Manidhar Textiles LLP

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 55.79 Crs. of Manidhar Textiles LLP

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	54.29	Long Term	BWR BBB - /Stable Assignment
Non Fund Based	1.50	Long Term	BWR BBB - /Stable Assignment
	(10.00)	Short Term	BWR A3 Assignment
Grand Total	55.79	(Rupees Fifty Five Crores and Seventy Nine 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 long-term and short-term ratings of BWR BBB-/Stable/A3 for the bank loan facilities of Rs.55.79Cr. of Manidhar Textiles LLP.

The entity’s credit profile is structurally reinforced by the extensive industry expertise of its promoters and deep operational synergies with its decade-old sister concern, Manidhar Textiles. Operating from a strategic vantage point within the Surat textile hub, the firm benefits from seamless ecosystem access and optimized logistical chains. Furthermore, the LLP has demonstrated exceptional operational execution, successfully transitioning out of its greenfield phase to achieve robust operational scale-up and high asset efficiency.

Conversely, the ratings remain structurally constrained by the inherent vulnerability of the LLP framework to discretionary partner capital withdrawals. Additionally, financial performance remains exposed to high geographic concentration, leaving operations sensitive to localized market disruptions and regional competitive pressures within the Surat trading belt.

KEY RATING DRIVERS

Credit Strengths:

• Strong Promoter Expertise and Group Synergies :

  Manidhar Textiles LLP is structurally reinforced by the extensive industry experience of its promoter, Mr. Satishbhai Mashru, who brings over 20 years of hands-on expertise in production, marketing, and administration within the grey fabric manufacturing segment. This seasoned leadership is heavily complemented by operational synergies with its decade-old sister concern, Manidhar Textiles (Partnership Firm). This established group alignment provides the LLP with shared operational knowledge, deep supplier networks, and longstanding customer relationships. Consequently, this collective market goodwill supports stable raw material sourcing, ensures repeat orders, and facilitates a smooth scale-up of operations.

• Strategic Location Advantage within the Surat Textile Hub :

  Strategically situated in Surat, Gujarat, the country’s premier textile cluster, the LLP benefits from an exceptional geographic operating environment. This prime location provides immediate proximity to an established network of raw material yarn suppliers, local job workers, textile traders, and downstream export markets. By operating at the center of this industrial hub, the firm achieves significant logistical efficiencies, lower inward transit costs, and immediate access to a highly skilled textile workforce. This localized ecosystem directly streamlines supply chain management, secures continuous production inputs, and grants the entity superior market access to comfortably scale its operations.

• Robust Operational Scale-Up and High Asset Efficiency :

  Manidhar Textiles LLP has demonstrated strong operational execution, successfully transitioning out of its greenfield phase by achieving a 51.43% capacity utilization rate in FY25 and ramping up to 74.97% in FY26. This rapid stabilization was driven by the phased commissioning of a high-end manufacturing setup that now features 210 advanced air-jet looms. This expanded machinery infrastructure enabled total operating income to surge from Rs.32.83Cr. in FY25 to Rs.128Cr. in FY26. Moving forward, the simultaneous optimization of existing operational capabilities and the planned capacity expansion will enable the entity to maximize its economies of scale, capture broader market share, and structurally reinforce its operational throughput.

Credit Risks:

• Susceptibility to Partner Capital Withdrawals under the LLP Framework :

  A core vulnerability inherent to the entity's legal constitution is the risk of direct partner capital liquidation. Unlike private or public limited companies where equity is locked and dividends face strict regulatory hurdles, an LLP framework allows partners to withdraw capital or unsecured promoter loans at their discretion. Even though the firm has shown strong net worth growth, any sudden capital withdrawal to fund outside group business or personal obligations would instantly shrink the tangible net worth base. This structure leaves the firm's capital stability and overall gearing ratios highly dependent on the voluntary restraint and continuous support of its partners.

• High Geographic Concentration and Vulnerability to Regional Market Pressures :

  The firm’s entire manufacturing base, supplier network, and primary buyer ecosystem are concentrated within the Surat textile hub, exposing its business continuity to localized infrastructure shocks, labor availability disruptions, or regional regulatory changes. This geographic concentration is further compounded by the highly fragmented nature of the grey fabric industry, which is saturated with unorganized local players and characterized by low product differentiation. Operating exclusively within this single trading belt restricts the LLP's independent pricing flexibility. Consequently, the firm cannot easily absorb regional cost hikes or protect its margins when intense localized competition coincides with sharp spikes in raw material yarn prices.

ANALYTICAL APPROACH - Standalone

For arriving at its ratings, BWR has considered the standalone performance of Manidhar Textiles LLP, BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided at the end of this rationale).

RATING SENSITIVITIES

Positive Sensitivity Factors:

• Sustained revenue growth exceeding Rs.200Cr., driven by an increase in the optimization of operations, improving the cash accruals.

• An upward trajectory in financial flexibility, marked by a DSCR exceeding 1.50x and a Current Ratio climbing above 1.33x, thereby reflecting enhanced liquidity and debt-servicing cushions.

