Press Release

Press Release

February 16, 2026

VERSATILE INDUSTRIES (I) PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	18.00	ACUITE BB- \| Stable \| Assigned	-
Bank Loan Ratings	10.50	-	ACUITE A4+ \| Assigned
Total Outstanding	28.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long term rating of "ACUITE BB-" (Read as ACUITE Double B Minus) and short term rating of "ACUITE A4+" (Read as ACUITE A Four plus) on Rs. 28.50 crore of Versatile Industries (I) Private Limited (VIPL). The Outlook is "Stable".

Rationale for Rating:

The group benefits from a long operational track record and the promoters’ extensive industry experience, supported by a healthy and diversified client base that includes Mahindra & Mahindra Limited, Eicher Motors Limited, Ashok Leyland Limited and Carraro India Ltd etc. While revenue witnessed a decline in FY25, performance is expected to improve in the medium term as the group has already achieved Rs.111 crore in 9M FY26, with profitability remaining stable. The financial risk profile, which stood below average, and liquidity, which is also marked as stretched, are expected to improve slightly, backed by slight improvement in accruals and the absence of any significant debt-funded capex. Working capital requirements remain intensive due to an elongated debtor cycle and inventory holding days. Going forward, improvement in topline and profitability, along with any movement in the financial risk profile, will remain key monitorable.

About the Company

Kolhapur based, Versatile Industries (I) Private Limited (VIPL) has an established operational track record of over two decades, stemming from the earlier entity Yash Metalics Private Limited, which was restructured in 2019 following a division of business between two directors, leading to the formation of VIPL, which has been operational in its current form since 2021.The Company its engaged in the manufacturing of CI Casting. The Company Sold its 80 % revenue to Versatile Engineers (VE) and remaining 20% sold to Prabha Engineers (PE).

About the Group

Versatile Group began with Versatile Engineers; a machine shop started in 1969 in Kolhapur. The group expanded into casting and machining with services such as design support and pattern making. Prabha Engineers, established in 1989, is a proprietorship concern operates as a machine shop in MIDC Kolhapur and serves customers in domestic and overseas markets. Under the leadership of Mr. Sunil Janwadkar and Mr. Yatin Janwadkar, the group expanded its operations.

Unsupported Rating

Not Applicable.

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

Acuite has combined the consolidated financial and business risk of Versatile Industries (I) Private Limited (VIPL), Versatile Engineers (VE) and Prabha Engineers (PE) for as they are operating under same management and significant operational linkage. We refer as same as Versatile Group.

Key Rating Drivers

Strengths

Benefited from long track record and established market presence:
With a vintage of over four decades in the machining industry, the group has built a strong reputation for providing machining services for automotive components to domestic OEMs and Tier-I suppliers. Its long-standing presence has enabled the development of enduring relationships with reputed clients such as Mahindra & Mahindra Limited, the Carraro Group, and Comer Industries S.p.A.. Acuite believes that the group will continue to benefit from its established market presence and through its consistent servicing of this clientele over the years.

Decline in Scale of operation with improvement in Margin:
The group reported a revenue decline to Rs.127.72 crore in FY25 from Rs.147.25 crore in FY24 and Rs.169.48 crore in FY23, mainly due to lower demand and reduced realizations, Nonetheless, the group has recorded Rs.111 crore in 9MFY26 indicates slightly better performance in the medium term. Despite the top-line contraction, operating profit margin improved to 8.42% in FY25 from 7.07% in FY24, supported by lower raw material costs and periodic price revisions with customers. PAT margin stood low at 1.45% in FY 25 vs 1.48% in FY 24 on account of high finance cost. The group derives 10–15% of its revenue from exports to Italy and operates without a formal hedging policy, though it has not incurred significant forex losses historically. Acuité believes that the group’s operational performance will see slight improvement backed by 9MFY26 revenue traction, while volatility in raw material prices will remain key monitorable.

