Press Release

Press Release

June 08, 2026

VEEKAY POLYCOATS 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	83.40	ACUITE BBB- \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	83.40	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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. 83.40 Cr. bank facilities of Veekay Polycoats Limited (VPL). The outlook is 'Stable'.

Rationale for Rating
The assigned rating reflects the company’s experienced management, with over a decade of presence in the manufacturing industry, and its demonstrated improvement in scale of operations. The revenue from operations increased to Rs. 186.76 crore in FY 26 (Prov.), from Rs. 154.74 crore in FY 25, registering a healthy growth of 20.69%. The rating also draws comfort from the company’s healthy financial risk profile and adequate liquidity position.

Acuite notes that the company had earlier faced financial stress, leading to initiation of the Corporate Insolvency Resolution Process (CIRP) in March 2019. Subsequently, the Resolution Plan was approved by the Hon’ble NCLT on January 25, 2023, resulting in closure of the CIRP. Thereafter, the company entered its post resolution phase under new promoters from FY 24 onwards and resumed commercial operations in November 2023. Acuite further notes that the company has scaled up its operations post resolution and has fully repaid its obligations towards secured financial creditors in accordance with the approved Resolution Plan in 2024, supported by infusion of equity capital and unsecured loans from the new promoters. The unsecured loans were subsequently refinanced through the sanction of a fresh term loan with a structured long-term repayment schedule.

The rating is, however, constrained by the working capital-intensive nature of operations, as reflected in high gross current asset (GCA) days of approximately 359 days in FY 26 (Prov.), and the susceptibility of profitability margins to volatility in raw material prices.

About the Company

Delhi-based, Veekay Polycoats Limited (VPL), incorporated in 1992, is engaged in the manufacturing of a diversified range of PVC products, including artificial leather cloth, flexible films, PVC flooring, spun-bonded non-woven fabrics, and composite panels. The company operates a manufacturing facility located in Bhiwadi, Rajasthan, spread over approximately 50,000 square meters, with an installed production capacity of around 25,000 MT per annum. VPL is managed by an experienced board of directors comprising Ms. Sunita, Mr. Tanishq Aggarwal, Mr. Bhanu Pratap Singh, Ms. Anuradha Singh, Mr. Vinod Kumar Govil, Mr. Pratuish Mohanlal Agrawal, Mr. Sanjay Verma, Mr. Suresh Kumar, Mr. Tanjul Mittal, and Mr. Sanjay Aggarwal, who collectively bring significant industry and managerial experience.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of Veekay Polycoats Limited (VPL) to derive at the rating.

Key Rating Drivers

Strengths

Extensive industry experience of the promoters
Post approval of the Resolution Plan (RP), Veekay Polycoats Limited (VPL) was acquired through the NCLT process by the Aggarwal family, who are the key promoters of Tanox India Limited (TIL). TIL, incorporated in 2018, is engaged in the manufacturing of chemicals and chemical products. The promoters have been successfully managing TIL since inception and possess considerable experience in overseeing manufacturing operations. Acuite believes that the ramp-up in the company’s scale of operations in the post-resolution phase is largely driven by strategic initiatives undertaken by the new promoters. The same is expected to continue supporting the company’s operational and financial performance over the medium term.

Scale of Operations & Profitability
The company reported a healthy growth in its scale of operations, with revenue from operations increasing to Rs. 186.76 crore in FY 26 (Prov.) from Rs. 154.74 crore in FY 25, registering a topline growth of 20.69%. The growth was primarily driven by a strong increase in sales volumes of around 33%. The operating profitability witnessed a moderation, as reflected in EBITDA margins declining by 114 basis points to 24.61% in FY2026 (Prov.) from 25.75% in FY2025. The decline in margins is mainly attributable to elevated raw material costs, which were not fully passed on to customers, thereby exerting pressure on profitability. Nevertheless, the margins continue to remain comfortable in line with industry levels. Despite the moderation in operating margins, the company’s net profit improved to Rs. 31.29 crore in FY2026 (Prov.) from Rs. 25.80 crore in FY2025, supported by the healthy growth in revenues. Acuite believes that the company is likely to sustain improvement in its scale of operations over the near to medium term, driven by continued volume growth however, its ability to maintain stable margins amidst volatility in input costs remains a key monitorable.

