Press Release May 18, 2026 SAFRAN DATA SYSTEMS INDIA PRIVATE LIMITED (ERSTWHILE CAPTRONIC SYSTEMS PRIVATE LIMITED) Rating Upgraded & Withdrawn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Bank Loan Ratings	0.00	1.50	ACUITE BBB | Upgraded & Withdrawn	-	RBI
Bank Loan Ratings	0.00	3.39	Not Applicable | Withdrawn	-	RBI
Bank Loan Ratings	0.00	25.00	-	ACUITE A3+ | Upgraded & Withdrawn	RBI
Bank Loan Ratings	0.00	25.00	-	Not Applicable | Withdrawn	RBI
Total Outstanding	0.00	0.00	-	-	-
Total Withdrawn	0.00	54.89	-	-	-

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­Acuité has upgraded and withdrawn the long-term rating to ‘ACUITE BBB’ (read as ACUITE triple B) from ‘ACUITE BB+’ (read as ACUITE Double B plus) and short-term rating to ‘ACUITE A3+’ (read as ACUITE A three plus) from ‘ACUITE A4+’ (read as ACUITE A Four plus) on Rs. 26.50 Cr. bank facilities of Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) (SDSIPL). The rating has been withdrawn on account of the request received from the issuer along with No objection certificate (NOC) received from the bank. Acuité has also withdrawn the long-term rating on Rs. 2.31 crore bank facilities and short term rating on the Rs. 11.50 Cr. bank facilities of Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) (SDSIPL) without assigning any rating as the Instrument is fully repaid. The rating is being withdrawn on account of request received from the issuer, and No Dues Certificate (NDC) received from the bank. Acuité has also withdrawn its rating on the proposed long-term bank facilities of Rs. 1.08 Cr. and proposed short-term bank facilities of Rs. 13.50 Cr. of Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) (SDSIPL) without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The withdrawal is in accordance with Acuite's policy on withdrawal of rating as applicable to the respective facility / instrument. Rationale for Upgrade: The rating considers migration from 'Issuer not-cooperating' status. The rating upgrade considers the improved operating performance of SDSIPL in terms of growth in revenue and profitability in FY2025. The increase in revenue is on account of higher order executions during the year. Further, the operating profit margin grew to 14.13 percent in FY2025 from 2.65 percent in FY2024. Further, it considers the strong parentage as SDSIPL is a wholly owned subsidiary of Safran Data Systems Investment SAS which is a subsidiary of France based ‘Safran Electronics and Defense’, having global presence and expertise in the defence and aerospace industries. The parent group has provided required liquidity support to SDSIPL in terms of corporate guarantee for major portion of its debt. The rating further considers the long track record of operations of SDSIPL and the parent group, expertise in the automated test equipment’s and the reputed clientele. However, the rating remains constrained due to the intensive nature of working capital operations, average financial risk profile and Susceptibility of operations to tender-based nature of business.

About the Company

­­Bangalore based Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) (SDSIPL) was established as a proprietorship in the year 1999 by Mr. Vinod Thomas Mathews. In 2004, it was reconstituted into a Private Limited Company named - Captronic Systems Private Limited (CSPL). The company was acquired by France-based MNC, Safran S.A., through its subsidiary, SED in August 2022 and was consequently renamed as Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) (SDSIPL). SDSIPL is engaged into manufacturing of custom-built Embedded Systems, Automated Test Equipment (ATE's), Automation & Data Acquisition services to Aero Defense, Space, Auto and Manufacturing industries. Post acquisition, the company also started providing telemetry and communication systems and its legacy business of providing ATE and validation systems. The current directors of the company are Mr. Karmeshu Aggarwal, Mr. Jean Marie Louis Lievin Gaston Betermier and Mr. Jean Noel Francois Marie Mahieu.

Unsupported Rating

­ACUITE BB

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of SDSIPL to arrive at this rating. The rating has been notched-up by considering support from its parent group – Safran Group (Safran Electronics and Defense) in the form of corporate guarantee provided for its working capital funding and shared name.

Key Rating Drivers

Strengths

­Experienced management with an established operational track record Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) SDSIPL, is in operation since 1999, which became a wholly owned subsidiary of Safran Data Systems Investment SAS in August 2022. The parent company, Safran S.A, has extensive experience in defence and aerospace industries. Mr. Vinod Thomas Mathew continues as the Managing Director, and the company maintains strong relationships with key suppliers and clients including Vikram Sarabhai Space Centre, Bosch Automotive Electronics India Private Limited, URRao Satellite Centre, and Mahindra and Mahindra among others. Acuite believes that the SDSIPL will continue to benefit from its experienced management, long track record of business operations and established relations with its customers and suppliers.  Support from Parent Safran S.A SDSIPL was acquired by France-based multinational company Safran, through its wholly owned subsidiary of Safran Electronics and Defence, France (SED) in August 2022. Safran designs and manufactures commercial and military aircraft engines, propulsion systems for launch vehicles, satellites, and missiles, and a wide range of aerospace equipment, including avionics, landing systems, interiors, and defense electronics among others. Safran is listed on the Euronext Paris stock Exchange and is part of the CAC 40 and Euro Stoxx 50 indices. Improving revenues and profitability The operating income of the company improved substantially by 113.76 percent and stood at Rs. 147.51 Cr. in FY2025 as against Rs. 69.01 Cr. in FY2024. The growth in revenue is on account of higher execution of orders. The outstanding order book position as of April 17, 2026 stood at ~Rs. 400.00 Cr., executable in next 12-18 months. The management expects to close FY2026 with revenue of around Rs. 240.00-260.00 Cr. The EBITDA margin and net profit margin of the company also improved to 14.13 percent and 7.44 percent in FY2025 as against 2.65 percent and (3.83) percent in FY2024. The improvement in operating profit margin is on account of benefits accrued from increased scale of operations.  Acuite believes that the company will continue to sustain its order book position and maintain its business risk profile over the medium term.

