S. V. S. REFCOMP PRIVATE LIMITED

Brickwork Ratings assigns the ratings of BWR BBB(Stable ) for the Bank Loan Facilities of Rs. 109.91 Crs. of S. V. S. REFCOMP PRIVATE LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	109.91	Long Term	BWR BBB /Stable Assignment
Grand Total	109.91	(Rupees One Hundred Nine Crores and Ninety One 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

BWR has assigned ratings of BWR BBB/Stable for Fund-based facilities of Rs 109.91Crs. The rating of BWR BBB/Stable is due to established market position, supported by extensive experience of the promoters, Completion of debt funded capex, favourable long term demand prospects from end-user industries, improving scale of operations and profitability,   however strengths are mitigated by risk factors such as profitability exposed to volatility in raw material prices, moderate financial risk profile, cyclical nature of industry.

The outlook is Stable, reflecting expectations of continued steady growth in revenues, maintenance of operating margins, and prudent financial management. 

KEY RATING DRIVERS

Credit Strengths:

• Experienced promoter-led management :

  The promoters, a family run business, led by Mr. Praveen Tyagi possess over three decades of experience in the business and have demonstrated a proven track record of withstanding industry cyclicality, which provides stability and confidence in the company’s long-term operations. The company is strengthening its organisational and governance framework by appointing key functional heads such as a CHRO, Head–Quality, and Head–Customer Relations, along with the induction of independent directors on the board.

• Strong market presence & revenue growth :

  Company has experienced sharp growth in its operating income from 259.09 Cr in FY23 to 503.19 Cr in FY25, with a Y-o-Y CAGR of 38.9%, running at a supernormal growth rate against the industry, driven by higher plant capacity and operational efficiency. Growth is due to the company started it new A/C manufacturing production plant in FY24-25, which contributed 30% of the total sales. Total Networth doubled down in FY25 with PAT grew upto 408%. Company’s ROCE improved steadily over FY23–FY25, primarily driven by higher profitability and better asset utilisation, despite a moderation in financial leverage.
  
  The company operates 11 manufacturing plants across six states, with capacity utilisation improving to ~85% for components and ~80% for tubes in FY25. The  Company has Just in Time (JIT) manufacturing, avoiding overproduction and the high costs of storing excess raw materials or finished goods

   

   

• Strong customer base with long-standing OEM relationships :

  The company has reputed customer base and long established relation ship with OEM's .  BWR notes that  top five customers account for ~62% of FY25 revenues, with the top two contributing ~37%. However, the risk is mitigated by around 12 years of relationship with financially strong OEMs such as Samsung, LG, Whirlpool, and Haier, along with a diversified product mix supplied to each customer.

• Completion of debt funded capital expenditure :

  The company incurred capital expenditure of Rs 65 Crs in FY 24 and FY 25 funded by Debt equity ratio of 3:1 ,   resulting in increase in overall capacity , and scale of operations and profit margins . The Company  in FY 26  working on improving its manufacturing, a part of which was started in FY24-25, where the company set up a new manufacturing plant unit specially for A/C components which contributed 30% of the total Operating Income and also company has put up solar projects in August and September 2025 in Hyderabad for two units,  which will result in reduction in electricity cost of around 8.5-9 lakhs,/month  with a payback period of which is estimated to be 16-18 months.

Credit Risks:

• Exposure to raw material price volatility :

  Raw materials cost is highly volatile with prices of metals in a situation where copper, zinc and aluminium make 25-30% of the total purchases, influenced by global commodity markets. Although the company has some ability to pass on cost increases to customers, any lag in price pass-through could adversely impact margins. Company does not export so there is no direct hedge benefit to the company but imports from the countries like Vietnam and Thailand. which is also very minimal in range of 2-3%

• Moderate financial risk profile :

  The company has modest financial risk profile as company has availed term loans for debt funded capex which was completed in FY 25. Total Debt /TNW stood at 3.47x in FY 25 and  TOL/TNW stood at 4.87 x in FY 25 thus indicating limited financial flexibility to avail fresh term loans for new Capex. However company has reported satisfactory operating  profit and net profit margins of 7.64 % and  2.79% in FY 27 and that also has improved over period of time . Additionaly company  has  moderate debt protection metrics as indicated by ISCR of 2.51 x and DSCR of 1.55 x in FY 25. 

• Cyclical nature of the ndustry:  :

  The demand for the  Fast  moving electric goods being a discretionary spend, is highly cyclical and is impacted by inflation, and higher interest rates. Company revenues are derived entirely from the  products which remain closely aligned with performance and demand in the FMEG industry. Due to dependence OEMs, company's  business prospects are exposed to cyclical demand patterns inherent to the FMEG  industry and ability of OEMs to sustain their operating performance

ANALYTICAL APPROACH - Standalone

BWR Ratings has evaluated the standalone business and financial risk profiles of S.V.S REFCOMP PRIVATE LIMITED.

