Maheshwari Agro

Brickwork Ratings downgrades the long-term rating to "BWR B+/Stable" from "BWR BB-/Stable", reaffirms the short-term rating at "BWR A4" and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 28.89 Crs. of Maheshwari Agro.

Particulars

Facilities/Instruments	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (30 Jun 2025)	Present
Fund Based	28.89	28.89	Long Term	BWR BB- /Stable Assignment	BWR B + /Stable Downgrade/Withdrawal	RBI
	(8.50)	(8.50)
	(8.50)	(8.50)	Short Term	BWR A4 Assignment	BWR A4 Reaffirmation/Withdrawal	RBI
Grand Total	28.89	28.89	(Rupees Twenty Eight Crores and Eighty Nine 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 / WITHDRAWAL

Brickwork Ratings (BWR) downgrades the long-term rating to BWR B+/Stable from BWR BB-/Stable, reaffirms the short-term rating at BWR A4 and simultaneously withdraws the ratings of "Maheshwari Agro" with immediate effect based on their request for rating withdrawal. The firm was rated by the BWR on 30June2025 wherein BWR had assigned the long-term and short-term ratings of "BWR BB-/Stable/BWR A4" for the bank loan facilities of Rs. 28.89 Cr. Bank loan facilities of Rs. 9.40 Cr were also withdrawn during the previous review.

The Company has submitted a request letter for rating withdrawal, along with a No Objection Certificate (NOC) from Union Bank of India, which is held on record. The banker confirms that they have No Objection in the withdrawal of Credit Rating of the firm assigned by BWR. While the firm is regular in submitting monthly NDS and the banker has provided their satisfactory feedback on firm's conduct of account, they have not submitted required financial and operational information for conducting a valid rating review. Hence, in accordance with extant regulatory guidelines and as per BWR Rating Withdrawal Policy, the rating of the said instrument is now as follows: BWR downgrades the long-term rating to "BWR B+/Stable" from "BWR BB-/Stable", reaffirms the short-term rating at “BWR A4” and simultaneously withdraws the ratings.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non-transparency withholding of information required for a review of the rating

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Management :

  The firm is owned and managed by Mr. Dilip Jashroopdas Rathi and Mr. Ghansham Abheman Maheshwari, who are equal partners. Both partners have extensive experience in the agro-product processing business and each holds a 50% ownership stake in the firm. Their deep industry knowledge & extensive experience has contributed significantly to achieving high customer satisfaction, building strong relationships with suppliers, satisfactory operational track record and long-standing market presence of the firm.

• Growth in scale of operations :

  The operating performance has significantly improved, as reflected by an increase in operating income from Rs. 186.77 Cr in FY2024 to Rs. 317.05 Cr in FY2025 with a CAGR of 69.75% in traded sales during FY2023–FY2025. The increase in operating income has eventually contributed to an increase in operating profit from Rs. 2.10 Cr. in FY2024 to Rs. 4.90 Cr in FY2025.

Credit Risks:

• Thin profitability margins resulting in weak debt protection metrics :

  Firm’s profit margins remain low, with an operating margin of 1.13% in FY2024 and 1.54% in provisional FY2025, primarily due to high operating cost. This has resulted in weak debt protection metrics, as reflected by an ISCR of 1.63 times in FY2024 and 1.81 times in provisional FY2025, and a DSCR of 1.089 times in FY2024 and 1.28 times in provisional FY2025.

• High Gearing :

  The firm had Total Debt/TNW of 8.61 times in FY2024 which has improved to 5.25 times in provisional FY2025, but still remains on the higher side indicating firms dependence on borrowings.

• Constitution Risk :

  Since it is a Partnership firm, Withdrawal of capital by the Partners for any personal contingency would adversely affect the capital structure of the firm.

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA - 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

Not applicable, as the rating mandate is being withdrawn with immediate effect at the request of the client.

LIQUIDITY INDICATORS - Stretched

The firm's liquidity position is considered Stretched, owing to more than 80% utilization of working capital limits, low Cash and Cash Equivalents of Rs. 0.33 Cr. in FY2024 which later decreased to Rs. 0.14 Cr. in provisional FY2025 & weak debt protection metrics reflected from an ISCR of 0.94 times in FY2024 & 1.63 times in provisional FY2025, DSCR of 1.09 times in FY2024 & 1.28 times in provisional FY2025.

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

COMPANY's / FIRM's PROFILE

Maheshwari Agro, is a Partnership firm incorporated in August-2009 for carrying out the activity of processing of wheat and rice. Firm’s registered office and factory is situated at Bavla, (District: Ahmedabad) , Gujarat. The firm is promoted and managed by Mr. Ghanshyam Rathi & Mr. Dilip Rathi. The firm sells products across India and started exporting through merchants in FY19.

ESG Profile

NA

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Provisional)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	186.77	317.05	Not Available
EBITDA	Rs.Crs.	2.10	4.90	Not Available
PAT	Rs.Crs.	0.25	1.05	Not Available
Tangible Net Worth	Rs.Crs.	5.02	7.36	Not Available
Total Debt / Tangible Net Worth	Times	8.61	5.25	Not Available
Current Ratio	Times	1.75	1.48	Not Available

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	CARE Rating vide its press release dated 29 April 2026 has reaffirmed the long-term and short-term ratings at “CARE B-/Stable/CARE A4” for the bank loan facilities of Rs. 6.88 Crs and continued the ratings under the ‘Issuer Not Cooperating' category as the company continues to be non-cooperative.	29Apr2026

ANY OTHER INFORMATION

NONE

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)

Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.)	Current Rating  (2026)			2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	28.89	BWR B+/Stable (Downgrade/Withdrawal)	30Jun2025	BWR BB- Stable (Assignment)	05Dec2024	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	05Dec2023	BWR C (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
FB SubLimit	LT	(8.50)	BWR B+/Stable (Downgrade/Withdrawal)	30Jun2025	BWR BB- Stable (Assignment)	NA	NA	NA	NA
FB SubLimit	ST	(8.50)	BWR A4 (Reaffirmation/Withdrawal)	30Jun2025	BWR A4 (Assignment)	NA	NA	NA	NA
Grand Total		28.89	(Rupees Twenty Eight Crores and Eighty Nine lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Mohammed Farzan Rating Analyst mohammed.f@brickworkratings.com	Suryanarayan N Director suryanarayan.n@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	Union Bank of India	Working Capital Term Loan - Out-standing	0.39	_	0.39	Simple##
2	Union Bank of India	Cash Credit - Sanctioned	23.50	_	23.50	Simple##
	Sub-Limit (Bill Discounting (BD)) - Sanctioned		(8.50)
	Sub-Limit (Export Packing Credit (EPC) ) - Sanctioned	(8.50)
3	Union Bank of India	Adhoc Facilities FB (CC/TL/OD) - Sanctioned	5.00	_	5.00	Simple##
Total			28.89	0.00	28.89
TOTAL (Rupees Twenty Eight Crores and Eighty Nine lakhs Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf.

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