Supreme Auto Carrier Pvt. Ltd.

Brickwork Ratings reaffirms the long-term and short-term ratings to BWR BBB-/A3 with a change in outlook to Positive for the Bank Loan Facilities of Rs. 103.98 Crs. of Supreme Auto Carrier Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
	Previous	Present		Previous (03 Jul 2025)	Present
Fund Based	108.74	103.98	Long Term	BWR BBB- /Stable Upgrade and Removed from the INC category	BWR BBB - /Positive Reaffirmation and change in Outlook
	(0.00)	(0.10)
Non Fund Based	2.00	0.00	Short Term	BWR A3 Assignment	BWR A3 Reaffirmation
	(0.00)	(2.00)
Grand Total	110.74	103.98	(Rupees One Hundred Three Crores and Ninety Eight 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 revised its outlook on the long-term bank facilities of Supreme Auto Carrier Pvt Ltd to ‘Positive’ from ‘Stable’ while reaffirming the long-short-term ratings to BWR BBB-/A3 for the bank loan facilities of Rs. 103.98 crores, respectively.

The revision in outlook reflects BWR’s expectation that the financial risk profile of the company is likely to improve in fiscal 2027. The company’s scale of operations has been expanding steadily, along with an improvement in its profitability, which underpins a strong credit profile over the medium term. BWR expects that the company will not incur any Capex in the medium term, leading to minimal debt addition and maintenance of working capital borrowing as supported by its recent diversification towards a multi-modal approach. BWR notes that the company has entered into New Modified Goods (NMG) railway movements to offer multi-modal, sustainable, and cost-effective bulk vehicle transportation.  

The ratings derive comfort from the company's sound financial metrics, including steady growth in the scale of operations over the consecutive years, operating margins in the range of 19-23%, and an interest coverage ratio exceeding 3 times in FY2025. These indicators are expected to remain strong, going forward. The company benefits from an established track record in the logistics industry, experienced promoters, and long-standing relationships with reputed OEMs, and the availability of long-term contracts, which support repeat business.

The ratings, however, remain constrained by the moderate capital structure, customer concentration risk, with the majority ~60% of the revenues derived from Maruti Suzuki, risk associated with exposure to intense competition, and the working capital-intensive nature of the business.

The Positive outlook on the rating reflects BWR’s expectation of growth in the top line and sustenance of healthy profitability, going forward, translating into a comfortable credit profile.

 

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters :

  The management has over three decades of experience in the automobile and logistics sectors. It has managed multiple auto businesses, including dealerships for cars and tractors, manufacturing of auto parts, and warehousing. Mr. Prem Prakash Gupta has over five decades of experience in the respective industry. His sons, namely Mr. Vikram Gupta and Mr. Vikrant Gupta, are the promoters of the company, having extensive experience and higher qualifications in the management of the logistics sector. 

• Steady growth in the scale of operations :

  The company continues to demonstrate steady financial growth characterized by a consistent and reliable increase in its total operating income over consecutive fiscal years. The company has a moderate scale of operations as reflected by a marginal increase in revenue in FY25 to Rs.156.83crores, up from Rs.153.09 crores in FY24. Maintaining this momentum, the company has reported a growth of 3.72% in its revenue to Rs.162.67crores in provisional figures for FY26, primarily driven by an increased volume of cars lifted this year. Based on the company’s extensive portfolio of long-term contracts with premier OEMs and its diversification toward a multi-modal approach, it is securing revenue visibility for FY2027 and FY2028.

• Established relations with OEMs with availability of long-term contracts :

  The company benefits from entrenched, long-term associations with premier OEMs, supported by decades of experience of its promoters in the automobile logistics industry. The company has maintained its association with Maruti Suzuki India Limited (MSIL) for more than 30 years and derives a significant portion of ~60% its revenue from this client. Further, the associations with other well-known OEMs, including Mahindra, Honda Cars, Hyundai, Skoda, and Tata Motors, etc., provide revenue visibility and protect the company against intense industry competition. Furthermore, the inclusion of insurance, damage, and fuel escalation clauses in the contracts shields the entity from major adverse variations in operating costs, safeguarding overall profit margins. The longstanding relationship with OEMs supports sustained business continuity and results in modest counterparty credit risk.

