RAPHE MPHIBR PRIVATE LIMITED

Brickwork Ratings assigns the long-term ratings of BWR BBB/Stable and short-term ratings of BWR A3 for the Bank Loan Facilities of Rs.1220.94Crores of Raphe mPhibr Private Limited.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	820.94	Long Term	BWR BBB /Stable Assignment
	200.00	Short Term	BWR A3 Assignment
Non Fund Based	200.00	Short Term	BWR A3 Assignment
Grand Total	1220.94	(Rupees One Thousand Two Hundred Twenty Crores and Ninety Four 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
*** Cash Credit limit sanctioned for Rs.200cr by SBI is order-specific and short-term in nature RATING ACTION / OUTLOOK

The ratings assigned to the bank facilities of Raphe Mphibr Pvt Ltd (RMPL) factor in strength from the experienced and professionally qualified management team with the company’s domain expertise in the niche segment of manufacturing and designing of unmanned aerial vehicle (UAV) systems. The ratings also take comfort from a robust order book position providing near-term revenue visibility, proven resource-raising capability with fund successfully raised during FY25 (refers to the period April 01 to March 31) and FY26, leading to a healthy financial risk profile and a favourable outlook for drone manufacturing companies. The ratings are, however, constrained by the working capital-intensive nature of operations, risk of technology obsolescence, tender-based operations, and foreign exchange fluctuation risk.

KEY RATING DRIVERS

Credit Strengths:

• Experienced & professionally qualified management :

  The company has an experienced and qualified management team of professionals and technical staff. Mr. Vikash Mishra, founder & chairman of the company, is a graduate from the Massachusetts Institute of Technology (MIT) and looks after the Department of Mechanical and Aerospace. Mr Vivek Mishra, CEO & founder, holds a PhD from Georgia Tech and looks after the Electrical, Electronics, and Controls department. Mr  Nitin Katiyar, MD and founder, is a graduate from MN National Inst of Technology and looks after the Software department. The promoters are highly qualified technocrats who have been involved in developing patents in carbon fibre composites, prepeg technology, expertise in system identification, robotics, and Artificial Intelligence(AI). Apart from this, the company has a strong team of 700+  researchers, engineers, and technicians, working towards a common goal of Make-in-India.

• Healthy Financial Risk Profile :

  The company reported substantial growth in its scale of operations from Rs.83.50crores in FY24 to Rs.260crores in FY25 (refers to the period from April 01, 2024, to March 31, 2025) and Rs.341.67crores in FY26 (provisional) derived from successful execution of orders in hand. The company’s profitability margins continued to remain healthy as reflected by PBILDT and PAT margins of 26.21% (PY: 12.34%) and 11.34% (PY: 2.49%) in FY26 (prov), respectively. The debt protection metrics of the company stood healthy at 0.43x as on 31 March 2026 (PY: 43x) on account of a substantial increase in net worth base.The ISCR and DSCR of the company also stood comfortable at 3.24x and 2.85x as on 31 March 2026 (PY: 2.87x and 2.17x).

• Robust order book ensuring high medium-term revenue Visibility :

  The company has a robust order book of over Rs. 6,124 crores from the Indian Army, RCI-DRDO, IDEX, Bharat Dynamics Limited, Indian Navy to be executed over the medium term. The order book is about 17 times its Fiscal year 2026 sales and provides revenue visibility over the medium term. Sustenance of an adequate order book with continuous receipt of new orders will remain monitorable.

• Proven capital-raising capability :

  RMPL demonstrates strong financial backing and an exceptional ability to secure capital from leading private equity (PE) investors, viz, Silicon Valley-based venture capital firm General Catalyst (GC), Think Investments, Mr Amal N. Parikh & family, RK Dhamani & Family, etc since inception in multiple rounds. Over the last two years, the company has successfully raised more than Rs.966crore entirely via equity and Series B Compulsory Convertible Preference Shares (CCPS). During FY25, the company raised Rs.120 crore via equity and Rs.850crore ($100million) via CCPS, pushing its post-money valuation to Rs.7,650crores. These funds have been primarily allocated towards capital expenditures, research, expanding aircraft design, engineering, R&D capabilities, and scaling local manufacturing facilities in Noida.

