RATING RATIONALE

24Mar2026

BAIRI GOLD PRIVATE LIMITED

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 19.90 Crs. of BAIRI GOLD PRIVATE LIMITED

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	19.90	Long Term	BWR BBB - /Stable Assignment
Fund Based	(15.00)	Long Term	BWR BBB - /Stable Assignment
Grand Total	19.90	(Rupees Nineteen Crores and Ninety 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 has assigned a long-term rating of BWR BBB-/Stable to the bank facilities of Bairi Gold Pvt. Ltd., aggregating to Rs. 19.90 crore.

The rating derives strength from the promoters’ extensive experience of over a decade in the niche antique temple jewellery segment, along with the company’s flexible, asset-light manufacturing model supported by a skilled artisan network. Further, the strategic location of its manufacturing unit and the recent commencement of its retail store at Raviwar Peth, Pune, a prominent market hub for gold and silver jewellery, are expected to support incremental revenue growth over the near to medium term.

However, the rating is constrained by the company’s relatively small scale of operations within the broader and competitive jewellery industry. Additionally, the company’s margins remain susceptible to gold price volatility, given the presence of unhedged ready stock inventory and the absence of formal derivative-based hedging mechanisms such as MCX.

The Stable Outlook reflects Brickwork Ratings’ expectation that the company’s business and financial risk profile will remain stable over the medium term, supported by steady demand conditions and improving operational efficiency.

The rating is based on the audited financial statements for FY23, FY24, and FY25, projected financials for FY26 and FY27, along with publicly available information and management clarifications.

KEY RATING DRIVERS

Credit Strengths:

Established Business Model with Promoter Expertise :
The company has an operational track record in designing and manufacturing gold and silver ornaments, led by a promoter who is himself an artisan with deep industry understanding and long-standing relationships with customers and suppliers.
Strong revenue growth with improving profitability and strengthening net worth base with comfortable leverage :
The company has demonstrated healthy scale-up in operations, with Total Operating Income increasing from Rs. 199.89 crore in FY23 to Rs. 332.93 crore in FY25, supported by growth in the B2B segment. Profitability has improved in tandem, with operating margin rising to 6.92% in FY25 (4.29% in FY23) and PAT increasing to Rs. 15.42 crore.
Healthy profit accretion has resulted in substantial strengthening of the tangible net worth base to Rs. 33.00 crore as on March 31, 2025 (Rs. 5.62 crore in FY23), leading to a comfortable capital structure marked by improvement in Total Debt/TNW to 0.70x. Debt protection metrics remain strong with ISCR and DSCR at 9.72x and 5.08x, respectively, in FY25.
Overall, sustained revenue growth, improving margins, strengthened net worth, and comfortable coverage indicators collectively support the company’s financial risk profile.

Credit Risks:

Susceptibility of profitability to gold price volatility, regulatory risks and seasonality in demand :
Bairi Gold Pvt. Ltd.’s operating performance remains inherently exposed to volatility in gold prices and regulatory changes governing the gems and jewellery industry. Although the company follows a weight-based billing mechanism and procures gold from the bullion market on the same day to mitigate direct price risk, sharp fluctuations in gold prices can impact demand sentiment, increase working capital requirements, and affect inventory valuation.

Further, the industry remains vulnerable to regulatory interventions such as changes in bullion import norms, taxation structure (including GST), hallmarking requirements and other compliance regulations, which may impact demand dynamics and operating flexibility. Revenues are also subject to seasonality linked to festive demand, wedding cycles and auspicious periods, leading to fluctuations in cash flows across the year.
Exposure to intense competition and moderate geographic/customer concentration :
The Indian gems and jewellery industry is highly fragmented with the presence of numerous organised and unorganised players, resulting in intense competition and pricing pressures. Bairi Gold primarily operates in the B2B segment, where earnings are driven by making charges, which remain susceptible to competitive pressures and may constrain scalability and margin expansion.

