RATING RATIONALE

06Apr2026

GSA Industries India Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings of BWR BBB/Stable and BWR A3 for the Bank Loan Facilities of Rs. 294.41 Crs. of GSA Industries India Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	237.21	Long Term	BWR BBB /Stable Assignment
	42.00	Short Term	BWR A3 Assignment
	(60.00)
	(78.00)
	(37.00)
	(65.00)
	(40.00)
	(20.00)
	(15.00)
Non Fund Based	15.20	Short Term	BWR A3 Assignment
Grand Total	294.41	(Rupees Two Hundred Ninety Four Crores and Forty 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

Brickwork Ratings assigns the long-term and short-term ratings of BWR BBB/Stable and BWR A3 for the Bank Loan Facilities of Rs. 294.41Crs. of GSA Industries India Pvt. Ltd.

The Rating has factored, inter alia, the company’s experienced management with a long track record of operations, diversified business profile and satisfactory order book position. The rating is constrained by the inherent cyclicality of the automotive industry, intense global competition, volatility in raw material prices and concentration risks. Going forward, the company’s ability to scale up operations, enhance profitability and strengthen its liquidity and overall credit profile will remain key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that GSA Industries India 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:

Established track record of operations and experienced management :
GSA Industries India Private Limited was incorporated in 2023 and took over the group entity GSA Industries (Incorporated in 2005) with effect from 1 April 2025. The overall operations of the company overseen by Mr. Gurpreet Singh and Mr. Jatinder Pal Singh serving as a managing director bringing over more than 2 decades of experience in the industry. The extensive experience of the promoters combined with a proven operational track record and their understanding of the dynamics of the industry are expected to continue to support the business risk profile.
Diversified operations :
GSAI is engaged in the manufacturing of auto components including RCP rings, piston pins and steel forgings for pistons as well as non-auto components such as agricultural implements like rotavators, super seeders and laser land levellers. Revenue from auto components accounted for 61.44% of total revenues in FY25 while the non-auto components contributed around 38.55%. The company’s diversified product portfolio enables it to serve both automotive and non-automotive segments. Within the automotive segment GSAI supplies to Tier-I component manufacturers who in turn cater to passenger vehicle and two-wheeler OEMs. This healthy diversification helps mitigate the impact of potential slowdowns in the automotive industry to some extent.
Satisfactory order book position :
The company has a satisfactory order book value of about Rs. 322.20 Cr, for the period from Jan26 to Dec26 thereby providing a moderate revenue visibility. They have rolling order book from its customers. Further, the order book of the company is diversified across reputed clientele with orders from different players.

Credit Risks:

Susceptibility to inherent cyclicality of automotive industry with intense global competition :
As company derives a majority of its revenues from the domestic automotive market, its earnings remain exposed to the inherent cyclicality of the industry. The automotive sector has faced multiple headwinds in recent years, and GSAI’s performance has broadly tracked the underlying industry trends during this period. Nevertheless, supported by continuous business development initiatives and portfolio diversification, the company has been able to outperform overall industry growth. The auto component manufacturing industry remains highly fragmented due to relatively low entry barriers and easy availability of raw materials. Further, intense global competition continues to exert pressure on pricing, which may adversely impact margins and profitability going forward.
Susceptibility of profitability to raw material price volatility :
The company is exposed to volatility in the prices of key raw materials such as nickel, copper, pig iron, CRC scrap, and die steel, which are inherently cyclical and influenced by global commodity trends. Fluctuations in the prices of these inputs can lead to variability in operating margins. However, this risk is partially mitigated by the firm’s longstanding relationships with its customers and established price-escalation mechanisms, which allow for partial compensation of input cost increases. Nevertheless, the auto component industry remains highly fragmented and competitive, limiting the bargaining power of manufacturers. Consequently, the firm’s profitability remains sensitive to raw material price movements, although its ability to pass on a portion of the increased input costs to customers provides some margin protection.
Concentration risk :
As per the latest supply agreement more than 50% of the revenue is expected to be from the single customer i,e Tenneco. This indicates a significant dependency on a limited customer base exposing the company to concentration risk.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of GSA Industries India 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:

Substantial improvement in the scale of operations with Total Operating income above Rs. 600.00cr and operating margin above 12%.
Sustenance of debt coverage indicators i.e. ISCR and DSCR above 2.00x and 1.50x and Total Debt/TNW below 2x.
Timely completion of the ongoing capacity enhancement projects without any cost overrun.

Negative:

Decline in Total Operating income below Rs.450.00cr and deterioration in operating and net margins.
Deterioration in overall gearing above 3.5x on a sustained basis.
Stretch in working capital cycle leading to an increase in working capital borrowing and weakening of financial risk profile.
Delay in project completion and cost overrun.