• The conversion of Unsecured Loans into Equity Capital, which directly strengthens the firm’s tangible net worth base and accelerates balance sheet deleveraging.

Negative Sensitivity Factors:

•  An inability to achieve the projected revenue and profit growth, with operating margins dropping below 10% or net margins falling below 1.86%.

• A decline in DSCR below 1.3x for an extended period would signal stress in debt repayment capacity.

LIQUIDITY INDICATORS - Adequate

The firm's liquidity is Adequate with sufficient cash accruals to meet it's debt obligations. In FY26, the Debt Service Coverage Ratio (DSCR) stood at 1.45x, and BWR anticipates it to remain above 1.5x for FY26 as well. This reflects on the entity's timely repayment of the debt obligations driven by improving overall operations of the entity. The firm maintains strong liquidity, with working capital limits utilized in the 50-55% range, providing a substantial available buffer.

ABOUT THE ENTITY

Manidhar Textiles LLP is a recently established limited liability partnership registered on September 25, 2023 and began its operations from August 2024. Promoted by the Mashru family, and the partners being Mr. Satishbhai Rameshbhai Mashru, Mr. Krupaben Satishbhai Mashru, Mr. Anantkumar Rajnikantbhai Patel and Mr. Aneri Anantkumar Patel, the firm serves as the expansion arm of the Surat-based Manidhar Group. It is located within the Pipodara industrial cluster in Gujarat, which stands as one of India's largest man-made fibre weaving hubs. The entity operates in a similar line of business as its older sister concern, Manidhar Textiles (a partnership firm established in 2015), allowing both firms to benefit from operational synergies, shared brand goodwill, and overlapping customer and supplier networks. The firm is exclusively engaged in the middle of the textile value chain, manufacturing viscose and polyester filament yarn into grey (unfinished and undyed) woven fabric. This intermediate product is subsequently sold to local processors and traders to be dyed and printed for downstream use in premium sarees, dress materials, and ethnic wear. To capture a structural shift toward higher-productivity manufacturing, the LLP utilizes modern technology, housing 210 advanced air-jet looms. 

ESG Profile

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

Environmental: Manidhar Textiles LLP operates as a zero-pollution manufacturing unit, underscoring its strong environmental standing. The entity deploys 210 air-jet looms, which use compressed air rather than water as the weft-insertion medium, resulting in near-zero process water consumption and no liquid effluent discharge from weaving operations. Since MTLLP produces grey (unprocessed) fabric, it does not undertake any dyeing, bleaching, printing, or chemical finishing activities that account for the bulk of chemical and water pollution in the textile industry.

Social: The entity has adopted a proactive approach to worker welfare and community responsibility. The management has put in place comprehensive manpower safety protocols at the plant, including the provision of personal protective equipment, safe operating procedures for loom operations and regular safety training for workers. A dedicated fire safety infrastructure encompassing fire extinguishers, suppression systems, and clearly marked emergency evacuation routes has been installed and is maintained in compliance with applicable factory regulations.

Governance: The firm's governance framework is anchored by experienced and committed promoters. Mr. Satishbhai Rameshbhai Mashru, the designated managing partner, brings over two decades of hands-on expertise in the grey fabric industry and oversees production, marketing, and overall administration, while Mr. Anantkumar Rajnikantbhai Patel manages finance and administration ensuring clear functional delineation within the partnership. The entity maintains transparent financial reporting with timely statutory audits and is compliant with all applicable regulatory and banking obligations.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)	FY 25 - 26 (Provisional - Annual)
Operating Revenue	Rs.Crs.	Not Available	32.83	128.00
EBITDA	Rs.Crs.	Not Available	9.11	13.24
PAT	Rs.Crs.	Not Available	0.13	2.39
Tangible Net Worth	Rs.Crs.	4.16	18.78	22.21
Total Debt / Tangible Net Worth	Times	Not Available	2.41	2.51
Current Ratio	Times	Not Available	1.19	1.20

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction include standard covenants normally stipulated for such facilities.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Creadit Rating Agency	Status and Reason for Non-Cooparation	Date of Press Release
CARE	CARE ratings vide press release rated Manidhar Textiles LLP at CARE BB/Stable/A4 under Issuer Not Cooperating category.	09Jan2026

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	54.29	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	1.50	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(10.00)	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		55.79	(Rupees Fifty Five Crores and Seventy Nine lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Company

Analytical Contacts
Priyanka S Ratings Analyst priyanka.s@brickworkratings.com	Nagaraj K Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
Media Contact | media@brickworkratings.com	Client Support | clientsupport@brickworkratings.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	Union Bank of India	Term Loan - Out-standing	26.79	_	26.79	Simple##
2	Union Bank of India	Cash Credit - Sanctioned	27.50	_	27.50	Simple##
	Sub-Limit (Inland Letter of Credit) - Sanctioned		(10.00)
3	Union Bank of India	Bank Guarantee - Sanctioned	1.50	_	1.50	Simple##
Total			55.79	0.00	55.79
TOTAL (Rupees Fifty Five Crores and Seventy Nine 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.