Shree Ganesh Metaliks Ltd.

Brickwork Ratings has reaffirmed the long-term rating at BWR BBB/Stable and short-term rating at BWR A3+ for the bank loan facilities of Shree Ganesh Metaliks Ltd aggregating to Rs. 232.93 Crs.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
	Previous	Present		Previous (02 Jul 2025)	Present
Fund Based	191.13	216.43	Long Term	BWR BBB /Stable Upgrade	BWR BBB /Stable Reaffirmation
Non Fund Based	16.50	16.50	Short Term	BWR A3+ Upgrade	BWR A3 + Reaffirmation
Grand Total	207.63	232.93	(Rupees Two Hundred Thirty Two Crores and Ninety Three 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
Note: The sanctioned facilities consist of Rs. 222.98 crore, while the proposed facilities amount to Rs. 9.95 crore, which have been assessed based on the company’s projections and underlying assumptions. Ratings assigned to the proposed facilities are valid only until the facilities are availed.

RATING ACTION / OUTLOOK

Brickwork Ratings has reaffirmed the long-term rating at BWR BBB/Stable and short-term rating at BWR A3+ for the bank loan facilities of Shree Ganesh Metaliks Ltd aggregating to Rs. 232.93 Crs.

The reaffirmation of the ratings factors in the experienced promoters with a long operational track record, the company’s locational advantage, diversified product portfolio, and well-diversified customer base. The ratings also draw comfort from the company’s moderate financial risk profile. However, the ratings remain constrained by the intense competition and cyclical nature of the steel industry, along with susceptibility to fluctuations in raw material prices and overall steel demand cycles.

The outlook continues to remain ‘Stable’ as Brickwork Ratings believes that Shree Ganesh Metaliks Ltd is likely to maintain its business and financial risk profile over the medium term. The ‘Stable’ outlook indicates a low likelihood of any rating change in the medium term.

For arriving at the ratings, Brickwork Ratings has relied upon the audited financial statements of the company for the last three years up to FY25, provisional financials for FY26, projected financials for FY27 and FY28, along with publicly available information and management clarifications

KEY RATING DRIVERS

Credit Strengths:

• Successful Exit from CDR Framework with Lead Bank (SBI) Demonstrates Strong Financial Discipline and Promoter Commitment :

  The company had previously undergone Corporate Debt Restructuring (CDR); however, as per the latest confirmation from the lead banker, State Bank of India, the company has successfully settled the entire ROR amount in Dec’25 under the approved Resolution Option Request (ROR), comprising a 35% haircut and 65% settlement structure, and has subsequently exited from the CDR mechanism. However, the settlement with member banks, namely Indian Overseas Bank (IOB) and Punjab National Bank (PNB), is still under consideration.

  The successful closure of the restructuring obligations reflects the company’s financial discipline, continued support from the promoters, and its ability to honor restructured commitments. Further, a successful exit from the CDR framework remains a notable achievement, considering that several entities undergoing restructuring generally face operational stress and, in many cases, eventually move towards insolvency proceedings or fail to revive operations

• Experienced promoters with long track record of operations :

  The company commenced its operations in 2003 and has a successful track record of operations. SGML’s long track record and the extensive experience of promoters have helped establish relations with various stakeholders for its business. Promoters of the company have extensive experience of over two decades in the industry and have gone through multiple business cycles. Mr Manoj Kumar, Managing Director of the company has an experience of more than three decades in the steel industry. During FY20, the promoters started production and marketing of TMT (Thermo mechanically treated) with the installation of TMT manufacturing plant which has resulted in scale-up of their operations in recent years. Furthermore, the promoters are assisted by a team of experienced professionals in managing the company’s daily business operations. Further, the recently leased plant by the company near the SGML Location is supporting the revenue of the company by adding on the operational capacity of the company.

• Locational advantage with a well diversified customer base :

  SGML is presently operating with a facility located at Chadri Hariharpur village of Sundargarh district in Odisha. The site is at a distance of 20 km from Rourkela City, which is a major industrial hub of Odisha. The site is well connected by both rail and road networks. Being near to raw material sources and a ready market for the end product, the company enjoys a locational advantage. The company also has a diversified customer base serving to Odisha, Chattisgarh, Jharkhand, Uttar Pradesh, and Punjab, capital cities like Delhi/NCR, and Kolkata as well. It has a strong marketing network of dealers and distributors.

• Moderate financial risk profile :

  The company’s financial risk profile remained moderate marked by moderation in Total Operating Income from Rs.919.54 Crs in FY25 to Rs.856.45 Crs in FY26 (Prov) due to subdued steel market conditions and volatility in steel prices. However, net margins improved marginally from 2.22% to 2.49% despite the substantial settlement of CDR/ROR obligations amounting to Rs.22.74 Crs during Dec 2025, indicating stable bottom-line performance. Further, the company’s Tangible Net Worth improved consistently from Rs.229.14 Crs in FY25 to Rs.250.44 Crs in FY26 supported by steady profit retention and accretion to reserves.

