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 reafirmed the long-term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 36.45 Crore bank facilities of Pradip Polyfils Private Limited. The outlook is revised from "Stable" to “Negative”
Rationale for Rating The outlook revision takes into account the decline in revenue to Rs. 81.41 Cr. in FY2026 (Prov.) and Rs. 96.64 Cr. in FY2025 from Rs. 123.76 Cr. in FY2024, primarily driven by ongoing geopolitical tensions in the Middle East, which disrupted key global shipping routes and adversely impacted the procurement of raw materials as well as the dispatch of finished goods .Profitability was also impacted, with the company's EBITDA margin declining to 28.05% in FY2026 (Prov.) and 30.20% in FY2025 from 37.61% in FY2024, primarily due to elevated freight and logistics costs that could not be fully passed on to customers. The rating is further constrained by the company's intensive working capital cycle. The operations remained working capital intensive, as reflected in the Gross Current Assets (GCA) days, which stood at 323 days in March 31, 2026 (Prov.), as against 284 days in March 31, 2025. The increase in GCA days was primarily due to higher inventory holding levels and elongated customer payment cycles. However, these constraints are partially offset by the company's healthy financial risk profile, marked by an improving tangible net worth, healthy leverage indicators and comfortable debt protection metrics. Liquidity remains adequate, supported by sufficient cash accruals, a comfortable current ratio and adequate cash balances vis-à-vis debt repayment obligations and high unenecumberes cash and bank balance and investments. While the company has successfully completed its major capacity expansion project and commenced commercial operations at the new facility, it proposes to undertake additional capex towards supporting machinery and ancillary equipment, which is likely to be partly funded through debt. The company's ability to efficiently scale up operations from the expanded capacity while maintaining its financial risk profile will remain a key monitorable.
About the Company
I?ncorporated in 1987 Pradip Polyfils Private Limited (PPPL) is a Gujarat-based company promoted by Mr. Vijay Kansara. The company is engaged in the manufacture of polypropylene filter plates used in filter press machines and derives its revenue from domestic as well as exports markets It supplies to USA, Japan, and European countries. PPPL manufactures Recessed Chamber Filter Plate, Detachable Rubber Membrane Plate, Caulked & Gasket (CGR) Plates, Plate & Frame type Filter Plates in various configuration and specification as well as customized solutions.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of PPPL to arrive at the rating.
Key Rating Drivers
Strengths
Established track record of operations and experienced management
Established in 1987 Pradip Polyfils Private Limited is backed by the Director of PPPL Mr. Vijay Ratilal Kansara having more than two decades of experience in polypropylene filter plates manufacturing. It has also established operational track record of more than two decades. Due to the same, the Company has been able to maintain healthy relationship with its customers with whom it receives repeat orders and also with their suppliers which provides ease in availability of raw materials. Acuite believes that the company will continue to benefit from track record of operations over the medium term.
Healthy Financial Risk Profile
The financial risk profile of the company is healthy marked by moderate tangible net-worth of Rs. 130.84 Cr. as on 31st March 2026(Prov.) against Rs. 125.73 Cr. as on 31st March 2025 due to accreditation of reserve. The gearing stands below unity at 0.29 times in FY26(Prov.) against 0.41 times in FY25. Further, the interest coverage ratio of the company stood at 5.81 times in FY26(Prov.) against 7.30 times (Prov) times in FY25 and the debt service coverage ratio stood at 2.43 times in FY26(Prov.) against 3.56 times in FY25. The TOL/TNW stood at 0.59 times in FY26(Prov.) against 0.72 times in FY25. The NCA/TD stood at 0.47 times in FY26(Prov) as against 0.44 times in FY25. The gearing levels may moderate over the medium term on account of the proposed debt-funded capex; however, they are expected to remain at comfortable levels. Acuité believes that the financial risk profile of PPPL likely remains healthy over the medium term albeit a debt funded CAPEX plans.
