Goels Food World

Brickwork Ratings assigns the long-term ratings of BWR BBB -/Stable and short-term ratings of BWR A3 for the Bank Loan Facilities of Rs. 138.26 Crs. of Goels Food World.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	127.76	Long Term	BWR BBB - /Stable Assignment
	3.00	Short Term	BWR A3 Assignment
Non Fund Based	7.50	Long Term	BWR BBB - /Stable Assignment
Grand Total	138.26	(Rupees One Hundred Thirty Eight Crores and Twenty Six 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 ratings of BWR BBB -/Stable and short-term ratings of BWR A3 for the Bank Loan Facilities of  Rs. 138.26 Crs. of Goels Food World.

The assignment of the ratings takes into account the extensive experience of the promoters in the chicken products industry, the rising scale of operations of the firm, established relationships with customers and suppliers, and its moderate financial risk profile. However, the ratings are constrained by working capital-intensive operations and exposure to risks inherent in the poultry industry, and risks associated with the partnership nature of the firm. The firm proposes to convert from a partnership to a private limited company in FY27 to consolidate funds and support operational expansion, this will remain the key monitorable for BWR analysis.

The rating outlook has been retained as 'Stable' as BWR believes that the company'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 scale of operations and profitability margins, and DSCR show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

For arriving at the rating, BWR has relied upon the standalone and audited financial statements of the company for the last three years up to FY25, provisional financials for FY26, projected financials for FY27 and FY28, publicly available information, and clarifications provided by the management.

KEY RATING DRIVERS

Credit Strengths:

• Extensive Experience of the Promoters and Established Relationships with Customers and Suppliers: :

  The two-decade-long experience of the key promoters in the poultry industry, their keen understanding of the industry dynamics and healthy relations with customers and suppliers should continue to support the business. The firm recently secured significant orders from the Indian Army and Indian Navy, as well as from several new customers, which helped increase revenue from Rs. 190 Crs in FY25 to Rs. 429.63 Crs in FY26. Sustained revenue growth, along with stable operating margin, will remain monitorable.

• Moderate Financial Risk and Debt Protection Profile: :

  Tangible net worth stood at Rs. 64.45 crore as on March 31, 2026 (Rs. 26.60 crore as on March 31, 2025), having improved sharply on account of capital infusion and accretion to reserves. Gearing and TOL/TNW ratios stood at 2.32x and 3.00x, respectively, as on March 31, 2026 (2.92 and 3.41 times, respectively, as on March 31, 2025). Debt protection measures remained adequate, with ISCR and DSCR of 3.40x and 2.12x, respectively, for fiscal 2026. The financial risk profile is expected to remain moderate, with gearing projected to rise to 4.10x in fiscal 2027 on account of further debt-funded capital expenditure towards capacity expansion.

Credit Risks:

• Highly Competitive Nature of Industry :

  The Indian chicken processing industry is highly competitive which exerts pressure on profitability margins. There are numbers of abattoirs-cum-meat processing plants registered with Agricultural and Processed Food Products Export Development Authority (APEDA). Further, Indian chicken processing and export-oriented units are largely located in the states of Uttar Pradesh, Punjab, Maharashtra and Andhra Pradesh.

• Exposure to Industry-Inherent Risks - Raw Materials, Disease, Forex, and Seasonality :

  In the poultry industry, the prices of key raw materials such as maize, soya de-oiled cakes and DOC remain volatile on the back of fluctuation in domestic production owing to agro-climatic conditions, government regulations, and demand from the animal husbandry sector, which is susceptible to seasonality. The firm remains exposed to risks attendant to international operations, including adherence to overseas quality standards. In the absence of a formal hedging policy, margins remain susceptible to fluctuation risk. Further, the business is also susceptible to disease outbreaks, which could lead to a decline in sales and realisation. Moreover, demand for chicken is seasonal due to religious factors.

ANALYTICAL APPROACH - Standalone

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

RATING SENSITIVITIES

Going forward, the company’s ability to manage the working capital efficiently, improve the scale of operations, and improve and maintain profitability, along with the debt servicing capability and liquidity, will be key rating sensitive.

Positive:

• A rating upgrade may be triggered by sustained growth in scale of operations, with total operating income exceeding Rs. 675 Crs, accompanied by net profit margins consistently above 2.50%.
• Sustained improvement in capital structure with overall gearing at or below 4.00x on a continuing basis.

