Rating Rationale

Brickwork Ratings Assigns 'BWR BB+/Stable/Assignment to Chandrahas Agrohub  Pvt Ltd’s Bank Loan Facilities. Brickwork Ratings (BWR) has assigned a long-term rating of BWR BB+ (Outlook: Stable) to the ₹51.60 crore sanctioned bank loan facilities of Chandrahas Agrohub Pvt Ltd. The assigned ratings are anchored by the extensive experience of the promoters, and financially, the company recorded revenues of ₹201.99 crore with a Profit After Tax (PAT) of ₹ 3.1 crore in FY25, and revenues of ₹288.76 crore with a PAT of ₹(-7.41) crore in FY26. Additionally, in FY 26, the revenue of the company witnessed 42.97% growth as compared to the FY 25 revenue, despite the uncertain event of a fire incident in its Cotton Warehouse, which cost the company inventory of 11.23 cr. This resulted in an impact on the profitability and tangible net worth of the company, which shrank to 9.96 cr(TNW) in FY 26. Company has traded more volumes of grains in FY 26 as compared to FY 25.

These rating strengths are partially offset by thin operating margins. Furthermore, the ratings are constrained by high customer concentration risk, within a fragmented and competitive market, susceptibility of margins to volatile grain prices, and inherent regulatory risks. The 'Stable' outlook reflects BWR’s expectation that the company will maintain its business risk profile, operational stability, and core business relationships over the medium term. This outlook is further reinforced by favorable long-term demand growth in grains like Kabuli channa and maize, as these are basic agro-foods required to meet the necessities of life. 

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

• Locational Advantage :

  The company/Firm is located in Indore cluster and thus has a competitive advantage in terms of skilled labor, logistics, production knowledge and vendors making the company more efficient and cost effective.

• Group Support :

  Company has strong group support with well experienced management

• Company Existence :

  The company has pursued its business for the last 10 years. The company has experience of almost 2 business cycles in the Industry .

• Revenue from Operations :

  The company`s revenue from operations has grown on a year-on-year basis. The company achieved revenue of 288 cr in FY26 (UA) and 201 cr in FY 25. The company has shown growth of 43.2% in Fy 26 as compare to FY 25 .

• Liquidity Position :

  The company has adequate liquidity, as the current ratio of the company in FY 25 stands at 1.26 times, and gross cash Accurals of the company in FY 25 are 3.59 cr against the CPLTD of zero crores.

• Debt Protection Metrics :

  DSCR and ISCR of the company stand at 1.83 and 2.24 respectively in FY25, indicating company’s adequacy to meet its debt obligations

• Competition in the Industry :

  Entry barriers in the industry are low on account of limited capital and technology requirement and also low differentiation in the end product leading to intense competition and limiting the pricing power resulting in low profitability

• Thin profit margins :

  The company has thin margins as net profit margin stands at 1.54 % in FY 25.

Going forward, the ability of the company to improve its scale of operations, profitability margins, overall credit risk profile, and efficiently manage its working capital requirements would be the key rating sensitivity.

Positive:-

• Significant and sustained growth in revenue from current levels of Rs.310 Cr while maintaining operational efficiency. Expansion of operating profit margin above current 4.5%.
• Sustained improvement in debt protection metrics with Interest Service Coverage Ratio (ISCR) consistently above 2.5x.

Negative 

• Significant decline in top-line revenue from the current level of 288 cr.Compression of operating margin below 3.00%
• Deterioration of ISCR to below 1.00x, indicating severe interest-servicing stress.

Chandrahas Agrohub Pvt Ltd maintains an adequate liquidity position, supported by healthy cash accruals and a sufficient cushion in its working capital facilities. The company reported cash and bank balances of Rs. 0.2 crore as of 31 March 2025 (Rs. 0.15 crore in FY26 UA). The current ratio stood at 1.26 times in FY25 (  1.51 times in FY26 UA). The company generated cash accruals of Rs. 3.59 crore during FY25 against the current portion of long-term debt (CPLTD) of nil. This resulted in comfortable coverage metrics, with a debt service coverage ratio (DSCR) of  1.83 times and an interest service coverage ratio (ISCR) of 2.24 times in FY25. Working capital limits remain moderately utilised, with average utilisation of around 90% of Bank facilities.

The company demonstrates an evolving 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.

Chandrahas Agrohub Pvt. Ltd. is an established Agro trading and food processing company of high-quality agricultural and food products, based in Anjad, District Barwani, Madhya Pradesh, India. Originally founded in 2016 as a sole proprietorship under the name Chandrahas Enterprise, the organization was formally incorporated as a Private Limited company in July 2024.

The company offers end-to-end primary and value-added agro-processing capabilities, including grading, grinding, sorting, specialized packaging, and irradiation. Most of the company's revenue comes from trading and processing grains like kabuli channa and maize. In addition to food processing, the company has been operating cotton facilities since FY 2018–19

Guided by a commitment to rigorous quality control, innovation, and operational excellence, the business is directed by Chandrahas Patidar and Poonam Patidar, whose combined multi-decade industry experience and professional expertise drive the company's strategic growth. 

The Complexity Indicator refers to the ease with which the returns associated with the rated instrument could be estimated. It does not indicate the risk related to the timely payments on the instrument, which is rather indicated by the instrument's credit rating. It also does not indicate the complexity associated with analysing an entity's financial, business, industry risks or complexity related to the structural,transactional or legal aspects. Details on the complexity levels of the instruments are available on BWR's website Complexity Levels.

Not Applicable

There is no other information available .

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