Press Release August 04, 2026 SATYAM IRON AND STEEL CO PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	468.44	ACUITE A- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	45.00	-	ACUITE A2+ | Assigned	RBI
Total Outstanding	0.00	513.44	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has assigned long term rating of 'ACUITE A-' (read as ACUITE A minus) on the Rs. 468.44 Cr. bank facilities and short-term rating of 'ACUITE A2+' (read as ACUITE A two plus) on the Rs. 45 Cr. bank facilities of Satyam iron and steel co private limited. The outlook is 'Stable'. Rationale for rating The rating takes into cognizance long track record of operations and experienced promoters in the iron and steel industry. The revenues have remained stable in FY26 (Prov.) at Rs. 631.71 Cr. as compared to Rs. 627.81. Cr in FY25 along with slightly declined but comfortable operating profitability at 10.61 percent in FY26 (Prov.) as compared to 11.17 percent in FY25 on account of decline in realisation across all products. The company has achieved revenues of about Rs. 272.74 Cr. in Q1FY27. With the commencement of Unit 2 with capacities of sponge iron, ferro alloys and captive power plant from April 2026, the company is expected to book revenues of about Rs. 1000 Cr. for FY27. The financial risk profile of the company is moderate marked by improving net worth, moderate gearing and comfortable debt protection metrics. Further, the company has a moderate working capital cycle of GCA of about 100 days for FY26(Prov.) as compared to 94 days in FY25. The liquidity position of the company is strong as it has sufficient net cash accruals to meet the debt obligations going forward. Additionally, it maintains free deposits with banks, DSRA with Canara Bank of about Rs. 6.09 Cr. as of June 2026, along with moderate bank utilization of about 70%. Additionally, management has demonstrated financial flexibility in the past to infuse funds as and when required. However, these risks are partly offset by Susceptibility of profitability to volatility in raw material prices in the steel industry.

About the Company

Incorporated in 2000, West Bengal based Satyam Iron and Steel Co Private Limited (SICCPL), engaged in manufacturing of sponge iron, billets and MS strip. The manufacturing plant of Unit 1 is located in Ranigunj, Paschim Bardhaman, West Bengal. It operates as an semi- integrated steel plant with installed capacities of 1,20,000 MTPA of Sponge Iron, 1,35,000 MTPA of MS billets, 72,000 MTPA of MS Strip and captive power plant of 15MW.  From April 2026 onwards, the company has completed capex of Unit 2 located in Jamuria, Paschim Bardhaman, West Bengal. The installed capacities are 1,15,500 MTPA of Sponge Iron, 16,929 MTPA Ferro Alloys and captive power plant of 8MW. The operations of the company are managed by Mr Rahul Agarwal and Mrs Urmila Devi Agarwal.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of Satyam Iron and Steel Co Private Limited (SICCPL) to arrive at the rating.

Key Rating Drivers

Strengths

­Long track record of operations and established relationships with customers over 25 years The operations are managed by Mr Rahul Agarwal, who has prior experience in the iron and steel industry, and has developed healthy relationships with customers and suppliers over 25 years . It has presence across Pan-India majorly focusing on Eastern India region. Over the years, the company has expanded its manufacturing capabilities through capacity additions, enabling strong presence in the domestic market. With enhanced capacities from Unit 2, company is expected to cater to new clientele base (including Ferro alloys) along with geographical expansion. Acuite believes that the benefits derived from promoters, diversification into ferro alloys and established relationship with customers will help the company going forward. Stable Revenues and operating profitability in FY26 (Prov.) The revenues have remained stable at Rs. 631.71 Cr. in FY26 (Prov.) as compared Rs. Rs. 627.81 Cr. in FY25 on account of decline in realisations albeit increase in volume sold of MS billets and MS strip. The revenues have increased to Rs. 627.81 Cr in FY25 as compared to Rs. 538 Cr. in FY24 on account of volume-led growth with the capacity utilization of MS strips and MS billets ranging about 99%-158% on the basis of running on multiple shifts. The company has booked revenues of about Rs. 272.74 Cr. in Q1FY27 on account of the increase in the capacity of unit 2 commissioned from April 2026. The company aims to book a revenue of about Rs. 1000 Cr. for FY27. The operating profitability has remained stable at 10.61 percent in FY26 (Prov.) as compared to 11.17 percent in FY25 due to decline in realisation across all products. The margins had increased to 11.17 percent in FY25 as compared to 5.77 percent in FY24 on account of significant reduction in power cost with the usage of captive power plant for Unit 1. Acuite believes that the scale of operations and operating profitability is expected to improve over the medium term with the augmentation of Unit 2 and diversification into ferro alloys. Moderate Financial risk profile The financial risk profile is moderate marked by an increase in the net worth to Rs. 218.69 Cr. as on March 31,2026 (Prov.) as compared to Rs. 186.67 Cr. as on March 31,2025 due to accretion to reserves. Gearing stood at 1.76 times as on March 31, 2026 (Prov.) as against 1.64 times as on March 31,2025. In FY27 (June 2026), the company has availed the entire disbursement of Rs. 22.95 Cr. in the form of working capital term loan under ECLGS 5.0 scheme (moratorium of 1 year). It is expected to provide additional cushion for liquidity for working of the company. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.88 times as on March 31, 2026 (Prov.) as compared to 1.76 times as on March 31,2025. The debt protection metrics is marked by Interest Coverage Ratio at 3.64 times as on March 31, 2026 (Prov.) and Debt Service Coverage Ratio at 1.56 times as on March 31, 2026 (Prov.). Net Cash Accruals/Total Debt (NCA/TD) stood at 0.12 times as on March 31, 2026 (Prov.) as compared to 0.12 times as on March 31,2025. Acuité believes that going forward the financial risk profile is expected to remain in similar lines in the absence of any debt funded capex plans over the medium term. Moderate working capital cycle  The moderate working capital cycle is marked by Gross Current Assets (GCA) of 100 days as on March 31, 2026(Prov.) as compared to 94 days as on March 31, 2025. The debtor days stands at 32 days as on March 31,2026 (Prov.) as compared to 34 days as on March 31, 2025. Majority of the payments are made within 2 months. The company also has LC backed debtors. Furthermore, the inventory days increased to 71 days as on March 31, 2026 (Prov.) as compared to 53 days as on March 31,2025 reflecting pre-commissioning stocking of raw materials and finished goods ahead of commencing operations in Unit 2. The creditor days stood at 5 days as on March 31, 2026 (Prov.) as compared to 3 days as on March 31,2025. The suppliers are majorly paid within 7-15 days. Acuité believes that going forward the working capital operations of the company are expected to remain in similar lines over the medium term.

