Manilam Industries India Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 42.50 Crs. of Manilam Industries India Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	42.50	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	(3.00)	Short Term	BWR A3 Assignment
Grand Total	42.50	(Rupees Forty Two 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 Rating has assigned the long-term ratings for bank loan facilities of Manilam Industries India Ltd. at BWR BBB- /Stable and the short term rating of BWR A3 for the bank loan facilities of Rs 42.50 Crs. 

The assigned rating reflects the company's moderate business risk profile, with revenue rising slightly to Rs 140.03 crore in FY2025 from Rs 137.91 crore in FY2024. The revenue is expected to remain moderate over the medium term, the working capital cycle remains stretched is due to excess stock, with inventory days increase to an estimated 236 days in FY2026 from 148 days in FY2025. Going forward, the company's ability to manage its working capital and maintain enough cash will be crucial. On the positive side, the company has fully repaid its term loans, and its current adequate liquidity provides a good cushion. However, further improvements in liquidity will remain monitorable. 

The rating draws strength from the Experienced promoters with long track record of operations, Improvement in Profitability Margins, Moderate financial risk profile, Diversified Product Portfolio having established distribution network, and adequate liquidity profile. However, the rating is constrained by the Large working capital requirement, Susceptibility of profitability to raw material price fluctuation risk and exposure to intense competition.  

The rating outlook has been retained as "Stable" as BWR believes that the company 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 scale of operations and profitability margins, show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

For assigning the rating, BWR has relied upon the last three years of Standalone financial statements up to FY25, H1FY26 and projected financials for FY26, FY27 and FY28, and information and clarifications provided by the management, along with publicly available information. 

KEY RATING DRIVERS

Credit Strengths:

• Experienced promoters with long track record of operations :

  Manilam Industries India Ltd. (MIIL), Mr. Umesh Kumar Nemani, Managing Director of the company, with experience of over three decades in the plywood and laminate industry. and Mr. Manoj Kumar Agrawal, qualified Chartered Accountant and a member of the Institute of Chartered Accountants of India (ICAI) since 1993, is the Managing Director of the company with industry experience of over two decades and is actively involved in managing the overall operations of the company. The directors are ably supported by a team of experienced and qualified professionals in managing the day-to-day activities of the company. Extensive experience of the promoters has benefitted the company by diversifying its customer base and penetrating new geographies.

• Diversified Product Portfolio having established distribution network :

  The company offers a diversified product portfolio, centered on the manufacturing of decorative laminates, which are available in approximately 1,000 designs (SKUs). The business is increasingly focused on premium laminate items due to their higher profitability. The product offering also includes trading in plywoods, which are bought from the market and supplied to distributors. The company operates on a distributed model across pan-India markets. This extensive distribution network, supported by a wide network of dealers, was recently expanded with the opening of a service center/branch in Bangalore to specifically cater to the South India market.

• Improvement in Profitability Margins :

  The company's operating performance has shown a significant improvement in margins over the last two years, driven by a strategic shift toward high-margin premium products. While the Total Operating Income (TOI) increased slightly from Rs. 137.91 crore in FY24 (Audited) to Rs. 140.03 crore in FY25 (Audited). The operating performance improved, with the operating margin rising from 10.22% (FY24) to 12.59% (FY25) and reaching 14.32% in H1FY26 (EBITDA of Rs 8.61 Crs on sales of 60.14 Crs). This improvement is mainly due to better price realization in the premium designer laminate segment, as the company focused on production to increase profitability. Consequently, Profit After Tax (PAT) also increased significantly from Rs. 4.21 crore in FY24 to Rs. 6.27 crore in FY25 (and 3.16 crore till H1FY26).

  Net margins, which are around 4% to 5%, are expected to benefit in the current financial year (FY26/FY27) from a reduced interest burden, as IPO proceeds were used to pay off the term loan and some unsecured loans. Margins are generally expected to range between 10% and 14%.

Credit Risks:

• Large working capital requirement :

  Working capital requirement is likely to remain large, as the as the business mandates sizeable inventory and company extends credit period to customers. working capital cycle were high at 186 days as on March 31, 2025, driven by debtors of 193 days (due to a sizeable credit period offered to customers gives a credit of 120-180 days) and inventory of 148 days as a regular business practice due to the large number of product variants and the associated raw material stocking, this has led to high utilization of bank limits. working capital cycle are expected at 120-220 days over the medium term. Ability of the management to the manage the working capital cycle amidst business growth marking lower reliance on bank lines would therefore remain a key monitorable.

