Press Release December 09, 2025 POWER2SME PRIVATE LIMITED Rating Upgraded, Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	20.52	ACUITE BB- | Upgraded & Withdrawn	-
Bank Loan Ratings	90.69	-	ACUITE A4 | Reaffirmed & Withdrawn
Bank Loan Ratings	5.99	-	Not Applicable | Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	117.20	-	-

Rating Rationale

­Acuite has upgraded and withdrawn the long term rating to 'ACUITE BB-' (read as ACUITE double B Minus) from 'ACUITE B+' (read as ACUITE B Plus) on Rs. 20.52 crore bank facility of Power2SME Private Limited. The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker. Also, Acuite has reaffirmed and withdrawn the short term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs. 90.69 crore short-term bank facilities of Power2SME Private Limited. The rating is being withdrawn on account of request received from the company, and NOC (No Objection Certificate) received from the banker. Acuité has withdrawn its rating on the short-term facilities of Rs.5.99 crore of Power2SME Private Limited. without assigning any rating as it is fully repaid. The rating is being withdrawn on account of request received from the company, and NDC (No Dues Certificate) received from the banker. The withdrawal is in accordance with Acuite's policy on withdrawal of ratings as applicable to the respective facility / instrument.  Rationale for Upgrade The rating is driven by the group's established operating track record, improvement in scale of operations during FY2025, and the presence of experienced promoters supported by institutional investors. The consolidated operating income increased from Rs. 672.14 Crore in FY2024 to Rs. 1011.36 crore in FY2025, reflecting a partial recovery in business volumes. The rating also factors in capital infusion of Rs. 41 crores in FY2025, which supported net-worth position, and group’s ability to service reputed corporate clients across diversified sectors. However, the rating remains constrained by weak profit after tax (PAT) of Rs. 15.78 crore as of March 31, 2025, elevated working capital intensity and leveraged capital structure with gearing of 3.67 times as on March 31, 2025, compared to 1.61 times as on March 31, 2024. Going forward the group’s ability to improve profitability, strengthen working capital and reduce leverage will remain key monitorable.

About the Company

­Power2SME Private Limited (P2S) is a private limited company incorporated in 2012. The company is engaged in the business of trading of Metals (majorly Steel & TMT), Polymers, Yarn, Chemicals etc and sells its product in domestic market. Headquartered in Gurugram, Power2SME has 5 offices spread across Mumbai, Chennai, Kolkata, Ahmedabad and Pune. The company is led and promoted by Mr. R. Narayan (Founder & CEO) with the support of marquee investors.

About the Group

P­ower2SME provides its B2B services through its digital ecosystem which delivers raw material procurement at competitive prices, MRO procurement, and access to finance to smaller SME’s with an objective to provide them with higher efficiencies and profitability. Power2SME functions as a 'buying club' and helps SMEs benefit from economies of scale as a result of volume purchase and buying power across a large network of manufacturers. The company has 2 wholly owned subsidiary companies named Jijo India Private Limited & Auriolus Finvest Private Limited. Jijo India Private Limited was incorporated in October 2012 and engaged in the business of trading of various products. Auriolus Finvest Private Limited was incorporated in October 2018 and engaged in lending to SME sector by extending working capital loans to them. Power2SME Private Limited (P2S) is a private limited company incorporated in 2012. The company is engaged in the business of trading of Metals (majorly Steel & TMT), Polymers, Yarn, Chemicals etc and sells its product in domestic market. Headquartered in Gurugram, Power2SME has 5 offices spread across Mumbai, Chennai, Kolkata, Ahmedabad and Pune. The company is led and promoted by Mr. R. Narayan (Founder & CEO) with the support of marquee investors

Unsupported Rating

­Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité has considered the consolidated view on the business and financial risk profile of Power2SME Private Limited and its subsidiaries Auriolus Finvest Private Limited and others to arrive at the rating. The approach is driven by common management, shared brand, and strong operational and financial synergies between the group companies.

