Sigma Chemtrade Pvt Ltd

Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 38.60 Crs. of Sigma Chemtrade Pvt Ltd

Particulars

Facilities	Amount(Rs.Crs.)	Tenure	Rating	Regulator
Fund Based	9.70	Long Term	BWR BBB - /Stable Assignment	RBI
Non Fund Based	28.90	Short Term	BWR A3 Assignment	RBI
	(26.30)
	(26.30)
Grand Total	38.60	(Rupees Thirty Eight Crores and Sixty lakhs Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated RATING ACTION / OUTLOOK

Brickwork Ratings has assigned the long-term rating and short-term rating of BWR BBB- (Stable) and BWR A3 for the bank loan facilities of Rs. 38.60 Crore of Sigma Chemtrade Private Limited(SCPL).

For assigning the ratings, BWR has relied on the audited financials of the company up to FY25, management-certified provisional financials for FY26, projected financials for FY27-FY28, clarification provided by the company, and publicly available information.

Brickwork Ratings (BWR) has assigned the ratings of Sigma Chemtrade Private Limited(SCPL), considering factors such as the Extensive experience of the promoters and conservative capital structure. The ratings are, however, constrained by commodity price volatility and Forex fluctuations, and intense market competition in the polymer trading market.

The rating outlook is "Stable," reflecting BWR's expectation that Sigma Chemtrade Private Limited(SCPL) will sustain its business risk profile over the medium term. This outlook suggests a minimal probability of rating revision within the foreseeable future. Upward revision to "Positive" may be considered should revenue and profitability demonstrate sustained growth, while a "Negative" revision could be triggered by a deterioration in the financial risk profile.

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters in the chemical trading industry :

  The promoters, Mr. Vijay Goyal and Ms. Nina Goyal, possess over 30 years of professional experience in the polymer and chemical trading sector. Their long-standing presence has provided the company with deep market knowledge, established business networks, and strong operational insight.

  The promoters have established and sustained a 20-year strategic relationship with Abu Dhabi-based Borouge PTE Ltd,  one of their primary domestic distribution partners in India.

• Conservative Capital Structure :

  Sigma Chemtrade’s financial risk profile is considered comfortable, supported by a conservative capital structure and strong debt-coverage metrics across both periods. The company maintained low leverage with a Debt-to-Equity ratio of 0.25x in Provisional FY26 and a controlled Total Outside Liabilities to Tangible Net Worth (TOL/TNW) of 0.67x in Provisional FY26, while its debt-servicing capability remained strong, as evidenced by an ISCR of 2.36x and a DSCR of 2.52x in FY25, which further strengthened to an ISCR of 3.64x and a DSCR of 3.18x in FY26 (Provisional), reflecting robust cash flows to comfortably cover interest obligations and debt repayments

Credit Risks:

• Commodity Price Volatility and Forex Fluctuations :

  Sigma Chemtrade Private Limited’s (SCPL) profitability margins remain highly exposed to inherent price volatility in traded polymers, as these products are petrochemical derivatives directly linked to international crude oil benchmarks and domestic demand-supply dynamics. Because prices of most traded products are tied to crude oil fluctuations, open inventory carries inherent price risk.

  Furthermore, as SCPL relies on imports for over 90% of its total procurement, the company faces substantial foreign exchange rate risk, leaving profitability susceptible to currency fluctuations on any unhedged exposure. To actively mitigate these currency risks, management hedges 80–100% of its total import value (the major portion of its forex payables) through forward contracts.

• Market Competition :

  The industry is highly fragmented and competitive, with a large number of unorganized players in the market. Such high
  fragmentation limits the pricing flexibility and bargaining power of the players.  This intense market rivalry, combined with the pure trading nature of the business, severely limits pricing power, bargaining leverage, and profit margins. Furthermore, aggressive capacity additions by large integrated producers pose an ongoing threat to market share and top-line growth.

ANALYTICAL APPROACH - Standalone

Brickwork Ratings has considered the standalone business and financial risk profiles of Sigma Chemtrade Private Limited.

