| Established track record of operations and Experienced Management
WIL was incorporated in 2011 and its product portfolio is diversified across the printing, lamination, and flexible packaging solutions. These products are primarily used for packaging food products, pharmaceuticals, FMCG goods, beverages, fasteners, agrochemicals, and other industrial products. The current directors of the company are Mr. Sumant Jalan, Mrs. Sheetal Jalan, and Mr. Aditya Jalan. Mr. Sumant Jalan possesses more than two decades of experience in the industry and oversees the production and marketing functions, while Mr. Aditya Jalan, Director, is engaged in expanding the company's export presence. The management is further supported by a team of experienced professionals. This has benefited the company in building established relationships with customers and suppliers. Acuite expects that the company will continue to derive benefit from the established track record of operations and experienced management’s strong understanding of market dynamics.
Improvement in profitability margins, albeit decline in operating income
The operating profitability of the company witnessed improvement, with EBITDA margin increasing to 10.21% in FY2026 (Prov.) as against 9.48% in FY2025 owing to better cost absorption coupled with execution of higher-margin packaging orders. Likewise, the PAT margin stood at 2.38% in FY2026 (Prov.) against 2.29% in FY2025. Additionally, the company has commissioned debt-funded capex towards a plastic extrusion machine in the printing division (in March 2026) and a 2.50 MW solar power plant (in April 2026). Together, this capex is expected to support enhancing operating efficiencies, thereby improving the company's operating profitability over the medium term. Further, despite the improved profitability margins, the company’s operating revenue stood at Rs. 122.95 Cr. in FY2026 (Prov.) as against Rs. 127.55 Cr. in FY2025 and Rs. 159.65 Cr in FY2024. The decrease during FY2026 (Prov.) is primarily on account of decline in price realizations. Nevertheless, the company has registered around Rs. 58.00 Cr. as on 21st August 2026 supported by improved price realizations during the period. Acuite notes that the ability of the company to scale up its operations while maintaining its profitability margins, coupled with effectively realizing benefits from its recent capex initiatives will remain key rating monitorable factors.
Moderate Financial Risk Profile
The financial risk profile of the company is moderate, marked by modest net worth, moderate gearing, and debt protection metrics. The tangible net worth of the company stood at Rs. 45.36 Cr. as on 31st March 2026 (Prov.) as against Rs. 41.77 Cr. as on 31st March 2025 on account of accretion profits into reserves. The total debt of the company stood at Rs. 59.63 Cr. as on 31st March 2026 (Prov.) as against Rs. 47.58 Cr. as on 31st March 2025. The increase in debt levels is on account of term loans availed to fund the capex related to plastic extrusion machinery as well as the solar power plant undertaken by the company. The overall funding structure of this capex comprises term loan from bank amounting to Rs. 18.29 Cr. along with unsecured loans from the director/promoter and internal cash accruals amounting to Rs. 6.16 Cr. The capital structure is marked by gearing ratio at 1.31 times as on 31st March 2026 (Prov.) as against 1.14 times as on 31st March 2025. Moreover, the coverage indicators marked by interest coverage ratio and debt service coverage ratio stood at 2.19 times and 1.37 times, respectively, as on 31st March 2026 (Prov.). Further, Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.13 times as on 31st March 2026 (Prov.) as against 1.56 times as on 31st March 2025 and the Debt/EBITDA stood at 4.64 times as on 31st March 2026 (Prov.) against 3.83 times as on 31st March 2025. Acuite expects the financial risk profile of the group to remain moderate with no further debt-funded capex plans in near to medium term.
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| Intensive Working Capital Operations
The working capital operations of the company are intensive, marked by GCA days of 271 days as on 31st March 2026 (Prov.) as against 212 days as on 31st March 2025 on account of high inventory holding and elevated receivables outstanding at the fiscal year-end. The inventory days stood at 131 days as on 31st March 2026 (Prov.) as against 85 days as on 31st March 2025. The higher inventory holding is primarily associated with the capex undertaken towards plastic extrusion machinery, which was commissioned in March 2026. The company procured adequate raw material inventory to support the order execution. Additionally, to some extent, the higher inventory levels were also due to the stocking of raw materials amid anticipated raw material price volatility due to geopolitical uncertainties. Consequently, the creditor days stood at 116 days as on 31st March 2026 (Prov.) as against 49 days as on 31st March 2025. Further, the debtor days stood at 101 days as on 31st March 2026 (Prov.) as against 81 days as on 31st March 2025. The increase was largely attributable to higher sales recorded during Q4 FY2026, resulting in elevated receivables outstanding at the fiscal year-end. Acuite expects the working capital operations of the company to remain on similar levels in the near to medium term owing to the nature of operations.
Competitive nature of the industry and susceptibility of margins to fluctuations in raw material prices
The Indian packaging industry is highly fragmented on account of its low capital intensity, low entry barriers, and easy availability of raw materials. High competition puts pressure on margins, thereby reducing bargaining power with customers for players such as WIL. Further, the raw material used in packaging is plastic granules and films, whose prices are fluctuating and have a direct impact on operating margins. Acuité believes that the ability of the company to pass on such an adverse impact to its customers remains a key sensitivity factor.
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