RATING RATIONALE

18Mar2026

GEO GRES TILES LLP

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 92.00 Crs. of GEO GRES TILES LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	86.50	Long Term	BWR BB + /Stable Assignment
Non Fund Based	5.50	Short Term	BWR A4 + Assignment
Grand Total	92.00	(Rupees Ninety Two Crores 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 has assigned a long-term and short-term rating of BWR BB+/Stable/A4+ for the bank loan facilities of Geo Gres Tiles LLP.

The rating factors in the company’s consistent revenue growth, the extensive experience of its directors, and its moderate financial profile. However, it remains constrained by exposure to intense competition, the inherent risk of rapid technological changes, and exposure to raw material price fluctuations that could impact cost structures. Going forward, the ability of the company to improve its scale of operations, the operating margin, and prudently manage its debt and inventory would be the key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Geo Gres Tiles LLP's business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term, The rating outlook may be revised to 'Positive' in case the revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Experienced Promoters :
The company is led by experienced partners, including Mr. Laljibhai A. Savsani (aged 62), who holds a B.Sc. degree and has 35 years of industry experience, Mr. Darshankumar T. Sanghani (aged 51), who holds an M.Sc. degree and has 25 years of experience and Mr. Parth A. Patel (aged 40), who holds a B.E. degree and has 14 years of industry experience. All the partners have strong business relationships with dealers and well-established marketing networks for the company’s products.
Established Ceramic Hub :
Morbi is known as the ceramic capital of India with nearly 1,000 ceramic units. The strong industrial network ensures easy availability of raw materials, suppliers, and services, which improves efficiency and reduces operational issues.
Moderate financial profile :
The company has reported Rs.69.73 Cr of operating income, Rs.0.46 Cr of PAT in FY25 and the adjusted net worth of the company stood at Rs.26.79 Cr. The Total Debt/ TNW ratio stood at 1.40 times and the TOL/TNW ratio stood at 1.25 times in FY25. The current ratio of the company is 1.27x, indicating an adequate short-term liquidity position..

Credit Risks:

Overcapacity Risk :
There have been significant capacity additions in recent years. If the real estate market does not improve, excess supply may lead to lower prices, reduced margins, and pressure on liquidity. Sustained overcapacity may also strain liquidity, as companies may struggle to pass on costs and maintain adequate cash flows.
Fuel and Power Cost Risk :
Tile manufacturing is highly energy-intensive, as kilns operate a very high temperatures using gas, electricity or coal. Any increase in fuel prices can significantly raise production costs and reduce profitability. Recent disruptions in fuel supply have even forced some ceramic units to halt operations due to lack of propane or natural gas.

ANALYTICAL APPROACH - Standalone

The Company has no subsidiary, associate or joint ventures. BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

Going forward, the company’s ability to improve its revenue profile and strengthen its financial risk profile will remain the key rating sensitivities.

Positive:.

Improvement in operating income by 40%, with operating margins sustaining above 10%, along with enhanced cash accruals.
Maintaining DSCR and Current ratio at a satisfactory level with an improvement.

Negative:

A decline of 5% or more in revenue, with EBITDA margin falling below 5%.
Decline in the DSCR below the current levels.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by a sufficient cushion in accruals vis-a-vis repayment obligations and a moderate cash balance of Rs. 0.66 Crore. Its capex requirements are modular and expected to be funded using debt of Rs. 54.00 Crore for which it has sufficient headroom. Its bank limits are utilized to the extent of 85% and has sought enhancement in bank lines, supported by the above unity current ratio.

The company has reported net cash accruals of Rs.2.90 Cr against a CPLTD of Rs.3.62 Cr in FY2025. However, the partners have sufficient networth of Rs.53.79 Cr to cover their debt obligations incase any shortage of funds. For FY2026, net cash accruals are expected to increase to Rs. 6.13 Cr, with a projected CPLTD of Rs. 3.72 Cr. The company has Rs.23.83 Cr of adjusted TNW. As of FY2025, the company has a Cash and Bank Balance of Rs.0.66 Cr and Short Term Loans and Advances of Rs.2.02 Cr in FY2025. The current ratio of the company stands at 1.27 times, indicating sufficient short-term liquidity, and it is expected to improve to 1.35 times in FY2026.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Consumer Durables	Consumer Durables	Ceramics

Geo Gres Tiles LLP is a professionally managed Limited Liability Partnership established on 15th November 2016, with its manufacturing base located in Morbi, Gujarat. The company is engaged in the manufacturing and trading of premium-quality slab-size Ceramic Polished Glazed Vitrified (PGVT) tiles.

The partners of the company are Mr. Laljibhai A. Savsani, Mr. Darshankumar T. Sanghani, and Mr. Parth A. Patel.

ESG Profile

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

Environmental: Environmental risks are driven by high water usage, waste generation, and reliance on energy-intensive processes, making disclosures on water consumption, waste-management practices, renewable energy share , and emissions levels particularly important. (If applicable or available)

Social: Social factors hinge on adherence to labour laws, accident prevention frameworks, and human-capital development, with metrics such as workforce mix, safety performance , and training initiatives offering insights into operational resilience.

Governance: Governance assessment focuses on board independence, committee effectiveness, and robustness of compliance systems, supported by readily available disclosures on board structure, audit mechanisms, and risk-management practices.

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.	60.88	67.26	69.73
EBITDA	Rs.Crs.	4.33	4.40	3.92
PAT	Rs.Crs.	0.77	0.81	0.46
Tangible Net Worth	Rs.Crs.	9.96	10.72	19.64
Total Debt / Tangible Net Worth	Times	1.66	1.54	1.40
Current Ratio	Times	1.16	1.38	1.27

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include covenants normaly stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

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	86.50	BWR BB+/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	5.50	BWR A4+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		92.00	(Rupees Ninety Two Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Soumya R Gadanchi Ratings Analyst soumya.r@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

GEO GRES TILES LLP

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	State Bank Of India (SBI)	Term Loan - Out-standing	3.94	_	3.94	Simple##
2	State Bank Of India (SBI)	Term Loan - Out-standing	8.56	_	8.56	Simple##
3	State Bank Of India (SBI)	Term Loan - Sanctioned	54.00	_	54.00	Simple##
4	State Bank Of India (SBI)	Cash Credit - Sanctioned	20.00	_	20.00	Simple##
5	State Bank Of India (SBI)	Bank Guarantee - Sanctioned	_	5.50	5.50	Simple##
Total			86.50	5.50	92.00
TOTAL (Rupees Ninety Two Crores 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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