Fibremarx Papers Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings of "BWR BB-/Stable/BWR A4" for the Bank Loan Facilities of Rs. 47.50 Crs. of Fibremarx Papers Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	45.00	Long Term	BWR BB - /Stable Assignment
Non Fund Based	2.50	Short Term	BWR A4 Assignment
	(2.50)
Grand Total	47.50	(Rupees Forty Seven Crores and Fifty 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 has assigned the long-term rating of "BWR BB-/Stable" and short-term rating of "BWR A4" for the bank loan facilities of Rs. 47.50 Cr. of Fibremarx Papers Pvt. Ltd.

The Rating has factored, inter alia, Experienced Management coupled with extensive market presence of the company, and Comfortable Debt protection metrics with Low gearing levels. However, the rating is constrained by vulnerability of Operating income and profitability to fluctuations in raw material and finished goods prices and Working capital intensive nature of operations. Going forward, the ability of the company to improve its scale of operations, liquidity profile and maintain efficient working capital management will remain the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Fibremarx Papers 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 of Improvement in the capital structure and achievement of projected figures. The rating outlook may be revised to 'Negative' if the financial risk profile deteriorates.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Management coupled with extensive market presence of the company :

  The company is managed by an experienced and qualified management team, which has decades of experience in the Paper Manufacturing business. Extensive experience, coupled with a professional management setup and long market existence, enhances the competitive position of the company in the industry, which has also helped the company in building a strong customer and supplier base.

• Comfortable Debt protection metrics with Low gearing levels :

  The company recorded comfortable debt protection metrics in FY2025, with a DSCR of 1.44x and an ISCR of 1.69x. It is projected to maintain an ISCR above 1.90x and a DSCR above 1.65x in the coming years. The Total Debt/TNW stood at 1.38x in FY2025 and is expected to remain below 1.50x, reflecting a continued strong leverage profile.

Credit Risks:

• Operating income and profitability are susceptible to fluctuations in raw material and finished goods prices :

  Volatile raw material and finished goods prices have impacted the business in recent years, leading to a decline in operating income and profitability. However, prices have stabilized over the last six months, resulting in an improvement in both operating income and profitability for 9M FY2026 (P). Changes in these prices are key monitorable in the medium term.

• Working capital intensive nature of operations :

  The business remains highly working-capital-intensive, reflected by the 100% utilization of its working capital limits and a conversion cycle that increased to 231 days in FY2025 from 149 days in FY2024. Consequently, the company continues to rely significantly on bank funding to meet its operational requirements.

ANALYTICAL APPROACH - Standalone

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

RATING SENSITIVITIES

The company’s ability to improve its scale of operations, liquidity profile and maintain efficient working capital management will remain the key rating sensitivities.

Upward: 

• Growth in scale of operations and revenue, while maintaining Operating Margins above 6.50% and net margin above 1%.
• Adequate liquidity profile and efficient use of working capital limits with no overdrawing's.

Downward:

• Decline in the operating income of the company and profitability from FY2025 levels.
• Further weakening of its debt protection metrics from FY2025 levels.

LIQUIDITY INDICATORS - Stretched

The company has reported overdrawing's in its working capital limits in the past few months (Not more than 30 days). The company has adequately covered its interest and CPLTD obligations with sufficient EBITDA and Internal Cash Accruals in the recent years. It has also maintained a comfortable level of debt protection metrics, with an ISCR of 1.69x and a DSCR of 1.44x in FY2025 (ISCR of 1.87x and a DSCR of 1.41x in FY2024). The current ratio stood at 1.35x in FY2025. As per the projected financials, the company is expected to report an EBITDA of Rs. 10.77 Cr. in FY2026 and Rs. 11.07 Cr. in FY2027 against the interest expenses of Rs. 5.58 Cr. in FY2026 and Rs. 5.80 Cr. in FY2027. Net cash accruals are expected to be of Rs. 5.07 Cr. in FY2026 and Rs. 5.37 Cr. in FY2027 which would be sufficient enough to cover the CPLTD obligations of Rs. 0.72 Cr. in FY2026 and Rs. 0.93 Cr. in FY2027. Further, it is expected to be supported by the disbursement of the proposed working capital limit, which will align the company’s fund-based headroom with its actual operating cycle and prevent future overdrawing's. Considering all the above factors and elongated conversion cycle of 231 days reported in FY2025, the company's liquidity position is assessed as "Stretched".

ABOUT THE ENTITY

Fibremarx Papers Private Limited (FPPL) was incorporated in 2006 and is based out in Delhi. The company is engaged in the manufacturing of writing & printing paper and newsprint paper. FPPL operates with an installed manufacturing capacity of 60,000 MTPA and has historically achieved capacity utilization of around 50%. The company is managed by Mr. Jasdeep Singh Goraya and Ms. Mehak Kaur, who together possess over a decade of experience in the manufacturing and trading of writing paper.

ESG Profile

NA

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional - Others(9 Months))
Operating Revenue	Rs.Crs.	176.80	128.24	130.51
EBITDA	Rs.Crs.	10.58	8.33	8.28
PAT	Rs.Crs.	1.33	0.67	2.26
Tangible Net Worth	Rs.Crs.	35.18	35.85	38.11
Total Debt / Tangible Net Worth	Times	1.15	1.38	1.21
Current Ratio	Times	1.45	1.35	1.34

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities. Some of these are listed below:

• Fixed assets to the extent of 5% Gross Block may be sold in any financial year provided such sales does not dilute FACR below minimum stipulated levels.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
ACUITE	Acuite Ratings vide its press release dated 08-Jan-2026 has downgraded the long-term rating to "ACUITE B/Stable" from "ACUITE B+/Stable" and reaffirmed the short-term rating at "ACUITE A4", migrated the ratings to Issuer Not Cooperating category.	08Jan2026

ANY OTHER INFORMATION

None

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	45.00	BWR BB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	2.50	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(2.50)	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		47.50	(Rupees Forty Seven Crores and Fifty lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Mohammed Farzan Rating Analyst mohammed.f@brickworkratings.com	Suryanarayan N Associate Director - Ratings suryanarayan.n@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	Punjab National Bank	Cash Credit - Sanctioned	40.00	_	40.00	Simple##
2	Punjab National Bank	Letter of Credit - Sanctioned	_	2.50	2.50	Simple##
	Sub-Limit (Letter of Guarantee (Inland/Foreign)) - Sanctioned		(2.50)
3	Uttarakhand State Cooperative Bank Limited	Cash Credit - Sanctioned	5.00	_	5.00	Simple##
Total			45.00	2.50	47.50
TOTAL (Rupees Forty Seven Crores and Fifty 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.