Weaknesses
Decline in scale of operations and profitability margins
The company reported a decline in revenue of Rs. 81.41 crore in FY26 (Prov.), and Rs. 96.64 crore in FY25 from Rs 123.76 Cr. in FY2024. The decline was primarily driven by geopolitical tensions in the Middle East, which disrupted global shipping routes and affected both raw material imports and dispatches of finished goods. Additionally, intensified competition from Chinese manufacturers and uncertainty surrounding tariff policies in the US market impacted export demand, resulting in delays in order execution and lower sales volumes. Profitability moderated, with EBITDA margin declining to 28.05% in FY2026 (Prov.) and 30.20% in FY2025 from 37.61% in FY2024, primarily on account of elevated freight and logistics costs and lower capacity utilisation following the recent capacity expansion. Capacity utilisation remained subdued at around 30% due to delayed customer orders amid geopolitical disruptions, leading to under-absorption of fixed costs. Consequently, PAT margin declined to 8.85% in FY2026 (Prov.) from 13.65% in FY2025, owing to higher depreciation and interest costs associated with the capex undertaken by the company, coupled with lower capacity utilisation during the year. Acuite believes that the scaling up of operations and profitability improvement will remain key monitorable going forward.
Intensive working capital Cycle
The working capital operations of the company remained intensive marked by GCA days at 323 days as on as on 31st March 2026(Prov.) against 284 days as on 31st March 2025. A stretch in the GCA is on account of increase in the inventory turnover and elongated customer payment cycles. The inventory days of the company stood at 197 days in FY2026(Prov.) as against 135 days in FY2025, the company is maintaing a stock buffer of 3 to 4 months to mitigate potential disruptions because of the tension in the middle east. Further, the debtor days of the company stood at 136 days for FY2026(Prov.) as against 152 days for FY2025. The credit terms are on average is ~2 to 3 months On the other hand, the creditor days of the company stood at 146 days as on 31st March 2026(Prov.) against 139 days as on 31st March 2025. Acuite believes that the working capital operations of the company will remain at the similar levels over the medium term.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in revenue scale above Rs. 120 cr and improvement in profitability margins.
Improvement in working capital cycle and liquidity profile.
Potential triggers (individual or collective) for a downward rating action:
Further decline in revenue below Rs 70 Cr or decline in operating profitability.
Deterioration in leverage and debt protection metrics.
Further elongation in working capital cycle impacting liquidity
Liquidity Position
Adequate
The liquidity profile of the company is adequate. The company generated a net cash accrual of Rs. 18.25 Cr as on as on 31st March 2026(Prov) against the debt repayment obligations of Rs. 5.65 Cr in the same period. The cash and bank balance stood at Rs 2.75 Cr in FY2026(Prov) as against Rs 0.73 Cr in FY2025. The company has Rs. 27.80 Cr. worth of unencumbered FDRs and Rs. 13.54 Cr. worth of Mutual Fund investments. The current ratio of the company stood at 2.60 times as on 31st March 2026(Prov) against 2.52 times as on 31st March 2025. Further, the average bank limit utilization for 6 months ending March 2026 stood at 35.17%. The company has propossed debt funnded capital expenditure over the medium term; however, Acuité believes that the healthy accrual generation, sizeable liquid investments, and adequate cushion available in the bank limits provide sufficient financial flexibility to support the planned capex while meeting its debt servicing commitments. Accordingly, Acuité expects the liquidity profile of PPPL to remain adequate over the medium term albeit its debt-funded capex plans.
Outlook: Negative
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
81.41
96.64
PAT
Rs. Cr.
7.20
13.23
PAT Margin
(%)
8.85
13.69
Total Debt/Tangible Net Worth
Times
0.29
0.41
PBDIT/Interest
Times
5.81
7.30
Status of non-cooperation with previous CRA (if applicable)
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Bank Guarantee/Letter of Guarantee
Short Term
0.08
ACUITE A4+
(Reaffirmed & Issuer not co-operating*)
Cash Credit
Long Term
3.00
ACUITE BB-
(Reaffirmed & Issuer not co-operating*)
Term Loan
Long Term
2.65
ACUITE BB-
(Reaffirmed & Issuer not co-operating*)
Term Loan
Long Term
1.42
ACUITE BB-
(Reaffirmed & Issuer not co-operating*)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Canara Bank
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
3.00
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Not Applicable
Not avl. / Not appl.
Proposed Long Term Bank Facility
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
7.67
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Canara Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
31 Dec 2023
Not avl. / Not appl.
30 Jun 2031
5.74
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Canara Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
13 Jul 2023
Not avl. / Not appl.
21 Aug 2031
7.73
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
Canara Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
13 Jul 2023
Not avl. / Not appl.
21 Aug 2031
12.31
Simple
ACUITE BBB- | Negative | Reaffirmed | Stable to Negative
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