  The capital structure and liquidity profile also remained comfortable with improvement in Total Debt/TNW to 0.67x in FY26 from 0.86x in FY25 due to reduction in debt obligations post settlement and improvement in net worth levels. Although the current ratio moderated slightly to 2.78x from 3.06x, it continued to remain comfortable indicating adequate liquidity position and working capital management

Credit Risks:

• Intense Competition and Cyclical Nature :

  The company faces intense competition from other big players in TMT bars manufacturing segment. Moreover the prices of raw material keep on fluctuating in the global markets, resulting in low profit margins. The metal industry is sensitive to the shifting business cycles, including changes in the general economy, interest rates and seasonal changes in the demand and supply conditions in the market.

• Susceptibility to cyclicality and fluctuation in raw material prices :

  The company’s operations remain raw material intensive and the profitability is vulnerable to fluctuations in the prices of raw materials as the latter constitutes ~90% of the company’s operating expenses. Further the performance of the company is linked to the steel industry, with cyclical changes in demand and price volatility. The demand for steel products depends on the growth of primary end user segments such as infrastructure and real estate. Any slowdown may in turn adversely affect the demand for steel products over the medium term. However in order to mitigate the risk of raw material prices volatility it buys raw materials in bulk when prices are low.

ANALYTICAL APPROACH - Standalone

BWR has factored in the standalone business parameters and financial risk profile of the company to arrive at the rating. BWR has applied its rating methodology as detailed in the rating criteria detailed below (hyperlinks provided at the end of this rationale). 

RATING SENSITIVITIES

Upward: BWR may consider an upward revision in the ratings if the company demonstrates significant and sustained growth in its scale of operations, driven by higher volumes, while maintaining or improving profitability. Key benchmarks include the TOI exceeding Rs. 935 Crs, a net profit margin above 2.55%, and a consistent increase in tangible net worth (TNW).

Downward:  Rating may be downgraded in case there is a deterioration in the financial risk profile and liquidity position of the company, along with a decline in net profit margins below 2.20% and a decrease in the company's TNW below Rs. 245.00 Crs

LIQUIDITY INDICATORS - Adequate

The company has an adequate liquidity position as marked by a comfortable current ratio of 1.85x as of 31 March 2025 and 1.81x as of 31 March 2026 (provisional). The company had generated sufficient internal cash accrual of Rs. 40.49 crs in FY25 and Rs. 31.99 Crs in FY26 (provisional) as against debt obligations of Rs. 31.79 Crs in FY25 and Rs. 23.31 Crs in FY26 (provisional) respectively. The company has projected to generate internal cash accruals of around Rs. 36.73 Crs against a repayment obligation of around Rs. 26.18 Crs for the current fiscal year FY27. The company’s total average fund-based working capital limits utilization stood at around 88.77% for IOB, 80.82% for PNB, and 65.83% for SBI during the past 12-month period ended March 2026. The company has a comfortable operating cycle which stood at 48 days in FY25 and 62 days in FY26 (provisional). The free cash and bank balance stood at Rs. 15.72 Crs as on 31 March 2026(provisional).

ABOUT THE ENTITY

Shree Ganesh Metaliks Ltd. (SGML) was promoted by the three brothers namely Mr. Manoj Kumar Agarwal, Mr. Kailash Chandra Agarwal, and Mr. Madanlal Agarwal, having over 25 years’ of experience in trading Iron and Steel products. The company was originally incorporated as Shree Ganesh Sponge Pvt. Ltd. in the year 2003 and shortly thereafter, it was converted to a Public Limited Company and renamed to Shree Ganesh Metaliks Ltd. (‘SGML’) on 19 Sep 2003. The company has an installed capacity of ~1,85,000 TPA to produce Billets and a 32 MW power plant for captive consumption. During Nov-20, the company installed a manufacturing plant with capacity of 1,20,000 TPA to manufacture TMT bars. SGML’s main industrial/manufacturing activity is located at village Chadri Hariharpur in the Sundargarh district of Odisha, at a distance of 20km from Rourkela City which is a major industrial hub.

The company had undergone Corporate Debt Restructuring (CDR) in 2012, followed by a second restructuring in 2017. Subsequently, the company implemented the restructuring package as per the approved terms and has fully settled the ROR amount. Accordingly, the company has exited from the CDR mechanism as on date.

ESG Profile

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

Environmental:
The company operates in the steel manufacturing industry, which is inherently energy-intensive and exposed to environmental risks relating to emissions, water consumption, waste generation, and power usage. The company is exposed to risks associated with pollution control norms, handling of industrial waste, and carbon emissions arising from sponge iron, billet, and rolling mill operations. Nevertheless, the company has established requisite pollution control systems and complies with applicable environmental regulations prescribed by statutory authorities.

Social:
The company’s operations are labour-intensive in nature and therefore remain exposed to risks relating to workforce safety, employee welfare, and adherence to labour regulations. The company focuses on maintaining safe operating practices, statutory compliance, and employee welfare measures at its manufacturing facilities. Further, the established operational track record and continued manufacturing operations indicate adequate human resource and operational management practices.

