Brickwork Ratings assigns the long-term rating for the Bank Loan Facilities of Rs. 90.48 Crs. of Supreme Agro Foods Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 81.26 | Long Term |
BWR BBB +
/Stable Assignment |
|
| (25.00) | ||||
| Non Fund Based | 9.22 | Long Term |
BWR BBB +
/Stable Assignment |
|
| (10.00) | ||||
| Grand Total | 90.48 | (Rupees Ninety Crores and Forty Eight lakhs Only) | ||
Brickwork Ratings has assigned a long-term rating of BWR BBB+/Stable to the bank loan facilities of Rs. 90.48 Crs. The rating draws strength from the vast business experience of the promoters, a healthy scale of operations and adequate liquidity. However, the ratings are constrained by the risk associated with exposure to intense competition and limited bargaining power with the distributors and agents.
BWR believes that the business risk profile of Supreme Agro Foods Pvt. Ltd. will be maintained over the medium term. The long-term rating has been assigned a ‘Stable’ outlook as the business risk profile of the company is stable and its present financial performance is expected to be maintained in the medium term. The rating outlook may be revised to 'Positive' in case there is an improvement in revenues and profit margins on a sustained basis. The rating outlook may be revised to 'Negative' if there is any deterioration in the financial risk profile or liquidity issues.
Brickwork Ratings (BWR) has essentially relied upon the audited financial statements of the company up to FY25, projected financials for FY26 and FY27, as well as information/clarifications provided by the company’s management and its bankers, to arrive at the present rating.
KEY RATING DRIVERSCredit Strengths:
The promoters have around three decades of experience in the specialties industry; their strong understanding of market dynamics and healthy relationships with suppliers and customers should support the business.
The financial profile should remain supported by low debt and steady accretion to reserve. Networth stood comfortably at Rs 128.48 crore as on March 31, 2025.TOL to Tangible Net Worth at 0.87 times. Debt protection metrics were comfortable, with interest coverage ratio of 7.12 times and net cash accrual to total debt ratio of 0.21 times for fiscal 2025.
Dairy industry is the most fragmented and intense competition along with the perishable nature of end products continue to constrain scalability, pricing power and profitability. Ability of the company to scale up volumetric sales, while sustaining operating efficiency, will remain a key monitorable.
Scale of operations reduced to Rs 369.10 crore in FY25, against Rs 381.28 in FY24 crore in the previous fiscal marked by stable demand and high competition in the fragmented industry.
For arriving at its ratings, BWR has considered a standalone financials of the company and applied its rating methodology as detailed in the Rating Criteria.
RATING SENSITIVITIES
Positive:
The rating may be upgraded if the company demonstrates substantial and sustained growth in revenue of Rs. 50.0 crores and operating margins, supported by a well-diversified sales portfolio. Additionally, a consistent trend of net cash accruals and a reduction in leverage would support a positive rating action.
Negative:
The rating may be downgraded if there is a delay in the debt repayment, a deterioration in operational scale, or a weakening of credit metrics, liquidity position, or revenue visibility.
LIQUIDITY INDICATORS - Adequate
The company's liquidity position is adequate as reflected by EBITDA and net cash accruals which adequately covers the debt obligation. The current ratio of the company is adequate as well.
| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Food Products | Dairy Products |
The Company was incorporated in 1995 by Mr. Kulwant Singh the Managing Director of the Company who has been engaged in the dairy business for almost three decades. The other Directors of the company include Mr. Ashwani Dhar, who has experience of 40 years in the food processing industry and Mr. Jaspreet Singh who has experience of 10 years in the food processing industry. Supreme Agro Foods Pvt. Ltd. is engaged in the processing and selling of packaged milk and various milk products like butter, ghee, curd, ultra-high temperature processed milk etc. The Company has established a procurement network of milk, and it procures milk from farmers and procurement of milk from contractors to ensure the quality of milk.
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. | 350.69 | 381.28 | 369.10 |
| EBITDA | Rs.Crs. | 23.31 | 25.57 | 25.77 |
| PAT | Rs.Crs. | 12.33 | 10.35 | 10.85 |
| Tangible Net Worth | Rs.Crs. | 107.24 | 117.59 | 128.44 |
| Total Debt / Tangible Net Worth | Times | 0.67 | 0.55 | 0.66 |
| Current Ratio | Times | 1.98 | 2.12 | 2.00 |
The terms of sanction include standard covenants normally stipulated for such facilities
| Creadit Rating Agency | Status and Reason for Non-Cooparation | Date of Press Release |
|---|---|---|
| CARE | CARE ratings classified the ratings as 'non-cooperative' as the issuer did not provide the requisite information needed to conduct the rating exercise. | 06Jan2026 |
Not Applicable
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 | 81.26 |
BWR BBB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| FB SubLimit | LT | (25.00) |
BWR BBB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Non Fund Based | LT | 9.22 |
BWR BBB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| NFB SubLimit | LT | (10.00) |
BWR BBB+/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 90.48 | (Rupees Ninety Crores and Forty Eight lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Harshit Rastogi Ratings Analyst harshit.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 | Axis Bank Ltd. | Cash CreditSanctioned | 25.00 | _ | 25.00 | Simple## |
| Sub-Limit (LC) Sanctioned | (10.00) | |||||
| Sub-Limit (WCDL) Sanctioned | (25.00) | |||||
| 2 | Axis Bank Ltd. | Term LoanSanctioned | 7.01 | _ | 7.01 | Simple## |
| 3 | HDFC Bank | Cash CreditSanctioned | 15.00 | _ | 15.00 | Simple## |
| 4 | State Bank Of India (SBI) | Standby Line of Credit - EPCSanctioned | 3.50 | _ | 3.50 | Simple## |
| 5 | State Bank Of India (SBI) | Term LoanSanctioned | 4.25 | _ | 4.25 | Simple## |
| 6 | State Bank Of India (SBI) | Cash CreditSanctioned | 26.50 | _ | 26.50 | Simple## |
| 7 | Un tied portion | Proposed loanProposed | 9.22 | _ | 9.22 | Simple## |
| Total | 90.48 | 0.00 | 90.48 | |||
| TOTAL (Rupees Ninety Crores and Forty 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.
| 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 |
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