Press Release March 23, 2026 SHRINIWAS ENGINEERING AUTO COMPONENTS PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	268.00	ACUITE A- | Stable | Assigned	-
Bank Loan Ratings	24.00	-	ACUITE A2+ | Assigned
Total Outstanding	292.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long-term rating of 'ACUITE A-' (read as ACUITE A minus) on the Rs.268.00 Cr. bank facilities and short-term rating of ‘ACUITÉ A2+’ (read as ACUITE A two plus) on the Rs. 24.00 Cr. bank facilities bank facilities of Shriniwas Engineering Auto Components Private Limited (SEACO). The outlook is 'Stable'. ? Rationale for rating  The rating assigned reflects SEACO’s experienced promoters and established operating track record. The rating also draws comfort from the company’s healthy revenues along with improving profit margins which are expected to improve further backed by strong order book position. The rating also considers healthy financial risk profile marked by healthy net worth, gearing and comfortable coverage indicators and adequate liquidity position. However, the rating is constrained by moderately intensive working capital management, customer concentration risk and cyclicality associated with automotive industry along with presence in a competitive industry.

About the Company

Shriniwas Engineering Auto Components Private Limited (SEACO), incorporated in 2005 and based in Pune, is an integrated manufacturer of castings and machined components. The company operates a foundry and machining facilities across Maval, Talawade and Talegaon in Pune, and Rudrapur in Uttarakhand, catering to sectors such as farm equipment, automobiles, construction equipment, power and hydraulics. The company is managed by Mr. Giridhari Shriniwas Kale and his family, supported by a professional management team. The current board includes Mrs. Prajakta Giridhari Kale, Mr. Ramniwas Shriniwas Kale, Mr. Mohini Varunraj Gore, Mr. Rajesh Ratnakar Mharolkar, Mr. Ramchandra Vishwambhar Belhe, Mr. Giridhari Shrinivas Kale and Mr. Lalaso Janardhan Lawand.

Unsupported Rating

­­Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Shriniwas Engineering Auto Components Private Limited (SEACO) to arrive at this rating.

