Sarvottam Rolling Mills Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings of BWR BBB-/Stable and BWR A3 for the Bank Loan Facilities of Rs. 32.00 Crs. of Sarvottam Rolling Mills Pvt. Ltd.

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	27.00	Long Term	BWR BBB - /Stable Assignment	RBI
Non Fund Based	5.00	Short Term	BWR A3 Assignment	RBI
Grand Total	32.00	(Rupees Thirty Two Crores Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated RATING ACTION / OUTLOOK

Brickwork Ratings assigns the long-term and short-term ratings of BWR BBB-/Stable and BWR A3 for the Bank Loan Facilities of Rs. 32.00Crs. of Sarvottam Rolling Mills Pvt. Ltd.    

The Rating has factored, inter alia, the company’s experienced management with a long track record of operations and effective working capital management. The rating is constrained by the intense competition and volatility in raw material prices. Going forward, the company’s ability to scale up operations, enhance profitability and strengthen its liquidity and overall credit profile will remain key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Sarvottam Rolling Mills Pvt. Ltd. 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:

• Extensive experience and support of the promoters :

  The company was incorporated in 2005 and has an operational track record of more than two decades. The promoters Mr. Sanjay Kumar Jain and Mr. Rajeev Jain have over 2 decades of experience in the industry. The extensive experience of the promoters combined with a proven operational track record and their understanding of the dynamics of the industry are expected to continue to support the business risk profile.

• Effective Working Capital Management :

  The company’s cash conversion cycle remained at a comfortable level of 35 days in Prov FY26 (PY FY25: 34 days). It extends a credit period days to customers with the average collection period at 19 days in Prov FY26 (PY FY25: 15 days). Inventory is typically held for about one month, reflected in average inventory days of 30 days in Prov FY26 (PY FY25: 36 days). On the supplier side, the company does not benefit from extended credit terms, making advance payments or settling dues within 7–10 days. Consequently, average creditor days stood at 14 days in Prov FY26 (PY FY25: 16 days).

Credit Risks:

• Volatility in raw material prices :

  The company primarily rely on specific raw materials such as iron and steel wires, steel billets, scrap metal and alloys etc. Raw material cost is a major contributor to total operating cost, thereby making profitability sensitive to raw material prices primarily due to the fact that the major raw material is commodity in nature and witnesses frequent price fluctuations. The prices of these raw materials are highly volatile influenced by global market dynamics and demand fluctuations. Thus, any adverse change in the prices of the raw
  material may affect the profitability margins of the company.

• High competition :

  The industry is highly competitive with a large number of organised and unorganised players which limits the bargaining power of the company and places pressure on profitability. Performance of the company will remain susceptible to competition from imports. High level of inventories are maintained as products are required to be supplied at short notice.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Sarvottam Rolling Mills Pvt. Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale)

RATING SENSITIVITIES

Positive :

• Improvement in revenue above Rs.400.00Crs with improvement in net margin above 1.5%.
• Sustenance of debt coverage indicators i.e. ISCR above 3.00x and Total Debt/TNW below 1x.

Negative :

• Debt funded capex leading to deterioration in overall gearing above 3x on a sustained basis.
• Stretch in working capital cycle, leading to an increase in working capital borrowing and weakening of financial risk profile.
• Any decline in revenue below Rs.300.00Crs.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 3.40cr in Prov FY26 compared to Rs.2.00cr in FY25. The company reported net cash accruals of Rs.12.84cr in Prov FY26 compared to Rs. 4.35cr in FY25 against the current debt of zero rupees in FY25 and Prov FY26. The OPBDIT of Rs. 18.56cr in Prov FY26 was sufficient to cover the finance charges of Rs. 2.61cr in Prov FY26. The current ratio of the company stood at 1.54x in Prov FY26 and 1.30x in FY25. ISCR and DSCR of the company stands 7.12x and 4.38x in Prov FY26 compared to 2.28x and 1.77x in FY25. Further, the company's average utilization of cash credit is 71% during the last 12months. Taking all the above points into consideration the company's liquidity position is defined as adequate.

ABOUT THE ENTITY

Incorporated in October 2005, SRMPL is promoted by Mr. Sanjay Kumar Jain and Mr. Rajeev Jain. The company is engaged in the manufacturing of TMT bars and MS billets/ingots using sponge iron and scrap as raw materials. It operates a fully integrated manufacturing facility located in Muzaffarnagar, with an installed production capacity of 115,000 MT for MS billets/ingots and 110,000 MT for TMT bars as of March 31, 2025. The products are marketed under the brand names “Paras” and “Rathi.” The manufacturing unit is equipped with three 12 MT furnaces, one continuous casting (concast) machine and rolling mill.

ESG Profile

The company demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks are driven by high water usage, waste generation and reliance on energy-intensive processes making disclosures on water consumption, waste-management practices, renewable energy share and emissions levels particularly important. 

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development with metrics such as workforce mix (95% male, 5%female), safety performance and training initiatives offering insights into operational resilience.

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 - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	344.13	347.33	371.05
EBITDA	Rs.Crs.	6.56	8.25	18.56
PAT	Rs.Crs.	1.53	2.51	10.52
Tangible Net Worth	Rs.Crs.	44.04	46.55	57.07
Total Debt / Tangible Net Worth	Times	0.70	0.55	0.30
Current Ratio	Times	1.36	1.30	1.54

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

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	27.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	5.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		32.00	(Rupees Thirty Two Crores Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	Punjab National Bank	Cash Credit - Sanctioned	27.00	_	27.00	Simple##
2	Punjab National Bank	Inland Letter of Credit (ILC) - Sanctioned	_	5.00	5.00	Simple##
Total			27.00	5.00	32.00
TOTAL (Rupees Thirty Two Crores 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.