Press Release

Press Release

December 31, 2025

UMA ISPAT PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.00	ACUITE BBB- \| Negative \| Assigned	-
Bank Loan Ratings	84.88	ACUITE BBB- \| Negative \| Reaffirmed	-
Total Outstanding	96.88	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating of 'Acuite BBB-' (read as Acuite triple B Minus) on the Rs.84.88 crore bank facilities of Uma Ispat Private Limited (UIPL). The outlook is revised from 'stable' to 'negative'. Further, Acuite has assigned long term rating of 'Acuite BBB-' (read as Acuite triple B Minus) on the Rs.12.00 crore bank facilities of Uma Ispat Private Limited. The outlook is 'negative'.

Rationale for rating:
The rating is supported by the company’s long operational track record with a diversified clientele, long-standing memorandum of understanding (MOU) with Steel Authority of India Limited (SAIL), and recent procurement tie-up with Jindal Steel Limited , along with improving operational performance reflected in revenue of Rs.279.97 crore in 8MFY26 against Rs.241.48 crore in 8MFY25, commencement of export operations to Nepal and Bhutan, and additional income expected from the fully operational cutting plant. Despite moderation in operating performance during FY25, profitability margins remained stable, aided by efficient working capital management, adequate liquidity, and stable coverage indicators. However, the outlook has been revised to ‘Negative’ owing to a below average financial risk profile marked by increased gearing, stretched coverage indicators, and anticipated liquidity pressure in the medium term. Furthermore, the absence of a formal hedging policy for exports exposes the company to liquidity and foreign exchange risks going forward.

About the Company

Uma Ispat Private Limited (UIPL), incorporated in 1996 and headquartered in Kolkata,specializes in trading and decoiling of finished flat steel products. The company’s product portfolio includes HR Coil, HR Sheet, HR Plate, PMP Plate, CR Coil, Chequered Coil & Plate,and Iron Structures. UIPL has maintained a long-standing Memorandum of Understanding(MoU) with Steel Authority of India Limited (SAIL) since its inception for procurement of rawmaterials, ensuring a stable and reliable supply chain. The company is managed by itsdirectors Ms. Sapna Seth, Mr. Vanit Kumar Seth, and Mr. Vinay Seth.

Unsupported Rating

Not Applicable.

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Uma Ispat Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Promoters and diversified clientele:
The company is backed by promoters, namely Mr. Vinay Seth and Mr. Vanit Kumar Seth who have prior experience in trading of iron and steel for almost over two decades. The company has a diversified clientele base having the key clients from Northeast, Madhya Pradesh, Maharashtra and presence across east and west India. Acuite believes that the business will benefit from the promoters experience coupled with healthy relations with the clientele going
forward.

Declining Scale of Operations but steady margins
The company reported operating income of Rs.393.48 crore in FY25 compared to Rs.445.21 crore in FY24, with the decline primarily attributable to correction in steel prices. However, operational performance is expected to improve, supported by revenue booking of Rs.279.97 crore in 8MFY26 against Rs.241.48 crore in 8MFY25, commencement of export operations to Nepal and Bhutan contributing around Rs.30 crore, and additional income is expected from the cutting plant which is operational from Jan 25.Despite the topline moderation, operating profit margin slightly improved to 1.50% in FY25 from 1.31% in FY24, while PAT margin stood at 0.50% against 0.39% in FY24.The company currently lacks a formal hedging policy for exports, exposing it to foreign exchange risk, though management intends to monitor market conditions and implement a strategy as appropriate. Acuite believes that the operational performance of UIPL will improve, backed by revenue booking during 8MFY26, the recent foray into export operations, and additional revenue generation through the cutting plant.

Efficient working capital management
The company’s working capital operations remain efficient, with Gross Current Assets at 64 days in FY2025 compared to 47 days in FY2024, primarily due to an increase in inventory days to 35 from 21 days on account of year-end stocking. Debtor days were stable at 7 days inFY2025 versus 6 days in FY2024. The company operates largely on a cash-and-carry model with SAIL to avail incentives, with minimal credit dependence. Other Current Assets stood Rs.23.20 crore in FY2025 against Rs.24.22 crore in FY2024, mainly comprising balances with revenue authorities. Acuité expects the company’s working capital requirements to remain efficient over the medium term.

Weaknesses

Average financial risk profile
The financial risk profile of the company stood average in FY 25, marked by low net worth, high gearing, and average debt protection metrics. The adjusted tangible net worth stood at Rs.32.42 crore as on March 31, 2025, against Rs.30.44 crore as on March 31, 2024, with unsecured loans of Rs.4.50 crore treated as quasi-equity. Total borrowings increased to Rs.75.71 crore in FY25 from Rs.47.90 crore in FY24, primarily due to unsecured loans from other parties and long-term borrowing for the cutting plant unit, resulting in an increase in gearing to 2.34 times as on March 31, 2025, from 1.57 times in FY24. Debt protection metrics stood average with Interest coverage ratio declined to 1.44 times in FY25 from 1.80 times in FY24, while DSCR stood at 1.32 times in FY 25 compared to 1.53 times in FY24. TOL/TNW stood at 2.50 times and Debt/EBITDA stood high 12.06 times as on FY25. Acuite believes that the company’s financial risk profile will remain below average over the medium term, driven by stretched coverage indicators.

Margins are susceptible to price fluctuations
The company's performance remains vulnerable to cyclicality in the steel sector as demand for steel depends on performance of end user segments such as construction and real estate. Indian steel sector is highly competitive due to presence of large number of players. Acuite believes that the operating margin of the company will continue to remain exposed to fluctuations in the prices of raw materials as well as price realization from finished goods.

Rating Sensitivities

1. Improvement in topline and profitability
2. Financial risk profile

Liquidity Position

Adequate

Liquidity remains adequate, supported by steady net cash accruals of Rs.2.29 crore as on March 31, 2025, against long-term debt repayment obligations of Rs.0.69 crore during the same period. Going forward accruals are expected to be in the range of Rs.2.75 to 2.90 cr against repayment of Rs. 3 to 3.20 cr. UIPL may face liquidity pressure as net cash accruals are expected to remain inadequate against long-term debt obligations; however, the shortfall is likely to be met through efficient receivables management and infusion of unsecured loans.Cash and bank balances stood at Rs.0.11 crore in FY25 compared to Rs.0.09 crore in FY24, while the current ratio moderated to 1.28 times in FY25 from 1.37 times in FY24. Additionally, the average utilization of consolidated fund-based limits stood at around 69 percent for the six months ended November 2025. Acuite believes that going forward, timeliness of debt repayment will be a key monitorable.

Outlook: Negative

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	393.48	445.21
PAT	Rs. Cr.	1.97	1.73
PAT Margin	(%)	0.50	0.39
Total Debt/Tangible Net Worth	Times	2.34	1.57
PBDIT/Interest	Times	1.44	1.80

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
04 Oct 2024	Cash Credit	Long Term	62.20	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	1.10	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	18.50	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	1.13	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.95	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
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	62.20	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	Simple	ACUITE BBB- \| Negative \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.18	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Apr 2032	18.50	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.