Negative:

• A rating downgrade may be triggered by a material decline in scale of operations with TOI falling below Rs. 635-640 Crs, coupled with PAT margins declining below 2.05-2.15%.
• Weakening of DSCR below 1.05 times on a sustained basis and decline in operating margin, resulting in net cash accrual below Rs. 20 Crs.

LIQUIDITY INDICATORS - Adequate

The company's liquidity profile remains adequate, supported by improving accruals against modest debt repayment obligations. Net cash accruals stood at Rs. 21.20 Cr in FY26 against CPLTD of Rs. 5.02 Crs with CPLTD projected to rise to Rs. 19.92 Crs in FY27, resulting in a comfortable coverage position going forward. DSCR and ISCR stood at 2.12x and 3.40x respectively in FY26 and is projected to moderate to 1.88x and 2.81x in FY27 on account of higher debt-funded capex. The current ratio moderated to 1.31x in FY26, reflecting the sharp increase in working capital borrowings alongside revenue growth. The average utilisation of working capital limits across lenders ranged between 85.74%. The company maintained a cash and bank balance of Rs. 0.29 Cr as on 31 March 2026.

Considering all these factors, the liquidity position is assessed as "Adequate".

ABOUT THE ENTITY

Incorporated in November 2005, promoted by Mr. Naveen Goel and Mrs. Aditi Goel, third-generation entrepreneurs, Goels Food World is a Himachal Pradesh-based partnership firm engaged in processing and distribution of fresh, chilled, and frozen chicken products, catering to institutional buyers, QSR chains, and defence establishments. The firm operates an integrated supply chain encompassing chick rearing through third-party contract poultry farms. The business traces its origins to 1937, lending the enterprise nearly nine decades of industry presence.

The processing facility is located at Una District, with a capacity of 5,000 birds per hour. The company also retails directly through a network of 35+ company-owned shops across Himachal Pradesh. Company operates an integrated supply chain covering contract broiler farming, feed regulation, high-speed dressing, and blast-freezing.

ESG Profile

Environmental: Tracks water usage, waste, emissions, and renewable energy targets while holding valid State Pollution Control Board CTO licenses and certified safe boiler operations.

Social: Maintains compliance with legal labor frameworks under a 250-worker Factory License alongside vertically integrated poultry farming that strictly adheres to FSSAI, ISO, HACCP, and GMP standards.

Governance: Managed by experienced promoters supervising compliance and a transition into a Private Limited entity to boost structural transparency, backed by clean external CA audits.

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.	97.56	190.30	429.63
EBITDA	Rs.Crs.	5.09	12.46	29.39
PAT	Rs.Crs.	0.85	2.39	14.22
Tangible Net Worth	Rs.Crs.	9.03	26.60	64.45
Total Debt / Tangible Net Worth	Times	4.21	2.92	2.32
Current Ratio	Times	2.35	1.33	1.31

KEY COVENANTS OF THE FACILITY RATED

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

The FY26 provisional financials have been considered only for the private limited company.

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	127.76	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Fund Based	ST	3.00	BWR A3 (Assignment)	NA	NA	NA	NA	NA	NA
Non Fund Based	LT	7.50	BWR BBB-/Stable (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		138.26	(Rupees One Hundred Thirty Eight Crores and Twenty Six lakhs Only)

Hyperlink/Reference to applicable Criteria

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

Analytical Contacts
Tushar Ratings Analyst tushar.n@brickworkratings.com	Ravi Rashmi Dhar Director - Ratings ravi.d@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	Canara Bank	Working Capital (CC) - Sanctioned	25.00	_	25.00	Simple##
2	HDFC Bank	Working Capital Term Loan - Sanctioned	18.76	_	18.76	Simple##
3	HDFC Bank	Cash Credit - Sanctioned	63.00	_	63.00	Simple##
4	HDFC Bank	Bank Guarantee - Sanctioned	7.50	_	7.50	Simple##
5	RBL Bank	Channel Finance Facility - Sanctioned	_	3.00	3.00	Simple##
6	UCO Bank	Working Capital (CC) - Sanctioned	21.00	_	21.00	Simple##
Total			135.26	3.00	138.26
TOTAL (Rupees One Hundred Thirty Eight Crores and Twenty Six 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.