Press Release

Press Release

May 13, 2026

R K STEEL MANUFACTURING COMPANY LIMITED
Rating Upgraded & Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	261.83	ACUITE BB+ \| Upgraded & Withdrawn	-	RBI
Bank Loan Ratings	0.00	3.17	Not Applicable \| Withdrawn	-	RBI
Total Outstanding	0.00	0.00	-	-	-
Total Withdrawn	0.00	265.00	-	-	-

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Acuité has upgraded and withdrawn the long term rating to 'ACUITE BB+' (read as ACUITE double B plus) from ‘ACUITE C’ (read as ACUITE C) on the Rs.261.83 Cr. bank loan facilities of R K Steel Manufacturing Company Limited. The rating has been withdrawn on account of the request received from the issuer along with no objection certificate received from the lender as per Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.

Further, Acuité has withdrawn the long term rating on the bank loan facilities of Rs.3.17 Cr. without assigning any rating, as it is a proposed facility of R K Steel Manufacturing Company Limited. The rating has been withdrawn on account of the request received from the issuer as per Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument.

Rationale for upgrade
The rating upgrade takes into account migration from "Issuer Non-Cooperating” coupled with the curing period of earlier defaults being attained. As per reporting in the CIC Report, no account has been found delinquent, and the demand loan account, with asset classifications of SMA-0 in March 2025 and July 2025 and SMA-1 in June 2025, has now been regularized and closed.

The rating also factors in the company’s improving scale of operations, marked by an operating income of Rs.1147.79 Cr. in FY2025 against Rs.1022.16 Cr. in FY2024. The EBITDA margin stood at 3.76% as on 31st March 2025. Moreover, revenue from operations is estimated at Rs. 1087.25 Cr. in 11M FY2026. The rating also draws comfort from the experienced management and the established track record of operations. However, the aforementioned factors are partly offset by the company's average financial risk profile as reflected by the gearing ratio at 2.91 times as on 31st March 2025 along with the interest coverage ratio and debt service coverage ratio at 1.96 times and 0.95 times as on 31st March 2025. In addition, the working capital operations also remained moderately intensive, marked by GCA days of 125 days as on 31st March 2025. The rating further remains constrained by the highly competitive and cyclical nature of the industry and susceptibility of margins to fluctuations in raw material prices.

About the Company

Incorporated in 2006, R K Steel Manufacturing Company Limited is based out of Chennai and is engaged in manufacturing of Hot Rolled Tubes, Black Steel Tubes, Pre-Galvanized Tubes and Precision Tubes. The current directors of the company are Mr. Pramod Kumar Bhalotia, Mr. Abhishek Bhalotia, Mr. Saimathy Soupramanien, Mr. Chellasamy Rajendran, Mr. Srinivasan Krishnamachari and Mr. Beena Bhalotia.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profiles of R K Steel Manufacturing Company Limited to arrive at the rating.

Key Rating Drivers

Strengths

Long track record of operations and Experienced Management
The company was incorporated in 2006 and is engaged in manufacturing value-added steel products such as hot-rolled tubes, hot-dip galvanized pipes, and precision tubes, among others. The promoters have an overall experience of more than two decades in the steel industry. Over the years, the company has benefited by having established relationships with customers and suppliers on the back of the long track record of operations and experienced management’s strong understanding of market dynamics.

Increase in revenue albeit decrease in profitability margins
The revenue front of the company is domestic-based, and the company registered operating revenue of Rs.1147.79 Cr. in FY2025 against Rs.1022.16 Cr. in FY2024, supported by the increase in sales volume of coils and pipes. Moreover, revenue from operations is estimated at Rs. 1087.25 Cr. in 11M FY2026. Despite the increase in revenue, the EBITDA margin of the company stood at 3.76% in FY2025 against 5.41% in FY2024. The decline in margins is primarily due to moderation in price realizations as the company remains exposed to inherent cyclicality in the iron and steel industry. Additionally, the increase in raw material procurement costs, manpower, and other manufacturing expenses during the year also impacted the profitability to an extent. Likewise, the PAT margin stood at 0.95% in FY2025 against 2.22% in FY2024.

