KS Agro Export Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 60.19 Crs. of KS Agro Export Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	59.89	Long Term	BWR BBB /Stable Assignment
	(25.00)	Short Term	BWR A3 + Assignment
Non Fund Based	0.30	Short Term	BWR A3 + Assignment
Grand Total	60.19	(Rupees Sixty Crores and Nineteen 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 has assigned a long-term rating of BWR BBB/Stable and a short-term rating of BWR A3+ to the bank loan facilities of KS Agro Export Pvt. Ltd. (KSAEPL), aggregating to Rs. 60.19 crore.

The ratings reflect KSAEPL’s established business position, supported by over six decades of promoter experience in the rice milling industry and the active involvement of its fourth-generation management. The company operates under its well-recognized flagship brand, “Double Chabi.” The ratings also factor in the company’s expanding capital base, supported by consistent profit retention, along with healthy debt coverage metrics.

However, the ratings are constrained by the company’s vulnerability to paddy procurement risks, particularly due to the impact of the El Niño effect on regional crop yields in the current year. The business also remains susceptible to raw material price volatility and inherent agro-climatic risks. Additionally, high seasonal working capital requirements lead to temporary spikes in short-term debt leverage during peak procurement windows.

The Stable outlook reflects Brickwork Ratings’ expectation that KSAEPL will 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 audited financials for FY24 and FY25, provisional financials for FY26, projected financials for FY27 and FY28, along with publicly available information and management clarifications.

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters, established track record, and strong brand presence in the rice processing industry :

  The promoters possess an extensive track record of over six decades in the rice processing business, with operations now managed by the fourth generation. This established standing has enabled the company to build long-standing relationships with farmers, local mandi brokers, and FPOs across the northern agricultural belt. The company markets its products nationwide through an established network of over 200 distributors, alongside growing penetration in modern retail channels (listed on platforms such as Blinkit, Metro, and Walmart). Furthermore, sales are anchored by the established family trademark brand "Double Chabi," which enjoys high market recall. This strong market positioning supported a steady growth in Total Operating Income (TOI) to Rs. 444.41 crore in provisional FY26 (FY25: Rs. 422.88 crore; FY24: Rs. 244.09 crore).

• Expanding capital base supported by profit retention and healthy coverage metrics :

  The company’s capital base has strengthened significantly due to retention of operational profits, with Tangible Net Worth (TNW) expanding to Rs. 56.42 crore as of March 31, 2026 (Provisional), up from Rs. 35.91 crore in FY25 and Rs. 16.55 crore in FY24. The profit retention has strengthened the equity cushion against its seasonal working capital requirements. Debt protection indicators remain comfortable, characterized by an Interest Service Coverage Ratio (ISCR) of 4.41 times and a Debt Service Coverage Ratio (DSCR) of 3.29 times in FY26. Financial flexibility is further reinforced by healthy gross cash accruals of Rs. 24.01 crore in FY26 (FY25: Rs. 23.47 crore) against a modest current portion of long-term debt (CPLTD) of Rs. 2.70 crore.

Credit Risks:

• High seasonal working capital intensity leading to temporary spikes in leverage :

  Operations are inherently capital-intensive and subject to significant seasonality, as peak paddy procurement occurs during a short window between late October and early January. To maintain superior cooking quality and aroma, the company consciously maintains higher inventory levels of aged 1121 raw Basmati paddy, resulting in inventory holding reaching Rs. 179.04 crore in FY26 (FY25: Rs. 76.46 crore). This procurement cycle requires substantial reliance on seasonal short-term borrowings and Warehouse Receipt (WHR) facilities (sanctioned limit of Rs. 100 crore). Consequently, leverage indicators peak at fiscal year-end, with Total Debt/TNW standing at 2.81 times and Total Outside Liabilities to Tangible Net Worth (TOL/TNW) at 2.93 times as of March 31, 2026. 

• Susceptibility to raw material price volatility, agro-climatic risks, and thin profitability margins :

  The company operates in a highly competitive and fragmented agri-processing sector characterized by low entry barriers. Profitability remains susceptible to swings in raw material (paddy) prices, which are governed by climate conditions, monsoon adequacy, crop yields, and government policies regarding Minimum Support Prices (MSP). Operating margins, although showing slight expansion due to direct paddy procurement efficiencies (7.29% in FY26 vs. 7.03% in FY25), remain inherently thin. Net profit margins stood at 4.61% in provisional FY26 (FY25: 4.58%), reflecting limited pricing power and vulnerability to adverse raw material price fluctuations.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of 'K S Agro Export Pvt. Ltd.'. BWR has applied its rating methodology as detailed in the Rating Criteria.

