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
Acuite has reaffirmed its long term rating of “ACUITE BBB” (read as ACUITE triple B) and short term rating of “ACUITE A3+” (read as ACUITE A three plus) for Rs.125.00 Cr. bank loan facilities of Trisquare Switchgears Private Limited. The outlook is ‘Stable’.
Further, Acuite has assigned the long term rating of “ACUITE BBB” (read as ACUITE triple B) on the Rs. 6.00 Cr. bank loan facilities of Trisquare Switchgears Private Limited. The outlook is “Stable”.
Rationale for rating:
The rating reaffirmation takes into account the company’s established track record in the electrical control panel manufacturing industry, experienced management, and growth in scale of operations supported by healthy order execution. The rating further factors in its established customer relationships, moderate financial risk profile marked by comfortable capital structure and debt protection metrics, and adequate liquidity position supported by accrual generation and moderate bank limit utilisation. The rating also derives comfort from the healthy order book providing revenue visibility over the near term. However, the rating remains constrained by moderately intensive working capital operations and exposure to raw material price volatility and competitive nature of the industry.
About the Company
Incorporated in 2004, Trisquare Switchgears Private Limited is based in New Delhi. The company specializes in the design and manufacturing of electrical equipment and control panels. The current directors of the company are Mr. Nitin Mittal and Mrs. Shikha Mittal.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profiles of Trisquare Switchgears Private Limited (TSPL) to arrive at the rating.
Key Rating Drivers
Strengths
Established track record of operations and Experienced management
TSPL was incorporated in 2004 and is engaged in the manufacturing of electrical control panels, delivering low voltage (LV) and medium voltage (MV) switchgear solutions. The management has been associated with the company for more than two decades, which has enabled the company in establishing healthy relationships with its suppliers and customers. Acuite believes that the company will continue to derive benefit from the established track record of operations and management’s strong understanding of market dynamics.
Improving scale of operations albeit moderation in profitability
The operating income of the company improved by ~28% and stood at Rs. 481.93 Cr. in FY2026 as against Rs. 375.65 Cr. in FY2025. The growth was driven by higher execution of orders, improved realizations, and a favourable product mix. The revenue profile continued to be largely supported by the HT and LT Electrical Control Panel segments, with the HT segment remaining the primary contributor. The EBITDA margin declined and stood at 7.73 percent in FY2026 as against 9.69 percent in FY2025. The decline in operating margin is on account of increase in raw material costs incurred during the year. Further, the PAT margin also declined and stood at 3.71 percent in FY2026 from 5.61 percent in FY2025. Additionally, the company plans to add automatic assembly machinery in FY2028, which will support enhancing the operational efficiency and deliver higher-quality customized products with faster turnaround times. Further, the company has unexecuted orders of Rs.639.81 Cr. as of Sept 2026 and going forward, the company expects to maintain its business risk profile on the back of the execution of its order book as well as upcoming plans of adding machinery. However, the ability of the company to improve its profitability margins while scaling up its operations in the near to medium term will remain a key rating sensitivity.
Moderate Financial Risk Profile
The financial risk profile of the company is moderate marked by moderate net worth, gearing below unity and comfortable debt protection metrics. The net worth of the company stood at Rs.75.80 Cr. in FY2026 as against Rs.56.91 Cr. in FY2025 due to accretion of reserves and issuance of non-convertible preference shares. The gearing (Debt-Equity) stood below unity at 0.52 times in FY2026 as compared to 0.59 times in FY2025. The total debt of the company stood at Rs. 39.35 Cr. as on March 31, 2026, as against Rs. 33.73 Cr. as on March 31, 2025. The TOL/TNW stood of the company stood at 1.87 times as on 31 March 2026 as against 2.38 times as on 31 March 2025. The debt protection metrics of the company deteriorated yet remained comfortable as reflected by debt service coverage ratio of 3.77 times for FY2026 as against 4.31 times for FY2025 and interest coverage ratio stood at 6.12 times for FY2026 as against 6.88 times for FY2025. The Net Cash Accruals to Total debt stood at of 0.61 times for FY2026 compared to 0.73 times in the previous year. Acuite believes that the financial risk profile will remain on similar levels over the medium term.
Weaknesses
Moderately Intensive Working Capital Operations
The company has a moderately intensive working capital operation as reflected from Gross Current Assets (GCA days) of 121 days in FY2026 as against 141 days in FY2025. The improvement in GCA days is driven by improved receivables and inventory cycle. The inventory days stood at 55 days in FY2026 as against 74 days in FY2025. The company is required to maintain adequate inventory in the form of raw material and work in progress due to its large product portfolio. Further, the debtor days stood at 57 days in FY2026 as against 67 days in FY2025 and the creditor days stood at 76 days in FY2026 as against 96 days in FY2025. Acuite expects the working capital operations of the company to remain in similar range in near to medium term owing to nature of operations.