• Strong Policy Tailwinds & Sectoral Thrust in Defense Tech :

  The company benefits directly from the Indian government’s policy push toward creating a self-reliant domestic drone manufacturing ecosystem. Liberalized UAV regulations and localized defense procurement mandates position Raphe favorably to capture significant market share as public and private drone spending expands.

Credit Risks:

• Working capital-intensive nature of operations :

  The company’s operating cycle elongated to 527 days in FY26 (PY: 205 days), majorly driven by elongated inventory days of 537 days in FY26 (PY: 319 days). The extended inventory days are due to orders that require 1-2 years for design before the final product delivery and the significant time needed for pre-delivery inspections (PDI). Considering advance procurement of inventory to execute orders, inventory levels are expected to remain high in the near to medium term.

• Tender-based operations :

  RMPL's performance is constrained by its tender-based operational model, where revenue generation depends entirely on successfully winning competitive bids and timely execution of projects within the scheduled time. Consequently, revenue realisations depend on government budget allocations, defense policy priorities, and strict tendering cycles. Also, project timelines can experience volatility or delays due to prolonged evaluation, customization, or field-testing phases required by defense procurement protocols. Thus, the lack of recurring contract revenue creates inherent volatility in both operational scale and profitability margins.

• Risk of technology obsolescence :

   RMPL operates in the aerospace defense-tech sector, which is characterized by rapid technological advancement, evolving customer specifications, and continuous R&D requirements. RMPL’s long-term operational sustainability depends heavily on its ability to continuously upgrade its technology and adapt products to meet the strict and changing tactical demands of military and defense clients. Failure to keep pace with global technological shifts could render existing product platforms obsolete.

• Foreign exchange fluctuation risk :

  RMPL relies on key international suppliers across the UK, Germany, Switzerland, and France for specialized raw materials, including carbon fiber, high-performance motors, battery cells, and optical lenses. Because procurement expenses are denominated in foreign currencies while revenues are realized in Indian Rupees (INR), the company faces exposure to currency volatility. As raw materials are largely unhedged, currency fluctuations can impact short-term profit margins, though active monitoring helps mitigate potential downside risks.

ANALYTICAL APPROACH - Standalone

For arriving at the rating, BWR has considered the standalone approach. BWR has considered the audited balance sheet for FY24, FY25, and CA-certified provisional balance sheets for FY26, the latest sanction letters, along with other information and documents provided by the company. Additionally, BWR has applied its rating methodology as detailed in the Rating Criteria, as detailed below.

RATING SENSITIVITIES

Going forward, the company’s ability to manage working capital efficiently, improve the scale of operations, and profitability, along with the debt servicing capability and liquidity, will be key rating sensitivities.

Positive factors

• Timely execution of order book leading to sustained growth in revenues as per the projections, along with consistent improvement in profitability margins, maintaining capital structure at the present levels.
• Substantial improvement in order book providing revenue visibility over the medium term.

Negative factors

• Lower than envisaged revenue booking of below Rs.300crores along with operating margins below 18%, leading to lower net cash accruals.
•  Any higher-than-envisaged debt-funded capital expenditure impacting the overall financial risk profile.
•  Significant increase in working capital requirement and resultant weakening of liquidity position.

