Raviraj Foils Ltd.

Brickwork Ratings assigns the long-term and short-term ratings at "BWR BBB-/Stable" and "BWR A3" for the Bank Loan Facilities of Rs.109.03 Crs. of Raviraj Foils Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	94.03	Long Term	BWR BBB - /Stable Assignment
	9.50	Short Term	BWR A3 Assignment
Non Fund Based	5.50	Short Term	BWR A3 Assignment
	(30.00)
	(28.75)
	(27.36)
	(20.00)
	(20.00)
	(20.00)
	(20.00)
	(20.00)
	(20.00)
	(5.50)
Grand Total	109.03	(Rupees One Hundred Nine Crores and Three lakhs Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings assigns the long-term and short-term ratings at "BWR BBB-/Stable" and "BWR A3" for the Bank Loan Facilities of Rs.109.03 Crs. of Raviraj Foils Ltd.

The ratings are supported by the company’s experienced promoters, the Vaghela family, who bring a proven operational track record of nearly three decades in the flexible packaging segment, along with its comprehensive product portfolio. This portfolio consists of premium aluminum foil products (blister, lidding, and ultra-light gauge foils) across diverse pharmaceutical and FMCG applications. The company leverages an established base of over 100 active clients, featuring top-tier multinational and domestic corporate leaders such as Abbott Healthcare, Sanofi, Pfizer, Sun Pharma, Cipla, and Huhtamaki.

The rating outlook is assigned as “Stable,” reflecting BWR’s expectation that Raviraj Foils Ltd business risk profile will remain steady over the medium term. A stable outlook indicates a low probability of a rating change during this period. The outlook may be revised to “Positive” if the company achieves sustained improvement in revenue and profitability margins, while it may be revised to “Negative” in the event of a deterioration in its financial risk profile.

KEY RATING DRIVERS

Credit Strengths:

• Established Legacy & Market Leadership :

  Operating since December 1997, Raviraj Foils Limited (RFL) has built an established market position in the flexible packaging industry over more than two decades. Promoted by Mr. Jaydipsinh R. Vaghela, the company has leveraged this long-term industry experience to secure a strong understanding of market dynamics, maintain healthy relationships with suppliers, and build a consistent customer base across the FMCG and pharmaceutical packaging sectors.

• Strategic Location and Infrastructure in Gujarat :

  The company operates across a strategically diversified geographical footprint that minimizes logistical friction and supply chain risks. RFL houses two primary manufacturing units in the industrial hub of Sanand, Gujarat, ensuring close proximity to major trade routes and robust power grids. To support localized logistics and direct-to-customer agility.

• Elite Global Customer and Partner Base :

  Raviraj Foils Limited serves an elite global customer base comprising top-tier multinational corporations and major publicly listed Indian companies across the pharmaceutical, FMCG, and flexible packaging industries. Its premium portfolio includes global giants like Abbott Healthcare, Sanofi, Pfizer, and Amcor, alongside domestic pharmaceutical leaders such as Sun Pharma, Cipla, Lupin, Aurobindo, and Torrent. Additionally, the company partners with prominent packaging and industrial leaders like Huhtamaki, Uflex, and INOX India, highlighting Raviraj Foils' trusted capability to deliver high-quality solutions that meet stringent international standards.

• Integration of Renewable Energy and Sustainability :

  A key operational strength of Raviraj Foils Limited is its heavy integration of green infrastructure to optimize power costs and ensure environmental compliance. The company owns and operates a 2.1 MW windmill installation in the Bhuj District of Gujarat to offset grid consumption. This is supported by a large-scale solar energy framework integrated across its units, featuring a 900 KWH solar array at Unit 1 and a 999 KWH setup at Unit 2, significantly lowering its long-term carbon footprint.

Credit Risks:

• Susceptibility to Volatile Raw Material Prices :

  The primary raw material for the company is aluminum coil, a globally traded commodity whose prices are volatile and subject to international market dynamics. Raviraj Foils Limited follows an industry-standard pricing model where product sales prices are systematically linked to the average London Metal Exchange (LME) price of the preceding one month. However because due to intense price competition, in certain cases Raviraj Foils Limited has limited scope to immediately pass on sudden spikes in raw material costs to its customers. This vulnerability directly exposes the company's operating margins to sharp fluctuations. 

• Intense Industry Competition and Margin Pressures :

  The aluminum foil packaging industry in India is highly fragmented and fiercely competitive, featuring a mix of large organized players and numerous small-scale, unorganized manufacturers. Because barriers to entry for basic foil conversion are relatively low, the company faces constant pricing pressure. This intense competition, coupled with recent drops in international export orders, has previously caused contractions in their overall sales volume and negatively impacted their operating margins.

ANALYTICAL APPROACH - Standalone

To arrive at its ratings, BWR has considered a standalone approach. Reference may be made to the Rating Criteria hyperlinked below.

RATING SENSITIVITIES

Upward factors:

• Sustained growth in revenue and profitability, generating net cash accruals of over Rs 45 crore.
• Maintaining strong liquidity and a healthy capital structure by avoiding major debt-funded capital expenditures.
• Maintaining healthy coverage ratios, with the DSCR remaining above 1.5 and the ISCR consistently at or above 3.5 times.

