Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 0.09 ACUITE C | Assigned - RBI
Bank Loan Ratings 0.00 2.22 ACUITE D | Assigned - RBI
Bank Loan Ratings 0.00 10.00 ACUITE D | Downgraded - RBI
Bank Loan Ratings 0.00 10.00 - ACUITE D | Downgraded RBI
Total Outstanding 0.00 22.31 - - -
Total Withdrawn 0.00 0.00 - - -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

­Acuité has downgraded its long-term rating to ‘ACUITE D’ (read as ACUITE D) from 'ACUITE B-' (read as ACUITE B Minus) and short-term rating to ‘ACUITE D’ (read as ACUITE D) from ‘ACUITE A4’ (read as ACUITE A Four) on the Rs.20.00 Cr. bank facilities of Ritika Systems Private Limited (RSPL).

Acuité has also assigned its long-term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs.2.22 Cr. bank facilities of Ritika Systems Private Limited (RSPL).

Further, Acuite has assigned its long-term rating of ‘ACUITE C’ (read as ACUITE C) on the Rs.0.09 Cr. bank facilities of Ritika Systems Private Limited (RSPL).

Rationale for downgrade:
The rating downgrade factors in the default intimation received from the lender, indicating delays in debt servicing by RSPL. The rating is further constrained by the company's below average financial risk profile marked by high gearing and average debt protection metrics, moderation in profitability during FY2026 (Prov.), and moderately intensive working capital operations characterized by a stretched receivable cycle and high reliance on working capital borrowings. The rating continues to draw comfort from the company's established track record in the solar industry and the experienced management; however, these strengths are outweighed by the recent delays in debt servicing.

About the Company

Delhi-based Ritika Systems Private Limited, incorporated in 1985, is promoted and managed by Mr. Ashok Kumar Wadhwa and Mr. Samarth Wadhwa. The company is engaged in the design, manufacturing, installation, and maintenance of solar photovoltaic (PV) systems, solar lanterns, solar home lighting systems, and Balance of System (BoS) components, and undertakes turnkey off-grid and on-grid solar projects, including EPC services. RSPL operates a solar module manufacturing facility at Neemrana, Rajasthan, with an installed production capacity of 100 MW.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach

­Acuite has considered the standalone financial and business risk profile of Ritika Systems Private Limited (RSPL) to arrive at the rating.
 
Key Rating Drivers

Strengths

­Experienced management and long track record of operations
The company has a well-established presence in the solar industry since 1985 and is supported by the extensive industry experience of its promoters. RSPL is promoted by Mr. Ashok Kumar Wadhwa and Mr. Samarth Wadhwa, who possess nearly two decades of experience in the solar industry. The promoters' industry expertise and long-standing relationships with customers and suppliers have enabled the firm to maintain a stable business profile. Acuité believes that the firm's business risk profile will continue to benefit from its established customer relationships and experienced promoters.

Improving Scale of operations albeit decline in Profitability:
The company's revenue increased by ~38% and stood at Rs.86.80 crore in FY2026 (Prov.) against Rs.63.00 crore in FY2025. This increase in revenue was driven by higher solar panel production volumes along with the execution of solar pump tenders under the PM-KUSUM scheme in Uttar Pradesh, resulting in additional revenue contribution from EPC/project activities. Further, the operating margin of company deteriorated and stood at 4.11 percent in FY2026 (Prov.) against 7.06 percent in FY2025. This is on account of increase in the raw material cost incurred during the year. Also, the net profitability margin reduced to 1.25 percent in FY2026 (Prov.) against 3.55 percent in FY2025.


Weaknesses

Below average financial risk profile
The company has a below average financial risk profile marked by a low net worth, high gearing, and average debt protection metrics. The tangible net worth of the company stood at Rs. 8.36 Cr. as on March 31, 2026 (Prov.) from Rs. 7.19 Cr. as on March 31, 2025, due to the accumulation of profits into reserves. The gearing (Debt-equity) of the company stood at 3.17 times as on March 31, 2026 (Prov.), as against 2.85 times as on March 31, 2025. The total debt of the company stood at Rs. 26.48 Cr. as on March 31, 2026 (Prov.), as against Rs. 20.51 Cr. as on March 31, 2025. The TOL/TNW of the company stood at 5.38 times as on 31 March 2026 (Prov.) as against 5.10 times as on 31 March 2025. Further, the debt protection metrics of the company stood average as reflected by debt service coverage ratio of 1.35 times for FY2026 (Prov.) as against 2.81 times for FY2025 and interest coverage ratio stood at 2.18 times for FY2026 (Prov.) as against 3.17 times for FY2025. The Net Cash Accruals to Total debt stood at of 0.06 times for FY2026 (Prov.) compared to 0.13 times in the previous year.

