Press Release

Press Release

December 24, 2025

SUBTLEWEIGH ELECTRIC INDIA PRIVATE LIMITED
Rating Assigned and Upgraded

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	15.00	ACUITE BB \| Stable \| Assigned	-
Bank Loan Ratings	12.00	ACUITE BB \| Stable \| Upgraded	-
Bank Loan Ratings	3.00	-	ACUITE A4+ \| Assigned
Bank Loan Ratings	3.00	-	ACUITE A4+ \| Upgraded
Total Outstanding	33.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has upgraded its long-term rating to ‘ACUITE BB’ (read as ACUITE double B) from 'ACUITE BB-' (read as ACUITE double B minus) and also upgraded its short-term rating to ‘ACUITE A4+' (read as ACUITE A four plus) from ‘ACUITE A4' (read as ACUITE A four) on the Rs. 15.00 crore bank facilities of Subtleweigh Electric India Private Limited (SEIPL). The outlook is ‘Stable’.
Also, Acuité has assigned its long-term rating of ‘ACUITE BB’ (read as ACUITE double B) and also assigned its short-term rating of ‘ACUITE A4+' (read as ACUITE A four plus) on Rs. 18.00 Cr. bank facilities of Subtleweigh Electric India Private Limited (SEIPL). The outlook is ‘Stable’.

Rationale for rating
The rating upgrade considers sustained improvement in the revenues to Rs.115.74 crore in FY2024.The operating profitability improved to 6.93% in FY2025, from 5.80% in FY2024. The increase in revenues was attributed to a healthy order book position and its timely execution. The company has achieved Rs.90.00 Crs. till November 2025 and has an order book of Rs.72.28 Cr till September 2025 to be completed by March 2026. The company's Profit After Tax (PAT) margin rose to 4.43% as on FY2025 as compared to 3.61% in FY2024. The company has a moderate financial risk profile with improvement in net worth and moderate debt protection metrices and moderately intensive working capital cycle. The company is planning a ?10–15 crore expansion project to set up a new manufacturing unit on about 8 acres of land (1.5 acres already acquired), aiming to eventually shift all fabrication activities to the new plant. The liquidity is adequate with sufficient net cash accruals against debt repayment and moderate bank limit utilization. The rating further draws comfort from the benefits derived from experienced management and long track record of operation. However, these strengths are partly offset by vulnerability of profitability owing to volatility in commodity prices.

About the Company

Incorporated in the year of 2003 Subtleweigh Electric India Private Limited is a Kolkata based company. The company has its registered office located at, West Bengal. Mr. Krishna pant Baig and Mr. Mirza Jawed Baig are directors of the company. The company manufactures automation and power distribution systems for industries such as steel, iron, pharmaceuticals, and water projects.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken a standalone view of the business and financial risk profile of SEIPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operation:
The company has a long track record of operations with management having over two decades of experience in industrial automation industry. This has helped the company to establish healthy relationships with its customers and suppliers The company has a diversified geographical presence like West Bengal, Jharkhand, Odisha and others. Acuite believes that the company will continue to benefit from the experienced management and long track record of operations over the medium term.

Improving scale of operations and profitability
The company recorded revenues of Rs. 177.16 crore in FY2025, reflecting a healthy growth from Rs. 115.74 crore in FY2024. The increase in revenues was attributed to a healthy order book position and the timely execution of orders. The company has an order book of Rs.72.28 Cr till September 2025 to be completed by March 2026, and more orders are expected. The company receives majority of orders from pharmaceuticals, power sector, water projects from Government and others.
The operating margin increased to 6.93% in FY2025, from 5.80% in FY2024.This improvement was driven by better raw material pricing. The company's Profit After Tax (PAT) margin rose to 4.43% as on FY2025 as compared to 3.61% in FY2024.
The company's Return on Capital Employed (ROCE) stood at 40.48% in FY2025, as against 28.59% in FY2024.
Acuite believes that the company is likely to sustain its operating performance backed by order book providing its revenue visibility over the medium term.

Moderate financial risk profile
The company’s financial risk profile is moderate marked by increase in net worth, comfortable gearing and healthy debt protection metrics. The tangible net worth has improved and stood at Rs. 20.26 Cr as on March 31, FY2025 as compared to Rs.12.47 as on March 31, FY2024 due to accretion to reserves. The gearing of the company stood comfortable at 0.83 times in FY2025 as against 0.71 times in FY2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.11 times as on FY2025 as against 4.47 times as on FY2024. The debt protection metrices of the company remain healthy marked by Interest coverage ratio (ICR) of 10.34 times and debt service coverage ratio (DSCR) of 4.67 times for FY2025. The net cash accruals to total debt (NCA/TD) stood at 0.53 times in FY2024.
Acuité believes that the company’s financial risk profile will remain moderate due to healthy capital structure and debt protection metrices.

