Tiwarta Coal Beneficiation Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 56.28 Crs. of Tiwarta Coal Beneficiation Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	25.03	Long Term	BWR BBB /Stable Assignment
Non Fund Based	28.00	Long Term	BWR BBB /Stable Assignment
	(28.00)
	(5.00)
	3.25	Short Term	BWR A3 + Assignment
	(3.25)
Grand Total	56.28	(Rupees Fifty Six Crores and Twenty Eight 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 assigns the ratings for the Bank Loan Facilities of Rs. 56.28 Crs. of Tiwarta Coal Beneficiation Ltd.

The rating reflects the company's significant financial resilience and strong operational rebound, achieving a massive top-line surge in the current fiscal year, driven by a highly successful strategic pivot into direct coal trading. The rating also factors in the company's distinct locational advantage in Chhattisgarh’s coal-rich Korba region, ensuring cost-optimized logistics and direct access to surrounding power and steel markets. Furthermore, the rating incorporates the established promoter base, led by a closely-knit family board bringing decades of combined industry expertise, swift decision-making, and a clear succession plan. The rating also considers the company's improving financial risk profile, marked by robust profitability margins, a consistently growing tangible net worth, and a steadily improving gearing ratio. Finally, the company’s adequate liquidity is strongly characterized by sufficient cash accruals comfortably covering scheduled debt obligations, a healthy current ratio, and moderate bank limit utilization with no near-term capital expenditure envisaged.

The Stable outlook reflects Tiwarta Coal Beneficiation Ltd's strong standalone credit profile, robust operating cash generation, and low leverage. The outlook also factors in superior liquidity and the company’s ability to service debt obligations comfortably from operating cash flows.

KEY RATING DRIVERS

Credit Strengths:

• Deep Industry Experience :

  The company is led by a close family board consisting of Ashok Kumar, Raj Kumar, and Ravi Dhulyani, who bring a great deal of practical knowledge to the business. Each director has 20 years of hands-on experience in coal handling and logistics, giving the leadership team a combined 60 years of industry background. This shared history helps them make quick, unified decisions and keeps the company focused on what works best in their market. Additionally, the different ages of the board members create a natural plan for passing down leadership, helping the company run smoothly well into the future.

• Prime Operational Location :

  The company enjoys a significant advantage by being based in Chhattisgarh, the core of India’s coal production. Operating in the Korba region provides direct proximity to massive coal mines, ensuring a steady and reliable supply of raw material while significantly cutting down on transport costs. This central position also allows for easy access to a specialized local labor pool that is well-versed in mining and heavy logistics. Additionally, being surrounded by a dense network of power and steel plants provides a ready-made local market, allowing the company to maintain highly efficient and cost-effective supply chains.

Credit Risks:

• Economic and Market Sensitivity :

  The company’s performance is closely tied to the health of the mining and industrial sectors in Chhattisgarh. Since the local logistics industry is quite crowded and competitive, any dip in mining activity due to a slower economy or stricter trade policies can directly impact the company’s revenue and cash flow. Additionally, business growth depends on the continued development of rail, road, and port infrastructure. These improvements are often influenced by the broader economic climate and shifting social or political factors, which can either create new opportunities or limit the company's reach.

• Fragmented and Competitive Industry Landscape :

  The company operates in a crowded road logistics sector where competition from both small, unorganized players and large, established firms can put pressure on revenues and profit margins. Because the basic services provided across the industry are very similar, it is hard to stand out through the product alone. However, the high entry barriers in specialized express logistics help protect the company from new competitors entering the field. To grow its market share, the company must focus on maintaining high service standards and offering creative solutions that meet the changing needs of its customers.

ANALYTICAL APPROACH - Standalone

To arrive at its ratings, BWR has considered a standalone approach. Reference may be made to the Rating Criteria hyperlinked below.

RATING SENSITIVITIES

Going forward, the company's ability to expand its operational scale, boost profitability, enhance liquidity and credit profile, and effectively manage the working capital will be critical factors influencing its ratings.

Positive factors:-

• Sustained scaling up of operations, coupled with a net profit margin of 5% or more.

• Maintenance of consistent gearing levels below 2.5x.

• Continued sustenance of the capital structure and further improvement in debt protection metrics.

Negative factors:-

• Any decline in the scale of operations by 25% or more, and/or a sustained deterioration in profitability, leading to impaired liquidity and/or debt protection metrics.

• Deterioration in working capital management that adversely impacts the company's liquidity position.

