Eakansh Motors Pvt. Ltd.

Brickwork Ratings assigns the long-term and short-term ratings for the Bank Loan Facilities of Rs. 55.72 Crs. of Eakansh Motors Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	6.00	Long Term	BWR BBB /Stable Assignment
	49.72	Short Term	BWR A3 Assignment
Grand Total	55.72	(Rupees Fifty Five Crores and Seventy Two 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 (BWR) assigns long-term and short-term ratings of BWR BBB/Stable/A3 to the bank loan facilities of Eaknash Motors Private Limited, amounting to Rs. 55.72 crore. The ratings factor in the promoters’ extensive industry experience and expertise, the company’s strong relationship with its principal supplier M/s Maruti Suzuki India Limited (MSIL) its stable financial risk profile, improved operational performance, stable operating and PAT margins, adequate liquidity and healthy tangible net worth. The ratings are further supported by favorable demand conditions, MSIL’s strong market share and GST reforms.

However, the ratings are constrained by risks associated with the working capital–intensive nature of operations, geographical concentration risk, the company’s moderate scale of operations and intense competition from other passenger car brands—particularly from electric vehicle (EV) segment players such as Tata Motors Limited, Hyundai Motor India Limited and Mahindra & Mahindra Limited as well as the cyclicality, regulatory and macroeconomic risks inherent in the automobile industry.

The ratings could improve with positive factors such as enhancement in the scale of operations, leading to improved profitability (EBITDA and PAT margins), stronger satisfactory debt protection metrics, an improved debt servicing track record with strong liquidity and an improvement in tangible net worth (TNW), gearing ratio and current ratio. Conversely, the outlook may be revised to negative if there is a decline in the scale of operations, deterioration in operating margin profitability, or weakening of key financial indicators such as gearing (Total Debt/Tangible Net Worth), coverage ratios (ISCR and DSCR), or the current ratio falling below existing levels.

The stable outlook indicates a moderate likelihood of a rating change over the medium term due to promoters’ extensive industry experience and expertise, the company’s strong relationship with its principal supplier, Maruti Suzuki India Limited (MSIL), and its stable financial risk profile. BWR expects the company to enhance its scale of operations, improve profitability margins all of which could lead to a positive outlook. However, any significant underperformance in revenue, deterioration in profitability or liquidity challenges or working capital gap could result in a revision to a negative outlook.

 

KEY RATING DRIVERS

Credit Strengths:

• Extensive experience of the promoters and strong association with the principal supplier :

  The promoters possess over two decades of experience in the automobile dealership business, and their long-standing and healthy relationship with the principal supplier, Maruti Suzuki India Ltd. (MSIL; ‘CRISIL AAA/Stable/CRISIL A1+’), has enabled EMPL to steadily scale up its operations over the years. This is reflected in sustained revenue growth, with a CAGR of around 19–20% over the past two years, driven by strong sales of popular models such as Brezza, Grand Vitara, Fronx, Ertiga, Swift Dzire, and WagonR.

  The company recorded revenue of Rs.380 crore till January 2026 and expects to close FY26 at Rs. 440–445 crore, supported by higher demand during the second half of the fiscal, owing to the festive and marriage season. Sales volumes are expected to grow by around 10 to 12% YoY. Sustained revenue growth and steady profitability over the medium term will remain key monitorable.

  EMPL is an authorized dealer of Maruti Suzuki India Ltd., which provides access to MSIL’s wide product portfolio, including popular and upcoming models. The company also benefits from MSIL’s strong brand recognition and established market presence, which supports demand visibility and business stability.

• Stable and comfortable financial risk profile :

  The company exhibits a stable and comfortable financial risk profile, supported by consistent growth in operating income and a strengthening net worth. Total operating income recorded a 9–10% year-on-year growth, driven by higher sales of passenger vehicles, services, and other operating income. Revenue has demonstrated a sustained upward trend over the past three years, with a moderate growth of 31% in FY24 over FY23 and a strong three-year CAGR of around 20%, indicating scalable operations and improving business momentum.

  The tangible net worth (TNW) improved steadily from Rs. 27.59 crore in FY24 to Rs. 32.55 crore in FY25, supported by profit retention and accretion to reserves and surplus. While leverage increased, the debt–equity ratio stood at 1.54x in FY25, which remains manageable and commensurate with the scale of operations. Correspondingly, the TOL/TNW ratio stood at 1.74x in FY25.

