RATING RATIONALE
07Jul2026
Arihant Prakashan
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 40.00 Crs. of Arihant Prakashan
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 40.00 | Long Term |
BWR BBB
/Stable Assignment |
|
| (0.50) | Short Term |
BWR A3
Assignment |
||
| (20.00) | ||||
| Grand Total | 40.00 | (Rupees Forty Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Ratings has assigned a long-term rating of BWR BBB/Stable and a short-term rating of BWR A3 to the bank loan facilities of Arihant Prakashan (AP), aggregating to Rs. 40.00 crore.
The ratings reflect Arihant Prakashan's established position in the educational publishing industry, supported by the well-recognised "Arihant" brand, experienced promoters with over two decades of industry experience, and its strong distribution network across India. The ratings also derive strength from the continuous expansion of the Arihant Group's product portfolio, with the number of active running titles increasing from around 2,100 in FY25 to 2,483 at present. The ratings also factor in the company's strong operational and financial linkages with its flagship group company, Arihant Publications India Limited (APIL), under BWR's Group Support framework. These linkages are supported by common promoters, integrated operations, and continued group support. Further, the ratings are also supported by continued promoter support through long-term subordinated unsecured loans, providing additional financial flexibility to the business.
However, the ratings remain constrained by the inherently working capital-intensive nature of the educational publishing business, characterised by high inventory requirements and seasonal demand. Further, the company operates in a highly competitive and fragmented publishing industry and remains exposed to fluctuations in paper prices and changes in education policies and examination patterns.
The Stable outlook reflects Brickwork Ratings' expectation that Arihant Prakashan will continue to benefit from its established market position, strong brand recall, experienced management, and strong operational and financial linkages within the Arihant Group. BWR expects the company to maintain a steady business and financial risk profile over the medium term, supported by improving scale, operational efficiency, stable demand, and the expected growth in the school textbook segment.
The rating is based on the audited financial statements for FY24 and FY25, provisional financial statements for FY26, projected financials for FY27 and FY28, publicly available information, and management clarifications.
KEY RATING DRIVERSCredit Strengths:
-
Strong Group Support and Operational Linkages :
The firm benefits from strong operational and financial linkages with the Arihant Group. Arihant Prakashan functions as the marketing and distribution arm of the group, sourcing books from Arihant Publications India Limited (APIL). The common promoters, integrated operations, and continued financial support from the group strengthen the firm's credit profile.
-
Stable Business Performance :
The firm has demonstrated steady business growth, with Total Operating Income increasing from Rs. 177.40 crore in FY24 to Rs. 190.26 crore in FY26. The business is supported by the established Arihant brand, extensive distribution network, diversified product portfolio, and expansion into the school textbook segment under NEP 2020 and NCF 2023.
-
Working Capital Intensive Operations :
The business remains working capital-intensive due to high inventory requirements and the seasonal nature of the educational publishing industry. Consequently, the firm continues to rely on bank working capital facilities to fund its operations.
-
Competitive Industry :
The firm operates in a highly competitive and fragmented publishing industry, exposing it to pricing pressure and changes in education policies and examination patterns. However, the established Arihant brand and diversified product portfolio partially mitigate these risks.
For arriving at its ratings, BWR has considered the standalone performance of 'Arihant Prakashan'. BWR has applied its rating methodology as detailed in the Rating Criteria.
RATING SENSITIVITIES
Going forward, the company’s ability to improve its revenue profile and strengthen its financial risk profile will remain the key rating sensitivities.
Positive:
- Improvement in operating income by 5% and achieving an operating margin of above 3% or more, along with enhanced cash accruals and a stronger cash and cash equivalent position.
- Maintaining satisfactory debt protection metrics at satisfactory level.
Negative:
- A decline of 20% or more in the revenue, leading to substantial reduction in operating margin.
- Decline in the current ratio below 1.00x and ISCR falling below 1x.
Arihant Prakashan maintains an adequate liquidity position, supported by healthy cash accruals and a sufficient cushion in its working capital facilities. The entity reported cash and bank balances of Rs. 5.08 crore as on March 31, 2025 (Rs. 5.10 crore in FY26 UA). The current ratio stood at 1.97 times in FY25 and at 1.76 times in FY26 UA. The entity generated cash accruals of Rs. 1.77 crore during FY25 against nil CPLTD obligations, resulting in comfortable debt protection metrics. The DSCR and ISCR stood at 0.75 times and 1.35 times respectively in FY25 (0.73 times and 1.42 times, respectively, in FY26 UA). Further, the working capital limits remained highly utilised, with average utilisation of around 90% with Punjab National Bank
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Services | Services | Commercial Services & Supplies | Trading & Distributors |
Arihant Prakashan, a Meerut-based proprietary concern of Smt. Beena Jain, was established as the trading, marketing, and sales arm of the Arihant Group. The firm works closely with its associate concern, Arihant Publications (India) Limited (APIL), which is engaged in printing and publishing activities.
The firm is mainly engaged in the trading and distribution of educational books and study materials for competitive examinations such as IIT-JEE, NEET, UPSC, banking, and other government exams, along with school curriculum books for CBSE and ICSE boards.
