Mahamaya Steel Industries Limited

Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 51.47 Crs. of Mahamaya Steel Industries Limited

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	51.47	Long Term	BWR BBB + /Stable Assignment
Non Fund Based	(15.00)	Short Term	BWR A2 Assignment
Grand Total	51.47	(Rupees Fifty One Crores and Forty Seven 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
*** The outstanding balance of GECL (sanctioned Rs. 7.00 Crore) 1.47 Crore as on 2nd June 2026 RATING ACTION / OUTLOOK

 

Brickwork Ratings (BWR) assigns the long term and short term rating of BWR BBB+/Stable/BWR A2 to Mahamaya Steel Industries Limited (hereinafter referred to as ‘MSIL’ or the ‘Company’ ) for bank loan facilities of Rs. 51.47 Crore. The assignment is based on the consolidated audited financial statements of the company up to financial year 2026, projected financial statements for FY27 & FY28, publicly available information, and clarification provided by the company's management. 

The ratings assignment reflects a consistent, volume-led operational improvement and a comfortable financial risk profile in the absence of any major long-term liabilities. Further, the rating is strengthened by the promoters' extensive experience and established presence in the iron and steel sector for the past four decades. The rating, however, is constrained by the subdued profit margins resulting from steel price volatility, alongside exposure to the industry's inherent cyclicality and high level of competition. The risk is partially mitigated by the adequate liquidity position and prudent working capital management. 

The stable outlook reflects that the company will continue to excel in the scale of operations and sustain its profitability while managing its liquidity.  

KEY RATING DRIVERS

Credit Strengths:

• Longstanding existence with established position : :

  MSIL benefits from its promoters' longstanding presence in the iron and steel industry since 1988 and their extensive experience of more than four decades, which helps them sustain healthy, long-term relationships with both customers and suppliers. The company utilises a dual business model, engaging in direct manufacturing while also serving as an authorised conversion agent for major primary steel producers such as SAIL, Jindal, and Stecol, etc. The promoters have strategic shareholding in key group entities, including Abhishek Steel Industries Pvt. Ltd., Devi Iron & Power Pvt. Ltd., and an allied NBFC firm. This well-established operational and financial support is expected to comfortably support the company’s competitive standing over the medium term. 

• Increased operations owing to improved efficiency: :

   

  Over the years, the company has demonstrated its ability to consistently operate at healthy capacity utilisation levels, as reflected in an average utilisation from 45% in FY23 to 70% in FY26 for steel structures and, from 63% in FY23 to 92% in FY26 for Bloom/Billets, and increased production of Oxygen Gas in the past year over 16 lakhs q. Meters. Despite the volatile and compressed steel prices over the past three years, the company’s topline grew at a CAGR of 6%.  The company reported a total operating income of Rs. 882.85 Crore in FY26 (FY25: Rs. 783.83 Crs). Going forward, sustaining business growth amid the ramp-up of business operations will remain a key monitorable.

• Robust financial risk profile : :

  The financial risk profile should remain supported by steady accretion to reserves. yangible net worth is Rs. 158.75  Crs in FY26 (FY25: Rs. 148.98  Crs). The financial risk profile remains comfortable, characterised by a below-benchmark gearing level of 0.37x in FY26 (FY25: 31x) and a TOL/TNW ratio of 0.70x in FY26 (FY25: 0.64x). T Debt coverage is healthy, with an ISCR of 4.72x and a DSCR of 3.19x in FY26 (FY25: 4.22x & 3.22x).  It is expected to further remain stable in the absence of any major debt liability or capex in the near term. 

   

Credit Risks:

• Profitability is susceptible to volatility in raw material prices :  :

  Operating margins have been low, ranging from 2% to 2.68% over the past three fiscals through FY26. Operating margins remain sensitive to price fluctuations in essential inputs such as sponge iron, pig iron & steel scrap, as well as to variations in finished goods realizations.  These major raw materials and power constituted approximately 95% of the total cost of sales. While the company mitigates these risks through its longstanding market position. Its ability to maintain healthy realizations and pass through raw material cost increases further offsets this volatility. 

• Linkages with associates: :

  MSIL maintains strategic connections through its ~31.75% ownership in Abhishek Steel Industries Private Limited (ASIPL), while ASIPL reciprocally holds an 8.21% stake in MSIL. Beyond this relationship, the company derives operational advantages from shared raw material procurement with another associate, Devi Iron and Power Private Limited. Furthermore, MSIL has demonstrated a consistent track record of providing financial backing to its subsidiaries and joint ventures via ongoing investments over recent years. Consequently, adjusted leverage indicators remain healthy, with adjusted TOL/TNW and adjusted gearing at 0.85x in FY26 and 0.44x in FY26 (FY25: 0.78x & 0.38x).

• Exposure to intense competition and cyclicality in the steel industry: :

   

  Demand for the Mahamaya group’s steel products predominantly depends on the infrastructure sectors, which are tightly linked to overall economic activity, exposing the business risk profile to inherent cyclicality. The steel industry is characterized by massive fragmentation and low entry barriers, which create intense competition and severely restrict the bargaining power of individual players. Furthermore, the group's operational performance remains highly vulnerable to any adverse fluctuations in global demand-supply dynamics. 

