P. P. Industries Pvt. Ltd.

Brickwork Ratings reaffirms the long term and short term ratings for the Bank Loan Facilities of Rs. 164.00 Crs. of P. P. Industries Pvt. Ltd.

Particulars

Facilities	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (06 Aug 2025)	Present
Fund Based	32.00	32.00	Long Term	BWR BBB+ /Stable Assignment	BWR BBB + /Stable Reaffirmation	RBI
Non Fund Based	90.00	90.00	Long Term	BWR BBB+ /Stable Assignment	BWR BBB + /Stable Reaffirmation	RBI
	42.00	42.00	Short Term	BWR A2 Assignment	BWR A2 Reaffirmation	RBI
	(7.00)	(7.00)
	(7.00)	(7.00)
	(7.00)	(7.00)
	(15.00)	(15.00)
Grand Total	164.00	164.00	(Rupees One Hundred Sixty Four 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 has reaffirmed a long-term rating of BWR BBB+/Stable and a short-term rating of BWR A2 for the bank loan facilities amounting to Rs.164.00 crore of P. P. Industries Pvt. Ltd.

The ratings reflect the company’s Experienced Partners and Long Track Record of Operations, Healthy financial risk profile, along with a diversified product portfolio backed by strong execution capabilities and customer Retention relationships. The company also demonstrates robust profitability, supported by cost efficiencies and prudent financial management. However, the ratings are constrained by the company’s susceptibility to risks inherent in tender-based operations and susceptibility to fluctuations in raw material prices.

The rating outlook has been retained as "Stable" as BWR believes that the company's 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 scale of operations, operating margin, and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

For assigning the rating, BWR has relied upon the last 3 years of audited financials till FY25 and provisional FY26 and projected financials for FY27 & FY28, and publicly available information and clarification provided by management.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Partners and Long Track Record of Operations :

  The promoters of the company are Mr. Mukesh Jindal, Mr. Des Raj Jindal, and Mr. Ishan Jindal. Mr. Mukesh Jindal brings over three decades of transformer industry experience. This extensive experience, coupled with an established track record of operations, has helped the company to forge healthy relationships with its customers and suppliers and maintain a solid market presence, which will continue to support the business. Over time, the company has also developed robust technical expertise and project management capabilities, allowing it to execute large-scale projects and foster strong ties with a wide range of government authorities. The company is expected to report an operating income of around Rs. 455 crores in FY2026(P) as against Rs. 366.39 crores in FY2025, driven by healthy demand for power transformers from WBSEDCL Kolkata and PGVCL Rajkot. The operating income is expected to remain healthy and grow by 8-10% yearly going forward as well, driven by a healthy order book of around Rs 163.8 crore as of July 2026. The operating margin is expected to have improved to around 9.08% in FY2026 from 8.71% in FY2025, driven by better fixed cost absorption with the increased capacity utilization along with better realization from the transformers amid increasing demand.

• Healthy financial risk profile :

  The company’s financial risk profile remains healthy, supported by a healthy net worth, comfortable gearing, and adequate debt protection metrics. The net worth stood at Rs 180.31 Crs as on March 31, 2026(P), compared to Rs 149.71 Crs as on March 31, 2025. The improvement is primarily due to the accretion of reserves. The company maintains a comfortable capital structure, with a low reliance on external debt, which has helped keep the gearing ratio below 0.03 times over the past three fiscal years through FY26. Debt protection indicators are also at a comfortable level, with an interest coverage ratio of 17.16 times and a DSCR of 14.30 times. 

• Diverse Product Portfolio with Strong Execution Capabilities and Customer Retention :

  The company offers a broad range of transformers, from 10 KVA to over 10 MVA, enabling it to meet varied voltage requirements across different end-user segments. Its proven track record of consistent production and sales across multiple transformer types reflects strong order execution capabilities. As of now, the company has an outstanding order book of Rs.163.80 crore to be executed by March 2027, with expectations of additional orders in the pipeline. Moreover, the receipt of repeat orders from PSU clients highlights customer satisfaction and acceptance of product quality, contributing to sustained business momentum.

Credit Risks:

• Susceptibility to risks inherent in tender-based operations:  :

  The domestic transformer manufacturing industry is highly fragmented, marked by the presence of many players, especially for lower KV-class transformers, and thus remains competitive. Players also face competition from imports from countries such as China. This and tender-based procurement by the majority of customers result in pressure on pricing and margins for the industry players. Players in the transformer industry also face multiple execution challenges such as lack of clearances for projects and weak financial health of distribution companies, restricting the order inflow and impacting liquidity.

• Susceptibility to fluctuation in raw material prices :

  Metals such as aluminum, steel, and copper form the bulk of raw material requirements. Based on the flow of orders, the company books its requirement for raw materials such as copper, aluminum, Cold Rolled Grain Oriented Electrical Steel (CRGO), and lamination with suppliers. However, owing to a time lag, the operating margin remains susceptible to volatility in the prices of these metals. The ability to pass on any fluctuation in raw material prices to end-customers remains a key monitorable.

ANALYTICAL APPROACH - Standalone

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

RATING SENSITIVITIES

Going forward, the ability of the company to improve its scale of operations, operating margins, overall credit risk profile, and efficiently manage its working capital requirements would be the key rating sensitivity. 

