Press Release

Press Release

October 01, 2026

Titan Intech Limited
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	50.00	0.00	ACUITE BB- \| Stable \| Reaffirmed	-	SEBI
Total Outstanding	50.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

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 BB-' (read as ACUITE double B minus) on Rs.50 Cr. proposed non-convertible debentures (NCDs) of Titan Intech Limited (TIL). The outlook is 'Stable'.

Rationale for rating

The rating reaffirmation considers marginal recovery in revenues albeit small scale of operations while maintaining healthy profitability margins and financial risk profile. The rating also factors in the experienced management and long operational track record of the company. The rating is, however, remained constrained by the working capital intensive resulted in elevated dependence on working capital funding for inventory build-up and execution and stabilisation risk in its expansion in LED business vertical.

About the Company

Incorporated in 1984, Titan Intech Limited (TIL) is engaged in the design & development of LED video displays, LED luminaires, high-end electronic as well as telecom software. It also provides software development and technical services to its clients in USA. The directors of the company are Mr. Zameer Ahammed Kottala, Mr. Kumarraju Rudraraju, Mr. Bharath Pavuluri, Mr. Narsimharao Venkata Laxmi Venuturupalle, Mr. Bhavani Prasad Kale, Mr. Venkata Subba Rao Elchuri, Mr. Sunil Ghanathe and Mr. Padmasree Kunapareddy. The registered office is located at Andhra Pradesh.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Titan Intech Limited (TIL) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and long operational track record
The company is being managed by Mr. Kottala Zameer Ahammed, Mr. Mangala Sachin Salva, Mr. Sunil Kumar Ghanathe and others who possess an average experience of 35 years from fields such as banking, infrastructure and IT. The management's extensive experience has helped maintaining customer base in USA for software business. The company also undertakes LED display units assembly orders and currently has ~Rs.37 Cr. orders for this segment. Acuite believes, the experience of the management will help in improving the business risk profile of the company.

Recovery in revenues amidst small scale of operations while maintaining healthy profitability

TIL reported recovery in its revenues which stood at Rs.34.01 Cr. in FY2026 as compared to Rs.27.02 Cr in FY2025 and Rs. 44.05 Cr in FY2024. the improvement was primarily driven by the increased contribution from the LED business following the company’s sharper focus on this vertical from October 2025, while the software/ITenabled support services business continued to contribute. The company reported an operating profit margin of 34.23 per cent in FY26 compared to 29.57 percent in FY2025 and 22.67 percent in FY2024, supported by its presence in relatively high-margin software-services business. During FY2026, the addition and development of the LED vertical resulted in higher employee costs and other operating expenses owing to incremental manpower and operating infrastructure. Subsequently the PAT margin had improved to 16.41 per cent in FY26 as against 14.70 percent in FY2025 and 12.78 percent in FY2024. Further, TIL reported healthy revenue growth during Q1FY27, with net sales increasing to Rs. 7.32 crore from Rs. 4.97 crore in Q1FY26. However, operating profitability weakened, with EBITDA declining to Rs. 0.58 crore from Rs. 1.60 crore and EBITDA margin moderating to 7.95 per cent from 32.24 per cent, during Q1FY27 and Q1FY26 respectively; primarily due to higher raw material, employee and other operating expenses. Despite the pressure on operating performance, PAT improved marginally to Rs. 0.74 crore in Q1FY27 from Rs. 0.64 crore Q1FY26, supported by higher other income, which partly offset the decline in operating earnings. Acuite believes that the operating performance is expected to improve steadily over the medium term on the back of ramp of LED business.

Healthy financial risk profile

TIL’s financial risk profile remained healthy marked by a healthy net worth base, low gearing and comfortable debt-protection metrics. Net worth increased to Rs. 107.31 Cr in March 31, FY26 compared to Rs. 92.13 Cr as on March 31, FY25 and Rs.46.25 Cr as on March 31, 24, supported by equity infusion, an increase in securities premium and accretion of profits to reserves. Total debt increased to Rs. 53.66 Cr as on March 31, FY26 compared to Rs.2.85 Cr as on March 31, FY25 (The company also had an overdraft of around Rs.46.61 Cr against fixed deposits of approximately Rs.65 Cr as on March 31, 2026, which was utilised for working-capital and R&D requirements.) This resulted in increase of gearing to 0.50 times in FY26 compared to 0.03 times in FY25. TOL/TNW stood at 0.56 times in FY26 compared to 0.04 times in FY25. Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) stood at 7.93 times and 5.91 times, respectively, in FY26 compared to 38.73 times and 35.37 times in FY25 respectively. The Debt/EBITDA stood at 4.47 times in FY26 compared to 0.35 times in FY25. Acuite believes the financial risk profile to remain healthy over the medium term, supported by the healthy net worth, low gearing and comfortable debt-protection.

Weaknesses

Intensive working capital operations
The company’s working-capital operations remained intensive with gross current assets (GCA) days stood at 676 days compared to 813 days in FY25. The elevated GCA days are primarily because of elevated inventory holding period and other current assets. The inventory days stood at 105 days in FY26 as against 27 days in FY25. The increase in inventory days increased mainly due to procurement of raw materials for new vertical of LED display products. Debtor days improved to 106 days in March 31, FY26 compared to 177 days as on March 31, FY25. The creditor days stood at 20 days in FY26. Further the bank limit utilization stood high at 81.97 per cent for six months ending August 2026. Acuite believes that the working-capital intensity will remain elevated over the near term because of the inventory and material requirements of the LED vertical, sizeable purchase advances and continued utilisation of the overdraft facility.

Rating Sensitivities

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

Significant improvement in scale of operations above Rs. 80 Cr
Improvement in working capital management leading to a reduction in working capital intensity and GCA days
Sustained strengthening of the financial risk profile while maintaining comfortable debt protection metrics

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

Significant decline in revenues and profitability with net cash accruals below Rs. 8 Cr
Deterioration in financial risk profile due to higher-than-expected debt-funded capex or working capital borrowings
Further elongation in the working capital cycle

Liquidity Position

Adequate

TIL’s liquidity position remained adequate with net cash accruals of Rs. 9.50 Cr in FY26 against Rs. 0.35 Cr scheduled debt repayment during the same period. Going forward the NCA’s are expected at ~ Rs. 10.17 Cr against repayment obligation of Rs. 0.37 Cr in FY27 and Rs. 11.43 Cr against repayment obligation of Rs. 0.39 Cr during FY28. The current ratio of the company stood at 2.27 times in FY26 as against 38.50 times in FY25. The cash and bank balance stood at Rs. 0.67 Cr in FY26. In FY26 the GCA days stood at high 676 days compared to 813 days in FY25. Further the bank limit utilization stood high at 81.97 per cent for six months ending August 2026.
Acuite believes that the liquidity will remain adequate over the medium term, on account of sufficient cash accruals against repayment obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	34.01	27.02
PAT	Rs. Cr.	5.58	3.97
PAT Margin	(%)	16.41	14.70
Total Debt/Tangible Net Worth	Times	0.50	0.03
PBDIT/Interest	Times	7.93	38.73

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
01 Oct 2025	Proposed Non Convertible Debentures	Long Term	50.00	ACUITE BB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Anuja Bele
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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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