­Acuité has consolidated the business and financial risk profiles of Stork Rubber Products Private Limited (SRPPL) and Stork Auto Engineering Private Limited (SAPL) together referred to as Stork Group, ­to arrive at this rating. The consolidation is in view of similarity in the line of business, common management, and operational synergies between the entities.

­­Established track record of operations and Experienced Management
Stork Group is engaged in the manufacturing of rubber components, metal-bonded components, and auto components for automobile manufacturers. The group caters to domestic as well as export markets. Over the last three years, the export sales account for 55% to 59% of the group's overall revenue, while the domestic sales account for 40% to 45% of the group' s overall revenue. The group is currently managed by Mrs. Mandeep Rangar and Mr. Jagdeep Singh Rangar, who have over three decades of experience in the same industry. The experienced management has helped the group in establishing healthy relationships with its customers and suppliers. Acuite expects that the group will continue to derive benefit from the established track record of operations and experienced management’s strong understanding of market dynamics.

Slight increase in revenue, albeit decrease in net profitability margins
The operating revenue of the group stood at Rs. 104.42 Cr. in FY2026 (Prov.) as against Rs. 97.37 Cr. in FY2025, driven by higher volumes sold across key product segments during the year. While overall price realizations witnessed a marginal moderation during FY2026 (Prov.), the impact was largely offset by higher volumes during the year. Further, the EBITDA margin of the group stood at 8.14% in FY2026 (Prov.) against 8.12% in FY2025, supported by the decrease in raw material procurement costs during the year. However, the PAT margin declined to 0.99% in FY2026 (Prov.) from 1.31% in FY2025. The decline is primarily attributable to elevated finance costs owing to incremental term loans coupled with higher utilization of work capital borrowings during the year. The group reported revenue of approximately Rs. 43 Cr. as on 31^st August 2026 and has overall orders in hand of around Rs. 50 Cr. as on 10^th September 2026. Acuite expects the group to sustain its topline in the near to medium term supported by the execution of orders in hand coupled with incremental orders expected to be received during the year. However, the ability of the group to improve its profitability margins while scaling up its operations will remain a key rating sensitivity.

Moderate Financial Risk Profile
The financial risk profile of the group is marked by below-average net worth, moderate gearing, and debt protection metrics. The tangible net worth of the group stood at Rs. 30.82 Cr. as on 31^st March 2026 (Prov.) as against Rs. 29.79 Cr. as on 31^st March 2025 on account of low accretion profits into reserves. The total debt of the group stood at Rs. 44.14 Cr. as on 31^st March 2026 (Prov.) as against Rs. 36.45 Cr. as on 31^st March 2025. The increase in debt levels is on account of incremental term loans availed for capex and working capital requirements coupled with higher utilization of working capital borrowings. Consequently, the gearing ratio stood at 1.43 times as on 31^st March 2026 (Prov.) as against 1.22 times as on 31^st March 2025. The coverage indicators marked by interest coverage ratio and debt service coverage ratio stood at 2.70 times and 1.26 times, respectively, as on 31^st March 2026 (Prov.). Further, Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.10 times as on 31^st March 2026 (Prov.) as against 2.03 times as on 31^st March 2025. The group undertakes regular capital expenditure towards maintenance and upgradation of machinery as well as additions to office infrastructure, which are funded through a mix of internal accruals and debt. Acuité expects the financial risk profile of the group to remain in similar range in the near to medium term.

Intensive Working Capital Operations
The working capital operations of the group are intensive, marked by GCA days of 212 days as on 31^st March 2026 (Prov.) against 205 days as on 31^st March 2025. The increase is majorly on account of higher receivables outstanding at fiscal year-end. The debtor days stood at 130 days as on 31^st March 2026 (Prov.) as against 124 days as on 31^st March 2025. The increase is attributable to higher sales recorded during Q4 FY2026, resulting in elevated receivables outstanding at the fiscal year-end. The receivable cycle is further stretched by delay in collection from certain export customers due to geopolitical disruptions affecting shipment movements and port clearances. Further, the group maintains adequate inventory, as and when required for order execution, wherein the inventory days stood at 58 days as on 31^st March 2026 (Prov.) and 31^st March 2025. The creditor days stood at 107 days as on 31^st March 2026 (Prov.) as against 127 days as on 31^st March 2025. Acuite expects working capital operations of the group to remain on similar levels in the near to medium term owing to the nature of operations.

­Susceptibility of profitability margins to volatility in raw material prices
The profitability margins of the group remain susceptible to any adverse movement in the prices of key raw materials, including rubber and metals such as aluminium and steel, which are highly volatile in nature. Further, the group has limited pricing flexibility owing to intense competition in the industry, which often compresses operating margins. Acuite notes that any abrupt change in raw material prices can lead to distortion in market prices and affect the profitability margins.

• ­Consistent growth in operating income by more than 30%.
• Significant improvement in the operating profitability position.
• Improvement in capital structure and debt protection metrics.

• ­Decline in revenue y-o-y and/or operating profitability margins below 6%.
• Stretch in working capital cycle.
• Deterioration in the financial risk profile owing to any large debt-funded capex.