Shri Ashutosh Structures Pvt. Ltd.

Brickwork Ratings has assigned long-term and short term rating for the Bank Loan Facilities of Rs. 152.36 Crs. of Shri Ashutosh Structures Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	87.36	Long Term	BWR BBB + /Stable Assignment
Non Fund Based	40.00	Long Term	BWR BBB + /Stable Assignment
	25.00	Short Term	BWR A2 + Assignment
Grand Total	152.36	(Rupees One Hundred Fifty Two Crores and Thirty Six 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 (BWR) has assigned a Long-Term Rating of BWR BBB+ (Stable) and a Short-Term Rating of BWR A2+ for the Bank Loan Facilities of Rs. 152.36 Crores of Shri Ashutosh Structures Pvt. Ltd (SASPL).

The ratings reflect SASPL’s strengthening business and financial risk profile, underpinned by a firm, unexecuted order book of Rs. 550–600 crore with public sector power transmission monopolies (such as GETCO and PGCIL) and a strategic value-chain transition into heavy 765kV transmission towers. The ratings are further supported by the promoters' 24-year operational track record, steady top-line growth (TOI of Rs. 382.68 crore in FY26), a low-gearing profile (0.76x) driven by a 100% profit-retention policy, and an adequate liquidity cushion of Rs. 9.49 crore. However, the ratings are constrained by project-specific working capital absorption in high inventory holdings (Rs. 381.92 crore), customer concentration risk tied to state transmission utilities, and exposure to intense competition in a tender-driven industry.

The Stable outlook reflects the rating agency's expectation that SASPL will maintain its stable business risk profile over the medium term, sustained by its robust order backlog and the extensive execution experience of its promoters. The outlook assumes that the volume-led dispatch momentum achieved in early FY27 will enable the company to steadily unwind its massive inventory block, gradually returning working capital cycles toward historical averages.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Promoters and Established Execution Track Record :

  SASPL benefits from a mature operational history of more than 20 years since its incorporation in 2002. Under the active leadership of Mr. Virendra Kumar Agrawal and Mr. Umang Agrawal, the management team brings over 40 years of direct, hands-on experience in structural steel fabrication and transmission line projects. This established track record provides strong operational stability through varying economic phases, ensures deep technical domain knowledge, and anchors sticky relationship matrices with primary industrial suppliers and equipment vendors.

• Reputed Clientele with Substantial Order Book Providing Mid-Term Revenue Predictability :

  The company has cultivated long-term institutional relationships with public sector transmission monopolies and utilities. Key long-term off-takers include Gujarat Energy Transmission Corporation (GETCO), Rajasthan Rajya Vidyut Prasaran Nigam (RRVPN), Odisha Power Transmission Corporation (OPTCL), and Punjab State Transmission Corporation (PSTCL). Over 60% of the long-term revenue stream is underwritten by these sovereign and quasi-sovereign counterparty profiles, which significantly minimizes ultimate credit default risks. Revenue predictability over the mid-term is firmly supported by a substantial active order backlog valued between Rs. 550 crore and Rs. 600 crore across 19 major contracts as of July 2026. This is further validated by a high-quality debtors ageing matrix where Rs. 21.02 crore in outstanding receivables shows a clean collection velocity, with 90.00% clearing within 90 days and 0.00% pushed beyond a 365-day delinquency tail.

• Steady Increase in the Scale of Operations with Moderation in Profitability :

  Total Operating Income grew steadily to Rs. 382.68 crore in provisional FY26, up from Rs. 342.87 crore in FY25 and Rs. 295.66 crore in FY24. Growth was driven by an increase in fabrication production to 59,649.75 MT in FY26 (up from 36,721.10 MT in FY25), lifting capacity utilization to 74.56% (45.90% in FY25). This volume expansion led to a structural moderation in operating margins, with the EBITDA margin settling at 9.02% in provisional FY26, following 8.49% in FY25 and 9.54% in FY24

• Healthy Capital Structure and Stable Debt Coverage :

