Press Release

Press Release

March 23, 2026

TECH NIRMAN ISPAT PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	8.00	ACUITE BBB \| Stable \| Reaffirmed	-
Total Outstanding	8.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on Rs. 8.00 Cr. bank facilities of Tech Nirman Ispat Private Limited (TNIPL). The outlook remains ‘Stable'.

Rationale for rating
The rating reflects the moderation in scale of operations despite maintaining profitability margins in FY25. Further, the company achieved Rs.79 Cr. till February 2026 basis the increase in volume sold. The company’s financial risk profile is healthy characterized by comfortable capital structure, improved TOL/TNW and steady improvement in networth. The adequate liquidity of the company is backed by improving accruals, low dependence on short term borrowings and a high current ratio. Further, the security deposits received from the dealer/ distributors provide ample liquidity to the Company. The rating draws comfort from experienced management in the steel industry through their group entity and flagship company SRMB Srijan Private Limited, which also provides TMT bars for trading to TNIPL. The rating is constrained by intensive working capital cycle and cyclical nature of the industry. However, the company has a small scale of operations at present.

About the Company

West Bengal – Based, Tech Nirman Ispat Private Limited (TNIPL) was incorporated in 2013. The commercial operations began by the end of the year 2021. The company is engaged in trading TMT products under Top Tech Brand. The sourcing of the TMT is presently being affected through its group entity SRMB Srijan Private Limited. The operations of the company are headed by Mr. Nikunj Beriwala and Mr. Ashish Beriwala. The brand ambassador for Top Tech is Mr. Ranveer Singh.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered a standalone business and financial risk profile of TNIPL while arriving at the rating.

Key Rating Drivers

Strengths

Experience of management in steel industry
The company is led by Mr. Ashish Beriwala and Mr. Nikunj Beriwala, who bring decades of expertise in the steel industry. TNIPL sources TMT bars from their flagship company, SRMB Srijan Private Limited under the Top Tech brand. TNIPL has an exclusive distribution network over 1000 distributors and dealers across West Bengal, including regions like Murshidabad, Midnapur, Siliguri, Hoogly, Cooch Behar, Malda, Dinajpur, and Bankura. Acuite believes that the company will continue to derive benefit from the experienced management’s strong understanding of market dynamics.

Improvement in profitability margins
The EBITDA margin stood at 10.18 percent in FY25 as against 4.57 percent in FY24 mainly due to reduction in purchases of TMT products. The PAT margin stood at 7.29 percent in FY25 as against 3.08 percent in FY24. Further, EBITDA and PAT margins stood at 6.45% and 3.07% respectively till February 2026. Acuite believes that the margins will remain at similar levels over the medium term.

Healthy Financial risk profile
The financial risk profile of the company is marked healthy by steady improvement in net worth, nil gearing and strong debt protection metrics. The net worth of the company stood at Rs.18.70 Cr. as on March 31, 2025, as against Rs.12.13 Cr. as on March 31, 2024, due to accretion to reserves. The strong debt protection metrics of the company are marked by Interest coverage ratio (ICR) at 23.77 times and debt service coverage ratio (DSCR) at 17.77 times in FY2025. The TOL/TNW has improved to 0.59 times in FY25 from 1.28 times in FY24. Acuite believes that going forward the financial risk profile of the company will remain on similar levels over the medium term, in the absence of any major debt funded capex plans.

Weaknesses

Decline in operating income
TNIPL had registered a revenue of Rs.90.15 Cr. in FY25 as against Rs. 150.75 Cr. in FY24. The decline is due to corrections in TMT prices and decrease in volume sold. Further, the company registered Rs.79 Cr. till February 2026 basis the increase in volume sold. The company’s pricing remains comparatively lower than SRMB brand. Acuite believes that the scale of operations will gradually increase over the medium term.

Intensive working capital cycle
The working capital management of the company is intensively marked by Gross Current Assets (GCA) of 119 days as on March 31, 2025 as compared to 66 days as on March 31, 2024. The inventory days are nil because it deals in a dealer-distributor market as the orders of TMT bars are dispatched from SRMB factory. Further, the debtor period stood at 94 days as on March 31, 2025, as against 61 days as on Mar 31, 2024. The credit terms with customers are 30 days. Furthermore, the security deposits received from the dealer/ distributors provide ample liquidity to the Company. However, in exchange, TNIPL offers extended credit periods to these dealers. Against this the creditor days stood at 5 days in FY25, as against 9 days in FY24. Acuite believes the working capital cycle will remain at similar levels over the medium term.

Intense competition and inherent cyclicality in the steel industry
The company is operating in competitive and fragmented nature of industry due to the presence of a large number of unorganized players on account of low entry barriers. Moreover, demand for steel products predominantly depends on the construction and infrastructure sectors. Thus, the profit margins and sales of the company remain exposed to inherent cyclicality in these sectors.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Sharp scale-up in revenues by around 100% accompanied by improved profitability while continuing to maintain strong credit metrics

Potential triggers (individual or collective) for a downward rating action:

Any Elongation of the receivable cycle that may weaken company’s liquidity position
Any adverse impact on revenue and profitability margins
Increase in TOL/TNW to 2.0 times or above, indicating a deterioration in capital structure

Liquidity Position

Adequate

The company has adequate liquidity reflected from improving net cash accrual of Rs.6.57 Cr. during FY2025 as against repayment of nil debt obligations. In addition, average utilization of working capital limits at 8 per cent for fund-based limits ended Dec 25. The current ratio stood high at 4.62 times as on 31st March 2025. The cash and bank balances includes Rs.7.65 Cr. in FY25 as against Rs.1.27 Cr. in FY24. Acuite believes the liquidity position of the company will remain adequate, backed by improving accruals, efficient working capital management, low dependence on short term borrowings and a high current ratio 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.	90.15	150.75
PAT	Rs. Cr.	6.57	4.64
PAT Margin	(%)	7.29	3.08
Total Debt/Tangible Net Worth	Times	0.00	0.00
PBDIT/Interest	Times	23.77	9.07

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 Feb 2025	Cash Credit	Long Term	8.00	ACUITE BBB \| Stable (Assigned)

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.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	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.

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