RCRS Innovations Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 47.80 Crs. of RCRS Innovations Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	47.80	Long Term	BWR BBB - /Stable Assignment
	(6.00)
	(36.00)
Grand Total	47.80	(Rupees Forty Seven Crores and Eighty lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has assigned a long-term rating of BWR BBB-/Stable for the bank loan facilities of RCRS Innovations Limited.

The rating factors in the company’s consistent revenue growth, the extensive experience of its directors, and its moderate financial profile. However, it remains constrained by exposure to intense competition, the inherent risk of rapid technological changes, and exposure to raw material price fluctuations that could impact cost structures. Going forward, the ability of the company to improve its scale of operations, the operating margin, and prudently manage its debt and inventory would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that RCRS Innovations Limited's business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term, The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

• Moderate Financial Profile: :

  The company reported net cash accruals of Rs.10.84 Cr against a CPLTD of Rs.1.50 Cr in FY2025, indicating a comfortable repayment position. The net worth stood at Rs.27.40 Cr in FY2025 and is expected to improve significantly to Rs.93.95 Cr in FY2026 as per company projections, as the company plans to raise capital through an SME IPO. The ISCR and DSCR stood at 5.40 times and 3.25 times, respectively, in FY2025, reflecting the company’s strong debt-servicing capability.

• Management Experience: :

  RCRS Innovations Ltd is backed by a strong and experienced management team with diverse expertise in business management, finance, and strategic leadership. Mr. Ravi Prakash Goyal, with over 30 years of experience in finance and operations, brings deep industry insight and is instrumental in driving the company’s financial planning and long-term growth. Mr. Aayush Goyal, the founder, combines academic excellence with entrepreneurial vision, leveraging his MBA from NMIMS and executive education from IIM Calcutta to lead the company’s innovation and strategic direction. Supporting them is Mr. Deepanjan Periwal, a Chartered Accountant and Registered Valuer with over 15 years of experience in project management and financial consulting. As an Independent Director, his expertise in governance, compliance, and strategic planning further strengthens the leadership foundation. Together, this dynamic team positions RCRS Innovations Ltd for sustainable growth and competitive advantage in the renewable energy sector.

• Operational track record. :

  The company’s total operating income has shown consistent growth over the past three years and the company’s OPBDIT has shown an increasing trend over the last three years. The recent installation of a new manufacturing unit with enhanced production capacity is expected to support further growth. Additionally, the company has begun bidding for government projects, which is likely to further boost its revenue. As of September 2025, the company has an outstanding order book of Rs.90.82 Cr.

Credit Risks:

• Raw Material Supply Risk: :

  Lithium battery production depends on critical materials like lithium, cobalt, and nickel. Shortages or price spikes can delay production and raise costs. Similarly, solar PV modules need materials like polysilicon, silver, and glass, which face supply risks from limited capacity, geopolitical tensions, and rising demand.
   

• Technology Obsolescence Risk: :

  New battery technologies, such as solid-state and sodium-ion batteries, are emerging and may replace the current lithium-ion systems. In the solar industry, innovations like perovskite cells and bifacial panels offer higher efficiency and better performance. To stay competitive and maintain market share, companies need to continuously update and improve their technology.

ANALYTICAL APPROACH - Standalone

The Company has no subsidiary, associate or joint ventures. BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

Going forward, the ability of the company to improve its scale of operations, the operating margin, and prudently manage its debt and inventory would be the key rating sensitivities.

Upward:

• The rating may be revised upward if the company demonstrates a 20% improvement in operating income and an operating margin of 17%, along with enhanced cash accruals and a stronger cash and cash equivalents position.
• Reduction in the Total Debt/TNW ratio to below 1.0x, and a net profit margin of 9%.

 

Downward:

• A decline of 10% or more in revenue due to adverse market conditions or operational inefficiencies.
• A decline in the current ratio below 1.27 times.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and a moderate cash balance of Rs. 10.84 Crore. Its capex requirements are modular and expected to be funded using debt of Rs. 15.50 Crore for which it has sufficient headroom. Its bank limits are utilized to the extent of 80% and has sought enhancement in bank lines, supported by the above unity current ratio.

