Rationale

 The ratings assigned factor in the strong parentage of Power Build batteries and the benefits it derives from being the subsidiary of Time Technoplast Limited (TTL, rated [ICRA]A1+). The ratings also factor in the extensive experience of PBBL for more than two decades in the battery manufacturing industry. The ratings are, however, constrained by PBBL’s modest scale of operations. ICRA notes that due to restructuring and reverse merger of PPBL and Ned Energy during the course of FY2025, the performance of the company has witnessed moderation as the scale of operations remained modest at Rs. Rs. 91.9 crores in FY2025. While the revenues moderated, profitability improved with an OPM of 10.4% in FY2025 and is expected to sustain in FY2026. ICRA also notes that the company has undertaken new product development and improved its existing product line by introducing e-rickshaw batteries which is a low maintenance, high performance battery with Selenium. The ratings are also constrained by the moderately high working capital intensity which has remained in the range of 33%-35%. As the company has to maintain sizeable raw material and work in process inventory to deliver orders at a short notice, the working capital intensity has remained moderately high. The Stable outlook on the long-term rating reflects ICRA’s expectation of the cash generation to remain adequate to meet its capex requirements and working capital needs supported by healthy order inflows.