Press Release

January 08, 2026

SYLVAN PLYBOARD INDIA LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	7.00	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	64.00	ACUITE BBB \| Stable \| Reaffirmed	-
Bank Loan Ratings	10.27	-	ACUITE A3+ \| Assigned
Bank Loan Ratings	50.73	-	ACUITE A3+ \| Reaffirmed
Total Outstanding	132.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and its short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on Rs.114.73 Cr. of Sylvan Plyboard India Limited(SPIL). The outlook remains ‘Stable’.

Acuite has assigned the long term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and its short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on Rs.17.27 Cr. of Sylvan Plyboard India Limited(SPIL). The outlook is ‘Stable’.

Rationale for rating

The rating reflects the company’s stable business risk profile, supported by consistent revenue growth driven by higher sales volumes along with price realizations for their key products which also led to increase in profitability margins during FY25. Furthermore, the company reported revenue of Rs.120.43 crore in H1FY26, up from Rs.108.28 crore in H1FY25, benefitted from expanded capacities in FY26. The financial risk profile remains healthy due to improving networth through accretion of reserves and infusion of IPO proceeds in Q2FY2025 and comfortable capital structure. The liquidity remains adequate backed by sufficient cash accruals against debt repayment, comfortable current ratio, high bank limit utilization and absence of any major debt funded capex plans. The rating also continues to draw benefits from the longstanding experience of the promoters in the industry. These strengths are constrained by working capital intensive nature of operations and fragmented and unorganised nature of the industry.

About the Company

Sylvan Plyboard India Limited (SPIL), incorporated in August 2002, originally operated as Singh Brothers Exim Pvt. Ltd. before adopting its current name in March 2013. The company got listed on NSE SME platform in July 2024. SPIL is engaged in manufacturing of various wood products such as face veneer, sawn timber, plywood, block board, flush door and flexi ply across grades and thickness. The company markets its products under the brand name of “Sylvan”, through its distribution network of more than 6000 branch partners. The manufacturing facility has been strategically located in proximity to Kolkata Port leading to easier imports.
The company's promoters are Mr. Jai Prakash Singh and his son, Mr. Anand Kumar Singh.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of SPIL to arrive at this rating.

Key Rating Drivers

Strengths

Long standing experience of the promoters in the industry
The promoters, Mr. Jai Prakash Singh and Mr. Anand Kumar Singh, bring over four decades of industry experience, which has enabled the company to build strong supplier and customer relationships and establish an extensive distribution network. SPIL now has a presence across 18 states, including recent expansion into Jammu & Kashmir and Chhattisgarh, with strong performance in West Bengal, Odisha, Uttar Pradesh, Maharashtra, Telangana, and Karnataka. Acuite derives comfort from the long experience of the management and believes this will benefit the company going forward, resulting in increase in the scale of operations.

Increase in scale of operations
SPIL reported an operating income of Rs. 242.44 crore in FY 2025 as against Rs. 223.67 crore in FY 2024. The increase in operating income was because of growth in volume sales along with price realizations. Further, the company has achieved revenues of around Rs.120.43 Cr. in H1FY26 as against Rs. 108.28 Cr. in H1FY2025. Growth in sales volume was driven by commissioning of new machines during FY25 and FY26.

The EBITDA margin increased to 8.86 percent in FY2025 as against 8.47 percent in FY2024 due to marginal decline in raw material prices and automated machineries improving overall operational efficiencies. The PAT margin stood at 2.85 percent in FY25 as against 2.72 percent in FY24. The EBDITA margin and PAT margins stood at 9.20 per cent and 3.14 per cent respectively in H1FY26. Acuite believes that the scale of operations will improve over the medium term with augmentation of expanded capacities.

Healthy Financial Risk Profile
The financial risk profile of the company is healthy marked by improving net worth, gearing below unity and moderate debt protection metrics. The tangible net worth of the company stood at Rs.124.93 Cr. in FY2025 as against Rs. 96.17 Cr. in FY2024 due to infusion of IPO proceeds of Rs.22.08 Cr. and accretion of reserves. The gearing stood comfortable at 0.51 times in FY25 as against 0.57 times in FY24. The debt protection metrics stood moderate marked by Interest coverage ratio (ICR) of 2.15 times and debt service coverage ratio (DSCR) of 1.43 times for FY2025. Acuite believes that the financial risk profile will remain healthy over the medium term supported by comfortable capital structure and absence of debt funded capex plan.