RATING SENSITIVITIES

Positive factors 

• Increase in total operating income (TOI)above Rs. 450 crore and stable operating margin of more than 2.5% on a sustainable basis.

Negative factors

• Significant increase in the debt levels and in non-current investments, weakening the financial risk profile.
• Detoriation in Capital structure marked by Total Outside Liabilities/ Tangible Net Worth(TOL/TNW) above 1.3x on a sustainable basis.

LIQUIDITY INDICATORS - Adequate

The company maintains an adequate liquidity profile and a healthy financial cushion, driven by expected gross cash accruals of Rs. 4.86 crore in FY26 (provisional) against minimal long-term debt servicing obligations, complemented by a cash balance of Rs. 2.23 crore. Short-term solvency has strengthened, with the current ratio rising from 1.58x in FY25 to 2.28x in FY26. The company’s liquidity cushion is further reinforced by its fund-based working capital management, where the average cash credit utilization was 42.39% over the six months ending June 2026. Whereas non-fund-based bank guarantee limits remained largely utilized at 90%.

ABOUT THE ENTITY

Sigma Chemtrade Private Limited (SCPL), headquartered in Indore, Madhya Pradesh, was established in August 2007 by its promoters, Mr. Vijay Goyal and Ms. Nina Goyal. The promoters have an extensive professional track record spanning more than three decades (30 years) in the polymer trading sector. Notably, the enterprise maintains a strategic position as a primary distributor for Borouge PTE Ltd.

The corporation specializes in the importation and commercial trading of polymers and titanium dioxide. SCPL commands a robust domestic presence, operating an extensive network across key regional markets, including Maharashtra, Gujarat, Chhattisgarh, Rajasthan, and Delhi. 

The company's diverse product portfolio targets industrial applications such as piping, packaging, paints, plastics, and consumer households. Additionally, SCPL functions as a subsidiary of the Sigma Group, which has business operations spanning third-party logistics as well as the import, marketing, and distribution of industrial chemicals and polymers.

ESG Profile

Not applicable, as the company operates solely in the trading of polymers and chemicals.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	388.75	315.11	356.74
EBITDA	Rs.Crs.	7.22	4.29	7.73
PAT	Rs.Crs.	4.62	2.57	4.66
Tangible Net Worth	Rs.Crs.	28.51	31.06	35.74
Total Debt / Tangible Net Worth	Times	0.36	0.46	0.25
Current Ratio	Times	1.89	1.58	2.28

KEY COVENANTS OF THE FACILITY RATED

As per the normal terms and conditions stipulated in the sanction letters.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	SCPL has not cooperated with Credit Analysis & Research Ltd (CARE). The reason provided by CARE is the non-furnishing of information for the monitoring of ratings.	04Jun2026
IND	SCPL has not cooperated with India Ratings. The reason provided by India Ratings is the non-furnishing of information for the monitoring of ratings.	08May2026

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	9.70	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	28.90	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(26.30)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
		(26.30)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		38.60	(Rupees Thirty Eight Crores and Sixty lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Trading Entities
• Approach to Financial Ratios
• Short Term Debt
• Trading Companies

Analytical Contacts
Padia Shivani Ratings Analyst shivani.p@brickworkratings.com	Mukesh Kumar Verma Associate Director mukesh.verma@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	State Bank Of India (SBI)	Cash Credit - Sanctioned	9.70	_	9.70	Simple##
2	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	0.60	0.60	Simple##
3	State Bank Of India (SBI)	Letter of Credit - Sanctioned	_	26.30	26.30	Simple##
	Sub-Limit (Foreign Bank Guarantee) - Sanctioned		(26.30)
	Sub-Limit (Standby Line of Credit) - Sanctioned		(26.30)
4	State Bank Of India (SBI)	Forward Contract - Sanctioned	_	2.00	2.00	Simple##
Total			9.70	28.90	38.60
TOTAL (Rupees Thirty Eight Crores and Sixty lakhs Only)

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