  A conservative policy of retaining 100% of net profits expanded Tangible Net Worth to Rs. 131.02 crore in provisional FY26 (Rs. 119.87 crore in FY25 and Rs. 109.85 crore in FY24). Funded long-term debt remains controlled with a Gearing ratio of 0.76x in provisional FY26 (0.67x in FY25 and 0.73x in FY24). Debt protection cushions remain adequate, supported by an Interest Service Coverage Ratio (ISCR) of 1.90x in provisional FY26 (1.83x in FY25 and 1.87x in FY24)

Credit Risks:

• Elongated Working Capital Cycle and Trapped Operational Liquidity :

  SASPL operates with a stretched working capital footprint. In provisional FY26, Inventory Days stood at 364.3 days (273.9 days in FY25 and 240.4 days in FY24), trapping Rs. 381.92 crore in physical asset architecture. This resulted in strained near-cash buffers, visible in a degraded Quick Ratio of 0.20x in provisional FY26 (0.26x in FY25 and 0.39x in FY24) and negative operating cash flows (-Rs. 72.14 crore in FY25). To balance this cycle, the company stretched its trade payables to 157.9 days in provisional FY26 (155.4 days in FY25 and 97.1 days in FY24), leading to an elevated Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio of 2.67x (1.97x in FY25 and 1.65x in FY24). Financial flexibility is further limited by a 93.8% utilization of non-funded bank lines, with Rs. 5.57 crore tied up in expired, unreleased bank guarantees.

• Profitability Susceptible to Volatility in Raw Material Prices :

  Operating margins remain exposed to open-market price fluctuations of core raw materials, primarily structural steel and zinc. While the company maintains Price Variation (PV) clauses in approximately 70% to 80% of its utility contracts, the remaining fixed-price order backlog relies on immediate back-to-back procurement strategies. Any processing lag in passing on sudden cost spikes to public utilities, or downward adjustments in the market value of unhedged stock, exposes the company to margin compression and impacts the consistency of cash accruals.

• Exposure to High Competition in the Steel Industry :

   SASPL is exposed to high fragmentation and intense competitive bidding pressures within the domestic structural steel fabrication industry, which limits its ability to execute strong price premiumization. Furthermore, the company remains structurally vulnerable to the cyclicality inherent in the steel and infrastructure industries. Downturns in macroeconomic capital expenditure budgets or cyclical investment reductions by state power utilities can impact fresh order inflows, lower plant capacity utilization, and create sudden volatility across the company's revenue streams.

ANALYTICAL APPROACH - Standalone

For arrive at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria, as detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive Sensitivities

• Topline & Operating Performance: Sustained and volume-led growth in Total Operating Income above Rs. 750 crore while maintaining the core operating EBITDA margin above 9.50%.
• Capital Structure & Working Capital Optimization: TOL/TNW of less than 1.5x and a reduction in inventory days to below 150 days.

Negative Sensitivities

• Topline & Operating Performance: A decline in Total Operating Income below Rs. 300 crore or inability to maintain the core operating EBITDA margin, causing it to fall below 8.50%.
• Capital Structure & Working Capital Optimization: TOL/TNW exceeding 3.0x or any further increase in inventory days, which would exert downward pressure on the rating.

LIQUIDITY INDICATORS - Adequate

The liquidity profile of SASPL is assessed as adequate. Cash and bank balances rose to Rs. 10.97 crore in Q1 FY27, up from the Rs. 5.09 crore held in unencumbered, lien-free fixed deposits in provisional FY26. Total Operating Income reached Rs. 382.68 crore in provisional FY26, supported by an ongoing expansion run-rate in Q1 FY27 (Turnover Income of Rs. 93.91 crore) and a healthy order book of Rs. 550 crore to Rs. 600 crore that ensures mid-term revenue predictability. This provides an enhanced safety buffer for meeting upcoming short-term operational outlays. With ISCR rose to 2.09x in Q1 FY27 (up from 1.90x in provisional FY26 and 1.83x in FY25). The short-term risk is protected by high-quality institutional debtors (Rs. 24.44 crore in Q1 FY27) clearing efficiently within 90 days, zero long-term delinquencies, and an improved cash buffer of Rs. 10.97 crore. The entity maintains a total liquidity cushion of Rs. 9.49 Crore. This includes Rs. 6.66 Crore in unencumbered cash, liquid investments, and unpledged fixed deposits, along with Rs. 2.83 Crore in unutilized fund-based bank credit headroom. This total liquidity buffer of Rs. 9.49 Crore comfortably supports immediate debt servicing obligations and short-term working capital requirements,