Weaknesses

Average Financial risk profile The net worth of the company improved and stood at Rs. 18.47 Cr. as of March 31, 2025 against Rs. 8.15 Cr. as on March 31, 2024, due to accretion of profits. The total debt of the company stood at Rs. 52.59 crore as on March 31, 2025, comprising of Rs. 0.23 crore of long-term debt, Rs. 52.30 Crore of short-term debt and current portion of long-term debt of Rs. 0.07 Cr. The gearing (Debt to equity) of the company improved and stood at 2.85 times as on March 31, 2025, against 4.40 times as on March 31, 2024. The debt protection metrics remained moderate with debt service coverage ratio (DSCR) of 3.39 times and interest coverage ratio of 4.95 times as on March 31, 2025. The debt to EBITDA stood at 2.51times as on March 31, 2025 against 17.06 times as of March 31, 2024. Acuite believes that the financial risk profile of the company would improve supported by expected increase in accruals over the medium term. Working capital intensive operations The company has an intensive working capital cycle marked by gross current assets (GCA) days of 305 days in FY2025 as against 399 days in FY2024. The elevated GCA is primarily attributable to high receivable days, due to milestone-based payment cycle, with collection period of 60 to 120 days. The receivable days stood at 137 days in FY2025 as against 203 days in FY2024. The inventory days stood at 77 days in FY2025 as against 171 days in FY2024. The creditor says stood at 110 days in FY2025 against 183 days in FY2024. Going forward, working capital operations are expected to remain at similar levels due to nature of business. ­Susceptibility of operations to tender-based nature of business SDSIPL derives a majority of its revenues from competitive tenders floated by DPSUs, DRDO, and other government agencies. The tender-based nature of operations results in variability in order inflows, limited revenue visibility, and susceptibility to delays or failures in bid awards, which could adversely impact profitability. Acuite believes that SDSIPL revenue and profitability are susceptible to risks inherent in tender based nature of operations.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

The parent company Safran S.A. has provided corporate guarantee to Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited) to support the business operations. Stress Case Scenario In case of any stress case scenario, the required support would come from Safran S.A. in the form of unsecured loan.

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 company has adequate liquidity position marked by generation of sufficient cash accruals against its repayment obligations. It generated cash accruals of Rs. 11.87 Cr. in 2025 against repayment obligation of Rs. 0.52 Cr. during the same period. However, the working capital operations of the company are intensive in nature marked by GCA days of 305 days in 2025 leading to high reliance on working capital limits. The current ratio stood at 1.02 times as on March 31, 2025. The cash balance stood at Rs. 37.53 Cr. as on March 31, 2025.  Acuite believes that the liquidity position of SDSIPL will improve on the back of expected increase in accruals generation over the medium term.

Outlook

­Not Applicable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	147.51	69.01
PAT	Rs. Cr.	10.97	(2.65)
PAT Margin	(%)	7.44	(3.83)
Total Debt/Tangible Net Worth	Times	2.85	4.40
PBDIT/Interest	Times	4.95	0.57

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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.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 2025 Proposed Bank Guarantee Short Term 9.89 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Proposed Bank Guarantee Short Term 3.61 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Bank Guarantee/Letter of Guarantee Short Term 11.50 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Bank Guarantee/Letter of Guarantee Short Term 25.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3) Secured Overdraft Long Term 1.50 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Proposed Long Term Bank Facility Long Term 1.08 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 1.93 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 0.35 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) Term Loan Long Term 0.03 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable) 08 Oct 2024 Bank Guarantee/Letter of Guarantee Short Term 11.50 ACUITE A3 (Reaffirmed) Proposed Bank Guarantee Short Term 9.89 ACUITE A3 (Assigned) Bank Guarantee/Letter of Guarantee Short Term 25.00 ACUITE A3 (Assigned) Proposed Bank Guarantee Short Term 3.61 ACUITE A3 (Reaffirmed) Term Loan Long Term 1.93 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 1.08 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 0.35 ACUITE BBB- | Stable (Reaffirmed) Term Loan Long Term 0.03 ACUITE BBB- | Stable (Reaffirmed) Secured Overdraft Long Term 1.50 ACUITE BBB- | Stable (Reaffirmed) 26 Aug 2024 Bank Guarantee/Letter of Guarantee Short Term 11.50 ACUITE A3 (Upgraded from ACUITE A4+) Term Loan Long Term 4.41 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Proposed Long Term Bank Facility Long Term 3.36 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Term Loan Long Term 0.41 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Term Loan Long Term 0.32 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) 30 May 2023 Bank Guarantee/Letter of Guarantee Short Term 11.50 ACUITE A4+ (Upgraded from ACUITE A4) Secured Overdraft Long Term 3.00 ACUITE BB+ | Stable (Upgraded from ACUITE B | Stable) Term Loan Long Term 4.41 ACUITE BB+ | Stable (Upgraded from ACUITE B | Stable) Proposed Long Term Bank Facility Long Term 0.36 ACUITE BB+ | Stable (Upgraded from ACUITE B | Stable) Term Loan Long Term 0.41 ACUITE BB+ | Stable (Upgraded from ACUITE B | Stable) Term Loan Long Term 0.32 ACUITE BB+ | Stable (Upgraded from ACUITE B | Stable)

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

­ Sr No. Company Name 1 Safran Data Systems India Private Limited (Erstwhile Captronic Systems Private Limited 2 Safran S.A.

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

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