Weaknesses

Moderate Working capital intensive nature of operations
The operations of the company are moderately intensive in nature as evident from Gross Current Assets (GCA) of 135 days as on March 31, 2025, as against 179 days as on March 31, 2024. The average execution for production process is approximately 3 to 4 months. The debtor days stood at 61 days in FY2025, up from 57 days in FY2024. The inventory days stood at 64 days in FY2025 from 108 days in FY2024. After the installation and operation of the plant, as well as the final execution, payment is often not released immediately due to retention money policy. The credit terms vary depending on the design plan; typically, a 10-20% advance is provided through a bank guarantee, with the remaining payment made either before or after the supply. Against this, the creditor days stood at 72 days as on March 31, 2025, as against 88 days as on March 31, 2024. The company makes an advance payment of 30 percent to its suppliers and balance is in line with collection cycle. Acuite believes that the working capital cycle is expected to remain at similar levels over the medium term.

Vulnerability of profitability owing to volatility in commodity prices
The profitability margins of the company are susceptible to volatility in commodity prices especially iron and steel. Significant changes in commodity prices might impact the margins of the company. In the absence of any price escalation clauses in some contracts, it might impact the overall profitability in case of adverse pricing movements. Acuité believes that profitability of the company will remain susceptible to volatility in commodity prices in the near to medium term.

Rating Sensitivities

Movement in the revenues and profitability
Working capital cycle
Debt funded capex plans

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs. 8.94 Cr. in FY2025 as against Rs. 0.93 Cr. of debt obligation over the same period. Going forward, the net cash accruals are expected to be sufficient around Rs.7-8 Cr to meet debt obligations of ~Rs. 2.00 Crs. in next two years. The cash and bank balances stood at Rs. 0.03 Cr for FY 2025. Further, the current ratio of the company stood low at 1.16 times in FY2025. The bank limit utilization for fund based is ~66.92 percent over the last six months ended in September 2025.
Acuité believes that the liquidity of the company is likely to remain adequate over the medium term backed by steady accruals against long term debt repayments, moderate utilization of short-term borrowings albeit low current ratio.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	177.16	115.74
PAT	Rs. Cr.	7.84	4.18
PAT Margin	(%)	4.43	3.61
Total Debt/Tangible Net Worth	Times	0.83	0.71
PBDIT/Interest	Times	10.34	7.43

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
• Service Sector: https://www.acuite.in/view-rating-criteria-50.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
03 Apr 2025	Bank Guarantee (BLR)	Short Term	2.00	ACUITE A4 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	1.00	ACUITE A4 (Reaffirmed)
	Secured Overdraft	Long Term	7.50	ACUITE BB- \| Stable (Reaffirmed)
	Bills Discounting	Long Term	3.00	ACUITE BB- \| Stable (Reaffirmed)
	Working Capital Term Loan	Long Term	0.72	ACUITE BB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	0.78	ACUITE BB- \| Stable (Reaffirmed)
04 Jan 2024	Bank Guarantee (BLR)	Short Term	2.00	ACUITE A4 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	1.00	ACUITE A4 (Reaffirmed)
	Bills Discounting	Long Term	2.00	ACUITE BB- \| Stable (Upgraded from ACUITE B+)
	Secured Overdraft	Long Term	3.00	ACUITE BB- \| Stable (Upgraded from ACUITE B+)
	Working Capital Term Loan	Long Term	2.00	ACUITE BB- \| Stable (Upgraded from ACUITE B+)
	Cash Credit	Long Term	5.00	ACUITE BB- \| Stable (Assigned)
09 May 2023	Bank Guarantee (BLR)	Short Term	2.00	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Bank Guarantee (BLR)	Short Term	1.00	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Secured Overdraft	Long Term	3.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
	Bills Discounting	Long Term	2.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
	Working Capital Term Loan	Long Term	2.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
08 Feb 2022	Bank Guarantee/Letter of Guarantee	Short Term	1.00	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Bank Guarantee/Letter of Guarantee	Short Term	2.00	ACUITE A4 (Reaffirmed & Issuer not co-operating*)
	Working Capital Term Loan	Long Term	2.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
	Bills Discounting	Long Term	2.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)
	Secured Overdraft	Long Term	3.00	ACUITE B+ (Reaffirmed & Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE A4+ \| Upgraded ( from ACUITE A4 )
H D F C Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A4+ \| Upgraded ( from ACUITE A4 )
H D F C Bank Limited	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BB \| Stable \| Upgraded ( from ACUITE BB- )
H D F C Bank Limited	Not avl. / Not appl.	Bills Discounting	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE A4+ \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.78	Simple	ACUITE BB \| Stable \| Upgraded ( from ACUITE BB- )
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.93	Simple	ACUITE BB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.50	Simple	ACUITE BB \| Stable \| Upgraded ( from ACUITE BB- )
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	07 Jan 2030	1.12	Simple	ACUITE BB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	07 Oct 2029	1.13	Simple	ACUITE BB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	07 Apr 2029	1.48	Simple	ACUITE BB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	07 Jan 2027	0.34	Simple	ACUITE BB \| Stable \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Working Capital Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	15 Aug 2025	0.72	Simple	ACUITE BB \| Stable \| Upgraded ( from ACUITE BB- )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Abhishek Singh
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.