Balaji Niryaat Pvt. Ltd.

Brickwork Ratings assigns the long term and short term ratings for the Bank Loan Facilities of Rs. 243.05 Crs. of Balaji Niryaat Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	241.25	Long Term	BWR BBB /Stable Assignment
	(30.00)
Non Fund Based	1.80	Short Term	BWR A3 + Assignment
	(30.00)
	(0.29)
	(25.00)
	(2.00)
Grand Total	243.05	(Rupees Two Hundred Forty Three Crores and Five 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
*** As per the sanction letter, the limit is 60 Crores (BOI), however, at the request of the issuer, we have included only Rs 45 Crs for ratings considering the following conditions. "The proposed Working Capital Facility (WCFBL) is to be released in two tranches: initially 75% of the sanctioned limit, and the remaining 25% will be disbursed thereafter, based on the GST returns in line with the limit availed/disbursed till December 2025". RATING ACTION / OUTLOOK

BWR has assigned the long-term rating of BWR BBB /Stable and the short-term rating of BWR A3+ to the bank loan facilities aggregating to Rs. 243.05 crore of Balaji Niryaat Private Limited, considers the common promoters and unified management control, strong operational and financial linkages between Balaji Niryaat Private Limited (BNPL) and Navratan Vinimay Private Limited (NVPL). 

The rating draws strength from the Extensive industry experience of the promoters, the Group’s demonstrated improvement in scale of operations, Strong operational and financial support, Moderate financial risk profile, Standalone performance Profile of BNPL, and adequate liquidity profile. However, the rating is constrained by the Intense Competition and vulnerability to cyclicality in the Steel Industry, Profitability remains susceptible to volatility in raw material prices. 

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR believes that the Group’s business and financial risk profile will be maintained over the medium term. The outlook may be revised to Positive if the Group achieves a sustained improvement in scale of operations, along with profitability, leading to a strengthening of the combined financial risk profile and improved debt protection metrics, Conversely, the outlook may be revised to Negative if there is lower-than-expected revenue or profitability, or a deterioration in combined DSCR, particularly arising from pressure on working capital management or higher leverage. 

For assigning the rating, BWR has relied upon the last three years of Standalone and combined audited financial statements up to FY25, the projected financials for FY26 and FY27, and information and clarifications provided by the management, along with publicly available information. 

KEY RATING DRIVERS

Credit Strengths:

• Extensive industry experience of the promoters :

  The promoters have experience of over 30 years in trading in steel products. This has given them an understanding of the market dynamics and helped establish relationships with suppliers and customers and commence manufacturing of steel and stainless steel products in the past one decade. the scale of operations are expected to remain healthy above Rs 750-800 crores over the medium term. However, the group has expanded into manufacturing through Balaji group and should support the group revenues over the medium term. BWR ratings believes the extensive experience of the promoters will continue to support the business risk profile of the company

• Strong operational and financial support :

  BNPL is a majority owned associate of NVPL. As the group company, NVPL has extended funding support and a corporate guarantee for the entire debt of BNPL. The latter also receives operational and managerial support from the Group’s. The two-decade-long experience of the promoters in the steel industry, their strong understanding of market dynamics and established relationships with suppliers and customers will continue to support the business. Backed by their healthy industry experience and a strong market position, The company being in healthy demand scenario has estimated to achieve turnover of over Rs 599.52 crore in FY25 as against Rs 443.45 crore in FY24 the company has achieve the revenue till date 770 Crs till 23 March 2026, exhibiting growth on the back of volume growth despite moderation in realizations. A strong market position should keep the business risk profile stable over the medium term. 

• Moderate financial risk profile :

  Combined Networth increased to Rs 40.99 crore as on March 31, 2025, from around Rs 30.50 crore a year earlier, due to steady accretion to reserve; while adjusted gearing remained at 4.97 time, indicating a moderate capital structure. Debt protection metrics continue to be above average, with interest coverage ratio of 1.71 times, aided by healthy operating margin 5.70% in Fy25. Even with large debt funded working capital over the next one years and Rs 150 crore of term debt expected to be availed, capital structure should remain moderate on account of healthy accretion to reserve. 

• Standalone performance Profile of BNPL :

  The company recorded standalone revenue of Rs 403.76 Crs and EBITDA of Rs 23.03 Crs in FY25, which is about 67.35% and 72.88% of total combined sales and EBITDA, respectively. The company’s standalone interest coverage was at 1.71x in FY25 and Total Debt/TNW  was at 5.24x. BNPL’s had total standalone debt of Rs 150.02 Crs, about 74.02% of the total combined debt, as of 31 March 2025.

Credit Risks:

• Intense Competition and vulnerability to cyclicality in the Steel Industry :

  The steel trading industry is dominated by many unorganized players catering to local demand to save on high transportation costs, as price is the main differentiating factor. The intense competition restricts the bargaining power with customers and suppliers, resulting in modest operating margin (3 to 5.70% over the past three years). The intense competition will continue to constrain scalability, pricing power and profitability of BNPL’s. Although the ramp up in manufacturing segment will support operating margins, overall profitability will remain susceptible to volatility in commodity prices.

• Profitability remains susceptible to volatility in raw material prices  :

  The company profitability remains susceptible to volatility in raw material prices. The Group is exposed to price fluctuations in key inputs - specifically steel coils and sheets - relative to its inventory carrying levels. Going forward, the Group’s ability to maintain margins will depend on its capacity to pass increased input costs on to customers in a timely manner. 