LIQUIDITY INDICATORS - Adequate

The liquidity position of RMPL is supported by way of continued fund infusions from private equity (PE) investors, moderate working capital utilization, and strong cash generation relative to debt repayments, though tempered by massive upcoming capital expenditure plans. Net Cash Accruals (NCA) stand at Rs.58.33crores in FY26 (Prov.) and are projected to grow significantly in the range of Rs.95-300crores within the next two years, which comfortably covers the scheduled principal debt repayments due over the near-to-medium term. The average fund-based working capital utilisation stood high at 85% for the trailing 12 months ending 30 June 2026. The company maintains an adequate unencumbered cash and bank balance alongside unutilized working capital bank lines, ensuring a cushion against any temporary cash flow mismatches. Liquidity is further bolstered by a strong current ratio of 2.50x in FY26 (Prov.) (2.57x in FY25), demonstrating a healthy short-term solvency position and sufficient working capital buffer.

ABOUT THE ENTITY

Incorporated on 21 July, 2017, Raphe MPhibr Private Limited (RMPL) is a high-tech aerospace and deep-tech manufacturing company based in Noida, Uttar Pradesh. The company was founded by three technocrats, Mr. Vikash Mishra, Mr. Vivek Mishra, and Mr. Nitin Katiyar. The company specializes in end-to-end indigenous design and production of customized Unmanned Aerial Vehicles (UAVs), structural carbon fiber composites, custom electronics, and propulsion mechanics. Operating as a vertically integrated manufacturer, RMPL has successfully endeavored to indigenously manufacture 85% of aircraft in-house. The company develops its key hardware and software components internally to serve military defense, commercial, and logistics requirements. 

ESG Profile

BWR believes that the ESG profile of Raphe mPhibr Private Limited supports its credit risk profile.

Environmental: The company strictly adheres to green building principles and energy-optimized practices at advanced design and assembly facilities. The company has high-tech processes for carbon composites and additive manufacturing that limit waste generation and resource depletion. 

Social: The company is strictly adhering to labour standards, fair wages, and enforces stringent on-site safety protocols to protect its workforce.

Governance: The entity has transparent bidding processes, ethical anti-corruption policies, business practices, and robust 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 - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	83.50	260.60	341.67
EBITDA	Rs.Crs.	18.16	32.16	89.56
PAT	Rs.Crs.	8.95	6.50	38.76
Tangible Net Worth	Rs.Crs.	343.41	805.76	1329.52
Total Debt / Tangible Net Worth	Times	0.30	0.43	0.43
Current Ratio	Times	3.08	2.57	2.50

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such 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	820.94	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	200.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	200.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		1220.94	(Rupees One Thousand Two Hundred Twenty Crores and Ninety Four lakhs Only)

*** Cash Credit limit sanctioned for Rs.200cr by SBI is order-specific and short-term in nature Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Akanksha Maindiratta Senior Rating Analyst akanksha.m@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@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	HDFC Bank	Term Loan - Sanctioned	40.00	_	40.00	Simple##
2	HDFC Bank	Term Loan - Sanctioned	140.00	_	140.00	Simple##
3	HDFC Bank	Term Loan - Sanctioned	20.00	_	20.00	Simple##
4	HDFC Bank	Cash Credit - Sanctioned	80.00	_	80.00	Simple##
5	HDFC Bank	Emergency Credit Line Guarantee Scheme (ECLGS) - Sanctioned	15.94	_	15.94	Simple##
6	State Bank Of India (SBI)	Cash Credit - Sanctioned	_	200.00	200.00	Simple##
7	State Bank Of India (SBI)	Cash Credit - Sanctioned	95.00	_	95.00	Simple##
8	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	150.00	150.00	Simple##
9	State Bank Of India (SBI)	Letter of Credit - Sanctioned	_	50.00	50.00	Simple##
10	State Bank Of India (SBI)	Term Loan - Sanctioned	210.00	_	210.00	Simple##
11	State Bank Of India (SBI)	Term Loan - Sanctioned	220.00	_	220.00	Simple##
Total			820.94	400.00	1220.94
TOTAL (Rupees One Thousand Two Hundred Twenty Crores and Ninety Four lakhs Only)

* Cash Credit limit sanctioned for Rs.200cr by SBI is order-specific and short-term in nature

## 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.