  Liquidity remains comfortable, supported by a current ratio of 1.26x and a significant improvement in the quick ratio to 2.87x in FY25. Debt servicing ability is strong, as reflected by an adjusted interest service coverage ratio (ISCR) of 3.26x and a debt service coverage ratio (DSCR) of 2.95x in FY25, indicating adequate cash flow coverage for interest and principal repayment obligations, despite relatively modest cash balances against current liabilities.

• Favorable demand and macroeconomic outlook Supported by Maruti Suzuki’s market leadership and GST reforms :

  India’s strong macroeconomic fundamentals continue to support growth in the passenger vehicle segment. Robust GDP growth of around 6.5% in FY25, rising per-capita income (~US$2,600), and relatively stable fuel prices (~Rs.90–Rs.105/L) have improved consumer affordability and confidence. Additionally, accommodative interest rates (~5.25–5.5%) have reduced the cost of vehicle financing, while government measures such as the GST reduction on small cars from 28% to 18% have further enhanced affordability. Changing consumer preferences, including increased demand for personal mobility and higher-comfort models such as compact SUVs, have also contributed to sustained growth in four-wheeler sales across the country.

  Maruti Suzuki, the market leader in the passenger vehicle segment, continues to maintain a dominant market share of around 42–43%, supported by strong demand for its key models such as Brezza, Grand Vitara, Fronx, Ertiga, Swift Dzire, and WagonR. Domestic sales registered healthy growth of approximately 22% in Q3 FY26, reflecting sustained consumer demand and effective product positioning. The brand also achieved record retail sales during the festive season, with approximately 229,000 units sold in November 2025 alone, aided by improved affordability following GST rate reductions from 28% to 18% on select vehicle categories, along with increased availability of consumer financing options. Smaller cars, which constitute a core component of Maruti Suzuki’s product portfolio, have particularly benefited from the GST 2.0 reforms, resulting in higher showroom footfalls and improved conversion rates. Further, EMPL’s strategic focus on strengthening its rural presence through the establishment of multiple smaller ARENA outlets to cater to the rural population is expected to support incremental volume growth, enhance demand visibility, and provide stability to the dealership’s business profile.

  The EMPL has a long-standing and healthy relationship with the principal supplier for more than decade, Maruti Suzuki India Ltd. (MSIL; ‘CRISIL AAA/Stable/CRISIL A1+’), has enabled EMPL to steadily scale up its operations over the years. Maruti Suzuki, the market leader in the passenger vehicle segment, continues to maintain a dominant market share of around 42–43%, supported by strong demand for its key models such as Brezza, Grand Vitara, Fronx, Ertiga, Swift, Dzire, WagonR Alto and Baleno. 

Credit Risks:

• Moderate scale of operations and geographical concentration risk :

  Despite steady revenue growth from Rs. 285 crores in FY23 to Rs.407 crore in FY25, the company’s scale of operations remains moderate. The company has recorded revenue of Rs.380 crores till January 2026, and supported by sustained demand for MSIL vehicles, revenue is expected to improve to around Rs. 440 to Rs.445 crores in FY26, driven by an anticipated volume growth of 10–11%.

  EMPL operates multiple showrooms across Jind and Kaithal, including several Arena outlets catering to the rural population, along with two Nexa studios, which are expected to support growth over the medium term. However, the company currently has no plans to add new showrooms, resulting in geographical concentration of operations, which remains a key credit risk. Further, the company’s ability to sustain operating margins in the range of 2–4% while scaling operations will remain monitorable.

