­Extensive Experience of Partners and Long Track Record of Operations
Established in 1988, Thane-based V K Patel & Co. has a long operational track record of nearly four decades in the wood products and door solutions industry. The firm is led by experienced partners—Mr. Vinod K. Patel, Mr. Damodar K. Patel, and Mrs. Bhagyawanti K. Patel—who have been instrumental in driving its growth and strengthening its market presence. Over the years, the firm has developed strong expertise in manufacturing and trading of doors, plywood, laminates, and related products, supported by its manufacturing facilities in Bhiwandi and Wada. The promoters' experience and longstanding relationships with customers and suppliers have enabled the firm to establish a stable business position and sustain operations across diverse market cycles.

Improvement in scale of operation along with sustained profitability
The firm has reported a steady increase in its scale of operations, with revenue improving to Rs. 182.63 crore in FY26 (Prov.) from Rs. 172.52 crore in FY25 and Rs. 118.21 crore in FY24. The growth in revenue was primarily driven by the increased focus on its CDS unit, which enjoys strong demand and offers higher margins compared to the doors segment. The higher contribution from the CDS unit also resulted in an increase in average order size, thereby supporting overall revenue growth. The firm also derives a small portion of its revenue from exports, primarily through supplies made to a government entity in Bhutan. During Q1 FY27, the firm reported revenue of approximately Rs. 45 crore and expects to achieve revenue in the range of Rs. 180– 200 crore in FY27. Going forward, revenue growth is expected to remain moderate, supported by the continued focus on the CDS segment and the ongoing capex undertaken for capacity enhancement. The firm's profitability has also shown improvement over the years. The EBITDA margin improved to 7.90% in FY26 (Prov.) from 6.91% in FY25 and 7.27% in FY24. Similarly, the PAT margin improved to 2.86% in FY26 (Prov.) as against 2.21% in FY25 and 1.76% in FY24. The improvement in profitability was supported by the higher contribution of the relatively high-margin CDS segment and better absorption of fixed costs due to the increase in scale of operations.
Acuite believes that the operations of the firm are going to improve moderately marked by ongoing capex with increased capacity with sustained profitability.

Moderate Financial Risk Profile
The financial risk profile of the firm is moderate marked by low net-worth, moderate gearings and debt protection metrics. The net-worth of the firm stood at Rs.23.75 crores in FY26 (prov.) as against Rs.18.82 crores in FY25. The increase in net worth is on account of retention of profits to an extent. The gearing of the firm improved and stood at 1.58 times in FY26 (prov.) as against 2.12 times in FY25. The gearing is further expected to improve however will remain moderate marked by ongoing debt funded capex plan. The debt coverage indicators stood moderate with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) of 2.67 times and 1.40 times in FY26 (prov.) as against 2.26 times and 1.23 times in FY25 respectively. Debt/EBITDA stood high at 2.57 times while NCA/TD stood at 0.17 times in FY2026 (prov.). TOL/TNW stood at 2.62 times in FY26 (Prov.) as against 3.38 times in FY25. The firm is undergoing a capex for expanding the CDS (Complete door solution) facility at their Wada unit by adding machinery worth approximately Rs.3.50 crore, funded partly through a term loan of around Rs.2.60 crore and the balance through internal accruals which will increase the overall capacity for the CDS unit.
Acuite believes that the financial risk profile of the firm with remain moderate over near to medium terms on account of debt funded capex plan.

Moderately intensive working capital operations
The working capital operations are moderately intensive marked by high Gross current assets (GCA) of 155 days in FY26 (prov.) as against 159 days in FY25. The high GCA days are attributable to high debtor days of 105 days in FY26 (prov.) as against 100 days in FY25. The debtor days stood high because of the payment terms. The firm typically receives an advance payment of 25% against orders. The balance amount is collected upon after supply of the products, while retention money of around 2-5% is withheld by customers and generally released after one year. The inventory days stood at 52 days in FY26 (Prov.) as against 59 days in FY25. The creditor days stood at 71 days in FY26 (Prov.) as against 67 days in FY25. The working capital limits are highly utilized which stood at 94.05 % in the last 6 months ended June 2026.
Acuite believes that the working capital operation with remain moderately intensive over the medium terms marked by the nature of business.

Inherent risk of capital withdrawal in a partnership firm
The firm is susceptible to the inherent risk of capital withdrawal given its constitution as a partnership. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm.

­Fragmented nature of the industry
The industry is highly fragmented and unorganized in nature thereby putting pressure on the profitability margins of the companies engaged in the industry. Furthermore, due to low entry barriers, the competition gets intensified, which put pressure on profitability of the existing as well as new players. Accordingly, the margins of the company may fluctuate, depending upon price movement and level of competition.

• ­Significant improvement in operating scale on a sustained basis with revenues surpassing Rs. 250 Cr, supported by healthy execution of the orders.
• Improvement in financial risk profile
• Improvement in working capital management

• Decline in the revenue or profitability with revenue falling below Rs.125 crores and EBITDA margin falling below 5 per cent.
• Significant increase in debt levels leading to deterioration in financial risk profile.
• Elongation in working capital cycle, reflected by longer receivables, inventory buildup.