• Susceptibility of profitability to raw material price fluctuation risk and exposure to intense competition :

  The prices of many key raw materials such as paper, melamine, and phenol are volatile. Given the competitive market, the ability to pass on price increases is limited. Further, the company faces intense competition from large organised and small unorganised players in the plywood and laminates market. Intense competition limits the pricing power of the company thereby resulting in low profitability.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, Brickwork Ratings has adopted a standalone approach and applied its rating methodology as detailed in the Rating criteria.

RATING SENSITIVITIES

Positive:

• The company's Improvement in the scale of operations and profitability on a sustained basis, with the operating margin (OPM) rising above 14% and net margin (NPM) above 4.15%. Total Debt / TNW below 0.60x. 
• Improvement in working capital management leading to moderation in bank limit utilization 

Negative: 

• Deterioration in the scale of operations and if profitability weakens, with operating margin (OPM) falling below 10.60% and net margin (NPM) dropping under 3.65%. 
• Deterioration in the working capital cycle or higher than estimated debt impacting the financial profile or liquidity. 

LIQUIDITY INDICATORS - Adequate

The company’s liquidity position is assessed as adequate, supported by Net Cash Accruals of Rs 8.88 crore and 6.99 crore in FY2025 and FY2026(estimated) against scheduled debt repayments of Rs 7.37 crore and 7.20 crore as on March 31, 2025 and FY2026. Liquidity is further supported by a moderate current ratio of 1.18x and cash and bank balances of Rs. 9.69 crore as on March 31, 2025. However, the working-capital-intensive nature of operations results in relatively high reliance on bank limits, with average utilisation at ~64.63% for the twelve months end of 25 April 2026, indicating a moderate but limited cushion. The Working Capital Cycle remains large, driven by an increase in Days Inventory which stood at 236 days in FY26 estimated (up from 148 days in FY25), due to excess stock. 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

Manilam Industries India Ltd. (MIIL), established in 2015, is engaged in the manufacturing of decorative laminates and the trading of plywood. The company was set up as a partnership firm, B.P. Industries, founded by Mr. Umesh Kumar Nemani and Mr. Manoj Kumar Agrawal, which focused on plyboard manufacturing in Bareilly, Uttar Pradesh. The partnership was converted into a private limited company named BP Industries (Plyboards) Private Limited in November 2015. The company was subsequently renamed Manilam Industries India Private Limited in November 2023, and then reconstituted as a public limited company, Manilam Industries India Limited (MIIL), in December 2024 and listed on the NSE. 

The company manufactures decorative laminates in various thicknesses (0.7mm to 1mm) and trades plywood in different grades and sizes, primarily serving the industrial and commercial sectors. MIIL an installed capacity of 50 lacs pcs for Laminated Sheet, 5 lacs square meters for plywood & allied product and 40 lacs square meters for Veneer.  

ESG Profile

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

Environmental: The industry involves high water usage and waste generation (chemicals and wood dust), the company adheres to state pollution control board norms. Specific numerical disclosures for water consumption and total emission levels (tonnes of CO2e) are not yet fully quantified in the public SME filing, but waste-management practices focus on internal recycling of wood scrap. The company has made a significant by allocating Rs 2.20 Crore from its IPO proceeds specifically for the purchase and installation of solar panels at its Bareilly manufacturing plant to reduce reliance on conventional grid power. 

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce 152 individuals(including third-party contract workers), the company maintains an accident prevention framework and provides periodic safety training for floor workers.

Governance: The company has restructured its board to include Independent Directors to comply with NSE SME listing requirements, ensuring a balance of power, 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 (Unaudited - Midterm-H1)
Operating Revenue	Rs.Crs.	137.91	140.03	60.14
EBITDA	Rs.Crs.	14.09	17.63	8.61
PAT	Rs.Crs.	4.21	6.27	3.16
Tangible Net Worth	Rs.Crs.	27.44	33.73	Not Available
Total Debt / Tangible Net Worth	Times	2.68	1.85	1.35
Current Ratio	Times	1.15	1.18	1.27

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	42.50	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(3.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		42.50	(Rupees Forty Two Crores and Fifty lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Companies
• Trading Entities

Analytical Contacts
Md Saif Ali Khan Rating Analyst saifali.k@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	State Bank Of India (SBI)	Cash Credit - Sanctioned	42.50	_	42.50	Simple##
	Sub-Limit (ILC/FLC ) - Sanctioned		(3.00)
Total			42.50	0.00	42.50
TOTAL (Rupees Forty Two 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.