RATING SENSITIVITIES

Upward Sensitivity (Factors that could lead to a upgrade)

• Sustained Profitability: If the company maintains the 9.71% EBITDA margin seen in 9MFY26 through the end of FY26 and into FY27. This proves that the margin expansion is structural, not a one-off.

• Deleveraging Goals: Achieving a Total Debt/TNW below 1.50x (better than the projected 1.76x) by accelerating debt repayment or through higher profit retention.

• Liquidity Cushion: Improving the Current Ratio to 1.25x or higher and maintaining a DSCR consistently above 1.75x, ensuring that debt repayments are never "tight."

• Scale of Operations: Total Operating Income crossing the Rs. 650-700 Cr mark while maintaining or improving margins.

 Downward Sensitivity (Factors that could lead to a Downgrade)

• A downgrade would likely occur if the recent "momentum" in the 9M results proves to be a temporary spike.

• Margin Compression: If the EBITDA margin falls  toward the 4% to 5% range, indicating that the company cannot sustain its current profitability under competitive pressure.

• Deterioration in Liquidity: Any stretch in the working capital cycle—specifically Debtor Days exceeding 90 days—which would lead to higher utilization of bank limits and a "stretched" liquidity position.

• Debt Service Pressure: A fall in the DSCR below 1.20x, 

• Aggressive Capex: Any large, debt-funded capital expenditure (not already in the projections) that pushes the Total Debt/TNW back above 3.5x.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in cash accruals of Rs 25.58Crs in FY 26 vis-a-vis repayment obligations of Rs 14.71 Crs in FY 26 and moderate cash balance of Rs 4.60 Crs in FY 25. The company has no major capex in FY 26 and FY 27 Its bank limits are utilized to the extent of 87% for last twelve months ending January, 2026 supported by the current ratio of 1.03 x in FY 25.The company’s adequate liquidity position is supported by its undrawn (vis-à-vis Drawing power) working capital facilities over the year, averaging 13% for the 12-month period ended in Jan   2026. Company's  liquidity position also remains supported by unsecured loans infused by the promoters on need basis. 

ABOUT THE ENTITY

S.V.S REFCOMP Pvt. Ltd. was incorporated in 1996 with its initial manufacturing plant located in Hyderabad. The company commenced operations by producing wire baskets and is now engaged in manufacturing refrigeration and air-conditioning equipment. At present, the product portfolio includes refrigerator condensers, filter driers, accumulators, evaporators, steel tubes, copper capillaries, and AC components. The company operates 11 manufacturing plants across six states, namely Telangana, Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, and Andhra Pradesh.   

ESG Profile

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

Environmental: The company has recently done capex of Solar power project in Telengana  , wherein power cost is expected to reduce by Rs 1 Crs in FY 27 . Currently power cost is Rs 8 /Unit which is expected to come dowm to Rs 6- 6.5 /unit in FY 27 

Social: The company does not spend much on CSR activities

Governance: The company does not have independent board of director composition. It is majorly family run.

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.	259.09	294.19	503.19
EBITDA	Rs.Crs.	16.48	22.21	38.42
PAT	Rs.Crs.	2.76	6.18	14.04
Tangible Net Worth	Rs.Crs.	23.07	28.99	42.72
Total Debt / Tangible Net Worth	Times	2.57	3.96	3.47
Current Ratio	Times	0.91	1.09	1.03

KEY COVENANTS OF THE FACILITY RATED

There are standard covenants as per the sanction letter.

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	109.91	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		109.91	(Rupees One Hundred Nine Crores and Ninety One lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Karan Ahluwalia Ratings Analyst karan.ahluwalia@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.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	HDFC Bank	Cash Credit - Sanctioned	10.00	_	10.00	Simple##
2	ICICI Bank	Cash Credit/WCDL - Sanctioned	15.00	_	15.00	Simple##
3	ICICI Bank	Term Loan - Sanctioned	12.93	_	12.93	Simple##
4	State Bank Of India (SBI)	Term Loan - Sanctioned	1.10	_	1.10	Simple##
5	State Bank Of India (SBI)	Term Loan - Sanctioned	1.09	_	1.09	Simple##
6	Yes Bank	Term Loan - Sanctioned	2.38	_	2.38	Simple##
7	Yes Bank	Term Loan - Sanctioned	4.34	_	4.34	Simple##
8	Yes Bank	Cash Credit - Sanctioned	62.50	_	62.50	Simple##
9	Yes Bank	GECL - Sanctioned	0.57	_	0.57	Simple##
Total			109.91	0.00	109.91
TOTAL (Rupees One Hundred Nine Crores and Ninety 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.