LIGHTING TECHNOLOGIES INDIA PRIVATE LIMITED

Brickwork Ratings assigns the long-term rating of BWR BBB-/Stable and short-term ratings of BWR A3 for the Bank Loan Facilities of Rs. 94.31 Crs. of LIGHTING TECHNOLOGIES INDIA PRIVATE LIMITED

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	68.86	Long Term	BWR BBB - /Stable Assignment	RBI
	0.05	Short Term	BWR A3 Assignment	RBI
	(5.00)
	(5.00)
	(10.00)
Non Fund Based	22.40	Long Term	BWR BBB - /Stable Assignment	RBI
	(3.00)
	3.00	Short Term	BWR A3 Assignment	RBI
	(3.00)
Grand Total	94.31	(Rupees Ninety Four Crores and Thirty One lakhs 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 (BWR) assigns the ratings of BWR BBB-/Stable for the long-term and BWR A3 for the short-term bank loan facilities of Lighting Technologies India Private Limited (LTIPL) for the Bank loan facilities amounting to Rs.94.31 crores. The ratings factor in the company’s track record, management expertise, strong supplier and client base. The assessment also considers LTIPL’s stable revenue performance over the last two years along with an EBITDA margin of 8.29% and a net margin of 1.64% based on provisional FY26 results.

Operational momentum remains intact, with LTIPL achieving 20% of its projected revenue in Q1 FY27. The company maintains a comfortable capital structure, supported by a stable Tangible Net Worth (TNW) of Rs. 132 crores, a gearing ratio of 0.49x, and a leverage ratio of 0.90x as per provisional FY26. Driven by steady operational cash flows, TNW is expected to increase to Rs. 142 crores in the current fiscal year. Liquidity remains adequate, backed by sufficient EBITDA to cover interest obligations. Gross Cash accruals (GCA) of Rs. 6.93 Crores in FY26​​ are projected to rise significantly to Rs.23 Crores​ in FY27, which are expected to comfortably cover​ the FY27 debt obligations of Rs.19.90 crores through recurring operational cash flows​. The Debt repayment projected for FY 27 is to the tune of Rs. 3.76 Crores.

However, the ratings are constrained by factors such as risks associated with the working capital–intensive nature of operations stemming from a diversified revenue segment and a B2B or tender-based business portfolio. Additionally, the business operates on a stretched receivables cycle, susceptibility to raw material price volatility and foreign exchange risk. Other constraints include the highly competitive and cyclical nature of the industry, as well as exposure to evolving government import policies.

The stable outlook indicates a moderate likelihood of a rating change over the medium term, supported by the Management's extensive industry experience, LTIPL's established track record and the company's strong relationships with its clientele which are further bolstered by an improved financial risk profile. BWR expects the company to enhance its scale of operations, increase profitability margins and strengthen its liquidity position by maintaining adequate cash accruals and improving its receivables cycle. Furthermore, the company is expected to improve its current ratio, gearing ratios, and debt protection metrics in the following years to come.

The company is expected to focus on expanding its scale of operations by mitigating business risks while improving its capital structure, both of which could lead to a positive outlook. However, a revision to a negative outlook could occur if there is significant underperformance in revenue, deterioration in profitability, gearing indicators or the capital structure. Additionally, debt protection metrics may be impacted by fresh debt-financed capital expenditure or liquidity challenges resulting from an extended working capital cycle. 

KEY RATING DRIVERS

Credit Strengths:

• Extensive Industry Experience of the Promoters & Established Track Record :

  LTIPL is a subsidiary of LLC Lighting Technologies IGC, Moscow, Russia, which has an established track record in the lighting segment along with its Brand, LT. LTIPL is primarily driven by leadership concentration, highly unbalanced labor demographics, and geopolitical vulnerabilities. While the Bangalore-based leadership team—comprising Managing Director Mr.Harinarayanan Koothur Veetil and Directors Mr.Satish Thazhillath Ninkileri and Mr. Gopalkumar Pazhedath—brings over two decades of vital expertise to the LED Lights manufacturing process, the heavy reliance on this small executive core introduces a distinct key-person dependency. The team successfully overcame the COVID-19 lockdown crisis.

