Maharaja Dehydration Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings of "BWR BBB-/Stable/BWR A3" for the Bank Loan Facilities of Rs. 70.00 Crs. of Maharaja Dehydration Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	66.40	Long Term	BWR BBB - /Stable Assignment
	3.60	Short Term	BWR A3 Assignment
	(39.00)
Non Fund Based	(1.70)	Short Term	BWR A3 Assignment
Grand Total	70.00	(Rupees Seventy Crores 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 has assigned the long-term and short-term ratings of “BWR BBB-/Stable/A3” for the bank loan facilities of Rs. 70.00 Cr. of Maharaja Dehydration Pvt. Ltd.

The Rating has factored, inter alia, Qualified and Experienced Management with Long Standing market presence of the company, Locational Advantage, Diversified Customer/Supplier Portfolio, Moderate scale of operations, albeit with consistent year-over-year improvement and Satisfactory Financial Risk Profile. The rating is constrained by company operating under price sensitive commodities market, Vulnerability of profit margins to fluctuations in raw material prices, Large Working Capital Requirement, Regulatory and Forex Risk.

Going forward, the ability of the company to improve its scale of operations, profitability, strengthen liquidity and credit profile will remain the key rating sensitivities. The rating outlook has been assigned as "Stable" as BWR believes that Maharaja Dehydration Pvt. Ltd., business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

• Qualified and Experienced Management with Long Standing market presence :

  The company is managed by an experienced and qualified management team, which has decades of experience & knowledge about the business/industry. Extensive experience, coupled with a professional management setup and long market existence, enhances the competitive position of the company in the industry, this has also contributed to the company's operational and financial growth over the years and has helped establish strong relationships with customers and suppliers.

• Moderate scale of operations, albeit with consistent year-over-year improvement :

  The operating performance has significantly improved, as reflected by an increase in operating income from Rs. 107.57 Cr. in FY2024 to Rs. 156.13 Cr. in FY2025, which later increased to Rs. 193.47 Cr. in FY2026 (P), achieving a CAGR of 34.11% during the same period. This trend seems poised to continue, with the company having orders in hand worth Rs. 85.41 Cr. and having already achieved a revenue of above Rs. 111.00 Cr. in Q1 FY2027.

• Satisfactory Financial Risk Profile :

  The company has achieved a total operating income of Rs. 193.47 Cr. in FY2026 (P), which increased from Rs. 156.20 Cr. in FY2025. It reported an Operating Profit of Rs. 11.34 Cr. in FY2025 and Rs. 11.08 Cr. in FY2026 (P), which was sufficient to cover the interest and finance charges of Rs. 2.62 Cr. in FY2025 and Rs. 3.59 Cr. in FY2026 (P). Moreover, Net Cash Accruals of Rs. 7.64 Cr. in FY2025 and Rs. 11.11 Cr. in FY2026 (P) were sufficient to cover the repayment obligations of Rs. 2.96 Cr. in FY2025 and Rs. 1.72 Cr. in FY2026 (P).

  The company had comfortable debt protection metrics, with an ISCR of 4.31 times in FY2025 and 3.09 times in FY2026 (P), and a DSCR of 2.88 times in FY2025 and 2.90 times in FY2026 (P). The current ratio stood at 1.21 times at the end of FY2026 (P). The company had carried out CAPEX for the expansion of its production unit, which is expected to be completed in FY2027. Even after this CAPEX, the Total Debt/TNW stood at a satisfactory level of 1.70 times in FY2026 (P), and the TOL/TNW stood at 2.24 times during the same period.

• Locational Advantage and Diversified Customer/Supplier Portfolio :

  The company enjoys a geographical advantage from being located in the Mahuva region of Bhavnagar, Gujarat, which is a vast growing region for peanuts, cotton, cumin, sesame, coriander, onions, fenugreek, fennel, celery, and garlic. This setup eases raw material procurement, which is also benefited by the company’s farming family roots and a strong network with regional farmers. Additionally, the company maintains a well-diversified customer and supplier base, effectively mitigating concentration risk and reducing dependency on specific segments or geographies.

Credit Risks:

• Vulnerability of profit margins to fluctuations in raw material prices: :

  The company's operating margin is vulnerable to highly volatile raw material prices and shifting demand-supply dynamics. Furthermore, intense market competition limits the company’s pricing flexibility, leading to low bargaining power with the suppliers.

• Regulatory and Forex Risk :

  MDPL needs to comply with many national & international regulatory requirements, changes in any may have impact on business operations on a short-term until complied. With export sales contributing over 70% of the total revenue, the company’s cash flows and financial risk profile remain highly susceptible to currency fluctuations and foreign exchange volatility.