Weaknesses

Intensive Working Capital Cycle
The working capital cycle remains intensive as evident from gross current assets (GCA) of 345 days for FY2025 as against 306 days for FY2024. The debtor days stood at 78 days in FY25 as against 66 days in FY2024. The credit terms vary with terms and relationship with dealers but generally it is around 60-90 days. Inventory days stood at 274 days in FY2025 as against 248 days in FY2024 due to 3–5 months lead time for imported raw materials, the company maintains 6–8 months of inventory. The creditor days stood at 158 days in FY2025 as against 152 days in FY24. Most of the suppliers of the company provides a credit of 180 to 270 days backed by letter of credit. Acuite believes that the working capital operations of the company will remain at the similar levels over the medium term.

Fragmented nature of the industry
The industry is highly fragmented and unorganized in nature thereby putting pressure on the profitability margins of the companies engaged in the industry. Furthermore, due to low entry barriers, the competition gets intensified, which put pressure on profitability of the existing as well as new players. Accordingly, the margins of the company may fluctuate, depending upon price movement and level of competition.

Rating Sensitivities

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

Liquidity Position

Adequate

The company has adequate liquidity marked by sufficient net cash accruals of Rs. 9.94 Cr. in FY25 as against debt obligations of Rs. 3.83 Cr. over the same period. The cash and bank balances stood at Rs. 10.11 Cr. for FY2025. Further, the current ratio of the company stood moderate at 1.71 times in FY2025. The working capital cycle remains intensive marked by Gross Current Assets (GCA) of 345 days for FY2025 as against 306 days for FY2024. The average bank limit utilization for fund-based limits was ~86.53 percent and non-fund based limits was 83.19% for the last six months ended October 2025. Acuite believes that the liquidity of the company is likely to remain adequate over the medium term on account of sufficient cash accruals against debt obligations, comfortable current ratio, cash balances albeit high dependence on bank limit for funding working capital requirements over the medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	242.44	223.67
PAT	Rs. Cr.	6.90	6.09
PAT Margin	(%)	2.85	2.72
Total Debt/Tangible Net Worth	Times	0.51	0.57
PBDIT/Interest	Times	2.15	2.30

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
29 Nov 2024	Letter of Credit	Short Term	21.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	0.75	ACUITE A3+ (Upgraded from ACUITE A3)
	Letter of Credit	Short Term	21.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Letter of Credit	Short Term	3.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	0.25	ACUITE A3+ (Upgraded from ACUITE A3)
	Cash Credit	Long Term	3.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Term Loan	Long Term	2.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Cash Credit	Long Term	16.04	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Term Loan	Long Term	1.83	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Term Loan	Long Term	0.46	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Term Loan	Long Term	0.92	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Covid Emergency Line.	Long Term	4.44	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Proposed Long Term Bank Facility	Long Term	0.54	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
	Cash Credit	Long Term	39.50	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Positive)
13 May 2024	Letter of Credit	Short Term	21.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.75	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.25	ACUITE A3 (Assigned)
	Letter of Credit	Short Term	21.00	ACUITE A3 (Reaffirmed)
	Letter of Credit	Short Term	3.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	39.50	ACUITE BBB- \| Positive (Reaffirmed )
	Term Loan	Long Term	2.00	ACUITE BBB- \| Positive (Reaffirmed )
	Covid Emergency Line.	Long Term	4.44	ACUITE BBB- \| Positive (Reaffirmed )
	Cash Credit	Long Term	16.04	ACUITE BBB- \| Positive (Reaffirmed )
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Positive (Assigned)
	Term Loan	Long Term	1.83	ACUITE BBB- \| Positive (Assigned)
	Term Loan	Long Term	0.46	ACUITE BBB- \| Positive (Assigned)
	Term Loan	Long Term	0.92	ACUITE BBB- \| Positive (Assigned)
	Proposed Long Term Bank Facility	Long Term	0.54	ACUITE BBB- \| Positive (Assigned)
14 Feb 2023	Letter of Credit	Short Term	21.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.75	ACUITE A3 (Reaffirmed)
	Letter of Credit	Short Term	21.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	39.50	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	7.76	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.50	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	2.22	ACUITE BBB- \| Stable (Reaffirmed)

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 (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A3+ \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.50	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.	42.50	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.	7.00	Simple	ACUITE BBB \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	30 Oct 2026	0.34	Simple	ACUITE BBB \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	24.00	Simple	ACUITE A3+ \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.73	Simple	ACUITE A3+ \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.27	Simple	ACUITE A3+ \| Assigned
Union Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE A3+ \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.29	Simple	ACUITE BBB \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Term Loan	14 Aug 2023	Not avl. / Not appl.	31 Jul 2028	1.13	Simple	ACUITE BBB \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2027	1.33	Simple	ACUITE BBB \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Sep 2028	0.91	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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:

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