Key Rating Drivers

Strength

­Experienced management team Power2SME Private Limited (P2S) is led by Mr. R. Narayan (Founder & CEO). Mr. Narayan is a seasoned entrepreneur with around two decades of corporate experience. He was previously associated with working in sales and marketing profiles for Microsoft, Oracle and TATA Group. Having worked with SME segment closely and understanding their nuances he co-founded Denave India Private Limited a technology powered sales enabling services company. Later in 2012, with the support of marquee investors, Mr. Narayan founded Power2SME to further his cause to empower the SME segment. Mr. Narayan is supported by an experienced professional team with diverse expertise in areas of finance, treasury, investments, customer-ready technology solutions, networking alliances amongst others. Mr. Saurav Ghosh and Mr. Vineet Agrawal are on the board of P2S. The management team has been able to on-board various suppliers on their platform and blue-chip companies as customers to fulfil their MRO requirements like Vendata, Hindustan Zinc, Orient, L&T and others. The management has taken steps to improve its credit policies. The subsequent decline in traded volumes has resulted in the company not being able to achieve optimal levels of volumes required for break-even. Acuité believes that, the adoption of robust credit policies, on-boarding blue-chip clients to drive volumes and overall experience of the management wil help the company to grow in a sustainable manner.

Weakness

­Weak financial risk profile P2S commenced its operations in 2012. The group reported loss of Rs. 15.78 Cr. for FY2025 over an operating income of Rs. 1011.36 Cr. as compared to a loss of Rs. 34.87 Cr. over an operating income of Rs. 672.14 Cr. during FY2024. The group’s net worth stood at Rs. 49.99 Cr. as on Mar-25 with a gearing of 3.67 times as compared to Rs. 31.70 Cr. as on Mar-24 with a gearing of 1.61 times this is primarily because of equity infusion of Rs. 41.00 Cr. and increase in short term borrowings. The company will be able to achieve break-even only once it achieves optimal levels of volumes in its trading segment and rationalize its high operating costs. As the NBFC arm grows, the company will require funding lines which could further add to the existing stress on profitability metrics unless, the company is able to optimize its overall operating costs and scale up business volumes. Additional capital infusions from investors, could help the business to maintain lower levels of finance costs in medium term, thus enabling the company to focus its resources in driving business growth. Competitive nature of industry and susceptibility to cyclicality nature of industry P2S competes with various players in the organized and unorganized segments in trading industry, thus limiting the pricing power. Metals (especially steel) constitutes around 60 percent of the total NMV for P2S. The steel consumption is majorly dependent on the economic activities taking place in and around the country, any significant slowdown in this industry will impact the revenue of the P2S’s customers thus impacting P2S’s credit profile.

Rating Sensitivity

­Ability to raise capital Sustained scale up in business operations Movement in liquidity, earnings profile and asset quality metrics Changes in Regulatory environment

Liquidity Position

Stretched

The Group’s liquidity is stretched marked by negative operating cash flows and modest cash and bank balance of Rs. 16.87 crore as on March 31, 2025. Despite of equity infusion in FY2025 of Rs. 41 Cr, internal cash accrual is negative and working capital cycle is elongated due to higher receivables. Company is highly dependent on short term borrowings to fund working capital requirement. A major portion of P2S portfolio is against Bank Guarantee and Letter of Credit which is correspondingly discounted against the bank lines with matched tenure. As per ALM statement as on March 31, 2025, for Auriolus Finvest Private limited has no negative cumulative mismatches in any buckets up to 1 years. Auriolus Finvest Private limited is able to maintain its monthly collection efficiency at the range of ~85 percent.

Outlook

­Not applicable

Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Actual) FY24 (Actual) Operating Income Rs. Cr. 824.47 632.51 PAT Rs. Cr. -14.77 -32.6 PAT Margin (%) -1.79 -5.15 Total Debt/Tangible Worth Times 2.08 1.13 PBDIT/Interest Times 0.12 -1.49

Key Financials (Consolidated)

Particulars Unit FY 25 (Actual) FY 24 (Actual) Operating Income Rs. Cr. 1011.36 672.14 PAT Rs. Cr. -15.78 -34.86 PAT Margin (%) -1.56 -5.19 Total Debt/Tangible Net Worth Times 3.67 1.61 PBDIT/Interest Times 0.22 -1.16

