SHRIKESHARIYA AGRO FOODS PRIVATE LIMITED

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 70.71 Crs. of SHRIKESHARIYA AGRO FOODS PRIVATE LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	70.71	Long Term	BWR BB + /Stable Assignment
Grand Total	70.71	(Rupees Seventy Crores and Seventy One 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

BWR has assigned the long-term rating of BWR BB+/Stable for the bank loan facilities of SHRIKESHARIYA AGRO FOODS PRIVATE LIMITED.

The rating draws strength from the extensive experience of the promoters in agricultural commodity sourcing, storage, understanding of price cycles, and established distribution networks, along with the significant growth in scale of operations, locational advantage in a key raw material–producing region, and strong warehousing infrastructure, which supports efficient procurement and inventory management. The rating also factors in the company’s adequate liquidity profile, marked by sufficient cash accruals to meet debt servicing obligations. However, the rating is constrained by the company’s exposure to raw material price volatility, which can materially impact margins and cash flows in the absence of full cost pass-through, the working-capital-intensive nature of operations reflected in high inventory requirements, and thin profitability margins inherent to the commodity-based agro-processing business.

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. BWR believes SHRIKESHARIYA AGRO FOODS PRIVATE LIMITED’s business and financial risk profile will be maintained over the medium term. The outlook may be revised to ‘Positive’ if there is a sustained improvement in the scale of operations and profitability, leading to stronger cash accruals, improved leverage, and better debt-protection metrics. The outlook may be revised to Negative in case of lower-than-expected revenues or profitability, deterioration in liquidity, or any stress in servicing interest and principal obligations.

KEY RATING DRIVERS

Credit Strengths:

• Experienced Promoters :

  The company is promoted by Mr. Prashant Rai (44 years) and Mr. Ramesh Rai (77 years), both directors of the company. Mr. Prashant Rai is a graduate with around 20 years of experience in food grain trading, warehousing, and agro-commodity operations and is also the proprietor of Riot Traders, while Mr. Ramesh Rai is a graduate with about 40 years of experience in agri-trading and related businesses, providing strategic guidance to the company. The promoters have strong understanding of agricultural commodity sourcing, storage, price cycles, and distribution networks and maintain long-standing relationships with mandis, government procurement agencies (NAFED/MAFER), and wholesalers, which has supported the company’s stable operations and growth in the dal milling business.

• Robust growth in the scale of Operations :

  Shrikeshariya Agro Foods Private Limited has witnessed strong growth in its scale of operations over the past few years. The company reported operating income of Rs.181 crore in FY25, and is expected to reach approximately Rs.200 crore in FY26. The company currently operates with an installed dal milling capacity of 8 TPH, which is under expansion to 12 TPH with the commissioning of a new unit. The enhanced capacity is expected to further support growth in production volumes and revenues from the next financial year.

• Locational Advantage and Strong Warehousing Infrastructure :

  The company’s manufacturing units are strategically located in Madhya Pradesh, one of India’s major moong-producing regions, which ensures easy and cost-effective availability of raw materials and reduces transportation risk and cost. In addition, the promoters have developed strong warehousing infrastructure with more than five warehouses, each having a storage capacity of around 5,000 MT, located at key trading centers. This enables efficient procurement during peak seasons, better inventory management, and operational flexibility, thereby supporting uninterrupted production and timely fulfillment of customer demand.

Credit Risks:

• Exposure to volatility in raw material prices and availability :

  The company’s operations are exposed to volatility in raw material prices and availability, as moong procurement depends largely on agricultural output, weather conditions, and seasonal arrivals in mandis and government auctions. Any adverse movement in prices or supply disruption could impact operating margins and production continuity. Dependence on commission agents for sales, which reduces direct market reach and may impact margins.

• Working-capital-intensive operations :

  The company’s operations are working-capital intensive due to the need to procure raw materials in bulk during peak seasons and maintain adequate inventory to ensure uninterrupted production. This results in higher dependence on bank working capital limits and elevated short-term borrowings, which may impact liquidity during periods of sharp price movements or slower receivables collection.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of the company. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Going forward, the ability of the company to improve its scale of operations, profitability margins, overall credit risk profile and efficiently manage its working capital requirement would be the key rating sensitivity.