LIQUIDITY INDICATORS - Adequate

The company took over the firm i, e GSA Industries effective from 1st April2025, The adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance. Going forward, the company projected net cash accruals of Rs. 26.07cr in FY26 and Rs. 70.76cr in FY27 against approximately adjusted term loan repayments of Rs. 12.00cr in FY26 and Rs. 7.00cr in FY27 ensuring sufficient coverage for debt servicing. The OPBDIT of Rs. 63.97cr in FY26 will be sufficient to cover the finance charges of Rs. 31.22cr in FY26. Further, the company's average utilization across all the sanctioned cash credit facilities is 51% during the last 8months.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Industrials	Capital Goods	Industrial Products	Castings & Forgings

GSA Industries India Private Limited (CIN: U24209PB2023PTC059222) Incorporated in August 2023 with its registered office located at Village Daulatpur, Rasulpur Jaura Road, Patiala, Punjab – 147001, India. It is engaged in manufacturing auto components namely RCP Rings, Piston Pins, Steel Forgings for Pistons and non- auto components namely agricultural implements like rotavator, super-seeder, laser land levellers etc. The manufacturing plant is located at Patiala (Punjab).

Effective from 1st April 2025 GSA Industries India Private Limited has taken over all operations including all assets and liabilities of GSA Industries, a partnership firm.

ESG Profile

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

Environmental: Environmental risks are driven by high water usage, waste generation and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share and emissions levels particularly important.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks and human-capital development with metrics such as workforce mix, safety performance and training initiatives offering insights into operational resilience.

Governance: Governance assessment focuses on board independence, committee effectiveness and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms and risk-management practices.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional - Others(31Dec2025))
Operating Revenue	Rs.Crs.	464.98	475.59	328.15
EBITDA	Rs.Crs.	39.98	50.10	38.81
PAT	Rs.Crs.	14.92	19.91	11.46
Tangible Net Worth	Rs.Crs.	61.14	77.65	91.41
Total Debt / Tangible Net Worth	Times	3.06	2.51	2.31
Current Ratio	Times	1.37	1.33	1.05

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities such as :

DER following any disbursement to not exceed the Project DER
The financial covenants shall be tested on an annual basis from the financial year in which the principal repayment commences. It should be ensured that FACR/DER/CR/TOL to TNW/DSCR is maintained as projected.
Promoter's Money in Business (TNW Plus Unsecured Loans from Promoters Less Advances for Non-Business Purpose) to be maintained at Rs.76.29cr during the currency Of the Exposure.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

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	237.21	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	42.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(60.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(78.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(37.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(65.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(40.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(15.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	15.20	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		294.41	(Rupees Two Hundred Ninety Four Crores and Forty One 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

GSA Industries India 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	HDFC Bank	Cash Credit - Sanctioned	52.50	_	52.50	Simple##
	Sub-Limit (WCDL - Sub-Limit of CC) - Sanctioned		(20.00)
2	HDFC Bank	Bill Discounted (BD) - Sanctioned	_	22.00	22.00	Simple##
3	HDFC Bank	Letter of Credit - Sanctioned	_	12.00	12.00	Simple##
4	HDFC Bank	Term Loan - Out-standing	2.54	_	2.54	Simple##
5	HDFC Bank	Term Loan - Out-standing	2.17	_	2.17	Simple##
6	HDFC Bank	Pre Shipment - Sanctioned	_	15.00	15.00	Simple##
	Sub-Limit (Post-Shipment Credit - Sublimit of Pre shipment) - Sanctioned		(15.00)
7	HDFC Bank	PSR-FX - Sanctioned	_	5.00	5.00	Simple##
8	Union Bank of India	Cash Credit - Sanctioned	100.00	_	100.00	Simple##
	Sub-Limit (ILC/FLC - Sublimit of CC) - Sanctioned		(40.00)
	Sub-Limit (PC/PCFC - Sublimit of CC) - Sanctioned		(37.00)
	Sub-Limit (PS/PSFC - Sublimit of CC) - Sanctioned		(65.00)
	Sub-Limit (WCDL - Sublimit of CC) - Sanctioned		(78.00)
9	Union Bank of India	Credit Exposure Limit (CEL) - Sanctioned	_	3.20	3.20	Simple##
10	Union Bank of India	Term Loan - Sanctioned	80.00	_	80.00	Simple##
	Sub-Limit (Import LC ) - Sanctioned		(60.00)
Total			237.21	57.20	294.41
TOTAL (Rupees Two Hundred Ninety Four Crores and Forty 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.

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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