Positive Factor:

• The rating may be upgraded if there is a substantial improvement in Operating Profit Margin above 10.15% and along with a significant and sustained increase in revenues to Rs 525 Crs. 
• Efficient working capital management and improvement in receivable-to-turnover ratio 

Negative Factor:

• The rating may be downgraded if there is a deterioration in revenue below Rs 350 Crs, and Operating Profit Margin below 8%.  
• Stretch in working capital cycle, due to strained receivables, weakening the financial risk profile and liquidity 

LIQUIDITY INDICATORS - Strong

The liquidity profile of the company is strong, with net cash accruals of Rs. 31.27 crore against nil Current Portion of Long-Term Debt (CPLTD) in FY26(P), reflecting strong liquidity. The issuer has sufficient gearing headroom, raising any additional debt for its capex. Its unutilized bank lines are more than adequate to meet its incremental working capital needs over the next one year. Despite modest cash and bank balances of Rs.0.07 crore as of FY26(P), the company's liquidity is supported by a healthy current ratio of 4.41 times in FY26(P), underscoring sound working capital management. 

ABOUT THE ENTITY

PPIPL was established as a proprietorship firm in 1999. It was incorporated as a Private Limited Company 10th Feb, 2007. The company is based in Bathinda, Punjab, and is engaged in the manufacturing and distribution of power transformers. The company is promoted by Mr. Mukesh Jindal, who has vast experience in this line of business. Mr. Mukesh Jindal, Mr.Ishan Jindal, and  Mr. Desraj Jindal  are directors of the company. 

ESG Profile

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

Environmental: The company focuses on producing low-loss distribution transformers aligned with national energy conservation guidelines, significantly reducing carbon emissions tied to power generation over the equipment's operational lifetime. The manufacturing units strictly adhere to pollution control and environmental compliance norms mandated by the state pollution control boards in Punjab and Uttarakhand. Additionally, the company prioritizes material optimization, efficiently utilizing core components like CRGO silicon steel and copper or aluminum windings to minimize manufacturing scrap and waste.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and operating out of industrial hubs in Bathinda and Haridwar. The company generates local employment, offering technical training in winding, core assembly, and electrical testing, and training initiatives offering insights into operational resilience. 

Governance: There is no formal board independence committee, and they have dedicated CSR contributions only. The company maintains strict ISO certifications and rigorous in-house testing laboratories to ensure full compliance. 

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	395.98	366.39	455.31
EBITDA	Rs.Crs.	25.22	31.91	41.33
PAT	Rs.Crs.	18.71	24.29	30.60
Tangible Net Worth	Rs.Crs.	125.42	149.71	180.31
Total Debt / Tangible Net Worth	Times	0.33	0.06	0.03
Current Ratio	Times	2.24	4.32	4.41

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR THE PREVIOUS 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	32.00	BWR BBB+/Stable (Reaffirmation)	13Jan2025	BWR BB- Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn)	NA	NA	17Oct2023	BWR BB Stable (ISSUER NOT COOPERATING* /Downgrade)
		0.00	NA	06Aug2025	BWR BBB+ Stable (Assignment)	NA	NA	NA	NA
Non Fund Based	LT	90.00	BWR BBB+/Stable (Reaffirmation)	13Jan2025	BWR BB- Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn)	NA	NA	17Oct2023	BWR BB (ISSUER NOT COOPERATING* /Downgrade)
		0.00	NA	06Aug2025	BWR BBB+ Stable (Assignment )	NA	NA	NA	NA
Non Fund Based	ST	42.00	BWR A2 (Reaffirmation)	13Jan2025	BWR A4 (Continues to be in ISSUER NOT COOPERATING* category/Downgraded and withdrawn)	NA	NA	17Oct2023	BWR A4+ (ISSUER NOT COOPERATING* /Downgrade)
		0.00	NA	06Aug2025	BWR A2 (Assignment)	NA	NA	NA	NA
NFB SubLimit	ST	(7.00)	BWR A2 (Reaffirmation)	06Aug2025	BWR A2 (Assignment)	NA	NA	NA	NA
NFB SubLimit	ST	(7.00)	BWR A2 (Reaffirmation)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(7.00)	BWR A2 (Reaffirmation)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(15.00)	BWR A2 (Reaffirmation)	NA	NA	NA	NA	NA	NA
Grand Total		164.00	(Rupees One Hundred Sixty Four Crores Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@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	Punjab National Bank	Cash Credit - Sanctioned	25.00	_	25.00	Simple##
2	Punjab National Bank	Bank Guarantee - Sanctioned	90.00	_	90.00	Simple##
3	Punjab National Bank	FLC(DA/DP) - Sanctioned	_	30.00	30.00	Simple##
4	Yes Bank	Performance Guarantee - Sanctioned	_	12.00	12.00	Simple##
	Sub-Limit (Letter Of Credit (Inland/Import)) - Sanctioned		(15.00)
5	Yes Bank	Cash Credit - Sanctioned	7.00	_	7.00	Simple##
	Sub-Limit (Purchase Invoice Discounting ) - Sanctioned		(7.00)
	Sub-Limit (Sales Invoice Discounting) - Sanctioned		(7.00)
	Sub-Limit (Working Capital Demand Loan) - Sanctioned		(7.00)
Total			122.00	42.00	164.00
TOTAL (Rupees One Hundred Sixty Four 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.

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