RATING RATIONALE
15May2026
Dynamech Electropower Pvt. Ltd.
Brickwork Ratings reaffirms the long-term and short-term ratings at "BWR BBB-/Stable/BWR A3" for the Bank Loan Facilities of Rs. 97.16 Cr. of Dynamech Electropower Pvt. Ltd.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (23 Sep 2025) |
Present | ||
| Fund Based | 67.27 | 61.31 | Long Term |
BWR BBB- /Stable
Assignment |
BWR BBB -
/Stable Reaffirmation |
| (0.00) | (5.00) | ||||
| (16.00) | (35.00) | ||||
| Non Fund Based | 30.00 | 35.00 | Long Term |
BWR BBB-/Stable
Assignment |
BWR BBB -
/Stable
Reaffirmation |
| (0.00) | (10.00) | ||||
| (0.00) | (1.00) | ||||
| (0.00) | (5.00) | ||||
| 6.36 | 0.85 | Short Term |
BWR A3
Assignment |
BWR A3
Reaffirmation |
|
| Grand Total | 103.63 | 97.16 | (Rupees Ninety Seven Crores and Sixteen lakhs Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
RATING ACTION / OUTLOOK
Brickwork Ratings (BWR) reaffirms the long-term and short-term ratings at "BWR BBB-/Stable/BWR A3" for the bank loan facilities of Rs 97.16 Cr of Dynamech Electropower Pvt Ltd.
The rating reflects strong operating performance in the past three fiscals , driven by healthy demand for the Company's products. The rating also considers the company’s healthy financial risk profile with low external debt and healthy debt coverage metrics on as 31 March 2026 (Provisional) with interest coverage and Debt Service Coverage of 3 times and gearing which has remained at levels of 2 times over the past two financial years. The company’s liquidity position has been adequate characterized by healthy utilisation of working capital lines. The Company is also engaged in PM Kusum Solar Yojna,and it benefits from the substantial Central Financial Assistance (CFA) provided by the government for solar pump installations and solarization projects, reducing upfront costs. BWR also takes into account the increasing demand for solar solutions in the agricultural sector, as evidenced by the ongoing installation of solar pumps to replace diesel ones.
The rating, however, is constrained by the susceptibility of margins to fluctuations in raw material prices as it will have a direct impact on the pricing of the products as well as intense competition in the market.
The Stable outlook on the BWR BBB- rating reflects BWR opinion that the financial risk profile of Dynamech Electropower Pvt Ltd. is expected to be maintained over the medium term, given steady revenues backed by the healthy order book position and that it will continue to maintain its comfortable capital structure and healthy debt coverage indicators.
KEY RATING DRIVERSCredit Strengths:
-
Extensive experience of promoters :
The Company is promoted by Mr Alok Gupta who has more than two decades of experience in the industry. The company is located in Bhopal cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective. The promoter’s rich experience has enabled the company to establish healthy relationships with various reputed customers and suppliers. The Company has been able to build and sustain strong relations spread over the past several years. The company has an established market presence and can produce diverse products, which find application in varied end-user industries.
-
Moderate Financial Risk Profile :
The company's financial risk profile is strong, marked by a healthy capital structure and strong debt protection metrics. The Company has recorded a growth of 100% in FY26(P). The Company derives 24% of its revenue from the transformer segment and 76% from the solar segment. The networth of the Company is improving Y-o-Y owing to retention of profit and is recorded at Rs.35.52 Crs in FY26(P). The coverage indicators are adequate recorded at more than 3x. The overall gearing of the company is moderated around 1.45 x in FY26(P) . The financial risk profile is expected to be maintained over the medium term, backed by the steady revenues from the healthy order book position of Rs.184.00 Crs to be executed in FY27. Liquidity also remained adequate with sufficient cushion in the current working capital limits. The company has sufficient headroom to utilize the accruals and un-utilized working capital limits for its operational requirements, reflecting an adequate liquidity profile.