   

• Thin profitability margins in the auto dealership business, intense working capital requirements and highly competitive industry environment :

  Intense competition from dealers representing other leading automotive brands and dealers in India, including Tata Motors Ltd (CRISIL AA+/Stable/CRISIL A1+), Hyundai Motor India Ltd (CRISIL AAA/Stable/CRISIL A1+), Mahindra & Mahindra Ltd (ICRA AAA/Stable/ICRA A1+), Kia Motors, among others, is expected to continue constraining scalability, pricing power, and profitability. The principal manufacturers also face competitive pressure from other passenger vehicle and two-wheeler manufacturers, compelling them to undertake cost-rationalization measures such as reducing dealer commissions. Further, OEMs are increasingly appointing additional dealerships to enhance market penetration and sales volumes, which has intensified competition at the dealer level. This heightened competition, high working capital intensity, and dependence on a single OEM expose operating margins to volatility, as dealers are often required to offer higher discounts in a competitive market environment. Accordingly, EMPL’s ability to sustain operating margins in the range of 3–4% over the medium term remains monitorable. The business model is primarily centered on automobile dealerships, which are largely trading-oriented and operate with inherently thin margins. Additionally, dealers have limited bargaining power with principal manufacturers, as product margins are largely pre-determined, restricting the scope for generating incremental income. Moreover, the need for periodic incremental investments to upgrade dealership outlets in line with the principals’ branding and marketing strategies continues to exert pressure on dealership cash flows.

• Exposure to cyclicality, regulatory and macroeconomic risks :

  The company, by virtue of operating in the auto dealership industry, remains susceptible to risks arising from the cyclical nature of the automotive sector. The business is sensitive to macroeconomic uncertainties and monetary tightening measures, including higher interest rates, which can adversely impact vehicle demand. Further, the company is exposed to economic, regulatory, and legal risks prevalent in developing markets, such as the introduction of new taxes or increases in existing tax rates, volatility in fuel prices, and regulatory initiatives aimed at reducing carbon emissions, including the implementation of BS-VI (Bharat Stage VI) emission norms. Additionally, the ongoing shift in industry investments from internal combustion engine (ICE) vehicles to electric vehicles (EVs), along with evolving customer preferences, may affect demand dynamics. The automotive industry is influenced by overall economic growth, credit availability, and consumer confidence and is inherently vulnerable to economic cycles. Moreover, the sector is highly sensitive to interest rate movements and fuel price volatility, as fuel price increases raise vehicle operating costs, reduce consumers’ disposable income, and negatively influence purchasing decisions. The industry is also characterized by intense competition among multiple automobile brands, which further constrains business performance.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has applied its rating methodology as detailed in the Rating Criteria detailed below (hyperlinks provided at the end of this rationale). BWR has principally relied upon the standalone business and audited financials for the last three years up to FY25 & Projected financials up to FY26 & FY27 and clarification/information provided by the entity.

RATING SENSITIVITIES

The company’s ability to increase its scale of operations, improve profitability and margins, efficiently manage its working capital requirements with adequate liquidity and cash accruals, debt protection metrics and strengthen overall credit profile would be the key rating sensitivities.

Positive Rating Factors:

• The rating outlook may turn positive if the company achieves revenue from operations exceeding Rs.500 crore or at least 15% higher than the FY26 projected revenue, supported by improved profitability with EBITDA margins of above 5% and adequate cash accruals.
• A healthier debt profile, including Total Debt/TNW below 1.00x, TOL/TNW below 1.50x, debt protection metrics of DSCR above 2x and ISCR above 1.5x along with improved liquidity indicator of current ratio above current level.

Negative Rating Factors:

• The ratings may be negative if revenue declines below Rs.300 crores due to weaker demand or sales or if profitability weakens by decline in EBITDA margins below 3% and lower than expected cash accrual.
• A rising debt burden, accompanied by a decline in key ratios such as Total Debt to Tangible Net Worth (TOD/TNW) above 2x, Current Ratio (CR) below 1.00x, Interest Coverage Ratio (ISCR) below 1x, and Debt Service Coverage Ratio (DSCR) falling below 1.5x.

LIQUIDITY INDICATORS - Adequate

The liquidity position of EMPL remains adequate, with average working capital limit utilization at a moderate level of around 64%. The company reported net cash accruals of approximately Rs.7–8 crore, which are sufficient to cover the CPLTD of Rs.0.08 crore. Further, the EBITDA is adequate to service the interest and finance charges. The unutilized working capital limits provide additional liquidity cushion. The current ratio stood above unity at 1.26 times, and the working capital cycle remained optimal at 51 days as of FY25. Based on these factors, the company’s liquidity position is assessed as adequate.

