Simplex Castings Limited Receives Credit Rating of IVR BB+/Stable for Bank Facilities Worth ₹72 Crores

Simplex Castings Limited has received fresh credit ratings from Infomerics Valuation and Rating Limited for its bank facilities worth ₹72.00 crores. The rating agency assigned IVR BB+/Stable rating for long-term facilities and IVR A4+ for short-term facilities, reflecting the company's improved operational performance and financial metrics.

Credit Rating Details

Infomerics Valuation and Rating Limited assigned the following ratings to Simplex Castings Limited's bank facilities:

Facility Type	Amount (₹ Crores)	Current Rating	Rating Action
Long Term Bank Facilities	46.00	IVR BB+/Stable	Rating Assigned
Short Term Bank Facilities	26.00	IVR A4+	Rating Assigned
Total	72.00

The ratings derive comfort from the company's long track record of operations under experienced promoters, stable customer and supplier relationships, and improvement in scale of operations accompanied by growth in profitability.

Financial Performance Highlights

Simplex Castings demonstrated significant improvement in its financial performance during FY25. The company's scale of operations increased at a CAGR of approximately 23.00% during FY23-FY25, with year-on-year growth of approximately 40.00% in FY25.

Financial Metric	FY24	FY25	Growth
Total Operating Income	₹122.13 crores	₹171.88 crores	+40.7%
EBITDA	₹13.24 crores	₹31.08 crores	+134.7%
PAT	₹2.39 crores	₹15.13 crores	+533.1%
EBITDA Margin	10.84%	18.08%	+720 bps
PAT Margin	1.93%	8.74%	+681 bps

The improvement in profitability was attributed to a strategic shift from small, customized orders to bulk orders, which enhanced material efficiency, reduced per-unit costs, and improved operating leverage. During H1FY2026, the company achieved a topline of ₹100.61 crores, improved from ₹56.87 crores in H1FY2025.

Capital Structure and Debt Profile

The company's financial risk profile improved significantly, with comfortable debt coverage indicators. The capital structure showed marked improvement with long-term debt equity ratio of 0.12x and overall gearing of 0.75x as of March 31, 2025, compared to 1.33x and 3.62x respectively as of March 31, 2024.

Debt Metrics	FY24	FY25	Improvement
Total Debt	₹71.76 crores	₹53.76 crores	-25.1%
Overall Gearing Ratio	3.62x	0.75x	Significant improvement
Interest Coverage Ratio	1.54x	3.49x	+126.6%
Total Debt/EBITDA	5.42x	1.73x	Substantial improvement

Key Rating Strengths and Concerns

The ratings are supported by the company's experienced promoter base with over four decades in the castings industry, led by Mr. Ketan Moolchand Shah and Mrs. Sangeeta Ketan Shah. However, the ratings face constraints from an elongated working capital cycle, primarily due to high receivables and inventory levels, and susceptibility to intense competition in the castings industry.

The company's profitability remains exposed to volatility in raw material prices, as raw materials account for over 90.00% of production costs. Additionally, exposure to cyclical end-user industries makes earnings vulnerable to demand slowdowns.

Business Operations

Incorporated in 1980, Simplex Castings Limited manufactures castings, forgings, and fabricated assemblies for steel, power, mining, railways, and infrastructure sectors. The company operates manufacturing units at Bhilai and Tedesara in Chhattisgarh, strategically located near steel plants and raw material sources. The company is currently commissioning its fifth Electric Arc Furnace to support higher production volumes.

The stable outlook reflects expected stable business performance supported by steady growth across grey, alloy and stainless-steel castings amid rising infrastructure, automotive, and industrial demand.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.33%	-0.05%	-12.59%	+22.79%	+67.99%	+2,499.46%

Simplex Castings Limited has been honored with the prestigious EEPC India Special Trophy for Excellence in Exports of High-Technology Products. The company announced this significant achievement through a press release dated December 31, 2025, filed under SEBI Regulation 30 compliance requirements.

Award Recognition Details

The Engineering Export Promotion Council (EEPC) India has recognized Simplex Castings Limited for its outstanding performance in exporting high-technology products. This award highlights the company's commitment to excellence in manufacturing and its successful penetration of international markets.

Award Details:	Information
Award Name:	EEPC India Special Trophy
Category:	Excellence in Exports of High-Technology Products
Announcement Date:	December 31, 2025
Regulatory Filing:	SEBI Regulation 30

Company Operations and Infrastructure

Simplex Castings Limited operates through multiple facilities across India, demonstrating its robust manufacturing capabilities. The company maintains its corporate office in Bhilai, Chhattisgarh, with additional operational presence in key industrial locations.

Key Operational Locations

Corporate Office: Bhilai, Chhattisgarh
Registered Office: Mumbai, Maharashtra
Manufacturing Plants: Bhilai and Rajnandgaon in Chhattisgarh
Regional Office: Kolkata, West Bengal

Industry Position and Significance

This recognition from EEPC India underscores Simplex Castings' position as a significant player in the castings, forgings, and fasteners sector. The award validates the company's capability to manufacture and export high-technology products that meet international quality standards and compete effectively in global markets.

Regulatory Compliance

The announcement was made in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under Regulation 30. The press release was signed by Managing Director Sangeeta K Shah, ensuring proper corporate governance and transparency in communicating material developments to stakeholders.