Press Release

June 19, 2026

SHRI BALAJI INDUSTRIAL ENGINEERING LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	25.00	ACUITE A \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	76.00	-	ACUITE A1 \| Reaffirmed	RBI
Total Outstanding	101.00	-	-	-
Total Withdrawn	0.00	-	-	-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 reaffirmed the long-term rating of ‘ACUITE A’ (read as ACUITE A) and the short-term rating of ‘ACUITE A1’ (read as ACUITE A one) on the Rs.101.00 Cr. bank facilities of Shri Balaji Industrial Engineering Limited (SBIEL). The outlook is ‘Stable’.

Rationale for rating reaffirmation
The rating reaffirmation considers the moderation in the scale of operations albeit maintaining profitability margins. Further, the rating also takes cognizance of experienced management with an established track record of operations of the group and reputed clientele. The rating also factors in the moderately efficient working capital management as well as the healthy financial risk profile and strong liquidity position of the group. The rating however remained constrained by the susceptibility of profitability to volatility in raw material prices and forex risk and group’s presence in a highly competitive and cyclical nature of the steel industry.

About the Company

Shri Balaji Industrial Engineering Limited (SBIEL) is incorporated in 2008, is a Jharkhand based company engaged in the manufacturing of sponge iron. The manufacturing unit is located at Barajamda in Jharkhand, having an installed capacity of 1,20,000 MTPA of sponge iron. In April 2008, SBIEL was de-merged from Shri Balaji Industrial Product Limited (SBIPL) to carry on the sponge iron manufacturing business independently. The company is promoted by Mr. Kailash Kumar Kanodia and his son, Mr. Ashish Kumar Kanodia who looks after the day-to-day operations of the company.

About the Group

Shri Balaji Industrial Product Limited (SBIPL) incorporated in 1985, is a Jaipur-based company engaged in the manufacturing of alloy steel castings having an installed capacity of 68,800 MTPA. Alloy steel castings are used in thermal power plants for grinding of coal, in cement industry for grinding of clinker, in mining and in defence industry. The company is promoted by Mr. Sudhir Kumar Bansal and Mr. Ashish Kumar Kanodia who looks after the day-to-day operations of the company.

The group has undertaken a Composite Scheme of Arrangement involving both amalgamation and demerger, approved by the Hon’ble NCLT on 19 March 2026. Under this scheme, four group entities—Mirik Vinimay Private Limited, Neha Resources Limited, Pawansut Marketing Private Limited, and Udaipuria Commodities Private Limited have been amalgamated into Shri Balaji Industrial Products Limited (SBIPL) w.e.f. Apil 2024. Following the amalgamation, the Investment Division of SBIPL is proposed to be demerged and transferred to Shri Balaji Industrial Engineering Limited (SBIEL). As the amalgamating entities are largely non-operational with negligible business activity and no external debt, the transaction primarily results in consolidation of reserves and assets, leading to an improvement in the net worth position going forward. Overall, the restructuring is aimed at simplifying the group structure and enhancing operational efficiencies enabling focus on long-term strategic growth.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuité has considered the consolidated business and financial risk profiles of Shri Balaji Industrial Engineering Limited (SBIEL) and Shri Balaji Industrial Product Limited (SBIPL) together referred to as Shri Balaji Industrial Group (SBIG) to arrive at the rating. The consolidation is on account of the operations in the similar industry, common management and operational and financial synergies.

Key Rating Drivers

Strengths

Experienced management with an established track record of operations

SBIG has an operational track record of nearly four decades in the alloy steel casting industry and nearly two decades in the sponge iron manufacturing industry. The group is promoted by Mr. Kailash Kumar Kanodia, who possess an extensive experience of more than three decades in the steel industry. He is further supported by his son Mr. Ashish Kumar Kanodia and the other director Mr. Sudhir Kumar Bansal who are actively involved in day-to-day operations of the group. The extensive experience of the management has enabled SBIG to establish a healthy relationship with its long-term reputed clientele. Acuité believes that SBIG will continue to benefit from its experienced management and established track record of operations.

Moderation in scale of operations albeit maintaining profitability margins
SBIG reported moderation in scale of operations with revenues of Rs. 642.94 Cr. in FY2026 (Est.) as against Rs. 705.09 Cr. in FY2025 and Rs. 806.04 Cr. in FY2024 due to lower realisation and lower demand of the products. SBIEL commenced sponge iron exports to Bhutan in FY2026, achieving export revenues of ~Rs. 59 Cr. and SBIPL recorded export revenues of ~Rs. 65 Cr. during the same period, supported by its established presence in both domestic markets and key overseas destinations. The company continues to supply alloy steel casting products to international customers across regions such as the U.K., Ghana, Indonesia, and other markets. The operating margin of the group remained stable at 11.57 percent in FY2025 as against 11.73 percent for FY2024, however SBIG reported operating margin of ~13.70 percent in FY2026 (Est.) due to decrease in raw material cost. The PAT margin of the company also stood at 7.71 percent in FY2025 as compared to 7.77 percent in FY2024. Acuité believes that the ability of SBIG to improve its scale of operations while maintaining healthy profitability margins will remain as a key rating monitorable.