ABOUT THE ENTITY

Shri Ashutosh Structures Pvt. Ltd (SASPL) was incorporated in the year 2002. SASPL is a family-managed business. The promoters are Mr. Virendra Kumar Agrawal and Ms. Sangeeta Agrawal, who are also directors. Virendra Kumar Agrawal has over 30 years of experience in the steel industry. SASPL is a manufacturer of galvanised structures required for transmission line towers, substation structures, rail switches, and structures for railway electrification. The company's corporate office and 2 manufacturing units are located at Raipur, Chhattisgarh. The total installed capacity of both units is a fabrication unit of 80000 MTPA and a galvanisation unit of 96000 MTPA

ESG Profile

The company demonstrates an evolving ESG profile based on its environmental, social, and governance practices.

Environmental: The company successfully processes a high industrial throughput of 59,649.75 MT in FY26 while maintaining full compliance with pollution control norms for the clean recycling and disposal of zinc dross and steel scrap. The core manufacturing operations deliver heavy structural components engineered specifically for clean public utility transmission systems, facilitating the expansion of efficient national power grids.

Social: The enterprise boasts a robust workplace safety record with zero major industrial accidents or site disruptions across its 25-year operating history, confirming protective employee practices.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	295.66	342.87	382.68
EBITDA	Rs.Crs.	28.20	29.11	34.51
PAT	Rs.Crs.	8.29	10.02	11.15
Tangible Net Worth	Rs.Crs.	109.85	119.86	131.01
Total Debt / Tangible Net Worth	Times	0.73	0.67	0.76
Current Ratio	Times	1.54	1.41	1.34

KEY COVENANTS OF THE FACILITY RATED

The facility carries standard financial and operational covenants typical for such credit facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

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

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	87.36	BWR BBB+/Stable (Assignment)	21Aug2025	BWR B+ Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn)	15Oct2024	BWR BB- Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	12Oct2023	BWR BB Stable (ISSUER NOT COOPERATING* /Downgrade)
Non Fund Based	LT	40.00	BWR BBB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	25.00	BWR A2+ (Assignment)	21Aug2025	BWR A4 Stable (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	15Oct2024	BWR A4 Stable (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	12Oct2023	BWR A4 (ISSUER NOT COOPERATING* /Downgrade)
Grand Total		152.36	(Rupees One Hundred Fifty Two Crores and Thirty Six lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Company
• Manufacturing Company

Analytical Contacts
Vedant Nitin Tokekar Ratings Analyst vedant.t@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	Bank of India	Term Loan - Sanctioned	1.53	_	1.53	Simple##
2	Bank of India	Cash Credit - Sanctioned	14.00	_	14.00	Simple##
3	Bank of India	Bank Guarantee - Sanctioned	21.00	_	21.00	Simple##
4	Bank of India	Letter of Credit - Sanctioned	_	5.00	5.00	Simple##
5	Bank of India	GECL 1.0 - Sanctioned	0.66	_	0.66	Simple##
6	Indian Overseas Bank	Term Loan - Sanctioned	9.72	_	9.72	Simple##
7	SIDBI	Term Loan - Sanctioned	2.35	_	2.35	Simple##
8	State Bank Of India (SBI)	Cash Credit - Sanctioned	49.00	_	49.00	Simple##
9	State Bank Of India (SBI)	Letter of Credit - Sanctioned	_	20.00	20.00	Simple##
10	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	19.00	_	19.00	Simple##
11	State Bank Of India (SBI)	GECL - Sanctioned	2.10	_	2.10	Simple##
12	Tata Capital Limited	Channel Finance Facility - Sanctioned	8.00	_	8.00	Simple##
Total			127.36	25.00	152.36
TOTAL (Rupees One Hundred Fifty Two Crores and Thirty Six 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.