• Operating under price sensitive commodities market :

  Operating within a highly price-sensitive agricultural industry, such as the onion and garlic processing and dehydration sector, introduces a unique combination of volatile, systemic risks. Because these commodities are essential yet highly perishable food staples, their supply chains are heavily exposed to weather, market fragmentation, and government interventions. Additionally, dehydration is a highly energy-intensive process requiring significant fuel, power, and steam. When raw material costs rise, processors cannot easily adjust their processing fees, leading to severe margin compression. However, the company mitigates this risk through efficient raw material procurement, strategic inventory management, annual contracts with customers, and the adequate utilization of its working capital limits.

• Large Working Capital Requirement :

  Onions and garlic are harvested in specific cycles throughout the year. To ensure year-round manufacturing operations, companies procure and store massive volumes of raw inventory during peak harvest months. Massive seasonal stocking combined with standard corporate credit periods for buyers often stretches a company's Gross Current Asset (GCA) and cash conversion cycles beyond 90 to 100 days. This forces companies to maintain a very high dependency on bank lines (fund-based working capital limits) to sustain short-term cash flows. Until FY2026 (P), the company has adequately utilized its working capital limits and has proposed a future expansion that will support its projected growth. However, efficient working capital and inventory management remain key monitorable over the coming years.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the ability of the company to Improve their operational scale, profitability, strengthen liquidity and credit profile would be the key rating sensitivities.

Positive:

• Improved sales volume leading to total operating income exceeding Rs. 250.00 Cr., while maintaining operating profit margin at 9.00% or above and net profit margin above 4.5%.
• Total Debt / TNW below 1.50 times or TOL/TNW below 2.00 times.
• Current ratio above 1.33 times.

Negative:

• Revenue from operations and profitability going below 10% as reported in the actuals of previous years financials.
• ISCR falling below 2.00 times and DSCR dropping below 1.50 times.
• Current Ratio diminishing to less than 1.10 times.
• Cash conversion cycle exceeding 180 days.

LIQUIDITY INDICATORS - Adequate

The company has generated EBITDA of Rs. 11.34 Cr. in FY2025 and Rs. 11.08 Cr. in FY2026, which was more than sufficient to cover the interest expenses for the respective years. Net Cash Accruals stood at Rs. 7.64 Cr. in FY2025 and Rs. 11.11 Cr. in FY2026 (P), comfortably covering the repayment obligations of Rs. 2.96 Cr. and Rs. 1.72 Cr., respectively. Further, it is expected to report an EBITDA of Rs. 20.56 Cr. and Net Cash Accruals of Rs. 14.44 Cr. in FY2027, which can easily cover the projected interest cost of Rs. 6.88 Cr. and repayment obligation of Rs. 1.60 Cr. The company also maintained a comfortable level of debt protection metrics, with an ISCR of 3.09 times and a DSCR of 2.90 times in FY2026 (P). It has marked a conversion cycle of 96 days, and the current ratio stood at 1.21 times in FY2026 (P). The company has adequately utilized its working capital limits, with an average utilization of 70% to 75% during the past one year. The unutilized portion of this limit will act as an additional buffer to cover short-term cash flow mismatches. As MDPL does not have any capital market exposure and relies entirely on banks and financial institutions to meet its funding requirements, BWR draws comfort from the financial flexibility and support provided by the promoters.

Considering all these factors, the liquidity position is assessed as "Adequate".

ABOUT THE ENTITY

Maharaja Dehydration Pvt. Ltd. (MDPL) was incorporated on 04Feb2004, earlier the business operated as a partnership firm founded by Mr. V. P. Koradiya in the year 1992, who belongs to a farmer’s family having experience in Agriculture & dehydration. MDPL is engaged in the procurement, processing, cold storage, and export of dehydrated onion, garlic and other spices products. Its manufacturing unit is located in Mahuva Region of Bhavnagar, Gujarat. MDPL has a geographical advantage of being centrally located, which is a vast growing region of Peanuts, Cotton, Cumin, Sesame, Coriander, Onion, Fenugreek, Fennel, Celery, and Garlic. The Company has an installed capacity of manufacturing 13200 MT finished goods per annum. The company is managed by Mr. Vitthalbhai Punabhai Koradiya, Mr. Prabhaben Vitthalbhai Koradiya, Mr. Ghanshyambhai Vitthalbhai Koradiya and Mr. Jatinbhai Vitthalbhai Koradiya.

