RATING RATIONALE
26Feb2026
Guru Nanak Agro Foods Pvt. Ltd.
Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 24.95 Crs. of Guru Nanak Agro Foods Pvt. Ltd.
Particulars| Facilities** | Amount(Rs.Crs.) | Tenure | Rating# | |
|---|---|---|---|---|
| Fund Based | 24.95 | Long Term |
BWR BB -
/Stable Assignment |
|
| Grand Total | 24.95 | (Rupees Twenty Four Crores and Ninety Five lakhs Only) | ||
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK
Brickwork Rating has assigned the long-term ratings for bank loan facilities of Rs 24.95 Cr of Guru Nanak Agro Foods Pvt. Ltd. at BWR BB-/Stable.
Brickwork Ratings (BWR) has assigned the ratings of Guru Nanak Agro Foods Pvt. Ltd. (the company) considering factors such as extensive promoter experience, nascent stage of operations, and established market position in frozen food products. However, the ratings are constrained by volatility in raw material prices and a high inventory holding period due to seasonality.
The outlook has been assigned as Stable as BWR believes that the company’s business and financial risk profile will be maintained over the medium term. The Stable outlook indicates a low likelihood of a rating change over the medium term.
For assigning the rating, BWR has relied on the audited financials for FY25, being the first year of operations, the projected financials for FY26 and FY27, and publicly available information and clarification provided by management.
KEY RATING DRIVERSCredit Strengths:
-
Extensive experience of the promoters :
The decade-long experience of the promoters in the agro-products business, their strong expertise and understanding of market dynamics, and healthy relationships with traders and farmers have ensured healthy utilization of the storage capacity and the company recorded sales of Rs 40 Crs up to 10 February 2026 and expects to achieve Rs 55 - 60 Crs for the full year. The promoters experience and industry relationships are expected to continue support the business risk profile going forward.
-
Established Market Position in Frozen Food Products :
The company operates in the agro-food processing sector, with a focus on manufacturing and marketing frozen food products, including green peas, mixed vegetables, broccoli, soya chaap, and sweet corn under the brand Vishvas Frozen. This segment benefits from growing consumer demand for convenience foods, which supports volume growth and revenue visibility over the medium term. The company’s established relationships with suppliers and distributors, coupled with its operational focus on storage and cold-chain management, enable efficient utilization of capacity and consistent product availability.
-
Nascent Stage of Operations :
The company commenced operations in March 2024 with an installed freezing capacity of 300 ton per day (TPD) and a storage capacity of 5,000 metric ton (MT). The procurement of raw peas is concentrated during the December -March period. The company reported a moderate scale of operations, with total operating income of Rs 8.52 Crs in FY25(Audited) during the three months from January to March 2025 sales. Revenue increased to Rs 40 Crs up to 10 February 2026 through a combination of in-house production, outsourced processing, and trading of frozen peas and other frozen vegetables. The company projects total revenue of Rs 55-60 Crs in FY26 (projected), reflecting a modest but growing scale of operations in its initial years.
-
Volatility in raw material prices :
The company's raw materials mainly comprise of agricultural produce like peas, Beans price of which are determined by the harvest during the season which are impacted by factors such as monsoons. The material costs are significant in the cost structure and has the potential to erode the operating margins in case of unfavorable weather conditions.
-
High Inventory Holding Period due to Seasonality :
The company operates within a short processing window owing to the seasonal procurement of raw peas during the December - March period. Peas is a staple commodity, and hence, demand for the same is largely uniform throughout the year. The company stocks up inventory of frozen peas in March for the subsequent eight-to-ten months. Therefore, the working capital requirement is seasonal in nature and peaks at the year-end before progressively declining in the subsequent months. While company has adequate sanctioned working capital limits to meet its high inventory requirement, it bears the price risk on this inventory without any hedging. Hence, liquidating the entire inventory stocked up in March during the off-season, when the prices are rising, is critical for protection from any price correction related inventory losses.
