RATING RATIONALE
23Jul2026
Arihant Computers
Brickwork Ratings has reaffirmed the long-term rating of BWR BB/Stable for the bank loan facilities of Arihant Computers and has simultaneously removed the rating from the 'Issuer Not Cooperating' (INC) category.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (17 Jul 2026) |
Present | ||
| Fund Based | 35.00 | 35.00 | Long Term |
BWR BB /Stable
ISSUER NOT COOPERATING* /Reaffirmation |
BWR BB
/Stable Reaffirmation and Removed from the ISSUER NOT COOPERATING* category |
| Grand Total | 35.00 | 35.00 | (Rupees Thirty Five Crores Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
RATING ACTION / OUTLOOK
Brickwork Ratings has reaffirmed the long-term rating of BWR BB/Stable for the bank loan facilities of Arihant Computers, aggregating to Rs. 35.00 crore, and has simultaneously removed the rating from the 'Issuer Not Cooperating' (INC) category.
Brickwork Ratings (BWR) had earlier migrated the ratings of Arihant Computers to the 'Issuer Not Cooperating' category due to the non-receipt of monthly No Default Statements (NDS) on a timely basis as part of its ongoing surveillance process. Subsequently, the entity has submitted the requisite monthly No Default Statements (NDS). Accordingly, in compliance with extant SEBI guidelines, BWR has reaffirmed the rating at BWR BB/Stable and removed the rating from the 'ISSUER NOT COOPERATING' category.
The Stable Outlook reflects Brickwork Ratings’ expectation that the firm's business and financial risk profile will remain steady over the medium term, supported by improving operational efficiency and stable demand conditions.
The rating is based on the audited financial statements for FY23, FY24, and FY25, projected financials for FY26 and FY27, along with publicly available information and management clarifications.
KEY RATING DRIVERS
Credit Strengths:
-
Consistent Growth in Scale of Operations :
The company has shown a significant upward trajectory in revenue. The Total Operating Income (TOI) grew by 44.5% in FY24 (Rs. 180.34 Cr) and continued to expand to Rs. 210.35 Cr in FY25. This growth is driven by increasing demand from existing clients and successful new customer acquisition.
-
Established export presence supporting revenue diversification :
The company derives a sizeable portion of its revenue from exports, primarily concentrated in Hong Kong, which acts as a key global trading hub. Being a net exporter, the company benefits from steady foreign exchange inflows, which provide support to liquidity and margins, particularly in periods of favorable currency movements. The presence in established international markets also reflects the company’s ability to manage export operations and diversify its revenue profile.
-
Lean profitability margins constrained by intense industry competition :
The firm operates in a highly fragmented and competitive IT hardware trading industry, marked by the presence of large established players as well as numerous smaller participants. This limits pricing flexibility and keeps margins under pressure.
Profitability remains squeezed and largely volume-driven, indicating limited ability to absorb cost fluctuations.
-
Risks associated with partnership constitution :
The firm’s partnership structure entails exposure to potential capital withdrawals by partners, which may impact its capital structure and financial flexibility. Additionally, the firm’s financial profile remains linked to the partners’ financial strength.
For arriving at its ratings, BWR has considered the standalone performance of Arihant Computers. BWR has applied its rating methodology as detailed in the Rating Criteria.
RATING SENSITIVITIES
Positive:
- Growth in total operating income above 20% from FY26 levels, while maintaining PAT margin above 1%.
- Improvement in the Total Debt/TNW ratio to below 2.0 times.
Negative:
- Decline in revenue growth falling below 25%, or a moderation in profitability with PAT margin falling below 0.80%.
- Weakening of liquidity profile, reflected in the Current Ratio below 1.1x.
The liquidity position remained stretched, as reflected in a moderate current ratio and high utilisation of working capital limits. The firm generated cash accruals of Rs. 1.72 crore in FY25 against repayment obligations (CPLTD) of Rs. 0.70 crore, resulting in adequate debt coverage with DSCR of 1.38 times and ISCR of 1.25 times.
Going forward, the projected gross cash accruals of around Rs. 2.66 crore are expected to remain sufficient to meet the repayment obligation of Rs. 0.70 crore in FY26.
The current ratio stood at 1.17 times as on March 31, 2025. The utilisation of the working capital limits remained high, with the average utilisation at 94.15% during the past 12 months ended February 2025. Cash and bank balance remained low at Rs. 0.08 crore as on March 31, 2025.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Services | Services | Commercial Services & Supplies | Trading & Distributors |
Established in 1998, Arihant Computers is a Pune-based partnership firm promoted by Mr. Kamlesh Firodiya and Mrs. Sujata Firodiya, holding equal ownership.