Credit Risks:

• Moderate capital structure and profit margins :

  The company has a moderate capital structure, as depicted by the overall gearing, i.e., Total Debt/Total Networth of 3.35x in FY26 (provisional), improved from 4.21x during FY25 on the back of infusion of equity and accumulation of net profits to Tangible Net Worth. Total Outside Liabilities/Total Networth stood at 4.75x and 2.55x in FY25 and FY26 (provisional). Also, Debt Service Coverage Ratio (DSCR) and Interest Service Coverage Ratio (ISCR) stood at 1.13x and 3.13x, respectively, as on 31 March 2026 (provisional). Further, the net profit margin remained moderate at 1.52% and 1.72% respectively, in FY25 and FY26 (provisional). 

• Exposure to intense competition, and Susceptibility to volatility in input cost :

  The road logistics sector is highly fragmented, with most business being generated by the unorganised segment. While a significant opportunity exists for organised players to scale up their businesses, especially post-GST implementation, the fragmented nature of the industry results in stiff competition, thereby exerting pressure on profitability margins in the renewal of contracts. Nonetheless, Supreme Auto has been able to mitigate this risk to an extent, benefiting from the established relationships with its OEMs, along with the existence of a long-term contract with them. Additionally, operating margins in the logistics industry are susceptible to fluctuations in fuel prices. Due to the combination of strong competitive pressure and volatility in input costs, pricing power and profitability are expected to remain constrained over the medium term.

• Working-capital-intensive business :

  The company has a working-capital-intensive nature of operations, as reflected by a working capital utilisation to the extent of  90% for the last 13-month period ended May 2026. Being an automobile logistics player, the company has significant dependence on working capital borrowings for its day-to-day operations, as companies generally receive payments from OEMs within 60-90 days and make payments to suppliers within 30-45 days.

ANALYTICAL APPROACH - Standalone

For arriving at rating, BWR has considered the standalone approach and has essentially relied on the audited financials up to FY25, management-certified financials for FY26, projected financials up to FY28, publicly available information, as well as information/clarifications provided by the company's management and bankers. Additionally, BWR has applied its rating methodology as detailed in the Rating Criteria, as detailed below (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive factors

• Growth in scale of operations marked by Total operating income (TOI) above Rs.200crore with PBILDT margin above 21%.
• Improvement in capital structure and debt coverage indicators from the present levels.

Negative factors

• Decline in TOI below Rs.155 crore along with PBILDT margin below 15%.
• Deterioration in capital structure to above 3.5x and DSCR of below 1x on a sustained basis.

LIQUIDITY INDICATORS - Adequate

The liquidity of the company is adequate, as marked by the healthy current ratio, which stood at 1.34 times and 1.44 times, respectively, as on 31 March 2025 and 31 March 2026 (provisional) due to a decrease in current assets. The cash credit limit of the company has an average utilization of ~93% for the past 12 months as of May 26. The working capital limits have further enhanced to Rs.23crores at the end of May 26, leading to the company's requirement for working capital purposes. The company has generated net cash accruals of Rs.24.75crores in FY25 and is expected to have cash accruals in the same range for FY27, covering the CPLTD of ~Rs. 2.30crores per month for multiple commercial vehicle loans running with various Banks/NBFCs. The company is expected not to incur any capex in its fleet size in the coming years, as it is diversifying in the railways segment. The company has done minimal capex of ~Rs. 12crores (addition in fleets) during the FY26 (prov) as against ~Rs.51crores in FY25. The tangible net worth of the company stood at Rs. 26.24cr as on 31 March 2025, and on account of infusion of equity by promoters & y-on-y accumulation of profits, it has further enhanced to Rs. 30 crores as on 31 March 2026 (Prov), leading to a moderate capital structure. Further, cash and bank balance are Rs. 0.53cr and Rs. 0.38cr in FY25 and FY26(Prov), respectively.

ABOUT THE ENTITY

Supreme Group, established in 1988, is being promoted by Mr Prem Parkash Gupta. In 2011, a private limited company in the name of Supreme Auto Carrier Pvt Ltd was incorporated, having a registered office in Gurugram, Haryana. The company provides logistics services majorly to all automobile OEMs. It provides complete solutions from plant handling to first-mile dispatch & to stockyards & warehouse management, and last-mile deliveries. The company has a pan-India presence and an in-house fleet of ~380 trucks. The company caters to various renowned OEMs, viz, Maruti Suzuki, Honda, Hyundai, and Tata Motors. The company is currently handled by Mr. Vikram Gupta and Mr. Vikrant Gupta (sons of Mr Prem Parkash Gupta).

