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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
|---|---|---|---|---|---|
| Bank Loan Ratings | 0.00 | 28.64 | ACUITE BBB | Reaffirmed & Withdrawn | - | RBI |
| Bank Loan Ratings | 0.00 | 13.10 | Not Applicable | Withdrawn | - | RBI |
| Total Outstanding | 0.00 | 0.00 | - | - | - |
| Total Withdrawn | 0.00 | 41.74 | - | - | - |
| 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 |
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Acuite has reaffirmed and withdrawn its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on Rs 28.64 Cr. bank facilities of S Pyarelal Ispat Private Limited (SPIPL). The rating has been withdrawn on account of the request received from the issuer and the No Objection Certificate(NOC) received from the banker.
Acuité has also withdrawn its long-term bank facilities of Rs.13.10 Cr. of S Pyarelal Ispat Private Limited (SPIPL) without assigning any rating as it is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The withdrawal is in accordance with Acuite's policy on withdrawal of ratings as applicable to the respective facility / instrument. Rationale for ratingThe rating factors moderate improvement in operating performance in FY26 driven by materialisation of recent capex especially in structures business. The rating further takes into cognisance of the group’s ongoing capex of installation of 21MW solar plant and signed purchase power agreement for the period of 25 years. The rating also draws comfort from the group’s efficient working capital management, adequate liquidity position, and the presence of a strong promoter group – Sambhv Steel Tubes Limited (Acuite A/Stable) with extensive industry experience. However, the rating remains constrained by the group’s moderate financial risk profile, along with intense competition and the inherently cyclical nature of the steel industry. |
About the Company |
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Incorporated in 2009 and based in Raipur, SPIPL is engaged in the manufacturing of billets and structural products such as channels and angles. It has an installed capacity of 59,900 metric tonnes per annum (MTPA) for billets and 56,905 MTPA for mild steel (MS) structures. All structures and strips manufactured by SPIPL are sold exclusively to GSIPL The current directors of the company are Mr. Manoj Kumar Goyal, Mr. Rinku Goyal and Mr. Anuj Jindal.
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| About the Group |
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Incorporated in 1989, GSIPL is based in Raipur and engaged in the manufacturing of billets, mild steel (MS) strips, MS pipes, and galvanized iron (GI) pipes. The company has an installed production capacity of 59,800 metric tonnes (MT) for billets, 56,905 MT for MS strips, 350,000 MT for MS pipes, and 60,000 MT for GI pipes. The current directors of the company are Mr. Ritesh Jindal, Ms. Archana Goyal and Mr. Ashish Goyal.
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Unsupported Rating |
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Not applicable
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Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has considered business and financial risk profile of S Pyarelal Ispat Private Limited (SPIPL), and Ganpati Sponge Iron Private Limited (GSIPL), together referred to as the ‘S Pyarelal group’ or the ‘group’. The consolidation is in the view of common management, strong operational and financial linkages between the entities and similar line of business activities.
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Key Rating Drivers |
Strengths |
| Strong promoter group
The promoters of the group have been associated with the iron & steel industry for over three decades. The group has an integrated operations with capacities to produce sponge iron, steel billets and long products across its other group companies. Further, the group shares common promoters with Sambhv Steel tubes Limited (Acuite A/Stable) which is an integrated steel player having a capacity of 18,14,000 MT. In addition to this, the group has a locational advantage as the plants are in the industrial area of Raipur, Chhattisgarh, located near to various steel plants and sources of raw materials. Further, the plants are well connected through road and rail transport thereby facilitates easy transportation of raw materials and finished goods. Improvement in operating performance The group’s revenue increased to Rs. 850.91 Cr., registering a growth of 4.87 percent in FY2026 (Prov.) as compared to Rs. 811.41 Cr. in FY2025 Cr. The group’s operating margin improved to 4.01 percent in FY2026 (Prov.) from 2.15 percent in FY2025, mainly on account of a change in product mix and overall dip in material costs, which constitute around 70–80 percent of total sales. . The PAT margin however remain modest at 0.92 percent in FY2026 (Prov.), though improved from negative levels in FY2025, driven by improvement in operating performance. Efficient working capital management The group’s working capital management remains efficient, as reflected by gross current assets (GCA) days of 62 days in FY2026 (Prov.), broadly in line with FY2025. The working capital cycle continues to be supported by stable inventory and receivable levels. However, a portion of funds remains locked in other current assets, mainly in the form of advances given to suppliers. The inventory days stood at 30 days in FY2026 (Prov.), supported by the group’s policy of maintaining adequate raw material inventory (iron ore and coal) to ensure uninterrupted production and mitigate volatility in raw material prices. The receivable days remained comfortable at 17 days in FY2026 (Prov.), reflecting efficient collection mechanisms. |
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Moderate financial risk profileThe group’s financial risk profile remains moderate, supported by improving net worth, comfortable leverage, and adequate debt protection metrics. The tangible net worth increased to Rs. 140.74 Cr. as on March 31, 2026 (Prov.) from Rs. 112.20 Cr. as on March 31, 2025, primarily driven by accretion of profits to reserves and infusion of subordinated unsecured loans of Rs 45.14 Cr for capex funding. The group’s total debt increased to Rs. 163.01 Cr. in FY2026 (Prov.) from Rs. 110.18 Cr. in FY2025, mainly due to debt-funded capex and higher working capital borrowings to support the scale of operations. Consequently, the gearing increased to 1.16 times as on March 31, 2026 (Prov.), compared to 0.98 times as on March 31, 2025. Despite the increase in debt levels, the debt protection metrics remained adequate, with the interest coverage ratio (ICR) at 2.32 times and debt service coverage ratio (DSCR) at 1.31 times in FY2026 (Prov.), reflecting sufficient cash accruals relative to debt obligations. Intense competition and inherent cyclical nature of the steel industry The downstream steel industry remains heavily fragmented and unorganised. Therefore, the group is exposed to intense competitive pressures from large number of organised and unorganised players along with its exposure to inherent cyclical nature of the steel industry. Additionally, prices of raw materials and products are highly volatile in nature causing an adverse impact on the profitability of the group. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
| Not applicable
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| Potential triggers (individual or collective) for a downward rating action: |
| Not applicable
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Liquidity Position |
| Adequate |
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The group’s liquidity position remains adequate, supported by sufficient cash accruals vis-à-vis its repayment obligations. Net cash accruals stood at Rs. 18.95 Cr in FY2026 (prov.), as against repayment obligations of Rs. 10.64 Cr for the same period. Liquidity is further supported by cash& bank balance (including fixed deposit) of Rs 3.40 Cr and current ratio stood moderate at 1.09 times as on March 31,2026(Prov.) The average bank limit utilisation by the group remained moderately utilised with fund-based facilities utilised at 76.07% and non-fund-based facilities being utilised at 50% during the last six months ended in March-26.
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| Outlook-Not applicable |
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Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 26 (Provisional) | FY 25 (Actual) |
|---|---|---|---|
| Operating Income | Rs. Cr. | 850.91 | 811.41 |
| PAT | Rs. Cr. | 7.82 | (3.81) |
| PAT Margin | (%) | 0.92 | (0.47) |
| Total Debt/Tangible Net Worth | Times | 1.16 | 0.98 |
| PBDIT/Interest | Times | 2.32 | 1.36 |
Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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Any Other Information |
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None
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Applicable Criteria |
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• 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 |
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| 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. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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