Governance:
The governance profile is supported by the presence of an experienced management team with an established track record in the steel industry. The company has adequate internal control systems, statutory compliance mechanisms, and regular financial reporting practices. Further, the successful settlement of CDR/ROR obligations reflects management’s intent toward improving financial discipline and strengthening the overall financial profile of the company

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	967.75	919.54	856.45
EBITDA	Rs.Crs.	74.13	92.97	75.79
PAT	Rs.Crs.	18.00	20.40	21.30
Tangible Net Worth	Rs.Crs.	208.73	229.14	250.44
Total Debt / Tangible Net Worth	Times	1.10	0.86	0.67
Current Ratio	Times	1.63	1.85	1.81

KEY COVENANTS OF THE FACILITY RATED

The key covenants are:

• Standard terms as per CDR
• Standard terms as stipulated in the sanction letters of the rated facilities

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

None

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	216.43	BWR BBB/Stable (Reaffirmation)	02Jul2025	BWR BBB Stable (Upgrade)	01Aug2024	BWR BBB- Stable (Reaffirmation)	02Jun2023	BWR BBB- Stable (Reaffirmation)
Non Fund Based	ST	16.50	BWR A3+ (Reaffirmation)	02Jul2025	BWR A3+ (Upgrade)	01Aug2024	BWR A3 (Reaffirmation)	02Jun2023	BWR A3 (Reaffirmation)
Grand Total		232.93	(Rupees Two Hundred Thirty Two Crores and Ninety Three lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Mukul Singh Sahu Ratings Analyst mukulsingh.s@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	Indian Overseas Bank	Term Loan - Out-standing	2.58	_	2.58	Simple##
2	Indian Overseas Bank	Term Loan - Out-standing	13.13	_	13.13	Simple##
3	Indian Overseas Bank	Term Loan - Out-standing	11.26	_	11.26	Simple##
4	Indian Overseas Bank	Term Loan - Out-standing	0.82	_	0.82	Simple##
5	Indian Overseas Bank	Working Capital Term Loan - Out-standing	0.95	_	0.95	Simple##
6	Indian Overseas Bank	Working Capital Term Loan - Out-standing	3.38	_	3.38	Simple##
7	Indian Overseas Bank	Cash Credit - Sanctioned	15.00	_	15.00	Simple##
8	Indian Overseas Bank	Letter of Credit - Sanctioned	_	2.50	2.50	Simple##
9	Indian Overseas Bank	Funded Interest Term Loan - Out-standing	2.25	_	2.25	Simple##
10	Indian Overseas Bank	GECL - Out-standing	2.09	_	2.09	Simple##
11	Indian Overseas Bank	GECL - Out-standing	_	_	0.00	Simple##
12	Punjab National Bank	GECL - Out-standing	1.62	_	1.62	Simple##
13	Punjab National Bank	GECL - Out-standing	_	_	0.00	Simple##
14	Punjab National Bank	Funded Interest Term Loan - Out-standing	1.59	_	1.59	Simple##
15	Punjab National Bank	Letter of Credit - Sanctioned	_	2.50	2.50	Simple##
16	Punjab National Bank	Cash Credit - Sanctioned	5.05	_	5.05	Simple##
17	Punjab National Bank	Cash Credit - Proposed	9.95	_	9.95	Simple##
18	Punjab National Bank	Working Capital Term Loan - Out-standing	1.13	_	1.13	Simple##
19	Punjab National Bank	Working Capital Term Loan - Out-standing	3.63	_	3.63	Simple##
20	Punjab National Bank	Term Loan - Out-standing	15.74	_	15.74	Simple##
21	Punjab National Bank	Term Loan - Out-standing	0.41	_	0.41	Simple##
22	State Bank Of India (SBI)	Working Capital Term Loan - Out-standing	7.32	_	7.32	Simple##
23	State Bank Of India (SBI)	Working Capital Term Loan - Out-standing	16.65	_	16.65	Simple##
24	State Bank Of India (SBI)	Cash Credit - Sanctioned	65.00	_	65.00	Simple##
25	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	2.50	2.50	Simple##
26	State Bank Of India (SBI)	Letter of Credit - Sanctioned	_	9.00	9.00	Simple##
27	State Bank Of India (SBI)	Term Loan - Out-standing	10.37	_	10.37	Simple##
28	State Bank Of India (SBI)	Term Loan - Out-standing	20.10	_	20.10	Simple##
29	State Bank Of India (SBI)	Term Loan - Out-standing	1.08	_	1.08	Simple##
30	State Bank Of India (SBI)	GECL - Out-standing	5.33	_	5.33	Simple##
31	State Bank Of India (SBI)	GECL - Out-standing	_	_	0.00	Simple##
Total			216.43	16.50	232.93
TOTAL (Rupees Two Hundred Thirty Two Crores and Ninety Three 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.