-
Exposure to intense competition :
The company operates in a crowded market with many active competitors, which can lead to increased competition for tenders and market share. The energy market, particularly renewable energy, is rapidly evolving, and the possibility of falling behind in innovation or being unable to secure necessary investment to keep pace with competitors' technological advancements.
-
Working capital intensive operations :
Operations heavily reliant on working capital can be particularly vulnerable to economic downturns, where it becomes harder to repay debts and manage operations. Given the standard payment timelines associated with government contracts, the collection period for receivables is typically extended, especially for bills raised in the last quarter. This results in a higher debtor position as at the year-end. A large amount of accounts receivable can increase the risk of bad debts and extended collection periods, affecting cash flow. However, the Company's counterparty risk's of default of payments are minimum as company is majorly dealing with government entities.
BWR has adopted a Standalone approach while arriving at its ratings.
RATING SENSITIVITIES
The company’s ability to increase its scale of operations, improve profitability and margins, efficiently manage its working capital requirements with adequate liquidity and strengthen overall credit profile would be the key rating sensitivities.
Positive Factors
- Revenue to be in excess of Rs.200.00 Crs along with EBIDTA and PAT in excess of 12.5% and 7.5% respectively.
- Liquidity to be maintained at the existing level.
Negative Factors
- Dip in revenue by 10% and EBIDTA and PAT by 5% (in absolute terms).
- Deterioration in TNW.
The Company has adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and cash balance of Rs. 4.41 Crs. Its capex requirements are NIL for FY27 and hence no long term debt exists. the Company's bank limits are utilized to the extent of 85% and has un-utilized working capital limits for its operational requirements supported by current ratio of 1.44x as of 31 March 2026(P). The Current ratio is expected to remain at the same level during FY27. The Company's EBIDTA adequately covers the debt obligations and the Company has stable cash conversion cycle. During FY26(P), healthy cash accruals of Rs.11.71 Crs were generated by the company. The trend is expected to increase in the short to medium term.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Industrials | Capital Goods | Electrical Equipment | Heavy Electrical Equipment |
Dynamech Electropower Pvt Ltd, based out at Bhopal MP, is promoted by Mr Alok Gupta. The company was established as a manufacturer of Conventional Distribution and Power Transformer Company. The company traditionally was focusing on manufacturing of transformers which focused on conversion of high voltage into low voltage through Power and Distribution Transformer. The company has diversified its product portfolio and is now additionally into manufacturing of Conventional Power Distribution transformer along with Solar Power Pack and Solar Water Pumping System as a system integrator and supply of DG sets.
ESG Profile
NA
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 23 - 24 (Audited) |
FY 24 - 25 (Audited) |
FY 25 - 26 (Provisional) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 81.38 | 102.58 | 205.50 |
| EBITDA | Rs.Crs. | 7.73 | 9.23 | 19.24 |
| PAT | Rs.Crs. | 3.13 | 5.54 | 11.39 |
| Tangible Net Worth | Rs.Crs. | 17.10 | 22.63 | 35.52 |
| Total Debt / Tangible Net Worth | Times | 1.48 | 1.80 | 1.45 |
| Current Ratio | Times | 1.33 | 1.41 | 1.44 |
The terms of sanction include standard covenants normally stipulated for such facilities. Apart from these standard covenants , the banks have not
mentioned any specific financial covenants.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATIONNA
RATING HISTORY FOR THE PREVIOUS 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 | 61.31 |
BWR BBB-/Stable
(Reaffirmation) |
23Sep2025 |
BWR BBB- Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
| FB SubLimit | LT | (5.00) |
BWR BBB-/Stable
(Reaffirmation) |
23Sep2025 |
BWR BBB- Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
| (35.00) |
