Press Release

October 14, 2026

UNISON FORGINGS PRIVATE LIMITED
Rating Upgraded

Product	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	22.00	ACUITE BBB \| Stable \| Upgraded	-	RBI
Bank Loan Ratings	3.00	-	ACUITE A3+ \| Upgraded	RBI
Total Outstanding	25.00	-	-	-
Total Withdrawn	0.00	-	-	-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 upgraded its long-term rating to 'ACUITE BBB' (read as ACUITE Triple B) from 'ACUITE BBB-' (read as ACUITE Triple B minus) on the Rs.22.00 Cr. bank facilities and its short-term rating to 'ACUITE A3+' (read as ACUITE A three plus) from 'ACUITE A3' (read as ACUITE A three) on the Rs.3.00 Cr. bank facilities of Unison Forgings Private Limited (UFPL). The outlook is 'Stable'.

Rationale for rating

The upgrade in the rating considers the improvement in the group’s business and financial risk profile, supported by healthy growth in revenues, strengthened capital structure and improving working capital metrics. The rating also draws comfort from the group’s established track record, integrated operations and experienced management. However, the rating remains constrained by moderate profitability, working capital intensive operations, exposure to raw material price volatility and execution risks associated with the ongoing capex projects.

About the Company

Incorporated in 2006 and based in Gujarat, Unison Forgings Private Limited (UFPL) specializes in die forging and manufactures stainless steel hex bars, bright bars, round bars, and related products which are used in construction, oil and gas, pumps and valves industry. The company undertakes various stages of production, from raw material conversion to finished goods, through both in-house and subcontracted job work arrangements. The directors of the company includes Mr. Tirth Uttam Mehta & Mr. Bhagvanbhai Bhavanbhai Valaniya.

About the Group

Formed in 1990, the group initially focused on stainless steel manufacturing. In 2017, it diversified into speciality chemicals. It comprises Unison Metals Limited (UML), Unison Forgings Private Limited (UFPL), and Chandanpani Limited (CL), formerly Chandanpani Private Limited. The present director of the group is Mr. Tirth Mehta.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

To arrive at the rating, Acuité has considered the consolidated business, financial risk profiles and financials of Unison Metals Limited, its wholly owned subsidiary Chandanpani Limited and Unison Forgings Private Limited. The consolidation is in the view of common shareholders, strong operational and financial linkages between the entities.

Key Rating Drivers

Strengths

Established track record of operations and extensive experience of promoters
The group has nearly three decades of presence in stainless-steel sheets, sodium silicate, and frit englobe, serving kitchenware and construction industries. Further, promoters bring over 15 years of average board experience, supported by a professional management and marketing team. This long track record and experienced leadership provide stability and support future growth.

Strategic capex initiatives expected to strengthen operational profile and earnings
The group is undertaking multiple capex projects aimed at enhancing operational efficiencies, strengthening integration and improving cost competitiveness. Through Unison Metals Limited, the group is establishing a Sodium Silicate manufacturing facility at a cost of Rs.30 Cr, expected to be commissioned by December 2026, which is projected to generate annual profitability benefits of around Rs.1.5 Cr while supporting revenue growth. Further, Chandanpani Limited is implementing a Cold Rolling project with an estimated cost of Rs.6 Cr, expected to improve profitability, along with a Solar Power project costing Rs.17.07 crore, expected to yield annual savings. Successful implementation and stabilisation of these projects are expected to support revenue growth, profitability and cash accruals over the medium term.

Healthy growth in scale of operations with expected improvement in profitability
The group reported a significant improvement in operating income to Rs.548.72 Cr in FY2026 from Rs.340.68 Cr in FY2025, driven by higher sales volumes and improved realizations across key product categories. While the operating profit margin moderated to 4.45% in FY2026 from 5.36% in FY2025 due to elevated raw material costs amid steel industry volatility, the group maintained stable net profitability, with PAT margin improving marginally to 1.60% from 1.56% during the same period.

Going forward, profitability is expected to benefit from various cost optimisation initiatives undertaken by the group, including technological upgradation resulting in lower gas consumption, commissioning of the solar power project, reduction in gas transportation costs through dedicated pipeline infrastructure, utilisation of economical gas procurement arrangements and benefits from forward integration initiatives. These measures are expected to support margin improvement and strengthen cash accrual generation over the medium term.