Healthy financial risk profile

Financial risk profile of SBIG group remained healthy marked by healthy net worth, low gearing and healthy debt protection metrics. The tangible net-worth of the group improved and stood at Rs. 351.05 Cr. as on 31 March 2025 as against Rs. 301.42 Cr. as on 31 March 2024 due to healthy accretion of profits to reserves. The gearing (debt equity) stood improved at 0.06 times as on 31 March 2025 as against 0.16 times as on 31 March 2024 due to decrease in the group’s overall debt to Rs. 20.53 Cr. in FY2025 as against Rs. 46.82 Cr. in FY2024. The total debt of Rs. 20.53 Cr. as on March 31, 2025, comprises of long-term debt of Rs. 13.48 Cr., unsecured loans from directors of Rs. 0.29 Cr. and short-term debt of Rs. 6.77 Cr. The interest coverage ratio (ICR) and debt service coverage ratio (DSCR) improved and stood at 36.57 times and 10.25 times for FY2025 as against 32.93 times and 9.77 times for FY2024 respectively. The debt to EBITDA improved and stood at 0.24 times for FY2025 as against 0.48 times for FY2024. Further, in FY2026, the financial risk profile has witnessed some moderation, reflected in a slightly higher gearing level at ~ 0.15 times as on March 31, 2026 (Est.) and moderation in coverage indicators reflected in DSCR of ~24.24 times as on March 31, 2026 (Est.) compared to previous years. This is primarily attributable to the debt-funded capex undertaken in FY2026. Acuité believes that despite this moderation, the overall financial risk profile of the group continues to remain healthy and within comfortable levels.

Moderately efficient working capital operations
The working capital operations of SBIG remained moderately efficient, reflected by Gross Current Assets (GCA) of 82 days in FY2025 as compared to 83 days in FY2024. However, GCA is estimated to increase in FY2026 due to higher cash and bank balances and elevated inventory levels. The increase in inventory is primarily driven by higher procurement of key raw materials such as coal and iron ore, in anticipation of expected price increases going forward. Inventory days stood at 45 days for FY2025 as against 35 days for FY2024. On the other hand, the receivables cycle of the group moderately improved and stood at 28 days for FY2025 as against 32 days for FY2024. The creditors cycle of the group stood at 22 days for FY2025 as against 17 days for FY2024. The average bank limit utilization for 6 months period ended May 2026 stood lower at ~13.42 percent. Acuité believes that the ability of SBIG to maintain the efficient working capital cycle over the medium term will remain a key rating sensitivity factor.

Weaknesses

Susceptibility of profitability to volatility in raw material prices and forex risk

The group’s profitability is highly susceptible to volatility in prices of the key raw material. Any sharp upward movement in the raw material prices and the inability of the group to pass on the increased cost of raw materials may result in dip in operating margins. Acuite believes, the profit margins of the group likely to remain exposed to inherent cyclicality in the steel industry and volatility in raw material prices. Further, in the absence of hedging mechanism, profitability remains susceptible to fluctuations in foreign exchange rates.

Intense competition and inherent cyclicality in the steel industry

SBIG is operating in a competitive and fragmented nature of industry due to the presence of many unorganized players on account of low entry barriers. Moreover, demand for steel products predominantly depends on the construction and infrastructure sectors. Thus, the profit margins and sales of the company remains exposed to inherent cyclicality in these sectors.

Rating Sensitivities

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

Significant growth in revenues while maintaining healthy profitability
Improvement in working capital cycle on a sustained basis with GCA below 80 days

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

Significant decline revenues and profitability
Deterioration in financial risk profile on the back of unexpected debt funded capex with gearing above 1.5 times and DSCR below 4 times.
Elongation in working capital cycle with GCA above 150 days consistently.

Liquidity Position

Strong

SBIG has a strong liquidity position marked by strong net cash accruals (NCA) to its maturing debt obligations. The group generated cash accruals of Rs. 64.48 Cr. against its debt repayment obligation of ~Rs.4.17 Cr. during in FY2025. Going forward, the group is expected to generate net cash accruals of ~Rs.63-70 in FY26-FY27 against its repayment debt obligations of ~Rs. 0-3 Cr. during the same period. The average bank limit utilization for 6 months period ended May 2026 stood lower at ~13.42 percent providing adequate cushion for meeting incremental working capital requirements and supporting operational flexibility. The current ratio stands at 3.46 times as on 31 March 2025. The group has maintained cash & bank balance of Rs.1.02 Cr. in FY2025. Acuité believes that the liquidity of SBIG is likely to remain strong over the medium term on account of healthy cash accruals against its maturing debt obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	705.09	806.04
PAT	Rs. Cr.	54.34	62.65
PAT Margin	(%)	7.71	7.77
Total Debt/Tangible Net Worth	Times	0.06	0.16
PBDIT/Interest	Times	36.57	32.93

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

Not Applicable

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 Mar 2025	Cash Credit	Long Term	6.25	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	12.50	ACUITE A \| Stable (Reaffirmed)
	Cash Credit	Long Term	6.25	ACUITE A \| Stable (Reaffirmed)
	Letter of Credit	Short Term	11.00	ACUITE A1 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	8.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	38.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	1.00	ACUITE A1 (Reaffirmed)
	Letter of Credit	Short Term	10.00	ACUITE A1 (Assigned)
	Bank Guarantee (BLR)	Short Term	8.00	ACUITE A1 (Reaffirmed)
22 Dec 2023	Cash Credit	Long Term	15.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	10.00	ACUITE A \| Stable (Upgraded from ACUITE A- \| Stable)
	Letter of Credit	Short Term	19.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	18.00	ACUITE A1 (Upgraded from ACUITE A2+)
	Letter of Credit	Short Term	29.00	ACUITE A1 (Upgraded from ACUITE A2+)

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
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	Simple	ACUITE A1 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	Simple	ACUITE A1 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.25	Simple	ACUITE A \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.25	Simple	ACUITE A \| Stable \| Reaffirmed
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.	12.50	Simple	ACUITE A \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.00	Simple	ACUITE A1 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	38.00	Simple	ACUITE A1 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A1 \| Reaffirmed
YES BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A1 \| Reaffirmed

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

Sr. No.	Company name
1	Shri Balaji Industrial Engineering Limited (SBIEL)
2	Shri Balaji Industrial Product Limited (SBIPL)

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Nidhi Gala
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.