Further, the company has moderate geographic diversification with significant reliance on B2B sales and a newly established retail presence in Pune, which has a limited operating track record. Customer and regional concentration may expose the company to demand fluctuations in its key operating markets and could limit its competitive positioning against larger, more geographically diversified players.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Bairi Gold Pvt Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria.

RATING SENSITIVITIES

Going forward, the ability of the company to improve its revenue and financial risk profile would remain the key rating sensitivities.

Positive:

TOI above Rs. 400 Cr (YTD) while maintaining profitability margins, specifically OPBDIT margin above 8.50%.
Continued maintenance of Total Debt/TNW below 1.00x on a sustained basis.

Negative:

Decline in revenue and profitability, with TOI falling below Rs. 380 Cr (YTD), or a moderation in profitability resulting in OPBDIT margin below 6.50%.
Weakening of liquidity profile, reflected in the Current Ratio below unity.

LIQUIDITY INDICATORS - Strong

Bairi Gold Private Limited's liquidity position is strong, supported by healthy cash accruals, moderate utilisation of bank limits, and a reasonable cushion within working capital facilities. The company reported a cash and bank balance of Rs. 8.65 crore as on March 31, 2025. The current ratio stood at 3.31x in FY25, and cash accruals stood at Rs. 15.47 crore during the year, against nil CPLTD, resulting in comfortable coverage metrics, with DSCR at 5.08x and ISCR at 9.72x in FY25.
Going forward, debt protection metrics are expected to remain comfortable, with ISCR projected to remain above 12x and DSCR above 6x over FY26–FY27, supported by steady accrual generation and absence of major term debt obligations. Working capital limits are moderately utilised, with a weighted average utilisation of around 62% of RBL Bank limits.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Consumer Discretionary	Consumer Durables	Consumer Durables	Gems, Jewellery And Watches

Bairi Gold Private Limited, incorporated on January 11, 2022, is a Pune-based jewellery company engaged in the manufacture and retail sale of gold ornaments and silver articles. The company was earlier operating as a proprietorship concern and was subsequently incorporated to formalise and scale up its existing operations.

The company is promoted and managed by Mr. Kailash Mahadev Bairi and Ms. Ankita Kailash Bairi, who have been associated with the jewellery business in the Pune market for several years and continue to oversee the day-to-day operations.

Bairi Gold Pvt. Ltd. operates from its registered office in Pashan, Pune, while its manufacturing facility is located in Raviwar Peth, Pune, a well-established bullion hub.

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.

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.	199.89	270.92	332.93
EBITDA	Rs.Crs.	8.57	17.00	23.03
PAT	Rs.Crs.	5.61	11.99	15.42
Tangible Net Worth	Rs.Crs.	5.62	17.61	33.00
Total Debt / Tangible Net Worth	Times	2.16	0.82	0.70
Current Ratio	Times	3.03	4.32	3.31

KEY COVENANTS OF THE FACILITY RATED

The borrower is required to maintain a minimum Adjusted Tangible Net Worth (ATNW) of Rs. 25 crore during the loan tenure. Any loans from promoters/directors shall be subordinated to bank debt and treated as quasi-equity for the purpose of meeting this requirement.
The sanctioned facilities are subject to standard covenants normally stipulated by banks 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	19.90	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
FB SubLimit	LT	(15.00)	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		19.90	(Rupees Nineteen Crores and Ninety lakhs Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Pradnya Tolanavar Ratings Analyst pradnya.t@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 \| media@brickworkratings.com	Customer Support \| CustSupport@brickwrokratings.com

BAIRI GOLD PRIVATE LIMITED

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	RBL Bank	Cash Credit - Sanctioned	19.90	_	19.90	Simple##
	Sub-Limit (WCDL (Sublimit of CC)) - Sanctioned	(15.00)
Total			19.90	0.00	19.90
TOTAL (Rupees Nineteen Crores and Ninety 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.

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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