Press Release

Press Release

July 07, 2026

VANDANA GLOBAL LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	182.43	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	142.57	-	ACUITE A3 \| Assigned	RBI
Total Outstanding	0.00	325.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 182.43 Cr. bank facilities and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 142.57 Cr. bank facilities of Vandana Global Limited. The outlook is 'Stable'.

Rationale for rating

The rating takes into account long track record of operations, benefits derived from the experienced promoters, favourable plant location in Chhattisgarh, increase in operating profitability to 7.98 percent in FY 26(Prov) as compared to 4.93 percent due to better realisation in silico manganese resulting in better margins albeit moderation in topline during FY26 (prov.). The financial risk profile of the company is moderate marked by improving net worth, low gearing and moderate debt protection metrics. The working capital cycle of the company is moderate marked by GCA days of 108 in FY 26(Prov) as compared to 76 days in FY 25 owing to increase in inventory and debtors. However, the strengths are partly offset by the declining revenues in FY 26(Prov), high contingent liabilities, stretched liquidity, presence in cyclical steel industry. Acuite further notes that the company's debt profile had been restructured in 2021 due to plaguing issues in iron and steel industry and delinkage of the company’s coal mine leading to a pressure on their liquidity during that time. Presently, the company has been servicing all its debt obligations on time with entire term loans expected to be liquidated by FY29.

About the Company

Incorporated in 1996, Vandana Global Limited is based out of Chhattisgarh. The company manufactures sponge iron, billets, silico manganese and TMT Bar. Additionally, it has a captive power plant of 41 MW. Out of which, 95% is captive consumption and balance is sold in the market. The steel plant is situated at Siltara Industrial Area, Chhattisgarh. The land is on leasehold basis for a period of 99 years from Chhattisgarh State Industrial Development Corporation Limited (CSIDCL). The company operates 2,31,000 MTPA of sponge iron, 1,78,200 MTPA of billets, 52,800 MTPA of silico manganese and 178200 MTPA of TMT bars. The company operates in both mild steel and stainless steel products. Ferro alloys are sold under the FEROTON brand and rolling mills producing wire rod and TMT bars are sold under the TMTNEXT brand. The operations of the company are run by Mr Vijit Kumar Agrawal and Mr Gopal Prasad Agrawal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of Vandana Global Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced promoters
The operations are managed by Mr. Vijit Kumar Agrawal and Mr. Gopal Prasad Agrawal who has extensive experience in the iron and steel industry. Additionally, the location of the plant is favourable situated at Chhattisgarh. The company has set up semi-integrated steel manufacturing facilities that helps to improve their operating efficiency over the medium term. The company has both mild and stainless steel products. The company also has healthy relationship with their customers and suppliers. Acuite believes that benefits of the promoter's experience and long standing relationship with the customers will support the company going forward.

Increase in operating profitability in FY 26(Prov)
The operating profitability has increased to 7.98 percent in FY 26(Prov.) as compared to 4.93 percent in FY 25 on account of increase in realization of silico manganese. Acuite believes that the operating profitability is expected to improve over the near to medium term backed by increase in realisation in sponge iron and silico manganese.

Moderate financial risk profile
The financial risk profile of the company is moderate marked by improving net worth, low gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs. 276.03 Cr. as on March 31, 2026(Prov) as compared to Rs. 237.47 Cr. as on March 31, 2024 due to accretion to reserves. The gearing of the company stood at 0.75 times as on March 31, 2026(Prov.) and 1.02 times as on March 31, 2025. The unsecured loans amount to Rs. 28.28 Cr. in FY 26(Prov) as compared to Rs. 7.30 Cr. in FY 25. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.54 times as on March 31, 2026(Prov) as compared to 1.82 times as on March 31, 2025. The debt protection metrics of the company remain moderate marked by Interest Coverage ratio (ICR) of 2.98 times as on March 31, 2026(Prov) and debt service coverage ratio (DSCR) of 1.25 times for March 31, 2026(Prov). The net cash accruals to total debt (NCA/TD) stood at 0.30 times as on March 31, 2026(Prov) as compared to 0.21 times as on March 31, 2025. Acuité believes that the financial risk profile is expected to improve over the medium term, with steady cash accruals and in the absence of any debt funded capex plans.

Moderate Working Capital Cycle
The working capital cycle of the company is moderate as reflected by Gross Current Assets (GCA) of 108 days for March 31, 2026(Prov) as compared to 76 days for March 31, 2025. The debtor period stood at 17 days as on March 31, 2026(Prov) as compared to 2 days as on March 31, 2024. The debtor days had increased significantly in FY26(Prov) since there were higher sales in the month of March. The payments from customers are received within 15-20 days.Further, the inventory days of the company stood at 71 days as on March 31, 2026(Prov) as compared to 51 days in FY2025. The company maintains inventory of about 2 months. The creditors stood at 83 days as on March 31, 2026(Prov) as compared to 59 days as on March 31, 2025. With respect to suppliers, 30% of them are LC backed and extension is available from local suppliers on need basis. Acuité believes that the working capital operations of the company is expected to remain in the similar lines over the medium term.

