Press Release March 31, 2026 RED FORT PPE INDUSTRIES PRIVATE LIMITED Rating Downgraded and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	55.00	ACUITE BB- | Stable | Downgraded	-
Bank Loan Ratings	5.00	-	ACUITE A4+ | Reaffirmed
Total Outstanding	60.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded its long term rating to ‘ACUITE BB-’ (read as ACUITE Double B minus) from ‘ACUITE BB’ (read as ACUITE Double B) and reaffirmed short-term rating of ‘ACUITE A4+’ (read as ACUITE A Four plus) on the Rs. 60.00 Cr. bank facilities of Red Fort PPE Industries Private Limited (RFPIPL). The outlook is 'Stable'. Rationale for Rating downgrade The rating downgrade is on account of subdued operating performance and profitability margins in FY2025 and FY2026 which further resulted in deterioration in financial risk profile with the couple with low order book position which provides limited revenue visibility. However, the rating remains constrained by stretched liquidity, vulnerability of profitability to fluctuations in raw material prices and the company's presence in a highly competitive industry. Further, owing to increase in debt levels for capex expansions, the financial risk profile remains below average. The rating draws comfort from the experienced management and long operational track record of the company and moderate working capital operations.

About the Company

­Red Fort PPE Industries Private Limited (RFPIPL), was incorporated in 2019, is based in Mumbai. The company is primarily engaged in the business of manufacture & sale of personal protective equipment & allied products. The directors of the company include Mr. Rajuram Bhaguram Saran & Mr. Chhotu Rajuram.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of Red Fort PPE Industries Private Limited (RFPIPL) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced management with an established track record of operations The company is managed by Mr. Rajuram Bhaguram Saran, Mr. Chhotu Rajuram and a team of experienced personnel. The directors possess over a decade of experience in this line of business. The longstanding experience of the promoters has helped the company to establish comfortable relationships with key suppliers and customers.   ­Moderate Working Capital Management The working capital operations of the company are moderate in nature marked by Gross Current Asset (GCA) of 114 days in FY2025 against 131 days in FY2024. The debtors’ days stood at 36 days as on March 31, 2025 and March 31,2024. The inventory days for the company stood at 74 days in FY2025 as against 80 days in FY2024. Additionally, creditors’ days stood at 73 days in FY2025, compared to 31 days in the previous year, reflecting higher reliance on trade credit during the CAPEX phase and the associated working capital stretch. Furthermore, the reliance on working capital limits remained moderate with utilization at around 77.69 percent over the last 6 months ending February 2026. Acuite believes that the working capital operations of the company will continue to remain moderate, however any changes in working capital cycle will remain as a key rating sensitivity.

