RATING RATIONALE

22Sep2025

Amrit Papers Pvt. Ltd.

Brickwork Ratings assigns the ratings of BWR BBB/Stable for the Long-term Bank Loan Facilities and BWR A3 for the Short-term Bank Loan Facilities of Rs. 174.16 Crs. of Amrit Papers Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	164.16	Long Term	BWR BBB /Stable Assignment
Non Fund Based	10.00	Short Term	BWR A3 Assignment
Grand Total	174.16	(Rupees One Hundred Seventy Four Crores and Sixteen 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 assigns the ratings of BWR BBB/Stable for the Long-term Bank Loan Facilities and BWR A3 for the Short-term Bank Loan Facilities of Rs. 174.16 Crs. of Amrit Papers Pvt. Ltd.

The ratings are primarily supported by the company's strong operational history, promoter-backed financial support, and an experienced management team. Furthermore, the company benefits from a growing scale of operations and profitability, supported by manufacturing activities. However, the rating is constrained by a moderate financial risk profile, geographical concentration risk, and a highly fragmented and competitive industry with volatile raw material prices.

BWR believes that the business risk profile of Amrit Papers Private Limited will be maintained over the medium term. The 'Stable' outlook indicates BWR's expectations that the company will sustain its growing scale of operations and profitability while improving its financial risk profile in the medium term.

KEY RATING DRIVERS

Credit Strengths:

Growing scale of operations and profitability, supported by manufacturing activities :
The company's operations significantly improved, with revenue increasing from Rs. 266 crore in FY23 to Rs. 598 crore in FY25. This growth was primarily driven by the addition of kraft paper manufacturing. The company also experienced a notable improvement in profitability; operating profit rose from Rs. 13 crore in FY23 to Rs. 43 crore in FY25. Furthermore, operating margins improved to a 7% range in FY25, up from the historical 4-5% range. FY25 marked the first full year of manufacturing operations. BWR anticipates further growth in both scale and profitability, driven by a greater contribution from manufacturing activities and implemented cost-saving initiatives. Although the company reported a net loss in FY24 due to increased depreciation and interest expenses related to manufacturing activities, cash profits remained positive for the period.
Moderate financial risk profile supported by promoter-backed financial support :
The company's financial risk profile is characterized by an improving net worth base (including USL), a moderate capital structure, and debt coverage metrics. Further, the promoters have consistently demonstrated their commitment to the company through unsecured loans, subordinated to bank borrowings, and preference shares. As of March 31, 2025, promoter support in the form of USL reached Rs. 80.97 crore, an increase from Rs. 60.5 crore (comprising USL and preference shares) as of March 31, 2023.
Although management reports maintaining the USL at a level of Rs. 75-80 crore in the future, Brickwork Ratings (BWR) has conservatively factored in the USL amounting to Rs. 50 crore. As of March 31, 2025, the Adjusted Total Debt/Total Net Worth ratio was 1.88 times, compared to 1.79 times in the previous year. Additionally, the adjusted Total Outside Liabilities/Total Net Worth ratio was 2.48 times, compared to 1.86 times in the previous year. The ISCR, however, improved to 1.73 times for FY25, from 0.93 times in the prior year.
Experienced promoters and long track record of operations :
Amrit Papers Private Limited (APPL), established in 1988 by Mr. Ravi Sethi and Mr. Manoj Bahety, possesses a well-established operational history. The company's daily operations are currently managed by directors Mr. Manoj Bahety, Mr. Shreyas Bahety, and Mr. Satish Dave, along with an experienced senior management team. The extensive presence of the promoters within the industry has facilitated the development of strong relationships with both customers and suppliers.