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

­Not Applicable

Any Other Information

­None

Applicable Criteria

• Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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 07 Jul 2025 Bills Discounting Short Term 0.53 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bills Discounting Short Term 0.45 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bills Discounting Short Term 3.22 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bills Discounting Short Term 2.24 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bills Discounting Short Term 9.85 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Bills Discounting Short Term 80.39 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 0.52 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) Term Loan Long Term 20.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- | Stable) 31 Oct 2024 Bills Discounting Short Term 9.85 ACUITE A4 (Downgraded from ACUITE A4+) Bills Discounting Short Term 80.39 ACUITE A4 (Downgraded from ACUITE A4+) Bills Discounting Short Term 0.53 ACUITE A4 (Downgraded from ACUITE A4+) Bills Discounting Short Term 0.45 ACUITE A4 (Downgraded from ACUITE A4+) Bills Discounting Short Term 2.24 ACUITE A4 (Downgraded from ACUITE A4+) Bills Discounting Short Term 3.22 ACUITE A4 (Downgraded from ACUITE A4+) Cash Credit Long Term 0.52 ACUITE BB- | Stable (Downgraded from ACUITE BB+ | Stable) Term Loan Long Term 20.00 ACUITE BB- | Stable (Downgraded from ACUITE BB+ | Stable) Working Capital Demand Loan (WCDL) Long Term 15.00 ACUITE Not Applicable (Withdrawn) Proposed Long Term Bank Facility Long Term 2.86 ACUITE Not Applicable (Withdrawn) Working Capital Demand Loan (WCDL) Long Term 5.00 ACUITE Not Applicable (Withdrawn) 03 Nov 2023 Bills Discounting Short Term 3.73 ACUITE A4+ (Downgraded from ACUITE A3+) Bills Discounting Short Term 22.51 ACUITE A4+ (Downgraded from ACUITE A3+) Bills Discounting Short Term 9.26 ACUITE A4+ (Downgraded from ACUITE A3+) Bills Discounting Short Term 11.50 ACUITE A4+ (Downgraded from ACUITE A3+) Bills Discounting Short Term 4.77 ACUITE A4+ (Downgraded from ACUITE A3+) Cash Credit Long Term 6.72 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Negative) Proposed Long Term Bank Facility Long Term 61.57 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Negative) Working Capital Demand Loan (WCDL) Long Term 5.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Negative) Working Capital Demand Loan (WCDL) Long Term 15.00 ACUITE BB+ | Stable (Downgraded from ACUITE BBB- | Negative) 04 Nov 2022 Bills Discounting Short Term 25.00 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 8.00 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 30.00 ACUITE A3+ (Reaffirmed) Bills Discounting Short Term 15.00 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 7.50 ACUITE BBB- | Negative (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 4.56 ACUITE BBB- | Negative (Reaffirmed) Working Capital Demand Loan (WCDL) Long Term 15.00 ACUITE BBB- | Negative (Reaffirmed) Proposed Long Term Bank Facility Long Term 35.00 ACUITE BBB- | Negative (Reaffirmed) 24 Mar 2022 Bills Discounting Short Term 25.00 ACUITE A3+ (Assigned) Bills Discounting Short Term 8.00 ACUITE A3+ (Assigned) Bills Discounting Short Term 15.00 ACUITE A3+ (Assigned) Bills Discounting Short Term 30.00 ACUITE A3+ (Assigned) Cash Credit Long Term 7.50 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 4.56 ACUITE BBB- | Stable (Assigned) Working Capital Demand Loan (WCDL) Long Term 15.00 ACUITE BBB- | Stable (Assigned) Proposed Long Term Bank Facility Long Term 35.00 ACUITE BBB- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Aditya Birla Finance Limited Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.45 Simple ACUITE A4 | Reaffirmed & Withdrawn SMC Moneywise Financial Services Pvt Ltd. Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.24 Simple Not Applicable|Withdrawn Credable Equentia Financial Services Pvt Ltd Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.85 Simple ACUITE A4 | Reaffirmed & Withdrawn Jiraaf: Alternative Fixed Income Investments Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 80.39 Simple ACUITE A4 | Reaffirmed & Withdrawn MAS Financial Service Ltd. Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.22 Simple Not Applicable|Withdrawn CSB Bank Limited Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.53 Simple Not Applicable|Withdrawn AXIS BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.52 Simple ACUITE BB- | Upgraded & Withdrawn ( from ACUITE B+ ) Jiraaf: Alternative Fixed Income Investments Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Apr 2027 20.00 Simple ACUITE BB- | Upgraded & Withdrawn ( from ACUITE B+ )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr.No. Company Name 1 Power2SME Private Limited 2 Auriolus Finvest Private Limited

Contacts

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

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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. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.