Weaknesses

Decline in scale of operations in FY 26(Prov)
The revenues have declined to Rs. 917.73 Cr. in FY 26(Prov.) as compared to Rs. 1056.49 Cr. in FY 25 on account of decrease in realisation in sponge iron and volume sold of sponge iron, billets and TMT bars. The reason for decline in volume sold for sponge iron, billets was because the plant was shut for about 50-60 days on account of maintenance. Going forward, the scale of operations is expected to improve with optimum capacity utilisation of the plant and improving realisation of sponge iron and silico manganese.

Risks associated with Contingent liabilities

As of March 2025, the contingent liabilities amount to Rs. 66.12 Cr. (27 percent of the net worth for FY 25). Stay has been granted by Supreme court and the company does not expect any liability towards the claim.

Any adverse rulings in the ongoing legal proceedings could negatively impact VGL’s financial profile.

Rating Sensitivities

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

Increase in revenues to about Rs. 1000 Cr and operating profitability to about 7-8 percent in the near term

Improvement in DSCR to more than 2.3 times

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

Further deterioration in the revenues and operating profitability in the near term.

Elongation of working capital cycle

Crystallization of contingent liabilities

Liquidity Position

Stretched

The company has stretched liquidity marked by net cash accruals of Rs 63.18 Cr. as on FY2026(Prov.) as against long term debt repayment of Rs. 44.22 Cr over the same period. The cash and bank balance stood at Rs. 0.21 Cr. as on March 31, 2026(Prov) and Rs. 0.16 Cr. March 31, 2025. Further, the current ratio of the company stood at 0.95 times as on March 31, 2026(Prov) as compared to 0.82 times as on March 31, 2025. The management has financial flexibility to infuse funds as and when required. The average bank utilization limit of the company for last 12 months ended March 2026 is 95 percent. The capex in FY 25 pertained to the upgradation of the existing facility, the plant can now be used interchangeably between mild steel and stainless teel as per market demand and requirements. It was funded in a mix of debt and internal accruals. Additionally, the company maintains a Debt Service Reserve Account (DSRA) of Rs. 10 crore, which as per bank's stipulation was used to repay the debt obligations falling due in December 2025 and March 2026 to be subsequently replenished between October 26 and June 27. Acuité believes that the liquidity of the company is stretched on account of high dependence on bank lines and low current ratio albeit sufficient net cash accruals to repay debt obligations and absence of major debt funded capex plans.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	917.73	1056.49
PAT	Rs. Cr.	38.56	28.22
PAT Margin	(%)	4.20	2.67
Total Debt/Tangible Net Worth	Times	0.75	1.02
PBDIT/Interest	Times	2.98	1.72

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

None

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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:Not Applicable

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
Punjab National Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	14.86	Simple	ACUITE A3 \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.37	Simple	ACUITE A3 \| Assigned
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	16.42	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.41	Simple	ACUITE BBB- \| Stable \| Assigned
IDBI Bank Ltd.	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.41	Simple	ACUITE BBB- \| Stable \| Assigned
THE JAMMU AND KASHMIR BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.41	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Covid Emergency Line.	Unlisted	RBI	07 Mar 2022	Not avl. / Not appl.	23 May 2028	9.64	Simple	ACUITE BBB- \| Stable \| Assigned
IDBI Bank Ltd.	Not avl. / Not appl.	Covid Emergency Line.	Unlisted	RBI	17 Jan 2022	Not avl. / Not appl.	01 Sep 2028	7.29	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Covid Emergency Line.	Unlisted	RBI	23 Dec 2021	Not avl. / Not appl.	31 Dec 2027	14.56	Simple	ACUITE BBB- \| Stable \| Assigned
THE JAMMU AND KASHMIR BANK LIMITED	Not avl. / Not appl.	Covid Emergency Line.	Unlisted	RBI	31 Mar 2022	Not avl. / Not appl.	30 Sep 2028	4.98	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	64.96	Simple	ACUITE A3 \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.99	Simple	ACUITE A3 \| Assigned
IDBI Bank Ltd.	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.39	Simple	ACUITE A3 \| Assigned
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.	0.43	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	15.85	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	16.73	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	6.94	Simple	ACUITE BBB- \| Stable \| Assigned
THE JAMMU AND KASHMIR BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	10.10	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	7.05	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	9.54	Simple	ACUITE BBB- \| Stable \| Assigned
IDBI Bank Ltd.	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	14.92	Simple	ACUITE BBB- \| Stable \| Assigned
THE JAMMU AND KASHMIR BANK LIMITED	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	0.34	Simple	ACUITE BBB- \| Stable \| Assigned
Punjab National Bank	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	10.03	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	30 Jun 2018	Not avl. / Not appl.	31 Mar 2029	8.38	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Vedika Lahoti
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	SEBI
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	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
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	SEBI
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)	RBI
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.

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 ⁶	Not applicable

⁶ 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.

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.