Press Release September 19, 2025 SRI LANGTA BABA STEELS PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	35.00	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	132.22	ACUITE BBB | Stable | Reaffirmed	-
Bank Loan Ratings	14.17	-	ACUITE A3+ | Reaffirmed
Total Outstanding	181.39	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­ACUITE has reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs 146.39 crore bank facilities of Sri Langta Baba Steels Private Limited (SLBSPL). The outlook is ‘Stable’. ACUITE has assigned its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs 35.00 crore bank facilities of Sri Langta Baba Steels Private Limited (SLBSPL). The outlook is ‘Stable’. Rationale for rating The reaffirmation rating is based on the steady business risk profile marked by improvement in the company's revenue, which grew by approximately 18% to Rs. 609.90 Cr. in FY2025 from Rs. 515.86 Cr. in FY2024. This increase in revenue is primarily attributed to higher sales volume. The operating margin of the company stood at 6.65% in FY25 against 5.93% in FY24 due to the increase in average realization. The rating also considers the company's adequate liquidity position, which is reflected in its sufficient net cash accruals to meet debt obligations and a moderate current ratio. Additional positive factors include an experienced management team and a healthy financial risk profile. However the rating remains constrained on account of intensive working capital operations and susceptibility to profitability due to volatility in raw material prices.

About the Company

I­ncorporated in 2005, Sri Langta Baba Steels Private Limited (SLBSPL) runs a re-rolling mill in Jharkhand to manufacture MS Billets and thermo-mechanically treated bars (TMT). The directors of the company are Mr. Mohan Prasad Saw, Mr. Suraj Kumar Gupta and Mr. Abhishek Kumar. The installed capacity of MS Billets is 144000 MTPA and TMT bars are 150000 MTPA. The TMT bars are sold under the brand-name ‘TUFFCON’.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone financial and business risk profile of Sri Langta Baba Steels Private Limited (SLBSPL).

Key Rating Drivers

Strengths

­Experienced Management and long track record of operation The directors, Mr. Mohan Prasad Saw and Mr. Suraj Kumar Gupta of Sri Langta Baba Steels Private Limited (SLBSPL), have been in the iron and steel industry for around two decades. Over the years, the management has been able to build healthy customer and supplier relationships. Acuité derives comfort from the long experience of the promoters and expects the benefits of the same to be leveraged in the business risk profile of the company. Improvement in scale of operations The company has witnessed the growth in the revenue from operations by ~18.23%, which stood at Rs. 609.90 Cr. in FY 25 against Rs. 515.86 Cr. in FY 24. The improvement in revenue is due to an increase in the volume sales. The operating margin of the company stood at 6.65% in FY25 against 5.93% in FY24. The improvement in the operating margin of the company is due to the increase in average realization. The Net margin stood at 3.15% in FY25 against 2.74% in FY24. The company has achieved the revenue of Rs. 255.69 Cr. in 4MFY26. Acuité believes that going forward the performance of the company is expected to remain steady over the medium term. Healthy Financial Risk Profile The company has financial risk profile marked by healthy net worth, comfortable gearing and moderate coverage indicators. The Total Tangible net worth stood at Rs. 94.90 Cr. as on 31st March 2025 against Rs. 75.65 Cr. as on 31st March 2024, increase in net worth is on account of profit accretion. The total debt outstanding of the company is Rs. 103.83 crore as on 31 March, 2025. Debt to Equity ratio stood at 1.09 times in FY25 as against 0.91 times in FY24. Interest coverage ratio stood at 4.19 times for FY25 as against 4.45 times in FY24. Debt Service coverage ratio stood at 3.11 times for FY25 as against 2.39 times in FY24. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.53 times as on March 31, 2025 as against 2.70 times as on March 31, 2024. The Net Cash Accruals/Total Debt (NCA/TD) stood at 0.24 times as on March 31, 2025 as against 0.28 times as on March 31, 2024. Acuite believes that financial risk profile of the company is expected to remain healthy in near to medium term in the absence of any debt funded capex plan.