Financial Risk Profile
The financial risk of the company is healthy marked by high net worth, gearing below unity and comfortable debt protection metrices. The tangible net worth improved from Rs. 96.48 Cr. as on 31st March 2025 to Rs. 127.76 Cr. as on 31st March 2026 (Prov.). The improvement is mainly due to accretion of profits into reserves. The gearing ratio & TOL/TNW improved & stood at 0.69& 0.85 times in FY 26 (Prov.) against 1.05 & 1.33 times in FY 25 respectively. The Debt/EBITDA and ROCE stood at 1.85 times & 19.20% for FY 26 (Prov.) respectively. Debt Protection metrices marked by ISCR & DSCR stood comfortable at 5.64 & 3.02 times for FY 26 (Prov.). Acuite believes that going forward, financial risk profile will remain adequate on the account of no major debt funded capex planned in near to medium term.

Weaknesses

Intensive Working Capital Operations
The company’s working capital operations remain intensive, reflected in GCA days of 359 day for FY26 (Prov.). This is largely attributable to elevated inventory holding of around 230 days and debtor realization of 125 days for FY26 (Prov.). The company has recently gone through a phase of rapid scale-up in operations and revenue, particularly following changes in management and business revival initiatives. During this period, inventory levels were built up to support anticipated demand as well as expansion into new markets and product segments. Further, in FY25, the company undertook a significant clean-up of its balance sheet by writing off old debtors amounting to Rs. 39.67 crore from its net worth. These receivables were largely non-recoverable and pertained to a period of financial distress, with ageing of 5–6 years. Following the restructuring, receivable days have shown a marked improvement, from 783 days in FY24 to 210 days in FY25, and further to 125 days in FY26 (Prov.). Acuite expects that, going forward, the company’s working capital intensity is likely to remain relatively high, given the inherent nature of its operations and industry dynamics.

Susceptibility of profitability to volatility in raw material prices
The company’s profitability remains susceptible to volatility in raw material prices, given the significant reliance on key inputs such as PVC resin, plasticizers, fabrics, and additives, which together constitute a major portion of the total raw material cost. Acuite notes that while the company witnessed moderation in average procurement prices across certain key inputs in FY2026 (Prov.), fluctuations in prices of petrochemical-based raw materials and limited ability to fully pass on cost increases to customers can exert pressure on operating margins. Acuite believes that the company’s ability to manage input cost volatility and maintain stable margins remains a key monitorable.

Rating Sensitivities

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

Improvement in scale of operations by 25-30% with sustained margins.

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

Significant decline in the scale of operations of around 20%, and deterioration in operating margins below 11%, leading to weakened cash accruals and a mismatch against debt servicing obligations.
Further delay in realization of bills which may adversely impact cash flows for debt servicing.

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by generating net cash accrual of Rs. 38.83 Cr. against debt obligation of Rs. 7.12 Cr. for the FY26(Prov.). The company has free cash & bank balance of Rs. 3.05 Cr. as on 31st March 2026 (Prov.). The average fund-based utilization for last five months ended December 2025 is 90.51%. The current ratio stood comfortable at 2.11 times for FY 26 (Prov.). Acuite believes that liquidity position of the company will remain adequate on the account of steady accruals and no debt funded capex planned in near to medium term.

Outlook - Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	186.76	154.74
PAT	Rs. Cr.	31.29	25.80
PAT Margin	(%)	16.75	16.67
Total Debt/Tangible Net Worth	Times	0.69	1.05
PBDIT/Interest	Times	5.64	4.63

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
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	60.00	Simple	ACUITE BBB- \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	25 Mar 2026	Not avl. / Not appl.	21 Sep 2026	23.40	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kartik Arora
Senior 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.

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