Key Rating Drivers

Strengths

­Experienced promoters and established operating track record Established in 1986, Shriniwas Engineering Auto Components Limited (SEACO) is an integrated casting and machining manufacturer with operations across Talegaon, Maval, Talawade, and Bhosari in Pune, and Rudrapur in Uttarakhand. The company manufactures auto castings and machined components for reputed OEMs. SEACO is managed by Mr. Giridhari Shriniwas Kale and his family. Mr. Kale, the key promoter, has over four decades of experience in the auto component industry. The management is supported by a qualified and experienced professional team. The promoters’ industry experience has enabled the company to develop long-standing relationships with customers and suppliers. The company maintains established business relationships with major OEMs, including Tata Motors and Mahindra & Mahindra, for whom SEACO operates as a single-source supplier for select components. Acuité believes that the company will continue to benefit through the promoter's industry experience and established relations with its clients over the medium term. Stable Growth in Revenue and Operations, supported by strong order book position SEACO derives its revenues through B2B supplies of castings and machined components to OEMs across the automobile and tractor segments. In FY25, the company reported revenues (including subsidy) of Rs. 733.10 Cr., compared with Rs. 763.92 Cr. in FY24. The moderation was primarily due to lower realizations and a temporary demand disruption in the tractor segment following farmer protests. EBITDA declined to Rs. 141.44 Cr. in FY25 from Rs. 147.33 Cr. in FY24; however, the EBITDA margin remained stable at 19.29% in both years. PAT increased to Rs. 52.92 Cr. in FY25 from Rs. 47.19 Cr. in FY24, with the PAT margin improving to 7.22% (FY24: 6.18%). SEACO is eligible for fiscal incentives under the Government of Maharashtra’s Package Scheme of Incentives (PSI 2007) for Mega Projects. The company receives Industrial Promotion Subsidy (IPS) through reimbursement of SGST paid on eligible intra-state sales. The subsidy operates under a reimbursement mechanism and is valid from FY12 to FY34, providing adequate headroom for realization of eligible benefits. During 9M FY26, the company reported revenues of Rs. 582.93 Cr., compared with Rs. 553.18 Cr. in the corresponding period of FY25, supported by higher volumes and improved realizations. EBITDA for 9M FY26 stood at Rs. 106.76 Cr., with the EBITDA margin improving to 19.68%, aided by better pricing and operating efficiencies. The company recorded revenues of Rs. 660 Cr. till February 2026 (excluding subsidy). Based on current execution and demand trends, SEACO is targeting revenues of around Rs. 790 Cr. in FY26.  The order book comprises open back to back purchase orders from major OEMs across the automobile and tractor industries and covers a diversified product range, including cylinder blocks, cylinder heads, transmission cases, differential housings, gear housings, crankcases, beam housings, clutch housings and carrier castings. Key customers include Mahindra & Mahindra, Tata Motors, International Tractors, Escorts Kubota, JCB India, TAFE Motors & Tractors, and Kubota Agricultural Machinery India. Acuité believes, the operating performance of SEACO will strengthen further, supported by scale expansion and a strong order book position. Healthy financial risk profile  SEACO’s financial risk profile remained healthy in FY25, marked by strong net worth, low gearing, and moderate debt protection metrics. The company’s tangible net worth increased to Rs. 466.27 Cr. as on March 31, 2025, from Rs. 413.59 Cr. as on March 31, 2024, primarily on account of profit retention. Gearing improved to 0.77 times as on March 31, 2025, compared to 0.90 times as on March 31, 2024. Debt protection indicators remained moderate, with the interest coverage ratio at 3.30 times in FY25 (FY24: 3.10 times) and the debt service coverage ratio at 1.20 times (FY24: 1.28 times). The TOL/TNW ratio improved to 1.21 times in FY25 from 1.38 times in FY24. The company is expected to undertake routine capex of Rs. 20–50 Cr. annually during FY26–FY28, primarily towards maintenance and technology upgrades across its machining facilities. Between FY23 and FY25, SEACO incurred cumulative capex of about Rs. 130 Cr., largely towards strengthening machining operations and improving integration with the foundry unit. Despite a moderation in revenues to Rs. 684 Cr. in FY25 from Rs. 728 Cr. in FY23 due to temporary demand disruptions, operating profitability (excluding subsidy) remained stable, with EBITDA margins improving to 13.68% in FY25 from 12.97% in FY23. The company plans an additional capex of around Rs. 40 Cr. in Q1 FY28 for the installation of windmills to reduce power costs. The project is proposed to be funded through a 75:25 debt-equity mix, with approximately Rs. 30 Cr. through term debt and the balance through internal accruals. The project is expected to reduce electricity expenses by 40–45%, translating into annual savings of about Rs. 42 Cr., with full-year benefits expected from FY28.  Acuité believes that, despite the proposed capex-related borrowings, SEACO’s financial risk profile is expected to remain healthy over the medium term.