The company has net cash accruals of Rs.10.84 Cr against a CPLTD of Rs.1.50 Cr in FY2025. In FY2026, net cash accruals are projected to increase to Rs.20.13 Cr, while the CPLTD is expected to be Rs.2.74 Cr. The company has a Cash and Bank Balance of Rs.0.60 Cr and Short-Term Loans and Advances of Rs.3.89 Cr in FY2025. ISCR and DSCR of the company stands at 5.40 times and 3.25 times, respectively in FY2025, indicating strong debt-servicing capability of the company. The current ratio of the company stands at 1.27 times, indicating sufficient short-term liquidity, and it is expected to improve to 2.04 times in FY2026. The company's net worth is projected to increase significantly from Rs.27.40 Cr in FY2025 to Rs.93.95 Cr in FY2026. This growth is driven by plans to launch an SME IPO, with a projected capital infusion of approximately Rs.60 Cr and an expected net profit of Rs.13–14 Cr in FY2026, leading to a substantial increase in TNW.

ABOUT THE ENTITY

The RCRS Innovations Limited Company was originally incorporated on August 22, 2019 as a Private Limited Company under the name “RCRS Innovations Private Limited” (Registration No. 354151) pursuant to the provisions of the Companies Act, 2013 with the Register of Companies, Delhi. Subsequently, in line with its long-term vision and growth strategy, the Company was converted from a Private Limited Company into a Public Limited Company by virtue of a special resolution passed by its Shareholders at the General Meeting held on November 06, 2023, and its name was accordingly changed to “RCRS Innovations Limited". The company was located at Noida, Uttar Pradesh - 201301. Mr.Ayush Goyal, Mrs. Saritha Goyal, Mr.Deepanjan Periwal, and Mr.Sagar Saxena are the directors of the company.

The Company has been engaged in the manufacturing of customized Lithium-ion Battery Packs and Solar PV (Photovoltaic) Modules, primarily serving the B2B segment under its proprietary brand ‘EXEGI’.

Lithium-Ion Battery Packs:

With an installed production capacity of 125 MWh, the company specializes in the design and manufacturing of advanced lithium-ion battery packs utilizing cutting-edge technology platforms. The Core strength of the company lies in the ability to customize energy storage solutions to meet diverse client requirements from compact 3.2V 6,000mAh modules to large-scale 240V 800Ah systems.

These batteries are used in various areas, especially in the solar and energy storage industries, such as:

1. Solar Lighting: Powering street lights or outdoor lights using solar energy.

2. Inverter Batteries: Used as backup power for homes or businesses during outages.

3. BESS (Battery Energy Storage Systems) for residential, commercial, and industrial 
   applications.

4. Low Voltage High-Capacity Systems (48V–60V): Common in telecom, solar storage, or home energy systems.

5. High Voltage Systems (96V–240V): Used for industrial energy storage, electric mobility, or grid-level applications.

6. Customized Packs: Built exactly to match a customer’s special requirements.

Solar PV Modules:

As part of its horizontal expansion strategy, the Company forayed into the manufacturing of Solar PV Modules in August 2023 at a leased facility with an annual installed capacity of 40 MW. The product range comprises:

• Monocrystalline Solar PV Modules

• Mono PERC Solar PV Modules

• TOPCon Solar Modules

• Polycrystalline Solar PV Modules

These panels, with capacities ranging from 40W to 400W, are primarily supplied to EPC companies, solar water pump integrators, and solar lighting firms, who in turn deploy them at their respective project sites.

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

NA

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	47.80	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(6.00)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(36.00)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		47.80	(Rupees Forty Seven Crores and Eighty lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	HDFC Bank	Term Loan - Sanctioned	5.45	_	5.45	Simple##
	Sub-Limit (Capex LC) - Sanctioned	(6.00)
2	HDFC Bank	Term Loan - Sanctioned	2.25	_	2.25	Simple##
3	HDFC Bank	Term Loan - Sanctioned	4.10	_	4.10	Simple##
4	HDFC Bank	Cash Credit - Sanctioned	36.00	_	36.00	Simple##
	Sub-Limit (WCDL) - Sanctioned	(36.00)
Total			47.80	0.00	47.80
TOTAL (Rupees Forty Seven Crores and Eighty lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.