• Improved Profitability margins with stable revenue performance and capital structure :

  LTIPL recorded revenue of Rs.178 crores in FY25 and Rs.176 crores in FY26 (Provisional), with an EBITDA of Rs.14.57 crores in FY26 (Provisional) and an EBITDA Margin of 8.29% (compared to 7.12% in FY25). PAT of Rs.2.89 crores, resulting in a Net Margin of 1.64%. The Tangible Net Worth remained stable at Rs.132 crores. Debt to Equity (0.49 times) and TOL/TNW (0.90 times) are both less than 1, indicating adequate gearing, which is supported by a Current Ratio of 1.58 times and Debt Protection Metrics  ISCR of 1.99 times and DSCR of 1.54 times as of FY26 Provisional. These figures show stable revenue performance and improved key financial ratios and profitability margins.

• Diversified business portfolio with a geographical advantage and a strong customer base :

  LTIPL offers a diverse product portfolio catering to various segments including modern office, Streets and Roads, Infrastructure, signage, industrial, sports, home, architectural and retail. A significant portion of revenue is derived from Commercial Office and Infrastructure. The company operates across both domestic and international markets, with a robust presence in 30 Indian states and union territories, as well as in three to four countries. This wide geographical footprint reflects a well-balanced and strategic market reach, contributing to favorable growth prospects. In terms of regional performance, the company recorded the highest revenue in FY26 Provisionals geographical diversion table 98% of the revenue is from domestic market and major contributed states are Karnataka 31%, Kerala 12%, Tamil Nadu 8.2%, Telangana 8% around 59% is from southern states and Delhi 8%, Maharashtra 9.5%, Gujarat 7.5% and Assam Contributing 3% of the total revenue and international market like Russia, Dubai, Muscat and contributing another 2% of the total revenue compares to FY25, where the top contributor was Karnataka with 20.21% of total sales, followed by Kerala at 13.81%. LTIPL has a strong customer base supporting sustainable business growth, having established strong and long-standing relationships with its customers, enabling the company to secure repeat business and maintain a stable revenue stream. In FY25, the top five customers accounted for 31% of total revenue. This distribution indicates sustainable business opportunities without significant customer concentration risk.

• Customized Solution-Based Lighting Provider :

  The company having its own manufacturing facility for LED products along with an inhouse R&D facility helps it to provide customized and quality LED products to meet the requirement of its B2B clients with its own Brand LT. The company has catered to several renowned national & international corporates/organizations.

Credit Risks:

• High working capital intensive of operations with moderate revenue :

  LTIPL, a company in the LED lighting manufacturing industry, operates in a working capital-intensive environment necessitated by its broad product and segment mix, significant inventory requirements, and B2B/EPC tender-based sales model. According to FY26 provisional data, the company's receivable days stood at approximately 244 days, the inventory cycle at 157 days, and the overall conversion cycle at 246 days, while days payable were 155 days. This 246-day conversion cycle underscores a heavy reliance on debt to meet working capital needs. LTIPL's liquidity remains moderate, supported by working capital facilities, though revenue declined to Rs.176 crores as of the FY26 provisionals from Rs. 214 crores in FY24. Moving forward, it is essential for LTIPL to improve revenue performance, enhance working capital efficiency, and strengthen liquidity; these parameters remain key monitorable for the company’s financial stability.

• Susceptibility to Macroeconomic Cyclicality and Technological Disruption :

  The company’s revenue and operational cash flows are exposed to the cyclical volatility inherent in the real estate, construction, and infrastructure sectors, where any slowdown in commercial property developments, retail rollouts, or government project allocations can directly compress the demand for LED lighting fixtures. Additionally, the business operates under the persistent threat of rapid technological obsolescence; aggressive global and domestic mandates for heightened energy conservation lead to compressed product lifecycles, where frequent introductions of next-generation energy-efficient components, smart IoT-enabled systems, and evolving regulatory benchmarks present a continuous risk of inventory devaluation