ABOUT THE ENTITY

Eakansh Motors Pvt. Ltd. (EMPL) was incorporated in 2009 and is promoted by Mr. Satish Kumar Bansal and Mr. Pankaj Bansal. The company is an authorized dealer of Maruti Suzuki India Ltd., operating on a dealership-based business model through multiple ARENA and NEXA showrooms and service centers, and generates revenue from vehicle sales, after-sales services, and the sale of spare parts, lubricants, and accessories in Kaithal and Jind, Haryana.

The promoter directors, Mr. Satish Kumar Bansal and Mr. Pankaj Bansal are supported by other directors, Mr. Anoop Bansal and Mr. Eakansh Bansal.

ESG Profile

The company demonstrates an Adequate ESG profile based on its environmental, social, and governance practices.

Environmental: EMPL’s environmental risk exposure is limited and manageable, given its dealership-based operations. Energy consumption mainly arises from electricity usage at showrooms and service centres and fuel usage for vehicle movement, with efficiency measures such as energy-efficient equipment and optimized logistics in place. Waste generated from servicing activities—including used oil, batteries, tyres, and packaging material—is disposed of through authorized recyclers in compliance with environmental norms. Procurement and supply chain practices are aligned with MSIL standards, mitigating ESG risks through OEM oversight. Water usage is limited to servicing activities and is adequately controlled. The company remains compliant with applicable environmental regulations, with no reported material violations or penalties.

Social: EMPL’s social risk profile is supported by fair labour practices, including payment of statutory wages and benefits, safe working conditions, and adherence to standard operating procedures at service centers. Workplace safety is reinforced through regular training and use of protective equipment. The workforce is predominantly male (80%) reflecting industry norms, with growing female participation in sales and administrative roles (20%)., The company follows equal opportunity and non-discriminatory hiring practices. Employee capability is strengthened through MSIL-certified training programs covering product knowledge, servicing standards, and customer handling. Customer data and privacy are safeguarded through OEM systems, role-based access controls, and internal data protection measures.

Governance: EMPL’s governance framework is promoter-driven, with management having adequate experience in automobile dealership operations. Oversight of financial, operational, and market risks is appropriate for the company’s scale. Key risks relating to inventory, credit, operations, and regulatory compliance are managed through internal controls, OEM oversight, and lender monitoring. The company adheres to applicable dealership regulations, taxation laws, and MSIL-mandated compliance requirements. Ethical business practices are followed in line with MSIL’s code of conduct, with no reported adverse governance issues. Data security risks are mitigated through OEM-provided systems, access controls, and standardized IT practices. EMPL maintains regular engagement with key stakeholders, enabling timely resolution of operational, regulatory, and customer-related matters.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	286.76	373.36	407.59
EBITDA	Rs.Crs.	10.30	12.02	12.74
PAT	Rs.Crs.	4.99	5.23	4.96
Tangible Net Worth	Rs.Crs.	22.36	27.59	32.55
Total Debt / Tangible Net Worth	Times	0.93	1.33	1.54
Current Ratio	Times	1.23	1.26	1.26

KEY COVENANTS OF THE FACILITY RATED

• The terms of the sanction include standard covenants typically prescribed for such facilities.
• As per the sanction terms of HDFC Bank, the company is required to maintain a minimum Adjusted Tangible Net Worth (ATNW) of Rs.25 crore and a Total Outside Liabilities to ATNW (TOL/ATNW) ratio of less than 3.0 times, along with other standard financial covenants. The entity has complied with all the stipulated financial covenants as of FY25.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

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	6.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	49.72	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		55.72	(Rupees Fifty Five Crores and Seventy Two lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Services Sector
• Trading Companies

Analytical Contacts
Likith M S Rating Analyst likith.ms@brickworkratings.com	Suryanarayan N Associate Director - Ratings suryanarayan.n@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	Bank of Baroda	Over Draft - Sanctioned	_	14.40	14.40	Simple##
2	Bank of Baroda	Adhoc Facilities FB (CC/TL/OD) - Sanctioned	_	4.32	4.32	Simple##
3	HDFC Bank	Inventory Funding Facility - Sanctioned	_	31.00	31.00	Simple##
4	HDFC Bank	Cash Credit - Sanctioned	6.00	_	6.00	Simple##
Total			6.00	49.72	55.72
TOTAL (Rupees Fifty Five Crores and Seventy Two 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.