Comfortable financial risk profile
The group has a comfortable financial risk profile marked by healthy net worth, improved gearing and comfortable coverage indicators. The tangible net worth improved significantly and stood at Rs.103.48 Cr. as on March 31, 2026, as against Rs.47.51 Cr. as on March 31, 2025, aided by the equity infusion through rights issue of ~Rs.34 Cr. in UML, and accretion of profits into reserves. Further, the group's capital structure is supported by quasi-equity of Rs.13.49 Cr, comprising unsecured loans from promoters/group entities subordinated to bank borrowings.

Consequently, the gearing improved significantly to 0.72 times as on March 31, 2026, as against 1.51 times as on March 31, 2025, while the TOL/TNW improved to 1.55 times from 3.89 times during the same period. The debt protection metrics also witnessed improvement, with interest coverage ratio improving to 2.85 times in FY2026 from 2.48 times in FY2025 and debt service coverage ratio improving to 1.44 times in FY2026 as compared to 1.21 times in FY2025. The Debt/EBITDA also improved to 2.92 times from 3.90 times.

Going forward, the group's financial risk profile is expected to remain at similar levels, supported by its healthy net worth position, expected cash accruals and anticipated benefits from the ongoing expansion and cost optimisation initiatives. However, the timely completion & stabilisation of the capex(s) will remain a key monitorable.

Weaknesses

Intensive working capital operations

The group's working capital operations remained intensive in nature, albeit with a significant improvement in FY2026. The gross current assets (GCA) days improved to 138 days in FY2026 from 202 days in FY2025, primarily driven by lower inventory holding and improved collection efficiency. Inventory days improved to 61 days in FY2026 from 80 days in FY2025, while debtor days moderated to 66 days from 107 days during the same period. Creditor days also reduced to 55 days in FY2026 as against 118 days in FY2025.

The group's reliance on working capital borrowings also remains high, reflected in average fund-based bank limit utilisation of approximately 93.51% during the six months ended September 2026. Going forward, the group's ability to efficiently manage receivables and inventory levels amid the envisaged scale-up in operations shall remain a key monitorable.

Exposure to raw material price volatility
The group's cost structure is significantly influenced by stainless steel and alloy steel prices. Any sharp fluctuations in these raw materials can affect profitability, given the limited ability to fully pass on cost increases to customers.
The group operates in a highly fragmented stainless steel manufacturing industry with numerous small and mid-sized players. This competitive landscape restricts pricing flexibility and can pressure margins, while also requiring continuous efforts to maintain customer relationships.

Rating Sensitivities

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

Enhancement in operating performance with revenues reaching above ~Rs.850 Cr. along with improvement in the profitability margins.
Sustained improvement in the financial risk profile along with working capital operations.

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

Deterioration in operating performance with revenues falling below ~Rs.300 Crs or decline in profitability margins.
Further elongation in working capital cycle or increased reliance on working capital borrowings, leading to weakening of financial risk profile.

Liquidity Position

Adequate

The group has an adequate liquidity position marked by sufficient cash accruals of Rs.12.87 Cr. as on March 31, 2026, against its repayment obligation of Rs.6.19 Cr. during the same period. Going ahead, the group is expected to generate cash accruals of ~Rs.17 Cr. in FY27 & ~Rs.23 Cr. in FY28 against repayment obligation of ~Rs.12 Cr. and ~Rs.7 Cr. during the same period.

The reliance on the working capital limits is high at ~93.51% for fund based limits for the last 06 months ending September 2026. Further, the group is planning to avail additional Rs.13.00 Cr. of working capital limits before March 2027, to support working capital operations and will provide some cushion to the liquidity. The current ratio stood moderate at 1.44 times as on March 31, 2026. The group has an unencumbered cash and bank balance of Rs.0.68 Cr. as on March 31, 2026.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	548.72	340.68
PAT	Rs. Cr.	8.75	5.30
PAT Margin	(%)	1.60	1.56
Total Debt/Tangible Net Worth	Times	0.72	1.51
PBDIT/Interest	Times	2.85	2.48

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any Other Information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
02 Jan 2026	Letter of Credit	Short Term	3.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	15.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| 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
Canara Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Stable \| Upgraded ( from ACUITE BBB- )
Deutsche Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.00	Simple	ACUITE BBB \| Stable \| Upgraded ( from ACUITE BBB- )
Deutsche Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE A3+ \| Upgraded ( from ACUITE A3 )

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company Name
1	Unison Forgings Private Limited
2	Unison Metals Limited
3	Chandanpani Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
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.

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.

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