Weaknesses

Moderately intensive working capital operations The working capital operations of the company remain moderately intensive, as reflected by an increase in gross current assets (GCA) to 252 days in FY25 from 207 days in FY24, primarily due to higher government receivables related to subsidy claims and increased loans and advances. The debtor collection period increased to 122 days in FY25 from 105 days in FY24, though it remained broadly in line with the company’s collection cycle of 90–120 days. Inventory holding stood at 91 days in FY25, compared with 87 days in FY24. Creditor days increased to 140 days in FY25 from 124 days in FY24, against an average credit period of around 120 days. Utilisation of fund-based working capital limits remained moderate, averaging 72.03% during the twelve-month period ended January 2026. Acuité believes that SEACO’s working capital requirements are likely to remain moderately intensive over the medium term, considering the nature of its operations. Customer Concentration Risk SEACO faces customer concentration risk, with the top five customers accounting for approximately 87.81% of total revenues. Further, the top two customers—Mahindra & Mahindra Limited and Tata Motors Limited—together contributed around 79.21% of revenues, indicating a high reliance on a limited customer base. Such concentration exposes the company to risks arising from changes in the business or financial profiles of these key customers, which could impact SEACO’s operations and performance. The risk is partly mitigated by the company’s long-standing relationships with its customers and its role as a supplier of customer-specific components manufactured as per OEM specifications. Acuité believes that the company’s ability to maintain customer relationships while gradually diversifying its customer base will remain a key rating sensitivity. Cyclicality associated with automotive industry along with presence in a competitive industry SEACO’s performance remains inherently linked to the cyclical nature of the automotive sector, where demand for auto components is directly influenced by vehicle sales, exposing suppliers to inherent industry fluctuations and the operational resilience of OEMs. Further, the automobile industry primarily moves with larger economic cycle, customer preferences, government policies, etc. Additionally, the group operates in a highly competitive industry wherein there is presence of a large number of players in the organized as well as unorganized sectors. Also, the industry is characterized by low entry barriers due to low technological inputs and easy availability of standardized machinery for the production. While the organized segment primarily caters to the OEM segment, the unorganized segment mainly caters to the replacement market and to tier II and III suppliers.

Rating Sensitivities

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

Consistent improvement in revenues and profitability Improvement in working capital management with gross current assets (GCA) below 180 days

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

Deterioration in financial risk profile due to higher-than-expected debt funded capex plans Debt service coverage ratio (DSCR) falls below 1.15 times

Liquidity Position

Adequate

The liquidity position of the company is adequate. It has generated sufficient net cash accruals (NCAs) of Rs. 103.22 Cr. in FY2025 as against its maturing debt obligations of Rs. 78.75 Cr. during the same period. Further, it is expected to generate cash flows of ~Rs. 100.81–114.37 Cr. as against repayment obligations of ~Rs. 59.76 – 46.16 Cr. over the medium term. Reliance on fund-based working capital limits remained moderate, with average utilization at ~72.03% over the past twelve months ending January 2026. Unencumbered fixed deposits stood at Rs. 4.74 Cr. as on March 2025, while the current ratio was 1.07 times as of March 31, 2025. Acuité believes that the company’s liquidity position will remain adequate over the medium term on account of expected steady cash accruals. The cash and bank balance for FY25 stood at Rs. 0.06 Cr.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	733.10	763.92
PAT	Rs. Cr.	52.92	47.19
PAT Margin	(%)	7.22	6.18
Total Debt/Tangible Net Worth	Times	0.77	0.90
PBDIT/Interest	Times	3.30	3.10

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 :

­Not applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Bank Of Baroda Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.25 Simple ACUITE A2+ | Assigned BANK OF MAHARASHTRA Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.75 Simple ACUITE A2+ | Assigned Bank Of Baroda Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 104.00 Simple ACUITE A- | Stable | Assigned BANK OF MAHARASHTRA Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 56.00 Simple ACUITE A- | Stable | Assigned Bank Of Baroda Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE A2+ | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.21 Simple ACUITE A- | Stable | Assigned Bank Of Baroda Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Oct 2032 18.52 Simple ACUITE A- | Stable | Assigned BANK OF MAHARASHTRA Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Dec 2028 25.94 Simple ACUITE A- | Stable | Assigned IDBI Bank Ltd. Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 31 Jan 2028 5.62 Simple ACUITE A- | Stable | Assigned Union Bank of India Not avl. / Not appl. Term Loan 10 Aug 2023 Not avl. / Not appl. 30 Jun 2030 17.71 Simple ACUITE A- | Stable | Assigned YES BANK LIMITED Not avl. / Not appl. Working Capital Demand Loan (WCDL) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 37.00 Simple ACUITE A- | Stable | Assigned

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Contacts

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

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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.