| Maxvolt Energy Industries Limited | ||||||
| 'Crisil BBB- / Stable / Crisil A3 ' assigned to Bank Debt | ||||||
| Rating Action | ||||||
| ||||||
| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has assigned its ‘Crisil BBB-/Stable/Crisil A3’ ratings to the bank facilities of Maxvolt Energy Industries Limited (MEIL).
The ratings reflect MEIL's extensive industry experience of the promoters, wide range of products, diversified sales and service network and healthy financial risk profile. These strengths are partially offset by segmental concentration in revenue and Intense competition in the industry. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of MEIL. |
Key Rating Drivers - Strengths Extensive industry experience of the promoters: The promoters have experience of over five years in the lithium-ion battery industry and possess adequate industry experience which has given them an understanding of the market dynamics and enabled them to establish healthy relationships with suppliers and customers. By leveraging this network, the company has successfully diversified its product portfolio and offers an extensive range of batteries across automotive and industrial battery segments. Furthermore, the company has also expanded its presence in domestic markets through a diversified sales and service network of over 800 distributors and 26 OEM partnerships, thereby strengthening its market position. As a result, operating revenue has grown at a compound annual rate of ~98.31% over the past three years, reaching ~Rs 108 crore in fiscal 2025, which is likely to further improve to over Rs 250-300 crore during fiscal 2026 backed by revenue of ~Rs 200 crore achieved during April’25 to Dec’25.
Healthy financial risk profile: The financial risk profile is expected to remain supported by healthy accretion to reserves and moderate reliance on external debt. The capital structure is comfortable, as reflected by an expected gearing ratio of 0.3-0.5 times as of March 31, 2026 (0.1 times as of March 31, 2025). This is backed by a moderate net worth, which is estimated at 90-100 crores as of March 31, 2026, representing an improvement from Rs 68.2 crore as of March 31, 2025. While the company is expected to do capital expenditure (capex) of Rs 30-40 crore in fiscal 2027 partly funded though debt, the capital structure is expected to remain healthy. With moderate reliance on external debt and expected stability in operating profitability, debt protection metrics are likely to be comfortable as well, with an interest coverage ratio of 13-14 times in fiscal 2026 (11.7 times in the previous fiscal). |
Key Rating Drivers - Weaknesses Segmental concentration in revenue: MEIL derives approximately 75–80% of its revenue from the automotive sector, which is inherently cyclical and highly sensitive to macroeconomic fluctuations and economic downturns. Within its existing battery assembly operations, the company currently serves the two-wheeler and three-wheeler segments and plans to progressively expand into L4 and L5 auto-rickshaws and loader vehicles. Currently revenue remains modest at Rs 108 Crores in fiscal 2025 and growth in scalability is highly dependent on improvement in demand from this end user, which remains a monitorable. In parallel, the company is gradually diversifying into new segments such as energy storage system (ESS) batteries and inverters for energy storage solutions; however, revenue contribution from these segments remains limited at present. Over the medium term, increased diversification is expected to reduce the company’s vulnerability to downturns in the domestic automotive and industrial sectors and their respective sub-segments. The pace and effectiveness of this diversification will remain a key monitorable.
Intense competition in the industry because of cheap imports: The global battery manufacturing value chain is largely concentrated in China, which produces ~75% of lithium-ion batteries. It is the largest manufacturer of battery cell components, with over 70% of global production capacity of cathodes and anodes. China has the advantage of large economies of scale with full integration across the battery manufacturing value chain. Currently, India’s demand for lithium-ion batteries is being largely catered through imports of battery packs or imports of battery cells, which are subsequently assembled in India. However, favorable domestic demand prospects and policy measures by GoI are expected to support establishment of cost-effective battery value chain over the medium term. Although GoI remains focused on building in-house manufacturing capabilities, adverse regulatory or policy level changes that reduce competitiveness of domestic manufacturers will be monitorable |
Liquidity Adequate Liquidity position is driven by the estimated cash accruals of Rs 25-27 crores per annum over a medium term which will be sufficient to meet the annual repayment obligations of Rs 2-3 crores, this will support the liquidity profile of the company and cushion the strategic investments and capex. Fund-based bank limits are utilized at 53%, on average, over the 4 months through December 2025. The current ratio is estimated to be around 4.3 times for Fiscal 2025. Low gearing and moderate networth support the company’s financial flexibility to withstand adverse conditions or downturn in the business. |
Outlook Stable Crisil Ratings believe MEIL will continue to benefit from the extensive experience of its promoter, and established relationships with clients |
Rating sensitivity factors Upward factors
Downward factors
|
About the Company MEIL, formerly known as Maxvolt Energy Industries Private Limited, was incorporated in 2019. Subsequently, the company was converted into a public limited company and consequently the name of the company was changed from “Maxvolt Energy Industries Private Limited” to “Maxvolt Energy Industries Limited” in 2024. MEIL is engaged in the manufacturing and supply of lithium-ion batteries for electric vehicles (i.e., E-Scooter, E-Rickshaw, E-Cycle), energy storage systems (for solar) and medical/electronic devices under the brand name of “MaxVolt Energy”. MEIL has two manufacturing units in Ghaziabad, Uttar Pradesh, with total installed capacity of 12,500 battery packs per month. The company has its distribution point and services centres in Uttar Pradesh, Delhi, Bihar, West Bengal, Madhya Pradesh, Chhattisgarh, Maharashtra and Gujarat.
MEIL’s shares are listed on the SME platform of NSE (NSE Emerge).
MEIL is managed by Mr Bhuvneshwar Pal Singh, Mr Vishal Gupta and Mr Sachin Gupta |
Key Financial Indicators
|
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
|
| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||
|
Criteria Details
|