Weaknesses

Average Financial risk profile
The financial risk profile of the company is average, marked by a moderate net worth, average gearing, and debt protection metrics. The tangible net worth of the company stood at Rs.120.63 Cr. as on 31st March 2025 as against Rs.109.74 Cr. as on 31st March 2024. The capital structure is marked by gearing ratio at 2.91 times as on 31st March 2025 against 2.49 times as on 31st March 2024. Further, the coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 1.96 times and 0.95 times, respectively, as on 31st March 2025 against 2.84 times and 1.47 times as on 31st March 2024. Moreover, the company also has debt-funded capex plans to set up a solar power plant in FY2027.

Moderately Intensive Working capital operations
The working capital operations of the company are moderately intensive, marked by GCA days, which stood at 125 days as on 31st March 2025 as against 91 days as on 31st March 2024 wherein the company needs to extend moderate credit period to its customers as well as maintain adequate inventory as and when required for order execution. The inventory days stood at 69 days as on 31st March 2025 against 55 days as on 31st March 2024. Further, the debtor days of the company stood at 51 days as on 31st March 2025 against 34 days as on 31st March 2024 and the creditor days stood at 20 days as on 31st March 2025 against 3 days as on 31st March 2024.

Highly competitive industry and susceptibility of margins to fluctuations in raw material prices
The company's performance remains vulnerable to cyclicality in the steel processing industry, as demand for steel depends on the performance of end-user segments such as construction and real estate. The Indian steel sector is highly competitive due to the presence of a large number of players. The operating margin of the company is exposed to fluctuations in the prices of raw materials as well as price realization from finished goods.

Rating Sensitivities

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

Not Applicable

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

Not Applicable

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.19.86 Cr. as on 31st March 2025 against the debt repayment obligations of Rs.21.97 Cr. in the same period. The gap in repayments has been met by working capital management. Additionally, the cash and cash equivalents available with the company stood at Rs. 15.63 Cr. as on 31st March 2025. The current ratio stood at 1.09 times as on 31st March 2025. Further, the fund based bank limits stood utilized at 80.27% in the last six months ending February 2026.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1147.79	1022.16
PAT	Rs. Cr.	10.91	22.71
PAT Margin	(%)	0.95	2.22
Total Debt/Tangible Net Worth	Times	2.91	2.49
PBDIT/Interest	Times	1.96	2.84

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
07 Aug 2025	Cash Credit	Long Term	87.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	131.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	5.00	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	2.26	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	0.66	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	8.87	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	13.44	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	8.90	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Term Loan	Long Term	4.70	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
	Proposed Long Term Bank Facility	Long Term	3.17	ACUITE C (Downgraded & Issuer not co-operating* from ACUITE BBB \| Stable)
09 Sep 2024	Cash Credit	Long Term	87.00	ACUITE BBB \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	131.00	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	5.00	ACUITE BBB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	3.17	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	2.26	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	0.66	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	8.87	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	13.44	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	8.90	ACUITE BBB \| Stable (Assigned)
	Term Loan	Long Term	4.70	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	87.00	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
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.	3.17	Simple	ACUITE Not Applicable \| Withdrawn
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	29 Dec 2021	Not avl. / Not appl.	29 Aug 2026	2.26	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	29 Dec 2021	Not avl. / Not appl.	30 Oct 2024	0.66	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	31 Jan 2023	Not avl. / Not appl.	31 Jan 2028	8.87	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	02 Mar 2023	Not avl. / Not appl.	31 Jan 2028	13.44	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	18 Mar 2024	Not avl. / Not appl.	18 Mar 2029	8.90	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	20 May 2024	Not avl. / Not appl.	18 Nov 2028	4.70	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	29 Dec 2021	Not avl. / Not appl.	23 Dec 2026	5.00	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )
H D F C Bank Limited	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	131.00	Simple	ACUITE BB+ \| Upgraded & Withdrawn ( from ACUITE C )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.