BWR BBB-/Stable
(Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Non Fund Based | LT | 35.00 |
BWR BBB-/Stable
(Reaffirmation) |
23Sep2025 |
BWR BBB-Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
| NFB SubLimit | LT | (10.00) |
BWR BBB-/Stable
(Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (1.00) |
BWR BBB-/Stable
(Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| (5.00) |
BWR BBB-/Stable
(Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Non Fund Based | ST | 0.85 |
BWR A3
(Reaffirmation) |
23Sep2025 |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
| Grand Total | 97.16 | (Rupees Ninety Seven Crores and Sixteen lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Pramukh Meda Krishna Ratings Analyst pramukh.krishna@brickworkratings.com |
Suryanarayan N Associate Director - Ratings suryanarayan.n@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 | Axis Bank Ltd. | Bank GuaranteeSanctioned | _ | _ | 0.00 | Simple## |
| 2 | Axis Bank Ltd. | Cash CreditSanctioned | 14.20 | _ | 14.20 | Simple## |
| Sub-Limit (BG) Sanctioned | (10.00) | |||||
| Sub-Limit (WCDL) Sanctioned | (5.00) | |||||
| 3 | State Bank Of India (SBI) | Bank GuaranteeSanctioned | 35.00 | _ | 35.00 | Simple## |
| 4 | State Bank Of India (SBI) | Cash CreditSanctioned | 42.00 | _ | 42.00 | Simple## |
| 5 | State Bank Of India (SBI) | Letter of CreditSanctioned | _ | _ | 0.00 | Simple## |
| 6 | State Bank Of India (SBI) | Credit Exposure Limit (CEL)Sanctioned | _ | 0.85 | 0.85 | Simple## |
| 7 | State Bank Of India (SBI) | GECLOut-standing | 0.11 | _ | 0.11 | Simple## |
| 8 | State Bank Of India (SBI) | SBLCSanctioned | 5.00 | _ | 5.00 | Simple## |
| Sub-Limit (BG) | (5.00) | |||||
| Sub-Limit (FCNR) | (35.00) | |||||
| Sub-Limit (LC) | (1.00) | |||||
| Total | 96.31 | 0.85 | 97.16 | |||
| TOTAL (Rupees Ninety Seven Crores and Sixteen 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
| Instrument / Activity | Regulator |
|---|---|
| Listed/Proposed to be listed bonds/debentures/preference share (all securities) | SEBI |
| Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) | MCA |
Listed PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| SEBI | |
Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| SEBI | |
Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| RBI | |
| Listed Commercial Paper and NCDs with original maturity less than 1 year | RBI |
| Unlisted Commercial Paper and NCDs with original maturity less than 1 year | RBI |
Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/FIs 2| RBI | |
| External Commercial Borrowings and other similar borrowings | RBI |
| Certificates of Deposit | RBI |
| Fixed Deposits raised by NBFC's, Banks, HFCs, Fis | RBI |
| Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, Fis | MCA |
| Inter Corporate Deposits/Loans extended by Corporates | MCA |
Borrowing programme 3| - | |
Issuer Ratings 4| - | |
| Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) | SEBI |
| Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs | SEBI |
| Listed Security Receipts | SEBI |
| Unlisted Security Receipts | RBI |
| Independent Credit Evaluation (ICE) | RBI |
| Expected Loss Ratings (for Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/Fis) | RBI |
| Expected Loss Ratings (Listed/Proposed to be listed bonds/debentures/preference share (all securities)) | SEBI |
| Expected Loss Ratings (Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)) | MCA |
Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| Investor-side Regulator | such as IRDAI, PFRDA 5 |
| Monitoring Agency | SEBI |
| Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 | NA |
- Includes securitisation transactions involving assignee payout, acquirer's payout.
- Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
- The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), BWR shall separately capture the rated quantum details along with names of respective regulators.
- There is no instrument being rated and hence, Regulator of the Instrument is not applicable.
- These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026, and accordingly, investor side regulators have been included.
- Permitted by SEBI vide SEBI Master Circular for CRAs
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