED Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
H D F C Bank Limited Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 40.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
INDUSIND BANK LIMITED Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 62.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
RBL Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
Federal Bank Limited Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
Federal Bank Limited Not avl. / Not appl. Term Loan Unlisted RBI 31 Jan 2024 Not avl. / Not appl. 30 Sep 2030 19.85 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
AXIS BANK LIMITED Not avl. / Not appl. Term Loan Unlisted RBI 31 Dec 2023 Not avl. / Not appl. 30 Jun 2029 18.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
RBL Bank Not avl. / Not appl. Term Loan Unlisted RBI 30 Sep 2023 Not avl. / Not appl. 30 Sep 2029 50.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
RBL Bank Not avl. / Not appl. Term Loan Unlisted RBI 31 Dec 2023 Not avl. / Not appl. 31 Dec 2031 50.00 Simple ACUITE BBB+ | Upgraded & Withdrawn ( from ACUITE BB+ )
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.

Contacts

List of instruments and names of regulators of the instruments
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