  However, this exposure is structurally mitigated by the company’s vertically integrated operational architecture. Powered by an advanced in-house R&D ecosystem and NABL-accredited testing facilities equipped with high-precision technology like the Robo Goniophotometer, LTIPL can rapidly re-engineer and pivot its product lines to match new standards seamlessly. Furthermore, the risk is balanced by robust macroeconomic tailwinds, including the aggressive pace of smart-city urbanization and the premiumization of commercial offices and retail spaces. This shifting market focus toward customized, high-margin architectural interior lighting allows the company to capture resilient corporate capital expenditure and ride the secular transition to energy-saving LED products, effectively supporting its long-term revenue growth. 

• Elevated Industry Competition and Tender-Based Operational Risks :

  The LED lighting fixtures and accessories market is characterized by intense, multi-tier competition, which inherently limits the company’s independent pricing power. Domestically, the company faces aggressive margin pressure from well-entrenched, large-scale conglomerates (such as Signify, Havells, Wipro, and Bajaj) alongside a highly fragmented unorganized sector that engages in price wars via low-cost component assembly. Internationally, market dynamics are continuously altered by the influx of cost-competitive global manufacturers and fluctuations in import-dependent critical inputs, such as LED driver integrated circuits (ICs) and microchips.

  Furthermore, a significant portion of the company’s revenue is tied to institutional, public infrastructure, and corporate EPC (Engineering, Procurement, and Construction) tender-based work orders. These public and private contract processes carry inherent risks, including hyper-competitive bidding environments that erode net profit margins, rigid compliance mandates with strict penalties for delivery delays, and working capital constraints stemming from prolonged customer payout cycles typical in large-scale infrastructure projects.

  Despite these intense marketplace pressures, the company effectively defends its market share and protects its bottom line through key operational advantages rooted in its vertically integrated architecture. By maintaining its own automated production facilities rather than relying on external contract manufacturing, the company eliminates middleman markups and retains strict oversight over production schedules, which actively shields it from international supply chain shocks and delivers a distinct cost-per-watt advantage. This manufacturing foundation is reinforced by an agile in-house R&D ecosystem and NABL-accredited testing labs equipped with precision technology like the Robo Goniophotometer. This advanced engineering capability allows the company to quickly pivot toward next-generation product architectures and ensure immediate compliance with newly implemented national benchmarks, such as BEE star-rating mandates for luminaires, thereby transforming technical regulatory shifts into a distinct edge over slower, non-integrated competitors. Furthermore, to balance the cash-flow volatility and execution risks associated with public institutional tenders, the company is actively expanding its direct-to-enterprise (B2B) footprint. By capitalizing on the rapid premiumization of smart offices and high-end retail upgrades, it is securing higher-margin, private-sector corporate relationships that stabilize its broader revenue mix.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided in the rationale). BWR has principally relied upon the Standalone audited financials up to FY25 and Provisional Financials of FY26, and clarification/information provided by the company.

RATING SENSITIVITIES

?The company’s ability to increase its scale of operations, improve profitability and margins, and efficiently manage working capital requirements with strengthened liquidity—supported by a stable capital structure—remains critical. Improving key ratios such as gearing, the current ratio? and debt protection metrics to strengthen the overall credit profile will be the primary rating sensitivities.

Positive Rating Factors:

•   Sustained improvement in revenue performance, characterized by year-over-year (Y-o-Y) growth and supported by enhanced profitability with EBITDA margins exceeding 10%.
•    Improved gearing and leverage ratios, specifically maintaining Total Debt/TNW below 1x and TOL/TNW below 2x, alongside debt protection metrics such as a DSCR above 1.50x.
•    Enhanced working capital efficiency, driven by an improved receivable and conversion cycle supported by strengthened liquidity.

Negative Rating Factors:

•  A decline in operating income or EBITDA margins dropping below 5%, coupled with a deterioration in the financial risk profile, as evidenced by a current ratio falling below 1.20x or a DSCR below 1x.
•  Any deterioration in the receivables or conversion cycle that increases reliance on working capital facilities, indicating liquidity concerns or a weakening of gearing and leverage ratios.

