RATING RATIONALE
07Jul2026
Arihant Publications India Ltd.
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 77.00 Crs. of Arihant Publications India Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 77.00 | Long Term |
BWR BBB
/Stable Assignment |
|
| (25.00) | Short Term |
BWR A3
Assignment |
||
| (25.00) | ||||
| (25.00) | ||||
| Grand Total | 77.00 | (Rupees Seventy Seven 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 Publications India Ltd. (APIL), aggregating to Rs. 77.00 crore.
The ratings reflect APIL'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 an integrated business model. The ratings also factor in the company's healthy revenue growth to Rs. 351.02 crore in FY26, driven by the implementation of the National Education Policy (NEP) 2020 and the National Curriculum Framework (NCF) 2023, along with its strong nationwide distribution network and diversified product portfolio, with the number of active running titles increasing from around 2,100 in FY25 to 2,483 at present. Further, the ratings derive strength from the ongoing capacity expansion project, which is expected to increase the installed production capacity from 90 tonnes per day to 110 tonnes per day, thereby supporting future growth and operational efficiency.
However, the ratings are constrained by the company's working capital-intensive operations, arising from high inventory requirements and the seasonal nature of the publishing business. The ratings also consider the highly competitive and fragmented nature of the publishing industry, along with the company's exposure to fluctuations in paper prices and changes in education policies and examination patterns.
The Stable outlook reflects Brickwork Ratings' expectation that APIL will continue to benefit from its established market position, strong brand recall, experienced management, integrated business model, and strong operational linkages within the Arihant Group. The outlook is further supported by the expected benefits from the implementation of NEP 2020 and NCF 2023, which are likely to sustain demand for educational books, along with the company's expansion into the school textbook segment. BWR expects the company to maintain a steady business and financial risk profile over the medium term, supported by improving scale, operational efficiency, and stable demand.
The rating is based on the audited financial statements for FY24 and FY25, provisional financials for FY26, projected financials for FY27 and FY28, publicly available information, and management clarifications.
KEY RATING DRIVERSCredit Strengths:
-
Established market position with diversified product portfolio and distribution network: :
The company has an established presence in the educational publishing industry with a diversified portfolio of school, competitive examination, and higher education books. Its extensive dealer-led distribution network across multiple states, supported by a strong content development team and long-standing market presence, provides stability to revenue generation. The implementation of NEP 2020 and NCF 2023 is expected to support demand for its school publications.
-
Improving operating performance supported by healthy liquidity: :
The company reported growth in revenue and operating profitability in FY26, supported by higher sales volumes and stable operating costs. Liquidity remains comfortable, aided by healthy cash balances, while the ongoing capacity expansion and Print-on-Demand (POD) project are expected to enhance operational efficiency and support future growth.
-
High Working Capital Requirements :
The publishing business naturally requires a large amount of money to be tied up in day-to-day operations. The company holds large stock balances to maintain its massive catalog of books, which stretches its inventory cycle up to 155 days. Because funds stay locked in inventory and customer collections for a long period, the company has to rely heavily on bank facilities and promoter support to handle its daily cash requirements.
-
Exposure to seasonality and working capital-intensive operations: :
The business remains inherently seasonal, with demand linked to the academic calendar and changes in education policies. The company also requires significant investment in inventory and receivables, resulting in a working capital-intensive operating cycle and dependence on bank working capital facilities.
For arriving at its ratings, BWR has considered the standalone performance of 'Arihant Publications India Ltd'. 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 around 6.00 % or more, along with enhanced cash accruals and a stronger cash and cash equivalent position.
- Maintaining satisfactory debt protection metrics, with ISCR at around 2.00 times or more and DSCR at around 1.50 times or more.
Negative:
- A decline of 20% or more in the revenue, with the operating margin falling below the 4.50%.
- Decline in the current ratio below 1.00x and DSCR falling below 1.25x.
Arihant Publications India Ltd maintains an adequate liquidity position, supported by healthy cash accruals and a sufficient cushion in its working capital facilities. The company reported cash and bank balances of Rs. 3.23 crore as on March 31, 2025 (Rs. 27.30 crore in FY26 UA). The current ratio stood at 1.12 times in FY25 and improved to 1.41 times in FY26 UA. The company generated cash accruals of Rs. 10.34 crore during FY25 against Rs. 0.51 crore CPLTD obligations, resulting in comfortable debt protection metrics. The DSCR and ISCR stood at 1.18 times and 2.41 times, respectively in FY25 (1.02 times and 2.33 times, respectively, in FY26 UA). Further, the working capital limits remained highly utilised, with average utilisation of around 90% with Punjab National Bank and with HDFC Bank.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Consumer Discretionary | Media, Entertainment & Publication | Printing & Publication | Printing & Publication |
Arihant Publications (India) Limited, incorporated on April 30, 2004, is a Meerut-based company engaged in the publishing and printing of educational books and study materials. The company primarily manufactures and publishes content for competitive examinations (such as IIT-JEE, NEET, UPSC, banking, and other government exams) as well as school curriculum-based books (CBSE/ICSE).
Arihant Group was originally founded in 1997 by Mr. Deepesh Jain and Mr. Reetesh Jain, and has since established a strong presence in the educational publishing segment, supported by a wide distribution network across India.
The key directors of the company include Mr. Deepesh Jain, Mr. Parvesh Jain, and Mr. Reetesh Jain. Arihant Publications operates from its registered office in Meerut, Uttar Pradesh, and has a corporate presence in New Delhi.
ESG ProfileThe company 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. | 320.34 | 318.58 | 351.02 |
| EBITDA | Rs.Crs. | 16.57 | 18.94 | 20.39 |
| PAT | Rs.Crs. | 2.64 | 2.88 | 3.77 |
| Tangible Net Worth | Rs.Crs. | 37.36 | 39.57 | 43.44 |
| Total Debt / Tangible Net Worth | Times | 2.27 | 2.74 | 3.65 |
| Current Ratio | Times | 1.11 | 1.12 | 1.41 |
HDFC Bank:
- The sanction terms include standard covenants generally stipulated for such facilities.
Punjab National Bank:
- The unsecured loans from promoters, directors, shareholders, friends, and relatives shall be subordinated to bank debt and shall not be repaid during the tenure of the bank facilities without prior approval from the bank. Further, the outstanding level of such loans shall be maintained, and any interest payable on these loans shall be lower than the bank borrowing rate and subject to the timely servicing of bank dues.
- 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 | 77.00 |
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) |
26Feb2024 |
BWR B-Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
13Jan2023 |
BWR BStable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded) |
| FB SubLimit | ST | (25.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
| (25.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| (25.00) |
BWR A3
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 77.00 | (Rupees Seventy Seven Crores Only) | |||||||||
- General Criteria
- Approach to Financial Ratios
- Short Term Debt
- Ratings based on Group Support
- Manufacturing Company
| 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 | HDFC Bank | Cash CreditSanctioned | 25.00 | _ | 25.00 | Simple## |
| Sub-Limit (Purchase Invoice Financing (Sublimit of CC)) Sanctioned | (25.00) | |||||
| Sub-Limit (WCDL (Sublimit of CC)) Sanctioned | (25.00) | |||||
| 2 | Punjab National Bank | Cash CreditSanctioned | 52.00 | _ | 52.00 | Simple## |
| Sub-Limit (WCDL (Sublimit of CC)) Sanctioned | (25.00) | |||||
| Total | 77.00 | 0.00 | 77.00 | |||
| TOTAL (Rupees Seventy Seven 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
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