Magnum Ventures Limited — Credit Ratings, 08-07-2025: Credit Rating

Acuité Ratings & Research Limited has reaffirmed the long-term rating of 'ACUITE BB' with a stable outlook on Magnum Ventures Limited’s existing Non-Convertible Debentures (NCDs) of Rs. 180 Cr. and assigned the same rating and outlook on proposed NCDs amounting to Rs. 240 Cr. The rating reflects improved EBITDA margins of 19.64% in FY25 from 11.68% in FY24, driven by upgraded machinery and cost-effective raw materials, despite a 14% decline in operating income to Rs. 396.24 Cr. The company plans to refinance Rs. 170 Cr. of existing debt to lower coupon rates and extend repayment periods, supporting liquidity and working capital needs. While leverage has improved to 0.97 times and debt service coverage is adequate at 1.98 times, interest coverage moderated due to high coupon rates. The reaffirmed rating supports moderate financial risk and stable investor confidence.