ANALYTICAL APPROACH - Consolidated

 

Brickwork (BWR) has relied upon the standalone audited financials up to FY26, publicly available information, and clarification/information provided by the management. Further, to arrive at its ratings, BWR has considered the consolidated financial statement of MSIL and  Abhishek Steel Industries Private Limited for the assignment of the ratings and applied its rating methodology, as detailed in the Rating Criteria, as linked.

RATING SENSITIVITIES

Upward:

• Sustained Improvement in volume sales, along with an increase in operating margin over 4%, leading to higher-than-expected cash accruals.
• Sustenance of a healthy financial risk profile and working capital cycle. 

Downward: 

• Large debt-funded capital expenditure weakening the gearing above 1.25x or substantial increase in working capital requirements thus impacting financial risk profiles adversely. 
• Significant investments in the associate companies are eroding the net worth or weakening the liquidity.

LIQUIDITY INDICATORS - Adequate

The company's liquidity profile is adequate, characterised by a steady increase in net cash accruals, which increased from Rs. 13.59 Crs in FY24 to Rs. 18.18 Crs in FY26  against negligible debt repayment obligations. Going further, it is expected to remain between Rs. 23 -26 Crore in FY27 and FY28. Working capital management is efficient, marked by a short receivable collection period at 8–9 days over the last three fiscal years, while the overall conversion cycle remains healthy at 45 days in FY26, despite a slight increase from 38 days in FY25. An average bank limit utilisation of approximately 73.84% for the twelve months ending April 30, 2026, which ensures a liquidity cushion.

ABOUT THE ENTITY

Incorporated in 1988, Mahamaya Steel Industries Limited (MSIL) is a public limited company listed on both the BSE and NSE, located at Raipur, Chhattisgarh, managed by director Mr Rajesh Agarwal and family. MSIL operates an integrated manufacturing facility that includes high-capacity structural rolling mills and a Steel Melting Shop (SMS), which provides essential backward integration. The company possesses an annual production capacity of 2,00,000 MT for billets and blooms and 2,05,500 MT for structural steel products. Its specialised product portfolio features angles, beams, joists, channels, rounds, flats, and railway sleepers, marketed under the "MAHAMAYA" brand. MSIL is among the few Indian manufacturers capable of producing 250 mm angles and 600 mm joists. Additionally, the company maintains a gas plant with a yearly capacity of 9,00,000 CuM.

ESG Profile

The company demonstrates an 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, etc. Taking into consideration renewable energy initiatives, which will have a significant positive impact on both the environment and electricity costs, the company had planned to set up a solar power plant.

Social: The Company’s Human Resources Department (HRD) is committed to promoting a safe, collaborative and positive work environment that encourages strong relationships between workers and staff.

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 (Audited)
Operating Revenue	Rs.Crs.	783.83	801.76	882.85
EBITDA	Rs.Crs.	16.31	18.72	23.66
PAT	Rs.Crs.	4.79	6.20	8.74
Tangible Net Worth	Rs.Crs.	132.79	139.11	148.01
Total Debt / Tangible Net Worth	Times	0.31	0.33	0.39
Current Ratio	Times	1.71	1.49	1.41

KEY FINANCIAL INDICATORS (Consolidated)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Audited)
Operating Revenue	Rs.Crs.	783.83	801.76	882.85
EBITDA	Rs.Crs.	16.31	18.72	23.66
PAT	Rs.Crs.	6.72	7.60	9.60
Tangible Net Worth	Rs.Crs.	141.26	148.98	158.75
Total Debt / Tangible Net Worth	Times	0.29	0.31	0.37
Current Ratio	Times	1.71	1.49	1.41

KEY COVENANTS OF THE FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated bank loan facilities.

 

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	On account of management's non-cooperation, CARE Rating migrated the ratings of CARE BB+ (Stable)/A4+ to Issuer non-cooperation.	27Nov2025
ICRA	On account of management's non-cooperation, ICRA Rating migrated the ratings of ICRA B+ (Stable)/A4 to Issuer non-cooperation.	26Jun2025

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	51.47	BWR BBB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(15.00)	BWR A2 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		51.47	(Rupees Fifty One Crores and Forty Seven lakhs Only)

*** The outstanding balance of GECL (sanctioned Rs. 7.00 Crore) 1.47 Crore as on 2nd June 2026 Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
KunjalDabhi Ratings Analyst kunjal.d@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@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	UCO Bank	Cash Credit - Sanctioned	50.00	_	50.00	Simple##
	Sub-Limit (LC/BG) - Sanctioned		(15.00)
2	UCO Bank	GECL 2.0 - Out-standing	1.47	_	1.47	Simple##
Total			51.47	0.00	51.47
TOTAL (Rupees Fifty One Crores and Forty Seven lakhs Only)

* The outstanding balance of GECL (sanctioned Rs. 7.00 Crore) 1.47 Crore as on 2nd June 2026

## 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.