For arriving at its ratings, Brickwork Ratings has adopted a standalone approach and applied its rating methodology as detailed in the Rating criteria.
RATING SENSITIVITIES
Going forward, the ability of the company to increase its scale of operations, improve profitability, efficiently manage its working capital, and strengthen its overall credit profile would be the key rating sensitivities.
Upward:
- The company's Improvement in the scale of operations and profitability on a sustained basis, with the operating margin (OPM) rising above 12.20% and net margin (NPM) above 5.10%.
Downward:
- Deterioration in the scale of operations and if profitability weakens, with operating margin (OPM) falling below 9.20% and net margin (NPM) dropping under 3.50%.
Adequate liquidity profile of the company is marked by adequate net cash accruals of Rs 1.92 Crs, and Rs 5.17 Crs to cover the term repayment obligation of Rs.1.86 Crs and Rs 2.48 Crs in FY25 and FY26 and surplus will act as cushion for liquidity. Company has sanctioned a cash credit of Rs 15 Crs. The cash and bank balance stood at Rs 0.27 Crs as on March 31, 2025(Audited) and average utilization of working capital utilization was ~ 76.91% in the past 12 months, supported by the above unity current ratio.
ABOUT THE ENTITY| Macro Economic Indicator | Sector | Industry | Basic Industry |
|---|---|---|---|
| Fast Moving Consumer Goods | Fast Moving Consumer Goods | Agricultural Food & other Products | Other Agricultural Products |
Guru Nanak Agro Foods Pvt. Ltd. (GNAFPL) was promoted by Mr. Chanchal Kumar and Mr. Yash Pal in March 2024. The company is based in Samana, Punjab. The company engaged in the trading of fruits and vegetables, as well as food manufacturing and processing activities, including green peas, cauliflower, beans, sweet corn, and mixed varieties and other agricultural products. The company operates its own processing, packaging, and cold storage facilities located in Samana Punjab.
KEY FINANCIAL INDICATORS (Standalone)| Key Parameters | Units |
FY 23 - 24 (Audited) |
FY 24 - 25 (Audited) |
FY 25 - 26 (Unaudited - Others(9M FY26)) |
|---|---|---|---|---|
| Operating Revenue | Rs.Crs. | Not Available | 8.52 | 25.49 |
| EBITDA | Rs.Crs. | Not Available | 2.50 | 2.34 |
| PAT | Rs.Crs. | Not Available | 1.28 | 0.87 |
| Tangible Net Worth | Rs.Crs. | Not Available | 12.74 | Not Available |
| Total Debt / Tangible Net Worth | Times | Not Available | 2.76 | Not Available |
| Current Ratio | Times | Not Available | 1.17 | Not Available |
The terms of sanction include standard covenants normally stipulated for Bank loan facilities.
STATUS OF NON-COOPERATION WITH PREVIOUS CRA
Not Applicable
ANY OTHER INFORMATIONNot 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 | 24.95 |
BWR BB-/Stable
(Assignment) |
NA |
NA
|
NA |
NA
|
NA |
NA
|
| Grand Total | 24.95 | (Rupees Twenty Four Crores and Ninety Five lakhs Only) | |||||||
| Analytical Contacts | |
|---|---|
|
Md Saif Ali Khan Rating Analyst saifali.k@brickworkratings.com |
Ravi Rashmi Dhar Director - Ratings ravi.d@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 | Punjab & Sind Bank | Term LoanOut-standing | 1.77 | _ | 1.77 | Simple## |
| 2 | Punjab & Sind Bank | Term LoanOut-standing | 5.73 | _ | 5.73 | Simple## |
| 3 | Punjab & Sind Bank | Term LoanSanctioned | 2.45 | _ | 2.45 | Simple## |
| 4 | Punjab & Sind Bank | Cash CreditSanctioned | 15.00 | _ | 15.00 | Simple## |
| Total | 24.95 | 0.00 | 24.95 | |||
| TOTAL (Rupees Twenty Four Crores and Ninety 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.
| 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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