The Company has recently diversified into the railway transportation segment. It has obtained the necessary license/approval from Indian Railways for transportation of passenger vehicles through rail networks, thereby strengthening its multimodal logistics capabilities and expanding its reach across India.

ESG Profile

The company's ESG profile demonstrates a Adequate profile across environmental, social, and governance dimensions, aligned with the operational characteristics of the logistics and transportation services sector. 

• Environmental (E): The company actively focuses on reducing its carbon footprint in logistics. This includes deploying CNG-powered trailers and optimizing fleet operations by utilizing digital platforms (such as Axestrack’s Managed Control Tower) to manage fuel disbursement, reduce engine idling, and enhance overall fuel efficiency. 
• Social (S): As a key transporter for major OEMs like Maruti Suzuki, Mahindra, Honda, Hyundai, and Tata Motors, the company prioritizes safe driving initiatives, driver training, and workplace health and safety protocols across its transport network. 
• Governance (G): The company exhibits an adequate governance profile characterized by an experienced board, robust financial transparency, an adequate internal control framework, and a statutory compliance track record.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)	FY 25 - 26 (Provisional)
Operating Revenue	Rs.Crs.	153.09	156.83	162.67
EBITDA	Rs.Crs.	30.17	36.16	35.18
PAT	Rs.Crs.	2.26	2.39	2.76
Tangible Net Worth	Rs.Crs.	23.85	26.24	30.00
Total Debt / Tangible Net Worth	Times	3.57	4.21	3.35
Current Ratio	Times	1.41	1.34	1.44

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS 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	103.98	BWR BBB-/Positive (Reaffirmation and change in Outlook)	03Jul2025	BWR BBB- Stable (Upgrade and Removed from the INC category)	11Dec2024	BWR BB Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	08Dec2023	BWR BB+ Stable (ISSUER NOT COOPERATING* /Downgrade)
FB SubLimit	LT	(0.10)	BWR BBB-/Positive (Reaffirmation and change in Outlook)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	0.00	NA	03Jul2025	BWR A3 (Assignment)	NA	NA	NA	NA
NFB SubLimit	ST	(2.00)	BWR A3 (Reaffirmation)	NA	NA	NA	NA	NA	NA
Grand Total		103.98	(Rupees One Hundred Three Crores and Ninety Eight lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Service Sector Company

Analytical Contacts
Akanksha Maindiratta Senior Rating Analyst akanksha.m@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@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	Axis Bank Ltd.	Term Loan - Out-standing	5.12	_	5.12	Simple##
2	Axis Bank Ltd.	vehicle loan - Out-standing	_	_	0.00	Simple##
3	Bajaj Finance Limited	Term Loan - Out-standing	5.14	_	5.14	Simple##
4	Bajaj Finance Limited	Term Loan - Sanctioned	4.01	_	4.01	Simple##
5	Daimler Financial Services India Private Limited	vehicle loan - Out-standing	0.13	_	0.13	Simple##
6	HDB Financial Services Ltd	Term Loan - Out-standing	6.39	_	6.39	Simple##
7	HDFC Bank	Term Loan - Out-standing	22.25	_	22.25	Simple##
8	HDFC Bank	vehicle loan - Out-standing	0.52	_	0.52	Simple##
9	IDFC First Bank Limited	Term Loan - Out-standing	0.01	_	0.01	Simple##
10	Kotak Mahindra Bank	Term Loan - Out-standing	3.67	_	3.67	Simple##
11	Kotak Mahindra Bank	vehicle loan - Out-standing	0.16	_	0.16	Simple##
12	Mercedes-Benz Financial Services	vehicle loan - Out-standing	0.84	_	0.84	Simple##
13	State Bank Of India (SBI)	GECL 2.0 - Out-standing	5.98	_	5.98	Simple##
14	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	_	0.00	Simple##
15	State Bank Of India (SBI)	Emergency Credit Line Guarantee Scheme (ECLGS) - Sanctioned	3.98	_	3.98	Simple##
16	State Bank Of India (SBI)	Cash Credit - Sanctioned	23.00	_	23.00	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned		(2.00)
	Sub-Limit (CEL ) - Sanctioned	(0.10)
17	TATA Motors Finance Limited	Dropline OD - Sanctioned	_	_	0.00	Simple##
18	TATA Motors Finance Limited	Term Loan - Out-standing	22.78	_	22.78	Simple##
Total			103.98	0.00	103.98
TOTAL (Rupees One Hundred Three Crores and Ninety Eight 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.