• Gearing ratio deteriorating further to above 4.5x

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by a sufficient cushion in accruals of Rs 14.60 Crs, vis-a-vis repayment obligations of Rs 13.46 Crs. No new capex is envisaged in the near future. Its bank limits are utilized to the extent of 83%, supported by the above unity current ratio.

The company is expected to maintain an adequate liquidity position over the medium term. It projects healthy net cash accruals of Rs 32.78 Crs in FY26 and Rs 37.50 Crs in FY27, which comfortably cover its scheduled repayment obligations of Rs 16.90 Crs and Rs 17.39 Crs for the respective years. Additionally, available banking limits and the management's ability to infuse funds as needed provide a strong safety cushion against any unforeseen financial stress.

ABOUT THE ENTITY

Incorporated in 2015 and headquartered in Korba, Chhattisgarh, Tiwarta Coal Beneficiation Ltd (TCBL) is a premier company specializing in coal beneficiation, handling, trading, logistics, and heavy machinery rental. Operating with a massive logistics network, TCBL targets supplying six lakh MT of coal monthly. The company is guided by a highly experienced management team led by Founder and Director Mr. Ashok Kumar Dhulyani, alongside Directors Chandrama Devi and Ravi Dhulyani, and CEO Rajkumar Dhulyani, ensuring efficient mine-to-market solutions.

ESG Profile

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

Environmental: Environmental risks in trading companies are primarily related to energy use, emissions from logistics and operations, waste generation, water consumption, and compliance with environmental regulations. Key disclosures include energy usage (primary reliance on the State Electricity Board with heavy-voltage diesel generators for backup power), waste handling and recycling practices (active recycling of process water via water harvesting ponds, and operating a 30 KLD Sewage Treatment Plant integrated with belt press technology to safely manage effluents mixed with magnetite and anionic chemicals), and a structured monitoring system tracking diesel consumption to optimize fuel efficiency across a fleet of over 160 vehicles. Past violations or penalties: None disclosed.

Social: Social factors focus on labour practices, workforce welfare, diversity and inclusion, training and development, and community engagement. Metrics include workforce composition, employee safety and training programs (mandatory safety protocols including protective gear for all personnel at mines and washery sites), adherence to labour laws (dedicated HR compliance with the Minimum Wages Act, EPF, and ESIC regulations), and initiatives supporting social equity and employee growth.

Governance: Governance assessment emphasizes board structure, independence, and expertise, risk management and compliance frameworks (mitigating market and counterparty risks by maintaining supply order volumes that exceed monthly procurement bands and leveraging 20 years of historical market intelligence), ethical conduct and anti-corruption policies, stakeholder engagement practices (procurement and rate negotiations are managed directly by the Director, with supply chain disputes managed through established dispute resolution committees), data security and cybersecurity measures, and compliance with trading regulations (holding mandatory operational permits such as the "Khanij" mineral license for auction participation).

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited)	FY 23 - 24 (Audited)	FY 24 - 25 (Audited)
Operating Revenue	Rs.Crs.	180.16	213.88	140.96
EBITDA	Rs.Crs.	13.07	29.13	21.37
PAT	Rs.Crs.	4.24	2.81	3.00
Tangible Net Worth	Rs.Crs.	12.02	14.84	17.84
Total Debt / Tangible Net Worth	Times	1.86	4.27	3.89
Current Ratio	Times	0.89	1.59	1.13

KEY COVENANTS OF THE FACILITY RATED

The key covenants are the standard terms as stipulated in the sanction letters of the rated facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
IVR	Non submission of data	18Apr2025

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	25.03	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	28.00	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	LT	(28.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
		(5.00)	BWR BBB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	ST	3.25	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(3.25)	BWR A3+ (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		56.28	(Rupees Fifty Six Crores and Twenty Eight lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Manufacturing Companies
• Short Term Debt
• Trading Entities

Analytical Contacts
Varsha Jasmin Rating Analyst varsha.j@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@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	HDFC Bank	Term Loan - Out-standing	10.03	_	10.03	Simple##
2	HDFC Bank	Cash Credit - Sanctioned	15.00	_	15.00	Simple##
3	HDFC Bank	Bank Guarantee - Sanctioned	28.00	_	28.00	Simple##
	Sub-Limit (Bank Guarantee (BG)) - Sanctioned	(28.00)
	Sub-Limit (Counter Bank Guarantee) - Sanctioned	(5.00)
4	HDFC Bank	Bank Guarantee - Sanctioned	_	3.25	3.25	Simple##
	Sub-Limit (Bank Guarantee (BG)) - Sanctioned		(3.25)
Total			53.03	3.25	56.28
TOTAL (Rupees Fifty Six Crores and Twenty 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.