SHIVA FERRIC PRIVATE LIMITED

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 48.00 Crs. of SHIVA FERRIC PRIVATE LIMITED

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	48.00	Long Term	BWR BBB - /Stable Assignment	RBI
Grand Total	48.00	(Rupees Forty Eight 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

BWR has assigned the ratings of BWR BBB-/Stable for the bank loan facilities of Shiva Ferric Pvt Ltd totaling Rs.48.00Cr.

The company benefits from several factors that positively influence its ratings which includes over three decades of promoter expertise in steel trading, utilizing long-standing relationships with its suppliers along with maintaining 5,000–6,000 MT of inventory across 400 product dimensions. The company demonstrates a comfortable financial risk profile while the liquidity remains healthy.

Conversely, the company faces elevated operational risk due to historical supplier concentration with Tata Steel Limited, which accounted for 53.39% in FY25 declined to33.74% in FY26. Supply disruptions and extended procurement lead times restricted trade volumes and depressed top-line performance, though ongoing supplier diversification efforts aim to lessen this dependency. Furthermore, as a pure-play steel stockist holding substantial inventory, the company’s profit margins remain inherently exposed to steel price volatility and cyclical demand shocks across downstream sectors like infrastructure and real estate.

KEY RATING DRIVERS

Credit Strengths:

• Extensive Promoter Experience and Established Sourcing Network :

  Shiva Ferric Private Limited (SFPL) benefits from over three decades of promoter experience in iron and steel trading. The company leverages established sourcing relationships with primary steel producers including Tata Steel, Steel Authority of India Limited (SAIL), and Rashtriya Ispat Nigam Limited (RINL) to maintain an inventory of 5,000–6,000 MT, allowing it to supply over 400 product dimensions across flat and long steel categories.

• Comfortable Financial Risk Profile & Liquidity Cushion :

  The company maintains a conservative leverage structure, reflected in a Total Debt/TNW ratio of 0.26x (0.79x against Adjusted TNW) and a Tangible Net Worth of Rs.117.88 Cr. in FY26. Debt coverage metrics remain healthy with an ISCR of 3.53x. Liquidity is further reinforced by working capital limit utilization (averaging 80%) and strong net cash accruals of Rs.10.57 Cr. against zero term-debt repayment obligations.

Credit Risks:

• High Supplier Concentration and Supply Chain Vulnerabilities :

  The company’s procurement profile reflected significant supplier concentration risk, historically relying heavily on Tata Steel Limited, which accounted for 79.32% of total purchases in FY24 and 53.39% in FY25. Supply constraints and extended procurement lead times from Tata Steel which increased from 30 to 60 days directly restricted trade volumes and weighed down top-line performance over recent years. While management has initiated strategic supply-chain diversification to mitigate this vulnerability, high historical dependency on a single primary supplier remained a key constraint.

• Exposure to Commodity Price Volatility and Industry Cyclicality :

  As a pure-play steel trading and stockist entity holding substantial physical inventory (5,000 to 6,000 MT), SFPL's operating profitability remains vulnerable to sharp fluctuations in global and domestic steel prices, as well as cyclical demand slowdowns in end-user sectors like real estate, infrastructure, and construction.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Shiva Ferric 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 Sensitivity Factors:

• Sustained Top-Line Recovery & Revenue Growth achieving or exceeding projected targets of Rs.400Cr. in FY27 driven by higher trading volumes alongside continuous profit retention expanding Adjusted TNW exceeding Rs.49.58 Cr.

• Successful execution of the supplier de-concentration strategy leading to stabilized material procurement, reduced lead times, and lower dependency on Tata Steel.

Negative Sensitivity Factors:

• A sharp decline in the Interest Service Coverage Ratio (ISCR) falling below 2.0x on a sustained basis due to rising interest burdens.

• Significant decline in operating margins (OPBDIT margin dropping below 2.0%) due to unhedged inventory losses or adverse steel price fluctuations.

LIQUIDITY INDICATORS - Adequate

The Company's liquidity is Adequate with sufficient cash accruals of Rs.10.57Cr. in FY26 against no debt obligations of the company and the current ratio above unity indicating the cushion available for comfortable financial risk profile. In FY26, the Interest Service Coverage Ratio stood at 3.53x. The company maintains adequate liquidity, with working capital limits utilized in the 80% range, providing a buffer for incremental operational needs.

ABOUT THE ENTITY

Established in 1993 by Shri Shiv Kumar Purva, Shiva Ferric Pvt Ltd is a Bangalore-based steel trading organization, with Shiva Ferric Private Limited (SFPL) operating as its primary distribution arm. The company operates as a stockist and distributor, sourcing raw materials from primary steel producers such as Tata Steel Limited, Steel Authority of India Limited (SAIL), and Rashtriya Ispat Nigam Limited (RINL). SFPL maintains an inventory of 5,000 to 6,000 metric tons at its Bangalore Rural warehouse facility to support prompt dispatches using its own fleet and logistics setup. Its product portfolio spans flat steel (HR coils, plates) and long steel (TMT bars, structural beams), serving a B2B client base across capital goods, power, infrastructure, and heavy engineering sectors including major buyers such as Powerica Limited, Ajax Engineering Private Limited, Promac Engineering, and Proman Infrastructure Services. Through its stocking capacity and capability to supply over 400 distinct dimensions and specifications, SFPL provides a centralized "one-stop" material sourcing platform for downstream manufacturing and processing industries.

ESG Profile

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

Environmental: Environmental risks for the company primarily stem from logistics-related fuel emissions, energy consumption at its warehouse, and resource utilization. The company actively mitigates its carbon footprint by promoting eco-friendly circular economy practices, relying heavily on recycled steel sourced from iron scrap within its core trading cycle.

Social: Social initiatives are centered around workforce welfare, safety, and structured Corporate Social Responsibility (CSR) programs. Based on annual profitability, the company actively invests in the local Taluk region by sponsoring educational expenses for underprivileged students and contributing to public infrastructure development.

Governance: The governance framework focuses on regulatory adherence and board oversight. Operating as a family-held entity, governance is maintained through a five-member board of directors with designated supervisory responsibilities, ensuring strict compliance with applicable trading regulations and statutory tax frameworks.

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.	395.04	348.02	325.62
EBITDA	Rs.Crs.	6.61	8.23	14.95
PAT	Rs.Crs.	6.46	5.70	8.89
Tangible Net Worth	Rs.Crs.	103.29	108.99	117.88
Total Debt / Tangible Net Worth	Times	0.46	0.46	0.26
Current Ratio	Times	1.30	1.30	1.54

KEY COVENANTS OF THE FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated 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	48.00	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		48.00	(Rupees Forty Eight Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Trading Companies

Analytical Contacts
Priyanka S Ratings Analyst priyanka.s@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	Union Bank of India	Cash Credit - Sanctioned	48.00	_	48.00	Simple##
Total			48.00	0.00	48.00
TOTAL (Rupees Forty Eight Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf.

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