LIQUIDITY INDICATORS - Adequate

LTIPL maintains adequate liquidity position which are supported by a cash and cash equivalents balance of Rs.3.50 Crores as of the FY26 provisional results. The company’s EBITDA improved to Rs.14.57 Crores in FY26 (Provisional) from Rs.12.69 Crores in FY25 providing sufficient coverage for interest and finance charges totaling Rs.​6.60 Crores. While the average utilization of working capital facilities stood at 95% due to an elongated working capital cycle inherent to the nature of the business, the company demonstrates prudent management of its sanctioned limits.

​The Projected Debt obligations for FY27 are Rs.​19.90 crores against which LTIPL projects enhanced cash accruals of Rs. 23 Crores through its business operations which are expected to comfortably cover the obligations. Liquidity is further supported by a recently sanctioned ECLGS facility of Rs. 6.40 Crores and an anticipated additional working capital facility of Rs.3 Crores from its existing bankers. Solvency metrics position (current ratio of 1.58x, a quick ratio of 1.14x and a Debt Service Coverage Ratio (DSCR) of 1.54x) as per the FY26 provisionals indicates adequate liquidity. Based on the strength of these coverage ratios which are further supported by additional working capital facilities indicate to a liquidity profile which is assessed as Adequate.

ABOUT THE ENTITY

Lighting Technologies India Private Limited (LTIPL or "the Company"), incorporated on June 27, 2013, is a 13-year-old entity. A wholly owned subsidiary of LLC Lighting Technologies IGC (Moscow, Russia), LTIPL designs, manufactures, and supplies energy-efficient LED lighting solutions for commercial, industrial, and infrastructure applications. The company generates the majority of its revenue domestically through B2B and EPC models to serve architects, consultants, EPC contractors, government bodies, real estate developers, and industrial clients, while also expanding internationally through its parent company.

Mr. Harinarayanan Koothur Veetil is the Managing Director, bringing over two decades of experience to the LED lighting business. He is supported by other directors, including Mr. Gopalkumar Pazhedath and Mr. Satish Thazhillath Ninkileri, as well as key management personnel.

ESG Profile

Lighting Technologies India Private Limited maintains an Adequate ESG profile. Headquartered in the Jigani Industrial Area, Bengaluru, the company specializes in sustainable LED lighting manufacturing, drivers, control systems, and EPC solutions. Its overall profile demonstrates a solid foundation in regulatory compliance, clean energy transition, zero liquid discharge practices, and transparent governance, balanced against labor structure imbalances and key-person executive dependencies.

Environmental (E):

On the environmental front, the LTIPL displays high compliance with standard industrial discharge and emission norms. Operating an ISO/IEC 17025:2017 NABL-accredited testing laboratory (Certificate TC-15305, valid through January 2029), the facility enforces strict water recycling practices under the Water Act. Domestic sewage generated at 15.17 KLD (Kilo Litres Per Day) is treated via a 20 KLD Sewage Treatment Plant (STP) and fully reused for flushing and gardening. Similarly, trade effluent generated at 7.20 KLD (Kilo Litres Per Day) is completely treated through a 7.5 KLD Effluent Treatment Plant (ETP) and redirected for internal landscaping, ensuring zero wastewater is discharged into public bodies. Air emissions from its three DG sets (500 KVA, 250 KVA, and 30 KVA) are controlled using acoustic enclosures and particulate traps, while powder coating and pre-wash lines utilize cyclone separators and dust collectors to keep particulate matter within stipulated limits. Hazardous and non-hazardous waste streams—including spent oil, process sludges, contaminated drums, metal scrap, and corrugated packaging—are strictly inventoried and routed to authorized recyclers or TSDF facilities.

