NewsCorporate ActionsProstarm Info Systems Secures CARE A- Rating for ₹200 Crore Bank FacilitiesProstarm Info Systems Secures CARE A- Rating for ₹200 Crore Bank Facilities
CARE Ratings Limited has assigned an A- (Stable) rating to Prostarm Info Systems Limited's (PISL) bank facilities worth ₹200 crore. The rating reflects PISL's strong market position in the energy storage and power conditioning equipment sector, experienced promoters, healthy profitability, and robust order book of ₹1,100 crore. The company's recent IPO raised ₹144 crore, strengthening its financial profile. However, PISL faces challenges including working capital intensity and industry competition.
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Prostarm Info Systems Limited (PISL), a leading player in the energy storage and power conditioning equipment sector, has received a significant boost to its financial credibility. CARE Ratings Limited has assigned a CARE A- (Stable) rating to the company's bank facilities worth ₹200 crore, reflecting its strong financial position and growth prospects.
Rating Details
The ratings assigned by CARE Ratings are as follows:
| Facilities/Instruments | Amount (₹ crore) | Rating |
|---|---|---|
| Long Term Bank Facilities | 125.00 | CARE A-; Stable |
| Long Term / Short Term Bank Facilities | 65.00 | CARE A-; Stable / CARE A2 |
| Short Term Bank Facilities | 10.00 | CARE A2 |
| Issuer Rating | 0.00 | CARE A-; Stable |
Key Strengths
The rating agency has highlighted several key strengths that contributed to PISL's favorable rating:
- Experienced Promoters: The company benefits from promoters with extensive experience in the power solutions industry.
- Established Track Record: PISL has built a strong reputation with a diverse clientele across various sectors.
- Healthy Profitability: The company has maintained stable profitability with PBILDT margins ranging from 11.75% to 13.75% over the past three years.
- Strong Order Book: As of September 2025, PISL has an order book of approximately ₹1,100 crore, providing medium-term revenue visibility.
- Comfortable Financial Risk Profile: The company's overall gearing stood at 0.66x as of March 31, 2025, with comfortable debt coverage indicators.
Recent Developments
PISL successfully completed its Initial Public Offering (IPO) in June 2025, raising net proceeds of ₹144 crore. This has significantly strengthened the company's net worth and is expected to improve its overall gearing to below 0.25x by March 31, 2026.
Financial Performance
The company's consolidated financial performance has shown steady growth:
| Particulars (₹ crore) | FY2024 (A) | FY2025 (A) | Q1FY2026 (UA) |
|---|---|---|---|
| Total Operating Income | 257.94 | 350.90 | 55.74 |
| PBILDT | 35.47 | 46.07 | 4.73 |
| PAT | 22.83 | 28.85 | 1.83 |
| Overall Gearing (times) | 0.52 | 0.66 | NA |
| Interest Coverage (times) | 9.63 | 8.50 | 2.99 |
Industry Outlook
PISL operates in the capital goods sector, specifically in the electrical equipment industry. The company's focus on energy storage and power conditioning equipment positions it well in a growing market driven by increasing demand for reliable power solutions across various sectors.
Challenges
Despite its strong position, PISL faces some challenges:
- Working Capital Intensity: The company's operations are inherently working capital-intensive, with gross current asset days of 217 in FY2025.
- Competitive Industry: PISL operates in a highly competitive and fragmented industry, which may pressure margins.
- Negative Cash Flow from Operations: The company reported negative cash flow from operations of ₹3.79 crore in FY2025, primarily due to the working capital-intensive nature of its business.
The CARE A- rating reflects Prostarm Info Systems' established market presence, strong order book, and improved financial profile post-IPO. However, the company will need to manage its working capital requirements effectively and navigate the competitive landscape to maintain its growth trajectory.