RATING SENSITIVITIES

Going forward, the ability of the company to improve its revenue and financial risk profile would remain the key rating sensitivities. 

Positive: 

• Improvement in operating income by 15%, along with enhanced cash accruals and a stronger cash and cash equivalent
  position.
• Sustenance of healthy financial risk profile.

Negative:

• Decline of 20% or more in revenue, leading to deterioration in the company's profitability and financial risk profile.
• Material weakening in the company's financial risk profile and liquidity position.

LIQUIDITY INDICATORS - Adequate

K S Agro Export Pvt. Ltd. maintains an adequate liquidity position, supported by healthy cash accruals and comfortable working capital utilisation. The company reported cash and bank balances of Rs. 0.18 crore as on 31 March 2025, which improved to Rs. 1.09 crore as per the unaudited FY26 financials. The current ratio also improved from 1.14 times in FY25 to 1.25 times in FY26 (UA). The company generated cash accruals of Rs. 23.47 crore in FY25 (Rs. 24.01 crore in FY26 UA), which were comfortably sufficient to meet the current portion of long-term debt (CPLTD) of Rs. 2.19 crore in FY25 (Rs. 2.70 crore in FY26 UA). Consequently, the debt service coverage ratio (DSCR) and interest service coverage ratio (ISCR) remained comfortable at 5.07 times and 6.56 times, respectively, in FY25 (4.41 times and 3.29 times, respectively, in FY26 UA). Further, the company's working capital limits remained moderately utilised, with an average utilisation of around 70% with Central Bank of India.

ABOUT THE ENTITY

KS Agro Export Private Limited was incorporated on April 25, 2023, as a private limited company and is headquartered at Village Kurak, Taraori, Karnal, Haryana. The company is promoted by Mr. Brij Bhushan Goel and Mr. Jitender Goel, who serve as its Directors and key promoters.

The company is primarily engaged in the processing, manufacturing, and trading of premium rice varieties, specializing in Basmati rice, primarily marketing its products under its flagship branded label, 'Double Chabi'. Its product portfolio comprises various grades of Basmati rice, as well as milling by-products such as rice bran and paddy husk. Additionally, the company is engaged in the wholesale trading of edible oils (such as refined sunflower and groundnut oil) and other food items like rock salt. 

The company operates from Karnal, Haryana, a well-established rice-processing hub in India, and focuses on processing and supplying quality rice products.

ESG Profile

KS Agro Export Private Limited demonstrates an adequate Environmental, Social, and Governance (ESG) profile based on its operational practices.

Environmental (E): The environmental footprint is centered around the company's automated rice milling facility in Taraori, Haryana. The plant manages resource consumption by using natural sun and air drying for paddy stored in open yards. The company handles agricultural waste by separating by-products like rice bran and husk during production. Long-term environmental management depends on maintaining energy efficiency and standard emission controls during the intensive milling process.

Social (S): Social factors focus on labor management, workplace safety, and product hygiene. The company uses a contract-labor model, employing 70 to 90 workers through a contractor during peak seasons, alongside 40 to 50 permanent staff. The management ensures high hygiene standards and operational safety across its automated processing lines, protecting workers from the raw material stage through to final packaging.

Governance (G): The company is directed by an established promoter family with four generations of experience in the regional agribusiness sector. Daily responsibilities for procurement, finance, and sales are clearly divided among the family directors. Financial tracking is supported by regular accounting reviews and formal audit practices, while the company maintains a stable shareholding pattern and solid compliance transparency with its lending banks.

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.	244.09	422.88	444.41
EBITDA	Rs.Crs.	17.09	29.74	32.39
PAT	Rs.Crs.	12.55	19.36	20.51
Tangible Net Worth	Rs.Crs.	16.55	35.91	56.42
Total Debt / Tangible Net Worth	Times	0.81	2.17	2.81
Current Ratio	Times	1.52	1.14	1.25

KEY COVENANTS OF THE FACILITY RATED

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)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	59.89	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	ST	(25.00)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	0.30	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		60.19	(Rupees Sixty Crores and Nineteen lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• 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	Central Bank of India	Cash Credit - Sanctioned	50.00	_	50.00	Simple##
	Sub-Limit (EPC/EBD/PCFC/EBRD/EBP/EBN (Sublimit of CC)) - Sanctioned		(25.00)
2	Central Bank of India	Forward Contract - Sanctioned	_	0.30	0.30	Simple##
3	HDFC Bank	Term Loan - Sanctioned	5.81	_	5.81	Simple##
4	HDFC Bank	Term Loan - Sanctioned	4.08	_	4.08	Simple##
Total			59.89	0.30	60.19
TOTAL (Rupees Sixty Crores and Nineteen 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.

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