ESG Profile

The company demonstrates an Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: The company sources its electricity from the state grid and has invested in an in-house solar panel system, which is expected to be fully operational from July 2026. For its processing needs, water is reliably managed through a combination of an internal well and a government connection. To meet stringent international safety standards, the company utilizes advanced ozone washing technology to treat raw onions and garlic, minimizing chemical residues. These initiatives, along with upcoming renewable energy integration, support a well-regulated environmental footprint.

Social: The company acts as a crucial link in the agricultural economy of the Mahuva region by supporting local farming networks. Backed by the promoters’ farming family roots, it maintains a robust network with regional cultivators, ensuring fair procurement and consistent supply chains. The company serves a diversified global clientele across more than 20 countries, adhering to strict international certifications. To guarantee food safety and meet specific consumer health demands, the facility maintains allergen-free protocols, such as peanut-free processing zones. This strong counterparty diversification and community linkage effectively mitigate socio-economic and market concentration risks.

Governance: Maharaja Dehydration Pvt. Ltd. maintains strong financial discipline, statutory compliance, and reporting transparency. As per the FY2025 independent auditor’s report, the company possesses an adequate and effectively operating internal financial controls system over financial reporting. The statutory auditors confirmed that the financial statements present a "true and fair view" of the company’s position in conformity with Indian GAAP, with zero qualifications in the CARO report. Furthermore, the company exhibits excellent credit creditworthiness, having never delayed or defaulted on the repayment of principal or interest to any bank, financial institution, or government lender.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	107.57	156.20	193.47
EBITDA	Rs.Crs.	11.29	11.34	11.08
PAT	Rs.Crs.	6.21	5.71	8.07
Tangible Net Worth	Rs.Crs.	25.15	29.46	37.02
Total Debt / Tangible Net Worth	Times	1.35	1.12	1.70
Current Ratio	Times	1.26	1.46	1.21

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities. The bankers have stipulated certain special covenants as listed below:

State Bank of India (SBI):

• The company's surplus cash accruals over a DSCR of 1.10 must be automatically swept into the loan accounts at quarterly intervals.
• Financial covenants including DSCR, Interest Coverage Ratio, Fixed Asset Coverage Ratio (FACR), and Debt/EBIDTA are tested annually based on the Audited Balance Sheet. An adverse deviation of more than 10% from acceptable levels will attract a penal interest of 50 bps (0.50%) per annum.
• Unsecured loans, as estimated in the CMA data, must be maintained as long-term funds in the business and cannot be withdrawn during the currency of the Bank loan without permission.
• If cash or internal accruals fall short of projections, the promoters must bring in interest-free unsecured loans to cover the amount

SIDBI:

• The borrower must maintain a Net Worth of Rs. 2945.63 lakh during the currency of the SIDBI loan.
• The company must maintain a DER within 3:1 during the loan's currency.
• The company must ensure an ACR of 1.25 for the proposed assistance with assets created under the project.
• Any shortfall in the means of finance or cost overruns must be met by the promoters from their own resources/internal accruals without resorting to additional SIDBI debt.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

None

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	66.40	BWR BBB-/Stable (Assignment)	17Mar2025	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	22Mar2024	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	NA	NA
		0.00	NA	20Jun2025	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed and withdrawn)	NA	NA	NA	NA
Fund Based	ST	3.60	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(39.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(1.70)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		70.00	(Rupees Seventy Crores Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Mohammed Farzan Rating Analyst mohammed.f@brickworkratings.com	Suryanarayan N Director suryanarayan.n@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	SIDBI	Term Loan - Sanctioned	2.40	_	2.40	Simple##
2	State Bank Of India (SBI)	Working Capital Term Loan - Sanctioned	8.10	_	8.10	Simple##
3	State Bank Of India (SBI)	Cash Credit - Sanctioned	41.00	_	41.00	Simple##
	Sub-Limit (Credit Exposure Limit) - Sanctioned		(1.70)
	Sub-Limit (EPC/PCFC/FBD/EBR) - Sanctioned		(39.00)
4	State Bank Of India (SBI)	Stand by Line of Credit - Sanctioned	_	3.60	3.60	Simple##
5	State Bank Of India (SBI)	Working Capital (CC) - Proposed	11.21	_	11.21	Simple##
6	State Bank Of India (SBI)	Term Loan - Out-standing	0.97	_	0.97	Simple##
7	State Bank Of India (SBI)	Term Loan - Out-standing	0.78	_	0.78	Simple##
8	State Bank Of India (SBI)	Term Loan - Out-standing	1.94	_	1.94	Simple##
Total			66.40	3.60	70.00
TOTAL (Rupees Seventy 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.