Intensive Working capital operations
The company’s working capital operations are intensive in nature. The GCA days stood at 160 days as on March 31, 2026 (Prov.), as against 200 days as on March 31, 2025. The GCA days are driven by receivable cycle. The debtor days stood at 98 days as on March 31,2026 (Prov.) as against 102 days as on March 31, 2025. The average collection period is around 30-45 days; however, receivables pertaining to government tender projects are subject to longer realization, with certain dues outstanding for more than one year. The inventory days improved and stood at 39 days as on March 31, 2026 (Prov.), as against 63 days as on March 31, 2025. Further, the creditor days stood at 84 days as on March 31,2026 (Prov.) as against 100 days as on March 31, 2025.

Instances of delays in debt servicing
As Per feedback received from RSPL’s lender on Aug 19, 2026, there has been instances of delays in monthly debt servicing by Ritika Systems Private Limited in the recent months.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • ­Timely servicing of debt obligations
  • Improvement in liquidity through efficient working capital management and lower reliance on bank borrowings.
  • Strengthening of gearing to below 2 times and improvement in debt protection metrics, resulting in an improved financial risk profile.
Potential triggers (individual or collective) for a downward rating action:
Not Applicable
Liquidity Position
Stretched

The liquidity position of the company remains stretched, as reflected in the recent instances of delays in debt servicing. The company's liquidity is constrained by its intensive working capital requirements, marked by a stretched receivable cycle and high dependence on bank borrowings. The company generated net cash accruals of Rs. 1.56 Cr. in FY2026 (Prov.) as against its maturing debt obligations of Rs.0.48 crore in the same tenure. Going forward, the company it is expected to generate cash accrual in the range of Rs.2.00 to Rs.2.50 crore as against maturing repayment obligations in the range of Rs. 0.84 crore over the medium term. The company had faced cash flow mismatches during the year leading to delays in debt servicing. Cash and bank balances remained low at Rs. 0.01 Cr as on March 31, 2026 (Prov.), while the current ratio stood at 1.19 times. Going ahead, the company has planned expansion for setting up a second manufacturing unit at Neemrana for the production of Mono M10 Bifacial/Topcon solar modules at a cost of ~Rs.15–20 Cr, expected to be completed by FY27. Further, average utilization of fund-based and non-fund based working capital limits remained high at approximately 96.69 percent and 87.02 percent, respectively, during the six-month period ended March 2026. Acuite believes that liquidity continues to remain stretched basis, the low accruals, low current ratio, high reliance on bank borrowings for funding working capital requirement and debt funded capex plans. Furthermore Acuite notes that delays in loans are due to mismatch in cash flows available with the company on due date of payment.  
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 26 (Provisional) FY 25 (Actual)
Operating Income Rs. Cr. 86.80 63.00
PAT Rs. Cr. 1.08 2.23
PAT Margin (%) 1.25 3.55
Total Debt/Tangible Net Worth Times 3.17 2.85
PBDIT/Interest Times 2.18 3.17
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
05 Dec 2025 Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 6.50 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B)
Proposed Long Term Bank Facility Long Term 3.50 ACUITE B- (Downgraded & Issuer not co-operating* from ACUITE B)
11 Sep 2024 Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 3.50 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
Cash Credit Long Term 6.50 ACUITE B (Downgraded & Issuer not co-operating* from ACUITE B+)
16 Jun 2023 Bank Guarantee/Letter of Guarantee Short Term 10.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Bank Facility Long Term 3.50 ACUITE B+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 6.50 ACUITE B+ (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
Indian Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE D | Downgraded ( from ACUITE A4 )
Indian Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.00 Simple ACUITE D | Downgraded ( from ACUITE B- )
Indian Bank Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE D | Downgraded ( from ACUITE A4 )
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. 0.09 Simple ACUITE C | Assigned
Indian Bank Not avl. / Not appl. Term Loan Unlisted RBI 26 Dec 2024 Not avl. / Not appl. 26 Dec 2029 1.00 Simple ACUITE D | Downgraded ( from ACUITE B- )
Indian Bank Not avl. / Not appl. Term Loan Unlisted RBI 26 Dec 2024 Not avl. / Not appl. 26 Dec 2029 0.40 Simple ACUITE D | Assigned
Indian Bank Not avl. / Not appl. Term Loan Unlisted RBI 18 Jun 2025 Not avl. / Not appl. 07 Jun 2030 1.82 Simple ACUITE D | Assigned
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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