Weaknesses

Intensive Working capital operations The working capital operations of the company is intensive marked by GCA days of 168 days in FY25 against 167 days in FY24. There is a stability in the GCA days due to the inventory days of the company, which stood at 76 days in FY25 against 89 days in FY24, debtor days of the company stood at 42 days in FY25 against 37 days in FY24. The creditor days stood at 25 days in FY25 against 38 days in FY24. Acuite believes that working capital operations of the company expected to remain in the same range due to the nature of the business. Susceptibility to volatility in raw material prices and cyclicality inherent in the steel industry Raw material consumption is the single largest cost component for the secondary players in iron and steel industry. The company does not have backward integration for its raw materials and the same is purchased from traders located in UP, Jharkhand, Orissa, Bengal and Madhya Pradesh. Further, the steel industry is sensitive to the shifting business cycles, including changes in the general economy, interest rates and seasonal changes in the demand and supply conditions in the market. Apart from the demand side fluctuations, the highly capital intensive nature of steel projects along-with the inordinate delays in the completion leads to demand supply mismatch. Acuite believes that the company will remain susceptible to volatility in raw material prices and cyclicality inherent in the steel industry.

Rating Sensitivities

­­Movement in scale of operations and profitability Movement in Working capital operations Movement in capital structure

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 24.82 Cr. in FY 25 against the debt obligation of Rs. 1.31 Cr. for the same period. The company has cash & bank position of Rs. 17.87 Cr. and current ratio stood at 1.36 times for FY 25. The average fund based bank limit utilization is at 77.39% and non-fund based bank limit utilization is at 97.85% for the 9 months’ period ending July 2025. Acuite believes that liquidity profile of the company is expected to improve in near to medium term in the absence of any major repayment obligations as the company is not planning to take any additional debt in near to medium term.

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.	609.90	515.86
PAT	Rs. Cr.	19.24	14.16
PAT Margin	(%)	3.15	2.74
Total Debt/Tangible Net Worth	Times	1.09	0.91
PBDIT/Interest	Times	4.19	4.45

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 23 Jul 2024 Bank Guarantee/Letter of Guarantee Short Term 13.00 ACUITE A3+ (Reaffirmed) Proposed Bank Guarantee Short Term 1.17 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 30.00 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 2.22 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 60.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 35.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE BBB | Stable (Assigned) 26 Apr 2023 Bank Guarantee/Letter of Guarantee Short Term 10.39 ACUITE A3+ (Upgraded from ACUITE A3) Bank Guarantee/Letter of Guarantee Short Term 2.61 ACUITE A3+ (Assigned) Cash Credit Long Term 35.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Cash Credit Long Term 25.00 ACUITE BBB | Stable (Assigned) Term Loan Long Term 1.99 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Covid Emergency Line. Long Term 5.45 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Covid Emergency Line. Long Term 0.95 ACUITE BBB | Stable (Assigned) 25 Mar 2022 Letter of Credit Short Term 1.00 ACUITE A3 (Assigned) Bank Guarantee (BLR) Short Term 9.00 ACUITE A3 (Assigned) Cash Credit Long Term 35.00 ACUITE BBB- | Stable (Assigned) Term Loan Long Term 2.38 ACUITE BBB- | Stable (Assigned) Covid Emergency Line. Long Term 5.45 ACUITE BBB- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple ACUITE A3+ | Reaffirmed Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 60.00 Simple ACUITE BBB | Stable | Reaffirmed Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 41.00 Simple ACUITE BBB | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BBB | Stable | Reaffirmed Yes Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE BBB | Stable | Assigned Punjab National Bank Not avl. / Not appl. Covid Emergency Line. 31 Oct 2021 Not avl. / Not appl. 31 Mar 2027 1.22 Simple ACUITE BBB | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.17 Simple ACUITE A3+ | Reaffirmed

Contacts

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

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.