Highly competitive nature of the industry and Susceptibility of margins to fluctuations in raw material prices
The company remains exposed to inherent challenges of operating in a highly competitive electrical equipment industry, where the presence of numerous organized and unorganized players limits pricing power and often compresses operating margins. Additionally, the company’s profitability is susceptible to volatility in the prices of key raw materials such as steel, aluminium, copper, cables, electrical accessories, etc. In case of any sharp raw material cost fluctuations, the ability of the company to sustain its operating profitability margins will remain a key monitorable factor.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustained improvement in scale of operations while maintaining operating margins above 8 percent on a sustained basis.
Strengthening of the financial risk profile through higher accrual generation and moderation in leverage levels.
Improvement in working capital cycle, resulting in lower reliance on bank borrowings.
Potential triggers (individual or collective) for a downward rating action:
Significant moderation in business performance, with operating income declining below Rs. 400 Cr. and weakening profitability.
Deterioration in the financial risk profile, owing to any larger than expected debt-funded capex.
Stretch in the working capital cycle.
Liquidity Position
Adequate
The liquidity profile of company is adequate, marked by net cash accruals of Rs.24.18 Cr. in FY2026 against the debt repayment obligations of Rs.1.83 Cr. in the same period. Going forward, the company is expected to generate cash accrual in the range of Rs.30.00 to Rs.40.00 Cr. as against maturing repayment obligations in the range of 3.50-4.00 Cr. over the medium term. The company maintained unencumbered cash and bank balances of Rs. 6.02 Cr. as on March 31, 2026. The current ratio of the company stood at 1.28 times as on March 31, 2026. Further, the average fund based, and non-fund-based bank limit utilization stood at 59.09% and 57.51% respectively in last five months ending July 2026. Acuite expects the liquidity profile of the company to remain adequate in near to medium term supported by sufficient net cash accruals, moderate dependency on the working capital limits, and moderate current ratio, albeit debt-funded capex plans in the near to medium term.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Actual)
FY 25 (Actual)
Operating Income
Rs. Cr.
481.93
375.65
PAT
Rs. Cr.
17.89
21.06
PAT Margin
(%)
3.71
5.61
Total Debt/Tangible Net Worth
Times
0.52
0.59
PBDIT/Interest
Times
6.12
6.88
Status of non-cooperation with previous CRA (if applicable)
ACUITE A4+
(Downgraded & Issuer not co-operating* from ACUITE A3)
Cash Credit
Long Term
25.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Term Loan
Long Term
0.18
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Term Loan
Long Term
1.98
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Covid Emergency Line.
Long Term
0.19
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
Covid Emergency Line.
Long Term
2.65
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB- | Stable)
24 Apr 2024
Bank Guarantee (BLR)
Short Term
35.00
ACUITE A3
(Assigned)
Cash Credit
Long Term
25.00
ACUITE BBB- | Stable
(Assigned)
Term Loan
Long Term
0.18
ACUITE BBB- | Stable
(Assigned)
Term Loan
Long Term
1.98
ACUITE BBB- | Stable
(Assigned)
Covid Emergency Line.
Long Term
0.19
ACUITE BBB- | Stable
(Assigned)
Covid Emergency Line.
Long Term
2.65
ACUITE BBB- | Stable
(Assigned)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Punjab and Sind Bank
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
55.00
Simple
ACUITE A3+ | Reaffirmed
Punjab and Sind Bank
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
45.00
Simple
ACUITE BBB | Stable | Reaffirmed
Punjab and Sind Bank
Not avl. / Not appl.
Covid Emergency Line.
Unlisted
RBI
31 Dec 2023
Not avl. / Not appl.
31 Dec 2026
0.31
Simple
ACUITE BBB | Stable | Reaffirmed
Not Applicable
Not avl. / Not appl.
Proposed Long Term Bank Facility
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
16.82
Simple
ACUITE BBB | Stable | Reaffirmed
Not Applicable
Not avl. / Not appl.
Proposed Long Term Bank Facility
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
6.00
Simple
ACUITE BBB | Stable | Assigned
Punjab and Sind Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
03 Jan 2026
Not avl. / Not appl.
31 Mar 2027
0.66
Simple
ACUITE BBB | Stable | Reaffirmed
Punjab and Sind Bank
Not avl. / Not appl.
Term Loan
Unlisted
RBI
21 Jul 2023
Not avl. / Not appl.
30 Jun 2028
0.94
Simple
ACUITE BBB | Stable | Reaffirmed
Punjab and Sind Bank
Not avl. / Not appl.
Working Capital Term Loan
Unlisted
RBI
16 Jun 2026
Not avl. / Not appl.
31 May 2031
6.27
Simple
ACUITE BBB | Stable | Reaffirmed
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.
Contacts
List of instruments and names of regulators of the instruments
