Press Release July 22, 2026 PONTIKA AEROTECH LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	44.00	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	6.00	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	50.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on Rs.50.00 crore of bank facilities of Pontika Aerotech Limited (PAL). The outlook is ‘Stable’. Rationale for the rating The assigned rating factors the extensive experience of the promoters in the pharmaceutical, nutritional, and cosmetics manufacturing industry, reflected in the company's improving scale of operations. Revenue from operations increased to Rs. 429.67 Cr. in FY26 (Prov.) from Rs. 318.61 Cr. in FY25 and Rs. 197.19 Cr. in FY24, driven by product diversification, healthy order inflows from existing customers, and addition of new clientele. The rating also factors in the company's moderate financial risk profile, characterized by a moderate net worth base, comfortable debt protection metrics, and adequate liquidity position. However, the rating is constrained by the moderation in operating profitability, with the operating margin declining to 7.56% in FY26 (Prov.) from 8.47% in FY25, primarily on account of a higher proportion of raw material costs arising from a shift in the product mix towards relatively lower-margin products. The rating is further constrained by the working capital-intensive nature of operations and the company's exposure to a highly competitive and fragmented contract manufacturing industry, which may continue to exert pressure on profitability and limit pricing flexibility over the medium term.

About the Company

­Incorporated in 2017 based out of Himachal Pradesh, Pontika Aerotech Limited is a Contract Development and Manufacturing Organisation (CDMO). The company operates fundamentally as a business-to-business (B2B) outsourcing partner, managing two major strategic divisions: a contract manufacturing unit that produces formulations under long-term OEM contracts for prominent domestic and international brands, and an advanced R&D wing that engineers new formulations licensed directly to corporate clients. The company specializes in a variety of segments such as topical pharmaceuticals, beauty and personal care, Ayurveda, hygiene, cosmeceuticals, veterinary, and other fast-growing niche segments. The directors of the company are Mr. Anubhav Goyal, Mr. Anshul Goyal, Mr. Bijoy Deb, Mr. Siddhartha Roy, and Ms. Bharti Sharma.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuite has considered the standalone financial and business risk profile of Pontika Aerotech Limited (PAL) to arrive at the rating.

Key Rating Drivers

Strengths

Benefits derived from experienced promoters PAL is a part of the Tirupati Group, which has a well-established presence in the pharmaceutical and nutritional products manufacturing industry. The company is promoted by the Goyal family, which possesses extensive industry experience. The group's established market position and longstanding relationships have supported PAL in strengthening its presence in the cosmetics and pharmaceutical segments and in building a diversified and reputed customer base. Over the years, PAL has continuously expanded its product portfolio by entering new product segments and enhancing its manufacturing capabilities. The company has also increased its share of contract manufacturing business, including ready-to-market products, supported by its in-house research and development (R&D) capabilities. Acuité believes that the extensive industry experience of the promoters and the established track record of the Tirupati Group will continue to support the company's business growth and customer acquisition over the medium term. Improvement in scale of operations The company has witnessed a healthy growth in its scale of operations, with revenue from operations increasing by approximately 34.86% to Rs. 429.67 Cr. in FY26 (Prov.) from Rs. 318.61 Cr. in FY25 and Rs. 197.19 Cr. in FY24. The growth was driven by product diversification, healthy order inflows from existing customers, and the addition of new clients. The company's operating margin moderated to 7.56% in FY26 (Prov.) from 8.47% in FY25, primarily due to a higher proportion of raw material costs arising from a shift in the product mix towards relatively lower-margin products. However, the net profit margin improved to 2.11% in FY26 (Prov.) from 1.16% in FY25 owing to lower interest expenses. The reduction in interest cost was mainly attributable to the timing of debt drawdowns, with additional borrowings availed during Q4 FY26, resulting in a relatively lower interest burden during the year. Acuité believes that the company's scale of operations is likely to improve further over the medium term, supported by healthy order inflows, the addition of new customers, and enhanced production capacity. Moderate Financial Risk Profile The company has a moderate financial risk profile, marked by a tangible net worth improved to Rs. 126.62 Cr. as on March 31, 2026 (Prov.) from Rs. 117.54 Cr. as on March 31, 2025, supported by accretion of profits to reserves. Further, during FY25, the company strengthened its capital structure through an infusion of Rs. 64.05 Cr. in the form of equity, Compulsorily Convertible Preference shares (CCPS) and Optional Convertible Preference shares (OCPS), along with the conversion of Rs. 35.70 Cr. of unsecured loans into equity. The proceeds were primarily utilized towards working capital requirements and enhancement of warehousing capacities. The debt-to-equity ratio increased to 1.20 times as on March 31, 2026 (Prov.) from 0.73 times as on March 31, 2025, on account of debt-funded capital expenditure undertaken for expansion of production capacity. Nevertheless, the company's debt protection indicators improved, with the interest coverage ratio (ICR) strengthening to 3.49 times in FY26 (Prov.) from 2.31 times in FY25 and the debt service coverage ratio (DSCR) improving to 1.22 times from 1.05 times during the same period. Acuité believes that the financial risk profile of the company is likely to remain moderate over the near to medium term, supported by its improving net worth and comfortable debt protection metrics, albeit constrained by the debt-funded capex undertaken towards capacity expansion.

Weaknesses

Intensive Working capital operations The company's working capital operations remain intensive, although they improved during FY26 (Prov.). The Gross Current Assets (GCA) days stood at 144 days in FY26 (Prov.) as against 162 days in FY25. The improvement was primarily driven by better debtor management, with receivable days declining to 59 days in FY26 (Prov.) from 74 days in FY25, indicating enhanced collection efficiency. Inventory holding period also improved, with inventory days reducing to 71 days in FY26 (Prov.) from 78 days in FY25 with creditor days decreased to 69 days in FY26 (Prov.) from 102 days in FY25. Acuite believes that working capital operations of the company expected to remain in the same range due to the nature of the business. Highly Competitive and Fragmented Industry PAL operates in a highly competitive and fragmented contract manufacturing industry, with the presence of numerous players across the pharmaceutical and cosmetics segments. The intense competition limits the company's pricing flexibility and exerts pressure on operating margins. Further, the company's ability to maintain profitability remains dependent on its ability to secure repeat orders, acquire new customers, and continuously develop products in line with evolving customer requirements. Acuité believes that the company will continue to face competitive pressures from existing and new players in the industry, which may constrain its pricing power and profitability over the medium term.

Rating Sensitivities

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

Growth in operating income by more than 40% with stable improvement in profitability. Improvement in capital structure.

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

Any large debt funded capex, impacting the financial risk profile and liquidity. Revenue falling by 20-25 percent and steep decline in profitability.

Liquidity Position

Adequate

The company's liquidity position is adequate, marked by generated net cash accruals of Rs. 19.93 Cr. in FY26 (Prov.) against scheduled debt obligations of Rs. 14.58 Cr. during the same period. Further, the company has a cash and bank balance of Rs. 0.14 Cr. as on March 31, 2026 (Prov.), while its current ratio stood at 1.14 times. The average utilization of fund-based working capital limits remained moderate at 71.92% for the ten-month period ended May 2026. Acuité believes that the company's liquidity position is likely to remain adequate over the medium term, supported by steady cash accruals against its debt repayment obligations, albeit moderated by the ongoing debt-funded capital expenditure undertaken towards capacity expansion.

Outlook: Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	429.67	318.61
PAT	Rs. Cr.	9.08	3.71
PAT Margin	(%)	2.11	1.16
Total Debt/Tangible Net Worth	Times	1.20	0.73
PBDIT/Interest	Times	3.49	2.31

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

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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