Positive Triggers:

• A significant improvement in the scale of operations, operating margins of over 10% and net margin of over 3% on a sustained basis.
• DSCR consistently above 2x would reflect improved debt servicing capability, while a reduction in Total Debt/TNW below 1.5x would indicate lower leverage dependency.

Negative Triggers:

• Any deterioration in working capital cycle, resulting in higher reliance on short-term borrowings and further weakening of liquidity (current ratio below 1.1x), could adversely affect the credit profile.
• A Rating downgrade may be triggered by an inability to achieve the projected revenue and profit growth, with operating margins dropping below 3%. A decline in DSCR below 1.2x for an extended period would signal stress in debt repayment capacity.

LIQUIDITY INDICATORS - Adequate

The company’s liquidity profile remains adequate, supported by moderate internal cash accruals and continued promoter support. The net cash accrual for FY25 stood at about Rs.4.15 crore against CPLTD of around Rs.2.00 crore, indicating adequate coverage of scheduled term loan repayments. The company is expected to generate cash accruals of around Rs.5.67 crore in FY26, which is sufficient to cover the projected CPLTD of about Rs.3.42 crore, reflecting satisfactory debt servicing capability. The current ratio remained moderate at 1.19 times in FY25 and is projected to improve to about 1.26 times in FY26. Further comfort is derived from the presence of unsecured loans from promoters, treated as quasi-equity, which provide financial flexibility. However, the liquidity profile is partly constrained by high reliance on working capital borrowings, as reflected in elevated short-term debt levels, indicating continued dependence on bank limits to support operations. The average working capital utilization of around 80%.

ABOUT THE ENTITY

Shrikeshariya Agro Foods Private Limited is a private limited company incorporated in 2020 under the Companies Act, 2013 and registered with the Ministry of Corporate Affairs, Government of India. The company is engaged in the dal milling business, primarily processing moong into finished products such as Moong Mirchilka and Moong Mogar (moong split/dal), which are finished goods and account for 90 to 91% of the output. The byproduct, Chunibusi, is used as cattle feed and constitutes about 8% of the product, with the remaining 1-2% being shortage dependent on the raw material.

It currently operates two dal milling units with an aggregate capacity of 8 TPH and is in the process of commissioning an additional 4 TPH unit, which will increase total capacity to 12 TPH from March 2026.

Shrikeshariya Agro Foods procures raw materials through government agencies such as NAFED and MAFER as well as from mandis in Madhya Pradesh. Its products are sold mainly through wholesalers and commission agents across domestic markets. The company also benefits from strong warehousing infrastructure and government support in the form of capital subsidies for food processing units, aiding its operational scale-up and growth.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	Not Available	37.64	181.16
EBITDA	Rs.Crs.	Not Available	2.96	7.22
PAT	Rs.Crs.	Not Available	0.82	1.63
Tangible Net Worth	Rs.Crs.	4.36	7.63	13.91
Total Debt / Tangible Net Worth	Times	1.38	2.86	2.48
Current Ratio	Times	30.33	1.21	1.39

KEY COVENANTS OF THE FACILITY RATED

• The terms of sanction include standard covenants normally stipulated for such facilities.
• Unsecured loans are subordinated to the Bank's exposure and not to be paid during the currency of the bank term loan.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR LAST 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	70.71	BWR BB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		70.71	(Rupees Seventy Crores and Seventy One lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Company

Analytical Contacts
Chinmaya R Rating Analyst chinmaya.r@brickworkratings.com	Nitika Srivastava Associate Director Ratings nitika.s@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.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	Central Bank of India	Cash Credit (WHR) - Sanctioned	20.00	_	20.00	Simple##
2	Punjab National Bank	Term Loan - Out-standing	7.80	_	7.80	Simple##
3	Punjab National Bank	Term Loan - Out-standing	8.50	_	8.50	Simple##
4	Punjab National Bank	Term Loan - Out-standing	1.41	_	1.41	Simple##
5	Punjab National Bank	Cash Credit - Sanctioned	33.00	_	33.00	Simple##
Total			70.71	0.00	70.71
TOTAL (Rupees Seventy Crores and Seventy One 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.