Downward factors:

• A decline in revenue and profitability, resulting in net cash accruals dropping below Rs 30 crore.
• An extended working capital cycle or significant debt-funded capital expenditures would weaken the overall financial risk profile.
• DSCR deteriorating below 0.50 or ISCR falling below unity.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and a moderate cash balance of Rs. 21.11 Crore. No capex is envisaged for the near future. Its bank limits are utilized to the extent of 80 - 90%.

During FY26, the total debt obligation stood at Rs 46.71 Crs. To meet this, the company has a Debt Service Reserve Account (DSRA) of Rs 12.00 Crs with Deutsche Bank, gross cash accruals of Rs 30.23 Crs, and an unencumbered Fixed Deposit (FD) of Rs 3.00 Crs with Bank of Baroda. Additionally, the promoters have a strong net worth, have previously infused funds during the FY25 financial distress, and are committed to infusing further funds as needed during any unforeseen financial stress. Consequently, the repayment obligations are expected to be fulfilled without distress. Furthermore, unutilized bank facilities provide an extra safety net.

For FY27, the company's liquidity is projected to improve significantly. The debt obligations of Rs 32.29 Crs will easily be covered by projected gross cash accruals of Rs 61.50 Crs. Similarly, in FY28, the debt obligation of Rs 18.72 Crs will be comfortably covered by gross cash accruals of Rs 63.77 Crs. The management's proven ability to infuse funds as required continues to provide a strong safety cushion for the company.

ABOUT THE ENTITY

Based in Sanand, Ahmedabad, Gujarat, India, Raviraj Foils Limited is a leading manufacturer of high quality aluminium foil and primary packaging products. The company specializes in producing blister, strip pack, lidding, and light gauge foils tailored for the pharmaceutical, food, dairy, and flexible packaging industries worldwide. The company's board of directors features Jaydeepsinh Ravubha Vaghela, Anantsinh Vaghela, and Abhijeetsinh Vaghela.

ESG Profile

The company demonstrates an Evolving 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 (0.90 KLPD/Ton), waste-management practices, renewable energy share (16.23%), and emissions levels (Scope 1: 2.25 tCO2 and Scope 2: 9,362.9 tCO2) particularly important.
Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix (% male 100, % female 0), 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)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	508.19	594.56	605.39
EBITDA	Rs.Crs.	-9.59	33.97	48.99
PAT	Rs.Crs.	-43.73	-9.82	5.02
Tangible Net Worth	Rs.Crs.	163.36	153.68	158.81
Total Debt / Tangible Net Worth	Times	2.06	1.93	1.57
Current Ratio	Times	1.28	1.05	0.98

KEY COVENANTS OF THE FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
IVR	Non-submission of the relevant information.	23Jun2026

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	94.03	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	9.50	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	5.50	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(30.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(28.75)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(27.36)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(20.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(5.50)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		109.03	(Rupees One Hundred Nine Crores and Three lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Companies
• Short Term Debt

Analytical Contacts
Adarsh L Ratings Analyst adarsh.l@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	Bajaj finServ Limited	Short Term Working Capital Loan - Sanctioned	_	9.50	9.50	Simple##
2	Bank of Baroda	Bank Guarantee - Sanctioned	_	5.50	5.50	Simple##
	Sub-Limit (SBLC) - Sanctioned		(5.50)
3	Bank of Baroda	Cash Credit - Sanctioned	38.70	_	38.70	Simple##
	Sub-Limit (ILC / FLC) - Sanctioned		(30.00)
	Sub-Limit (PC/PCFC/FBP / FBD/ FCBP/FCBD) - Sanctioned		(28.75)
	Sub-Limit (WCDL) - Sanctioned		(27.36)
4	Bank of Baroda	Term Loan - Out-standing	0.20	_	0.20	Simple##
5	Bank of Baroda	Term Loan - Out-standing	3.07	_	3.07	Simple##
6	HDFC Bank	Term Loan - Out-standing	11.74	_	11.74	Simple##
7	HDFC Bank	Term Loan - Out-standing	7.03	_	7.03	Simple##
8	HDFC Bank	Term Loan - Out-standing	1.94	_	1.94	Simple##
9	HDFC Bank	Cash Credit - Sanctioned	20.00	_	20.00	Simple##
	Sub-Limit (Letter of Credit) - Sanctioned		(20.00)
	Sub-Limit (Post Shipment Finance) - Sanctioned		(20.00)
	Sub-Limit (Pre-shipment Finance) - Sanctioned		(20.00)
	Sub-Limit (Sales bill discounting) - Sanctioned		(20.00)
	Sub-Limit (Sales Invoice Financing/Invoice Discounting) - Sanctioned		(20.00)
	Sub-Limit (SBLC for Buyers Credit) - Sanctioned		(20.00)
10	Oxyzo Financial Services Limited	Term Loan - Out-standing	8.05	_	8.05	Simple##
11	Un tied portion	Cash Credit - Proposed	3.30	_	3.30	Simple##
Total			94.03	15.00	109.03
TOTAL (Rupees One Hundred Nine Crores and Three lakhs 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.