Weaknesses

­Susceptibility of profitability to volatility in raw material prices in the steel industry The company’s performance remains vulnerable to cyclicality in the steel sector as demand for steel depends on the performance of the end user segments such as construction and real estate. 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 intermediate goods as well as realization from finished goods.

Rating Sensitivities

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

­Improvement in the revenues to above Rs. 1000 Cr. in the medium term Sustained operating profitability in the medium term Improvement in debt protection metrics above 2 times

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

­Elongation of working capital cycle Debt/EBTIDA continues to remain above 5 times in the near term

Liquidity Position

Strong

­The liquidity position is strong marked by net cash accruals of Rs. 45.52 Cr. as on March 31, 2026 (Prov.) as against long term debt repayment of Rs. 22.61 Cr. over the same period. Going forward, the net cash accruals are expected to remain in the range of Rs. 61-71 Cr. against debt obligation of Rs. 22.61 Cr. and Rs. 50.21 Cr. in the next two years. The management has the flexibility to infuse funds as and when required. The free deposits with bank amount to Rs. 8.23 Cr. in FY 26 (Prov.) and Rs. 28.45 Cr. in FY 25. DSRA is maintained with Canara Bank, amounting to Rs. 6.09 Cr. as of June 2026. The cash and bank balances stood at Rs. 2.04 Cr. as on March 31, 2026 (Prov.) as compared to Rs. 2.82 Cr. as on March 31,2025. The current ratio stood at 1.14 times as on March 31, 2026 (Prov.) as compared to 1.32 times as on March 31,2025. The average fund based bank limit utilization stood at 70.20 percent over the last 12 months ended, June 2026. Acuité believes that going forward the liquidity position of the company  is expected to remain strong in the absence of any debt funded capex plans, sufficient net cash accruals to repay debt obligations, moderate bank limit utilization in the near to medium term

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	631.71	627.81
PAT	Rs. Cr.	32.02	22.84
PAT Margin	(%)	5.07	3.64
Total Debt/Tangible Net Worth	Times	1.76	1.64
PBDIT/Interest	Times	3.64	3.34

Status of non-cooperation with previous CRA (if applicable)

­None

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 21 Aug 2025 Bank Guarantee (BLR) Short Term 17.00 ACUITE A4+ (Reaffirmed & Withdrawn & Issuer not co-operating*) Cash Credit Long Term 90.00 ACUITE BB+ (Reaffirmed & Withdrawn & Issuer not co-operating*) Term Loan Long Term 135.65 ACUITE BB+ (Reaffirmed & Withdrawn & Issuer not co-operating*) 17 Mar 2025 Bank Guarantee (BLR) Short Term 17.00 ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3+) Cash Credit Long Term 90.00 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) Term Loan Long Term 135.65 ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB | Stable) 28 Dec 2023 Bank Guarantee (BLR) Short Term 17.00 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 65.35 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 24.65 ACUITE BBB | Stable (Assigned) Term Loan Long Term 135.65 ACUITE BBB | Stable (Reaffirmed) 31 Aug 2023 Bank Guarantee (BLR) Short Term 10.00 ACUITE A3+ (Reaffirmed) Term Loan Long Term 15.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 40.00 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 85.00 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 35.65 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 32.35 ACUITE BBB | Stable (Reaffirmed)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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