The Arihant Group was established in 1997 by Mr. Deepesh Jain, Mr. Reetesh Jain, and their mother, Mrs. Beena Jain. Over the years, the group has established a strong presence in the educational publishing industry. Arihant Prakashan benefits from the group's well-established brand, extensive industry experience, and wide distribution network across India.
The business is managed with the support of key members of the Jain family, including Mr. Parvesh Jain, Mr. Reetesh Jain, and Mr. Deepesh Jain. The registered office of the firm is located in Meerut, Uttar Pradesh, and the entity has operational presence across various regions in India through its distribution network.
The entity demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.
Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share, and emissions levels particularly important.
Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, safety performance , and training initiatives offering insights into operational resilience.
Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 23 - 24 (Audited - Annual) |
FY 24 - 25 (Audited - Annual) |
FY 25 - 26 (Provisional - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 177.40 | 184.22 | 190.26 |
| EBITDA | Rs.Crs. | 5.97 | 6.53 | 6.01 |
| PAT | Rs.Crs. | 1.47 | 1.65 | 1.73 |
| Tangible Net Worth | Rs.Crs. | 16.61 | 19.57 | 20.19 |
| Total Debt / Tangible Net Worth | Times | 3.68 | 3.40 | 2.79 |
| Current Ratio | Times | 1.75 | 1.97 | 1.76 |
Punjab National Bank:
- Unsecured loans from promoters, directors, shareholders, friends, and relatives shall not be repaid during the tenure of bank facilities without prior approval from the bank. Further, the outstanding level of such loans shall be maintained at the sanctioned level, and interest payable on these loans shall remain lower than the bank borrowing rate and subject to timely servicing of bank dues.
- Transactions with associate/group entities, including M/s Arihant Publications India Ltd., shall be undertaken on an arm’s length basis and restricted to genuine business purposes only.
- The sanction terms include standard covenants generally stipulated for such facilities.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)| Facilities | Current Rating (2026) | 2026 (History) | 2025 | 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 40.00 |
BWR BBB/Stable
(Assignment) |
19Jan2026 |
BWR B-Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn) |
27Mar2025 |
BWR B-Stable
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed) |
23Feb2024 |
BWR B-Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
12Jan2023 |
BWR BStable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
| FB SubLimit | ST | (0.50) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (20.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 40.00 | (Rupees Forty Crores Only) | |||||||||
- General Criteria
- Short Term Debt
- Approach to Financial Ratios
- Ratings based on Group Support
- Trading Companies
| Analytical Contacts | |
|---|---|
|
Pradnya Tolanavar Ratings Analyst pradnya.t@brickworkratings.com |
Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com |
| Media Contact | media@brickworkratings.com | Client Support | clientsupport@brickworkratings.com |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| 1 | Punjab National Bank | Cash CreditSanctioned | 40.00 | _ | 40.00 | Simple## |
| Sub-Limit (Book Debts (Sublimit of CC)) Sanctioned | (20.00) | |||||
| Sub-Limit (Cheque Purchase (Sublimit of CC)) Sanctioned | (0.50) | |||||
| Total | 40.00 | 0.00 | 40.00 | |||
| TOTAL (Rupees Forty Crores Only) | ||||||
## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
| Instrument / Activity | Regulator |
|---|---|
| Listed/Proposed to be listed bonds/debentures/preference share (all securities) | SEBI |
| Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) | MCA |
Listed PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| SEBI | |
Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| SEBI | |
Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| RBI | |
| Listed Commercial Paper and NCDs with original maturity less than 1 year | RBI |
| Unlisted Commercial Paper and NCDs with original maturity less than 1 year | RBI |
Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/FIs 2| RBI | |
| External Commercial Borrowings and other similar borrowings | RBI |
| Certificates of Deposit | RBI |
| Fixed Deposits raised by NBFC's, Banks, HFCs, Fis | RBI |
| Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, Fis | MCA |
| Inter Corporate Deposits/Loans extended by Corporates | MCA |
Borrowing programme 3| - | |
Issuer Ratings 4| - | |
| Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) | SEBI |
| Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs | SEBI |
| Listed Security Receipts | SEBI |
| Unlisted Security Receipts | RBI |
| Independent Credit Evaluation (ICE) | RBI |
| Expected Loss Ratings (for Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/Fis) | RBI |
| Expected Loss Ratings (Listed/Proposed to be listed bonds/debentures/preference share (all securities)) | SEBI |
| Expected Loss Ratings (Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)) | MCA |
Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| Investor-side Regulator | such as IRDAI, PFRDA 5 |
| Monitoring Agency | SEBI |
| Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 | NA |
- Includes securitisation transactions involving assignee payout, acquirer's payout.
- Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
- The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), BWR shall separately capture the rated quantum details along with names of respective regulators.
- There is no instrument being rated and hence, Regulator of the Instrument is not applicable.
- These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026, and accordingly, investor side regulators have been included.
- Permitted by SEBI vide SEBI Master Circular for CRAs
For any grievances relating to rating of instruments regulated by other FSR (Financial Sector Regulators), please contact grievance@brickworkratings.com.
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