Weaknesses

Below Average Financial Risk profile:
The financial risk profile of the company is marked below average by the low net worth, high gearing, and below average coverage indicators. The net worth of the group stood at Rs.26.59 crore in FY 25 as against Rs.26.44 crore in FY 24 . The borrowing of the group stood at Rs. 56.84 crore in FY 25, which mainly comprised of long-term borrowing of Rs. 9.80 crore, USL from directors and promoters (interest free) of Rs.11.79 crore, short-term debt of Rs. 29.88 crore, and CPLTD of Rs.5.37 crore in FY 25. CPLTD is high on account of short-term unsecured business loan, tenure of which lies between 1 -3 years. Gearing stood high at 2.14 times in FY 25 as against 2.35 times in FY 24. Debt protection metrics stood below average, with ICR and DSCR stood at 2.19 times and 0.88 times in FY 25. TOL/TNW stood at 2.99 times, and Debt/EBITDA stood at 4.74 times in FY 25. Acuite believes that the financial risk of the group is expected to be slightly better in the medium term, backed by slightly improved indicators.

Intensive Working Capital Management:
The company’s working capital management remained intensive, with GCA days increasing to 138 days in FY25 from 131 days in FY24, primarily due to elongated inventory days and high debtor days. Debtor days stood at 77 days in FY25, from 78 days in FY24, driven by customer- specific payment terms under which payments are realized only after products dispatched to customers' warehouses are further moved from their facilities. Inventory days also increased to 59 days in FY25 from 52 days in FY24, supported by an average holding period of about 45 days. Creditor days increased to 87 days in FY25 from 73 days in FY24. Acuité believes that working capital requirements will remain intensive over the medium term as per the nature of their operation.

Rating Sensitivities

1.Improvement in Topline and profitability
2. Movement in Financial risk profile
3. Working Capital Management

Liquidity Position

Stretched

The Liquidity of the group marked stretched marked by net cash accruals of Rs.6.15 crore against the long-term debt repayment of Rs.7.75 crore in FY 25 and the shortfall is managed through managing receivables and through infusion of USL from directors and related parties. However, the net cash accrual is expected to be in range between Rs.6 to Rs.7 crore against the long-term debt repayment of Rs. 4 to Rs.5 crore. The Current ratio stood at 0.86 times in FY 2025. The Cash and bank balance stood at Rs.0.19 crore in FY 25. The fund-based limit utilization stood at 90 to 95% for six month months ended as on Nov'25. Acuite believes that liquidity of the group will slightly improve backed by accruals and absence of any significant debt funded capex.

Outlook: Stable

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	127.72	147.25
PAT	Rs. Cr.	1.85	2.18
PAT Margin	(%)	1.45	1.48
Total Debt/Tangible Net Worth	Times	2.14	2.35
PBDIT/Interest	Times	2.19	2.20

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

None

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 :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
SVC Co-Op Bank Limited	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE A4+ \| Assigned
SVC Co-Op Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BB- \| Stable \| Assigned
SVC Co-Op Bank Limited	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.00	Simple	ACUITE A4+ \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.23	Simple	ACUITE BB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.44	Simple	ACUITE BB- \| Stable \| Assigned
SVC Co-Op Bank Limited	Not avl. / Not appl.	Term Loan	02 Feb 2021	Not avl. / Not appl.	01 Jul 2028	1.90	Simple	ACUITE BB- \| Stable \| Assigned
SVC Co-Op Bank Limited	Not avl. / Not appl.	Term Loan	11 Mar 2022	Not avl. / Not appl.	01 Apr 2029	1.34	Simple	ACUITE BB- \| Stable \| Assigned
SVC Co-Op Bank Limited	Not avl. / Not appl.	Term Loan	04 Jul 2022	Not avl. / Not appl.	16 Jul 2027	4.09	Simple	ACUITE BB- \| Stable \| Assigned

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

Sr. No	Name of the companies
1	Versatile Industries (I) Private Limited
2	Versatile Engineers
3	Prabha Engineers

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.