Vidya Prakashan Mandir Pvt. Ltd.

Brickwork Ratings has removed VPMPL from ISSUER NOTCOOPERATING and upgraded the long term rating and assigned the short term rating for the Bank Loan Facilities of Rs. 40.05 Crs. of Vidya Prakashan Mandir Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
	Previous	Present		Previous (23 Mar 2026)	Present
Fund Based	35.00	40.00	Long Term	BWR B+ /Stable Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed	BWR BBB - /Stable removal from ISSUER NOT COOPERATING* category/Upgraded
Non Fund Based	0.00	0.05	Short Term		BWR A3 Assignment
Grand Total	35.00	40.05	(Rupees Forty Crores and Five 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 removed Vidya Prakashan Mandir Private Limited from ISSUER NOTCOOPERATING category and has upgraded long-term rating to BWR BBB- (Stable) and assigned short-term rating  BWR A3 for the bank loan facilities worth Rs. 40.05 crore to  Vidya Prakashan Mandir Pvt. Ltd.

For assigning the ratings, BWR has relied upon the last three year combined financials till FY26 and Projected financials for FY27 and FY28 as well as publicly available information and clarification provided by the management.

Brickwork Ratings (BWR) has upgraded the ratings of SIPL considering factors such health profitability, as well as comfortable capital structure and adequate debt coverage metrics. Ratings also considers key credit strengths including the multi-generational domain experience of its promoters, a four-decade operational track record, established brand recall across CBSE and UP Board curricula, and a scaled manufacturing infrastructure of 125 printing machines producing ~4,000 titles annually. 

The ratings are, however, constrained by the entity's stagnant scale of operation as well as working capital intensive nature of operation.

The rating outlook has been assigned as "Stable" as BWR believes that Saanika Industries Private Limited 's business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

• Comfortable Capital Structure and Adequate Debt Coverage Metrics :

  VPMPL’s financial risk profile is underpinned by consistent accretion to reserves, with the Tangible Net Worth (TNW) improving sequentially from Rs. 53.31 Cr in FY23 to Rs. 62.40 Cr in FY26. Backed by this expanding net worth base, the capital structure has strengthened, as reflected in the Total Debt/TNW ratio improving from a peak of 0.85x in FY24 to a conservative 0.73x in FY26.

  Further, Debt servicing capabilities remain resilient, supported by healthy cash generation relative to debt obligations. The Interest Service Coverage Ratio (ISCR) stands comfortable at 2.82x in FY26 (following a moderate dip to 2.56x in FY25). Concurrently, the Debt Service Coverage Ratio (DSCR) remains strong and safe at 2.51x in FY26, providing a substantial cushion against short-to-medium-term debt obligations.

• Healthy Profitability :

  Despite macroeconomic variables and top-line fluctuations, the company has demonstrated solid pricing power and structural cost efficiencies. The Operating EBITDA margins have been maintained within a healthy double-digit band of 10.69% to 11.91% over the FY23–FY26 period, ensuring consistent core cash accruals. Concurrently, the Net Profit Margin (NPM) has tracked closely in line with operational performance, remaining stable within a band of 3.86% to 4.69% over the same timeframe (registering at 3.95% in FY26), highlighting the company's ability to successfully control interest and depreciation overheads to preserve bottom-line returns.

Credit Risks:

• Stagnant Scale of Operations :

  VPMPL's business profile faces constraints due to a range-bound top-line performance. Total Operating Income (TOI) exhibited volatility, declining from Rs. 81.34 Cr in FY24 to Rs. 75.27 Cr in FY25, followed by a marginal recovery to Rs. 76.09 Cr in FY26. This muted compound growth limits operating leverage advantages and indicates intense competition or market saturation in its primary segments.

• Working Capital Intensive Nature of Operations :

  VPMPL's business model is constrained by an inherently intensive working capital cycle, which has placed notable pressure on its cash flow dynamics. The Net Working Capital (NWC) cycle has remained significantly elongated, escalating from 351 days in FY24 to 411 days in FY26. This stretch is primarily driven by exceptionally long collection periods, with debtor days increasing from 276 days in FY24 to 317 days in FY26, indicating that a substantial portion of sales proceeds is locked up in receivables for nearly a year.

  Additionally, the company maintains a substantial buffer stock, resulting in elevated inventory holding periods averaging around 130 days. Given the limited leverage provided by trade payables, the funding requirements for this operational cycle are heavily reliant on short-term bank borrowings and internal accruals. 