The firm is engaged in the trading and distribution of computer components and peripherals of reputed brands such as Intel, Corsair, and TP-Link. Over the years, it has expanded its product portfolio to include gaming computers, desktop peripherals, laptops, desktops, servers, mini PCs, networking products, and digital peripherals.
ESG ProfileNA
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 22 - 23 (Audited - Annual) |
FY 23 - 24 (Audited - Annual) |
FY 24 - 25 (Audited - Annual) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | 124.78 | 180.20 | 210.35 |
| EBITDA | Rs.Crs. | 2.67 | 4.26 | 3.82 |
| PAT | Rs.Crs. | 0.83 | 1.44 | 1.71 |
| Tangible Net Worth | Rs.Crs. | 10.03 | 10.62 | 12.64 |
| Total Debt / Tangible Net Worth | Times | 2.93 | 3.63 | 2.95 |
| Current Ratio | Times | 1.50 | 1.30 | 1.17 |
The sanctioned facilities are subject to standard covenants normally stipulated by banks for such facilities.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
| Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
|---|---|---|
| CARE | CARE Ratings migrated the rating to the INC category at "CARE BB-/Stable; Issuer Not Cooperating" for the bank facilities amounting to Rs. 35 crore of Arihant Computers, vide press release dated December 16, 2025. | 16Dec2025 |
| Facilities | Current Rating (2026) | 2026 (History) | 2025 | 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 35.00 |
BWR BB/Stable
(Reaffirmation and Removed from the ISSUER NOT COOPERATING* category) |
03Apr2026 |
BWR BBStable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| 0.00 |
NA
|
17Jul2026 |
BWR BB Stable
(ISSUER NOT COOPERATING* /Reaffirmation) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
||
| Grand Total | 35.00 | (Rupees Thirty Five Crores Only) | |||||||||
| 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 | Federal Bank | Cash CreditSanctioned | 35.00 | _ | 35.00 | Simple## |
| Total | 35.00 | 0.00 | 35.00 | |||
| TOTAL (Rupees Thirty Five 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.
| Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
|---|---|---|---|---|---|---|
| Nil | Nil | Nil | Nil | Nil | Nil | Nil |
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Nil | Nil | Nil | Nil |
| Instrument / Activity | Regulator |
|---|---|
| Listed/Proposed to be listed bonds/debentures/preference share (all securities) | SEBI |
| Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities) | MCA |
Listed PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| SEBI | |
Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| SEBI | |
Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI) 1| RBI | |
| Listed Commercial Paper and NCDs with original maturity less than 1 year | RBI |
| Unlisted Commercial Paper and NCDs with original maturity less than 1 year | RBI |
Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/FIs 2| RBI | |
| External Commercial Borrowings and other similar borrowings | RBI |
| Certificates of Deposit | RBI |
| Fixed Deposits raised by NBFC's, Banks, HFCs, Fis | RBI |
| Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, Fis | MCA |
| Inter Corporate Deposits/Loans extended by Corporates | MCA |
Borrowing programme 3| - | |
Issuer Ratings 4| - | |
| Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs) | SEBI |
| Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs | SEBI |
| Listed Security Receipts | SEBI |
| Unlisted Security Receipts | RBI |
| Independent Credit Evaluation (ICE) | RBI |
| Expected Loss Ratings (for Loan Facilities (Fund/Non-Fund Based) from Bank/NBFCs/NHB/Fis) | RBI |
| Expected Loss Ratings (Listed/Proposed to be listed bonds/debentures/preference share (all securities)) | SEBI |
| Expected Loss Ratings (Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)) | MCA |
Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) 1| Investor-side Regulator | such as IRDAI, PFRDA 5 |
| Monitoring Agency | SEBI |
| Research activities, incidental to rating, such as research for Economy, Industries and Companies 6 | NA |
- Includes securitisation transactions involving assignee payout, acquirer's payout.
- Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
- The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), BWR shall separately capture the rated quantum details along with names of respective regulators.
- There is no instrument being rated and hence, Regulator of the Instrument is not applicable.
- These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026, and accordingly, investor side regulators have been included.
- Permitted by SEBI vide SEBI Master Circular for CRAs
For any grievances relating to rating of instruments regulated by other FSR (Financial Sector Regulators), please contact grievance@brickworkratings.com.
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