Weaknesses

Modest Scale of operations with subdued profitability The operating income of the company stood at Rs. 34.83 crore in FY2025, compared with Rs. 30.85 crore in FY2024. Furthermore, the company achieved revenue of Rs. 28.86 crore in 11M FY2026. The operating profit margin of the company declined to 11.94 percent in FY2025 as against 17.82 percent in FY2024. The expected revenue for FY2026 is Rs. ~ 30.00- Rs. 34.00 crore. The PAT margin also deteriorated significantly and stood at 0.98 percent in FY2025 as against 11.66 percent in FY2024. Acuite believes that the ability of the company to improve revenue and profitability will remain a key rating sensitivity. Below -Average financial risk profile The financial risk profile of the company remained below average on account of modest net worth, high gearing and average debt protection metrics. The net worth of the company increased and stood at Rs. 19.47 Cr. as on 31st March 2025 as compared to Rs. 18.01 Cr. as on 31st March 2024. The increase in the net worth is due to accumulation of profits into reserves and treatment of unsecured loans of Rs. 10.15 Cr from promoters as quasi equity. The gearing ratio (debt-equity) of the company increased and stood at 1.82 times as on 31st March 2025 as compared to 1.20 times as on 31st March 2024 due to increase in borrowings. The company has a total debt of Rs. 35.49 Cr. as on March 31, 2025, as against Rs. 21.65 Cr. as on March 31, 2024. The total debt of the company includes Rs. 27.60 Cr. of long-term borrowings, Rs. 4.77 Cr. of short-term borrowings and Rs. 3.12 Cr. of current maturities of long-term debt. The term loans have been availed towards capital expenditure. Further debt protection metrics stood low with debt service coverage ratio (DSCR) at 1.03 times in FY2025 as compared to 5.21 times in the previous year. Interest coverage ratio (ICR) stood at 3.07 times in FY25 as against 40.83 times in FY24. The Debt-EBITDA of the company stood at 8.50 times in FY2025 as against 3.94 times in FY2024. The company has successfully completed its planned capital expenditure programme totalling to Rs. 45.00 crore, comprising Rs. 10.00 crore towards machinery and Rs. 35.00 crore towards building infrastructure. The building construction, which commenced in April 2024, was completed by June 2025, followed by the commissioning of machinery between May 2025 and November 2025. With the Capital expenditure now fully completed, the upgraded facilities have become operational as envisaged. The capex is fully funded by External bank borrowings. Susceptibility of profitability to volatility in raw material prices in an intensely competitive industry The profitability margins of the company remain vulnerable to any fluctuations in the raw material prices. The major raw material for this industry is fabrics and fluctuation in the prices of same may put pressure on profitability levels. The susceptibility of the margins to changes in the raw materials price is inherent in this industry. Furthermore, any abrupt change in cotton prices due to supply-demand scenario and government regulations of changes in Minimum Support Price (MSP) can lead to distortion of prices and affect the profitability of players across the cotton value chain.

Rating Sensitivities

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

Consistent Improvement in revenues and profitability Improvement in financial risk profile with DSCR above 2 times

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

??????Further decline in the financial risk profile with DSCR below 1 times. Elongation in working capital cycle

Liquidity Position

Stretched

The liquidity position of the company is stretched, as evident from the low net cash accruals (NCAs) of Rs. 2.65 Cr. against repayment obligations of Rs. 2.52 Cr. in FY2025. Going forward, the NCAs are expected to remain stretched in the range of Rs. 1.00 – 3.00 Cr. against maturing obligations of Rs. 7.00 – 4.00 Cr. in FY2026 and FY2027. The liquidity mismatch is expected to be supported by the promoters. The current ratio stood at 0.74 times on March 31, 2025. Further, the unencumbered cash and bank balance stood low at 0.89 Cr on March 31, 2025. Additionally, the bank limit utilization stood at 77.69 percent for the last six months ended February 2026.

Outlook

­Stable

Other Factors affecting Rating

None­

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	34.83	30.85
PAT	Rs. Cr.	0.34	3.60
PAT Margin	(%)	0.98	11.66
Total Debt/Tangible Net Worth	Times	1.82	1.20
PBDIT/Interest	Times	3.07	40.83

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 31 Dec 2024 PC/PCFC Short Term 5.00 ACUITE A4+ (Assigned) Letter of Credit Short Term 2.00 ACUITE A4+ (Assigned) Bank Guarantee (BLR) Short Term 2.00 ACUITE A4+ (Assigned) Letter of Credit Short Term 7.62 ACUITE A4+ (Assigned) Term Loan Long Term 12.60 ACUITE BB | Stable (Assigned) Cash Credit Long Term 2.00 ACUITE BB | Stable (Assigned) Term Loan Long Term 11.25 ACUITE BB | Stable (Assigned) Term Loan Long Term 3.50 ACUITE BB | Stable (Assigned) Term Loan Long Term 9.67 ACUITE BB | Stable (Assigned) Proposed Term Loan Long Term 4.36 ACUITE BB | 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 Saraswat Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.00 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) Saraswat Bank Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A4+ | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.64 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) Poonwala Fincorp Limited (erstwhile Magma Fincorp Ltd.) Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 02 Sep 2032 13.50 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) Saraswat Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 02 Sep 2032 3.24 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) Saraswat Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 02 Sep 2032 6.83 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB ) Saraswat Bank Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Sep 2031 9.79 Simple ACUITE BB- | Stable | Downgraded ( from ACUITE BB )

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani 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. 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.