Social (S):

Social Impact & Workforce: LTIPL actively supports community development by directing CSR contributions toward education, art and culture, and sports activities for children with disabilities. These projects are implemented through key partner agencies—including Chaithanya Special Education Trust (R.), Sri Idagunji Mahaganapati Yakshagana Mandali Keremane (R.), Vidhyabhividhi Sangha (R.), LTG Foundation Trust, Sri Chandrashekhara Bharathi Vidya Samsthe (R.), and Malnad Development Foundation (R.)—as well as through direct spending on sports programs. From an internal social and operational standpoint, the company maintains a significant employment footprint of 632 total employees, 222 of whom are permanent workers in the Jigani manufacturing corridor. Diversity is reflected in its 30% to 40% female workforce representation.This distribution highlights an ongoing requirement for workforce upskilling and long-term talent retention.

Governance (G):  

Governance & Corporate Integrity: Governance and financial oversight are underpinned by clean legal compliance and verified reporting standards. The leadership core—comprising Managing Director Mr. Harinarayanan Koothur Veetil and Directors Mr. Satish Thazhillath Ninkileri and Mr. Gopalkumar Pazhedath—brings over two decades of specialized expertise in the lighting industry. While this small leadership core creates a degree of key-person dependency, corporate transparency is heavily reinforced through independent external audits conducted by Suresh Surana & Associates LLP. Every financial filing is authenticated with a Unique Document Identification Number (UDIN: 25215814BMNVWM9973), ensuring absolute disclosure integrity. Furthermore, the company maintains an unblemished record with zero pending litigations, no benami transactions, and zero financial defaults.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	214.47	178.36	175.82
EBITDA	Rs.Crs.	33.40	12.78	14.57
PAT	Rs.Crs.	16.94	3.98	2.89
Tangible Net Worth	Rs.Crs.	132.50	132.92	132.30
Total Debt / Tangible Net Worth	Times	0.33	0.51	0.49
Current Ratio	Times	1.58	1.93	1.58

KEY COVENANTS OF THE FACILITY RATED

As per the sanction terms, the company must maintain standard financial covenants, including a current ratio of not less than 1.33 times and a Total Outside Liabilities / Tangible Net Worth ratio not exceeding 2 times. Additionally, debt protection metrics must include an ISCR greater than or equal to 2 times and a DSCR greater than or equal to 1.20 times.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

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	68.86	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	0.05	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(5.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(5.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(10.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	22.40	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(3.00)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	3.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(3.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		94.31	(Rupees Ninety Four Crores and Thirty One lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Likith M S Rating Analyst likith.ms@brickworkratings.com	Suryanarayan N Director suryanarayan.n@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	Canara Bank	Bank Guarantee - Sanctioned	19.80	_	19.80	Simple##
	Sub-Limit (Letter of Credit) - Sanctioned		(10.00)
2	Canara Bank	Bank Guarantee - Proposed	2.20	_	2.20	Simple##
3	Canara Bank	Emergency Credit Line Guarantee Scheme (ECLGS) - Sanctioned	6.40	_	6.40	Simple##
4	Canara Bank	GECL - Out-standing	0.33	_	0.33	Simple##
5	Canara Bank	OCC/ODBD - Sanctioned	36.20	_	36.20	Simple##
6	HDFC Bank	Letter of Credit - Sanctioned	_	3.00	3.00	Simple##
	Sub-Limit (Bank Guarantee ) - Sanctioned	(3.00)
	Sub-Limit (SBLC) - Sanctioned		(3.00)
7	HDFC Bank	Emergency Credit Line Guarantee Scheme (ECLGS) - Proposed	1.00	_	1.00	Simple##
8	HDFC Bank	Term Loan - Out-standing	5.53	_	5.53	Simple##
9	HDFC Bank	Cash Credit - Sanctioned	5.00	_	5.00	Simple##
	Sub-Limit (PCFC) - Sanctioned		(5.00)
	Sub-Limit (Post Shipment Credit ) - Sanctioned		(5.00)
10	Kotak Mahindra Bank	Over Draft - Sanctioned	_	0.05	0.05	Simple##
11	Others	Bank Guarantee - Proposed	0.40	_	0.40	Simple##
12	SBER (Sberbank Branch in India)	Working Capital Term Loan - Out-standing	14.40	_	14.40	Simple##
Total			91.26	3.05	94.31
TOTAL (Rupees Ninety Four Crores and Thirty One 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.

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