Credit Risks:

Highly fragmented and competitive industry, and volatile raw material prices :
The paper packaging industry is highly competitive in nature, stemming from organized and unorganized entities, which restricts manufacturers' pricing power and consequently impacts profitability. Amrit Paper primarily utilizes waste paper-based raw materials sourced from domestic markets as well as imports. The company's significant reliance on imported waste paper exposes it to potential supply chain disruptions and price volatility. However, the company mitigates this risk through long operational history, spanning over three decades, and the expertise of its experienced promoter groups.
Geographical concentration risk :
Amrit Papers’ operations are primarily concentrated in Madhya Pradesh, Maharashtra, Bihar, and Gujarat, with approximately 81% of the company's revenue originating from these four states. While the geographical concentration has decreased from 90% in FY24, the associated geographical risk remains elevated.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone approach for the Company. BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale). Further, BWR has taken support of the Unsecured Loan from the promoter and related parties, which remained subordinated to bank borrowings

RATING SENSITIVITIES

Positive sensitivity

Sustainable growth in the scale of operations with improvement in the operating profit margin beyond 10% on a sustained basis.
Effective management of working capital limits while maintaining adjusted TOL/TNW under 2 times on a sustained basis.

Negative sensitivity

Any decline in scale of operations and/or profitability leading to deterioration in liquidity and debt protection metrics.
Any material withdrawal of subordinated unsecured loans impacting the capital structure, leading to deterioration in debt protection metrics (adjusted TOL/TNW above 3.5 times) on a sustained basis

LIQUIDITY INDICATORS - Adequate

The company's liquidity position is supported by net cash accruals of Rs. 19.88 crore in FY25, with a projected increase to Rs. 24.09 crore in FY26. As of March 31, 2025, the company reported a cash and bank balance of Rs. 1.47 crore, against a term debt obligation of Rs. 16.08 crore for FY26. On the balance sheet date, the company's current ratio was 1.47 times, and the ISCR stood at 1.73 times. The average utilization of working capital limits for the last 12 months ending August 2025 was between 90% and 95%. Comfort is drawn from unsecured loans amounting to Rs. 80.96 crore, and the company's arrangements to avail ad hoc lines when required. Brickwork Ratings (BWR) anticipates an improvement in the company's operational performance due to the stabilization of manufacturing activities and various cost-saving measures. These factors are expected to further enhance the company's liquidity.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Commodities	Forest Materials	Paper, Forest & Jute Products	Paper & Paper Products

Amrit Papers Private Limited (formerly Amrit Agencies (Indore) Pvt Ltd.) was founded in 1995 by Mr. Ravi Sethi and Mr. Manoj Bahety to deal in paper products. The business began as a partnership in 1988 before becoming a private limited company. Currently, Mr. Manoj Bahety, Mr. Shreyas Bahety, and Mr. Satish Dave serve as directors.

Until FY24, the company primarily traded paper, including newsprint, writing paper, and photocopiers. Amrit Papers installed a kraft paper manufacturing unit at village Bodla, Dhar (MP), with an installed capacity of 125,625 MTPA. Commercial production commenced in June 2023.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Provisional - Annual)
Operating Revenue	Rs.Crs.	266.78	478.31	598.36
EBITDA	Rs.Crs.	13.32	19.86	43.27
PAT	Rs.Crs.	10.32	-13.08	1.57
Tangible Net Worth	Rs.Crs.	64.78	51.73	47.98
Total Debt / Tangible Net Worth	Times	2.86	4.49	4.88
Current Ratio	Times	1.96	1.30	1.47

KEY COVENANTS OF THE FACILITY RATED

Standard covenants as per the sanction letter.

Unsecured loans, which also form part of the promoter's contribution for the manufacturing unit, should not be repaid during the currency of the bank borrowing without prior permission from the bank

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	164.16	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	10.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		174.16	(Rupees One Hundred Seventy Four Crores and Sixteen lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Kanwalpreet Singh Ratings Analyst kanwalpreet.s@brickworkratings.com	Niraj Kumar Rathi Senior Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

Amrit Papers Pvt. Ltd.

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	Term Loan - Sanctioned	94.16	_	94.16	Simple##
2	Union Bank of India	Cash Credit - Sanctioned	70.00	_	70.00	Simple##
3	Union Bank of India	Bank Guarantee - Sanctioned	_	5.00	5.00	Simple##
4	Union Bank of India	Letter of Credit - Sanctioned	_	5.00	5.00	Simple##
Total			164.16	10.00	174.16
TOTAL (Rupees One Hundred Seventy Four Crores and Sixteen 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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