ANALYTICAL APPROACH - Standalone

BWR has relied upon the standalone audited financials of Vidya Prakashan Mandir Private Limited, publicly available information and clarification/information provided by the Company. Further, to arrive at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria as per the hyperlinks.

RATING SENSITIVITIES

• Positive Triggers:

1. Sustained expansion in the scale of operations, with Total Operating Income (TOI) crossing Rs. 80.00 Cr, while restoring and maintaining operating EBITDA margins above 11% on standalone basis.
2. Efficient management of the working capital cycle by shortening collection periods and compressing the net operating cycle.

• Negative Triggers:

1. A decline in revenue below Rs. 70.00 Cr. as well as decline in overall profitability margins on standalone basis
2.  A sizeable stretch in the collection or inventory cycles, leading to higher utilization of working capital bank lines and weaker liquidity.
3. Any unplanned, additional debt-funded capital expenditure or unsecured debt withdrawal that pushes unadjusted Total Debt/TNW above 1.00x. 
4. Any spike in finance costs or operational slowdown that squeezes the ISCR below 2.25x or DSCR below 2.00x.

LIQUIDITY INDICATORS - Adequate

VPMPL’s liquidity position is adequate, supported by steady internal cash generation and a resilient short-term asset cover. The company's current ratio has exhibited a steady upward trajectory, expanding from 1.71x in FY23 to 1.79x in FY26, indicating a robust buffer of current assets relative to short-term obligations.

Internal cash flow visibility remains stable, with Net Cash Accruals (NCA) recorded at Rs. 5.53 Cr in FY24, Rs. 4.81 Cr in FY25 and recovering to Rs. 5.04 Cr in FY26. These accruals provide comfortable coverage against the company's scheduled long-term debt repayment obligations, as further reflected by a safe Debt Service Coverage Ratio (DSCR) of 2.51x in FY26.

The company's core debt payback capacity relative to annual cash generation is moderate, with the Net Cash Accruals to Total Debt ratio standing at 0.11x in FY26 (shifting from 0.11x in FY24 and 0.10x in FY25). This indicates a stable capability to service aggregate liabilities out of operational cash over time.

However, overall liquidity remains partially constrained by high working capital intensity, as an elongated cash conversion cycle locks substantial operational cash into trade receivables and inventory. Consequently, maintaining unutilized working capital bank lines and ensuring timely collections will continue to be critical factors in sustaining its liquidity buffer over the medium term.

ABOUT THE ENTITY

Vidya Prakashan Mandir Pvt. Ltd is an Educational Publishing Enterprise located at Vidya Industrial State, Baghpat Road Meerut (UP), India. Established by Late Sh. Sukhbir Singh Jain in the Year 1979, which was later in 1995 incorporated as a Private limited company. Currently, Mr. Surendra Kumar Jain is the Chairman and Mr. Saurabh Jain is the MD of the company. The Enterprise, in its journey of four decades, has been engaged in publishing Quality School books, question banks, and textbooks for CBSE Board and professional courses. it has 125 machines engaged in printing. Output of Enterprise is nearly 4000 Book Titles every year.

ESG Profile

The entity demonstrates a Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share, and emissions levels particularly important.

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, safety performance , and training initiatives offering insights into operational resilience.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.

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.	81.34	75.27	76.09
EBITDA	Rs.Crs.	9.69	8.27	8.13
PAT	Rs.Crs.	3.14	2.95	3.00
Tangible Net Worth	Rs.Crs.	56.44	59.39	62.40
Total Debt / Tangible Net Worth	Times	0.85	0.81	0.73
Current Ratio	Times	1.68	1.73	1.79

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

Not Applicable

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

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	40.00	BWR BBB-/Stable (removal from ISSUER NOT COOPERATING* category/Upgraded)	23Mar2026	BWR B+ Stable (Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)	26Mar2025	BWR B+ Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	24Jan2024	BWR BB- Stable (Continues to be in ISSUER NOT COOPERATING* category/Downgraded)	NA	NA
Non Fund Based	ST	0.05	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA	NA	NA
Grand Total		40.05	(Rupees Forty Crores and Five lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Short Term Debt
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Tripathi Deep GopalKumar Ratings Analyst deep.tripathi@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	Punjab National Bank	Cash Credit - Sanctioned	40.00	_	40.00	Simple##
2	Punjab National Bank	Bank Guarantee - Sanctioned	_	0.05	0.05	Simple##
Total			40.00	0.05	40.05
TOTAL (Rupees Forty Crores and Five 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.