Alishan Green Energy Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings of BWR BB+/Stable and BWR A4+ for the Bank Loan Facilities of Rs. 54.87 Crs. of Alishan Green Energy Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	26.37	Long Term	BWR BB + /Stable Assignment
Fund Based	2.00	Short Term	BWR A4 + Assignment
Non Fund Based	26.50	Short Term	BWR A4 + Assignment
Non Fund Based	(1.00)	Short Term	BWR A4 + Assignment
Grand Total	54.87	(Rupees Fifty Four Crores and Eighty Seven 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 RATING ACTION / OUTLOOK

Brickwork Ratings Assigns the long term and short term ratings of BWR BB+/Stable and BWR A4+ for the facilities of Rs.54.87crs of Alishan Green Energy Pvt. Ltd.
The Rating has factored, inter alia, Positive demand outlook for the solar industry and Improvement in scale of operations. However, the rating is constrained by Intense competition, High degree of concentration and Foreign exposure and raw material price fluctuation risk. Going forward, the ability of the company to Improve their operational scale, profitability and credit profile would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Alishan Green Energy 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:

Positive demand outlook for the solar industry :
The company is well positioned to benefit from the increasing focus on solar energy in India and the government's long term strategy to expand renewable energy generation. The introduction of protectionist policies, including a 40% Basic Customs Duty on imported solar modules and a 25% duty on solar cells, effective from April 2022, along with the implementation of the Approved List of Models and Manufacturers and incentives for domestic manufacturers under the Production Linked Incentive scheme, enhances the cost competitiveness of locally produced solar modules. Furthermore, government-backed initiatives such as the Kisan Urja Suraksha Utthan Mahabhiyan, Central Public Sector Undertaking projects, PM Surya Ghar Muft Bijli Yojana, and various rooftop solar programs continue to drive demand for solar solutions.
Moderate financial risk profile :
The company's total operating income increased to Rs.109.19cr in FY25 from Rs. 60.07cr in FY24. PAT has increased to Rs. 7.16cr in FY25 compared to Rs. 4.45cr in FY24 and Rs. 3.24cr in FY23. The tangible net worth of the company stood at 22.57cr in FY25 increased from Rs.10.41cr in FY24 and Rs. 5.95cr in FY23. The company raised its paid-up equity capital from Rs. 1.14cr in FY24 to Rs. 1.69cr in FY25. The TOL/TNW improved to 1.40x in FY25 compared to 1.78x in FY 24 and 2.85x in FY23. DSCR of the company stands at 3.01x in FY25, 3.00x in FY24. ISCR stands at 6.98x in FY25 compared to 4.69x in FY24. The stability and growth in the ISCR and DSCR shows the strength and ability of the company to repay their financial obligations.

Credit Risks:

Exposure to intense competition and technological risk :
The solar manufacturing market is highly competitive and rapidly evolving with participation from both established global and domestic manufacturers. The government's strong push for domestic solar module production is attracting new entrants and encouraging existing players to expand their capacities thereby intensifying competition within the domestic manufacturing landscape. Further, The idustry is exposed to technological obsolescence risk solar manufacturers are required to undertake continuous upgrades and related investments to sustain the competitive advantage.
Concentration risk :
The company is exposed to a high degree supplier concentration with the top 2 suppliers contributing 47.2% overall raw material purchases. Furthermore, the top two customers accounted for 29.66% of the total revenue of Rs. 109.19cr. This indicates a significant dependency on a limited suppliers and customer base exposing the company to concentration risk.
Foreign Exposure and Raw Material Price Fluctuation Risk :
The company imports its key raw materials from Korea, Taiwan and China exposing it to significant foreign exchange risk and price volatility. Any adverse movement in currency exchange rates, changes in international trade policies, or geopolitical tensions may impact the cost of imports and overall profitability. Additionally, fluctuations in global raw material prices, particularly from a concentrated supplier base could adversely affect the company’s operating margins and supply chain stability.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Alishan Green Energy 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 total operating income (TOI) as per schedule while achieving EBITDA and net margin over 12% and 7% on a sustained basis.
Improvement in TNW above Rs.35.00cr as per the schedule.

Negative:

Any 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.

LIQUIDITY INDICATORS - Adequate

The company's liquidity remained Adequate. In FY25, the company reported net cash accruals of Rs. 9.94cr against the current debt maturity of Rs. 3.09cr. The Cash and Bank Balance were at ~Rs. 2.17cr in FY24 and Rs. 3.37cr in FY25. The OPBDIT of Rs.7.72cr in FY24 and Rs. 13.03cr in FY25 was sufficient to cover the finance charges of Rs.1.65cr in FY24 and Rs. 1.87cr in FY25. Current ratio stood at 1.20x as on 31March2025 compared to 1.34x as on 31March2024. Debt protection metrics ISCR and DSCR of the company stood at 4.69x and 3.00x in FY24 and 6.98x and 3.01x in FY25. Additionally, the fund-based utilization limit remained at approx 70% over the past 12 months.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Capital Goods	Electrical Equipment	Other Electrical Equipment

The Alishan Green Energy Pvt. Ltd. was founded in 2020. The company offers Encapsulants such as EVA, POE, Low-Acid EVA for TOPCon, EPE (EVA+POE hybrid), EPE-NT for n-type cells and EPE-DC with UV down-conversion and Backsheets such as KPC for weather resistance, CPC for mechanical strength, and PPC an eco-friendly high-performance solution. The company is recognized by Department of Science and Technology and NABL accredited.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	51.82	60.07	109.19
EBITDA	Rs.Crs.	6.52	7.72	13.03
PAT	Rs.Crs.	3.24	4.45	7.16
Tangible Net Worth	Rs.Crs.	5.95	10.41	22.57
Total Debt / Tangible Net Worth	Times	1.70	1.15	0.91
Current Ratio	Times	1.31	1.34	1.20

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 (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	26.37	BWR BB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	2.00	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	26.50	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(1.00)	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		54.87	(Rupees Fifty Four Crores and Eighty Seven lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Harish R Ratings Analyst harish.r@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Alishan Green Energy Pvt. Ltd.

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	ICICI Bank	Letter of Credit - Sanctioned	_	9.00	9.00	Simple##
2	ICICI Bank	Derivative Limit - Sanctioned	_	3.00	3.00	Simple##
3	ICICI Bank	Over Draft - Sanctioned	1.00	_	1.00	Simple##
	Sub-Limit (LC (Sublimit of OD)) - Sanctioned		(1.00)
4	State Bank Of India (SBI)	Foreign Letter of Credit (FLC) - Sanctioned	_	14.50	14.50	Simple##
5	State Bank Of India (SBI)	Standby Line of Credit - EPC - Sanctioned	_	2.00	2.00	Simple##
6	State Bank Of India (SBI)	SME Car Loan - Out-standing	0.16	_	0.16	Simple##
7	State Bank Of India (SBI)	SME Car Loan - Out-standing	0.10	_	0.10	Simple##
8	State Bank Of India (SBI)	GECL 1.0 - Out-standing	0.39	_	0.39	Simple##
9	State Bank Of India (SBI)	Term Loan - Out-standing	0.52	_	0.52	Simple##
10	State Bank Of India (SBI)	Term Loan - Out-standing	3.20	_	3.20	Simple##
11	State Bank Of India (SBI)	Term Loan - Out-standing	8.00	_	8.00	Simple##
12	State Bank Of India (SBI)	Cash Credit - Sanctioned	13.00	_	13.00	Simple##
Total			26.37	28.50	54.87
TOTAL (Rupees Fifty Four Crores and Eighty Seven 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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