ANALYTICAL APPROACH - Standalone

To arrive at the rating, Brickwork Ratings (BWR) has adopted a Standalone and based on the group supports approach by considering the financials of Balaji Niryaat Private Limited (BNPL) and Navratan Vinimay Private Limited (NVPL) together referred to as the Balaji Group, factoring in common promoters and unified management control, strong operational and financial linkages, liquidity and working capital are managed at the group level, supported by promoter funding, unsecured loans/quasi-equity, indicating strong operational integration and the presence of cross-default arrangements between BNPL and NVPL, which makes the credit risk inseparable at the group level. 

BWR has applied its rating methodology as detailed in the rating criteria below (hyperlinks provided at the end of this rationale). 

RATING SENSITIVITIES

Positive Sensitivities

• Improvement in operating performance: Sustained growth in Total Operating Income above Rs. 800 crore, along with Operating margin improving above 7.20% and Net margin 2.45% leading to stronger and more stable cash accruals.
• Strengthening of financial risk profile: ISCR maintained above 1.80x and DSCR above 1.55x on a sustained basis, coupled with moderation in leverage with Total Debt/TNW declining below 1.25x.

Negative Sensitivities 

• Pressure on earnings profile: Operating margin declining below 5.50% and Net margin 1.80% and/or revenue falling below Rs.750 crore, resulting in weaker cash generation.
• Deterioration in credit metrics and liquidity: ISCR and/or DSCR falling below 1.0x or continued high working capital utilisation and elongated operating cycle adversely impacting liquidity.

 

LIQUIDITY INDICATORS - Adequate

The company’s liquidity position is assessed as adequate, supported by Net Cash Accruals of Rs 7.11 crore in FY2025 against modest scheduled debt repayments of Rs 0.14 crore as on March 31, 2025. Liquidity is further supported by a moderate current ratio of 1.29x as on March 31, 2025, and cash and bank balances of Rs. 16.74 crore. However, the working-capital-intensive nature of operations results in relatively high reliance on bank limits, with average utilisation at ~90% for the twelve months end of 10 March 2026, indicating a moderate but limited cushion. Going forward, the company’s ability to manage its working capital cycle and maintain adequate liquidity buffers will remain a key monitorable.

ABOUT THE ENTITY

Balaji Niryaat Pvt. Ltd. (BNPL) was promoted by Mr. Suman Jain and his family and is based in Kolkata, West Bengal. The company was incorporated on 22 June 2005 and is engaged in trading of stainless steel products and manufacturing and processing activities, including the fabrication of coils, stainless steel pipes, plates, and sheets. The company operates a processing facility located in Panchla, West Bengal. 

Navratan Vinimay Private Limited (NVPL) – The company was incorporated on January 3, 2006, and is engaged in the manufacturing and trading of stainless steel products, including hot-rolled coils, plates, sheets, cold-rolled coils, and stainless steel pipes. NVPL is promoted by members of the Balaji Group, headquartered in Kolkata, West Bengal. The company’s operations are currently managed by Mr. Suman Jain and Mr. Hemant Lunia. 

 

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Unaudited - Midterm-H1)
Operating Revenue	Rs.Crs.	356.26	403.76	266.44
EBITDA	Rs.Crs.	15.52	23.03	22.59
PAT	Rs.Crs.	5.03	7.14	10.29
Tangible Net Worth	Rs.Crs.	21.65	28.82	39.07
Total Debt / Tangible Net Worth	Times	6.98	5.24	Not Available
Current Ratio	Times	1.32	1.29	Not Available

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normaly stipulated for Bank loan facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

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	241.25	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(30.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	1.80	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(30.00)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
		(0.29)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
		(25.00)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
		(2.00)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		243.05	(Rupees Two Hundred Forty Three Crores and Five lakhs Only)

*** As per the sanction letter, the limit is 60 Crores (BOI), however, at the request of the issuer, we have included only Rs 45 Crs for ratings considering the following conditions. "The proposed Working Capital Facility (WCFBL) is to be released in two tranches: initially 75% of the sanctioned limit, and the remaining 25% will be disbursed thereafter, based on the GST returns in line with the limit availed/disbursed till December 2025". Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Companies
• Ratings based on Group Support

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@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	Bank of India	Cash Credit - Sanctioned	45.00	_	45.00	Simple##
	Sub-Limit (ILC/FLC Sublimit of CC ) - Sanctioned		(30.00)
	Sub-Limit (WCLT Sublimit of CC ) - Sanctioned	(30.00)
2	Canara Bank	Cash Credit - Sanctioned	40.00	_	40.00	Simple##
3	HDFC Bank	Cash Credit - Sanctioned	55.00	_	55.00	Simple##
4	Indian Bank	Cash Credit - Sanctioned	45.00	_	45.00	Simple##
5	Punjab National Bank	Forward Contract - Sanctioned	_	1.80	1.80	Simple##
6	Punjab National Bank	Cash Credit - Sanctioned	56.25	_	56.25	Simple##
	Sub-Limit (BG Sublimit of CC ) - Sanctioned		(2.00)
	Sub-Limit (BP/BD Backed by LC Sublimit of CC ) - Sanctioned		(0.29)
	Sub-Limit (LC/SBLC Sublimit of CC ) - Sanctioned		(25.00)
Total			241.25	1.80	243.05
TOTAL (Rupees Two Hundred Forty Three Crores and Five lakhs Only)

* As per the sanction letter, the limit is 60 Crores (BOI), however, at the request of the issuer, we have included only Rs 45 Crs for ratings considering the following conditions. "The proposed Working Capital Facility (WCFBL) is to be released in two tranches: initially 75% of the sanctioned limit, and the remaining 25% will be disbursed thereafter, based on the GST returns in line with the limit availed/disbursed till December 2025".

## 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.