Demeter Agro Energies Pvt. Ltd.

Brickwork Ratings reaffirms the ratings and simultaneously withdraws the ratings for the Bank Loan Facilities of Rs. 37.90 Crs. of Demeter Agro Energies Pvt. Ltd.

Particulars

Facilities/Instruments	Amount (Rs.Crs.)		Tenure	Rating		Regulator
	Previous	Present		Previous (17 Jun 2026)	Present
Fund Based	37.90	37.90	Long Term	BWR BB /Stable Reaffirmation	BWR BB /Stable Reaffirmation/Withdrawal	RBI
Grand Total	37.90	37.90	(Rupees Thirty Seven Crores and Ninety lakhs Only)

Note:
1. Please refer to BWR website www.brickworkratings.com for the definition of the ratings
2. Refer to Annexures I, II, and III for details of rated bank loan facilities, debt instruments, and the List of Entities Consolidated
RATING ACTION / OUTLOOK / WITHDRAWAL

Brickwork Ratings has reaffirmed the long-term rating at BWR BB/Stable and simultaneously withdrawn the ratings for the bank loan facilities of Demeter Agro Energies Private Limited at the request of the company. The request letter from the company to this effect, as well as the No Objection Certificate from the bankers of the company (Canara Bank) for withdrawal of the rating, are held on record. The withdrawal is in line with the BWR Rating Withdrawal Policy. 

The company has requested the withdrawal of the rating through a withdrawal request letter and has also submitted a No Objection Certificate from Canara Bank. Brickwork Ratings has followed up with the client via emails and phone calls for the necessary information to assess the company’s present financial situation and its debt-servicing capacity, while simultaneously initiating the rating withdrawal process. However, the client has not provided the same to assess the present financial situation.

However, the client has only submitted the withdrawal request letter, a No Objection Certificate (NOC) from the banker, and No Default Statements (NDS) up to October 2026 stating that they have not defaulted on their debt obligations. Furthermore, feedback received from the banker regarding the conduct of the account is satisfactory.

Keeping in view the customer’s request for withdrawal, the NOC from the banker, and the Satisfactory feedback from the bank, Brickwork Ratings has reaffirmed the ratings and simultaneously withdrawn the ratings.

KEY COVENANTS OF THE INSTRUMENT / FACILITY RATED

• The unsecured loan shall be subordinated to the bank loan, and the same shall not be withdrawn during the currency of the loan
• The company has to maintain a DSRA account equivalent to 3 months' principal and interest amount.
• The terms of sanction include covenants normally stipulated for such facilities.

KEY RATING DRIVERS

Credit Strengths:

• Management Experience: :

  The company is managed by a team of highly experienced and qualified directors. Mr. Chirag Bansal, aged 31, has completed his MBBS (Bachelor of Medicine, Bachelor of Surgery) and PGDS (Post Graduate Diploma in Sonology). He is currently operating a private hospital in Kaithal. Mr. Karamveer Sheoran, aged 33, holds a B.Tech in Mechanics and has successfully run several businesses, with multiple ventures currently in operation. Mr. Dushyant Chautala, aged 35, holds a B.A. in Business Administration and a Master's in Law. He is a politician with the Jannayak Janta Party and served as the Deputy Chief Minister of Haryana from 2019 to 2024. Additionally, he was the President of the Table Tennis Federation of India and served on the Executive Council of the Indian Olympic Association. 

• Agreement with IGL company. :

  The commercial agreement between Demeter Agro Energies Pvt. Ltd. and Indraprastha Gas Limited, dated 28 January 2025, governs the production and supply of Compressed Bio Gas (CBG) from the Demeter Agro Energies Pvt. Ltd. plant at Balwani Village, Kaithal District, Haryana 136027. Established under the Government of India’s SATAT initiative, the contract provides a framework for long-term supply, retailing, and risk mitigation, thereby enabling future revenue visibility. This agreement shall be valid till 08.04.2034.

Credit Risks:

• Environmental Concerns: :

  Potential for greenhouse gas emissions if biogas is not properly managed. Improper disposal of digestate (fertilizer byproduct) could lead to environmental issues. Biogas plants present risks related to their flammable and potentially explosive nature, as well as the presence of toxic gases and pathogens. So any deviations from compliance and provisions related to environmental act, factories act or any other acts or laws may affect the operations of the company.

• Raw Material Availability: :

  The company primarily relies on agricultural waste and byproducts such as cow dung, press mud, and spent wash for its raw material procurement. Consequently, the supply chain is highly vulnerable to seasonal disasters, which can severely disrupt the company's ability to maintain adequate feedstock inventory. 

ANALYTICAL APPROACH AND APPLICABLE RATING CRITERIA - Standalone

The Company has no subsidiary, associate or joint ventures. BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

As the ratings are being reviewed and simultaneously withdrawn, the rating sensitivities are no longer applicable.

LIQUIDITY INDICATORS - Stretched

The company's liquidity position is stretched with tightly matched accruals to repayment obligations, with highly utilized bank limits and modest cash reserves.

The company has reported Rs.2.26 Cr of net cash accruals as against CPLTD of Rs. 1.44 Cr in FY2026. As per Canara Bank sanction terms, the company has to maintain a DSRA account equivalent to 3 months' principal and interest amount to be funded by the company before the disbursement of the loan. Consequently, in the event of any cash flow shortfall to meet debt obligations, the bank will draw from the DSRA account.

COMPANY's / FIRM's PROFILE

Demeter Agro Energies Private Limited was incorporated on 06-05-2022. Dushyant Chautala, Karan Veer Sheoran, and Chirag Bansal are the directors of the company. 

The company was established to set up and operate a Compressed Bio-Gas (CBG) manufacturing unit. The company focuses on producing CBG from agricultural waste materials, specifically spent wash, press mud, and cattle dung, utilizing methanogenic bacteria such as Streptococcus and Clostridium. The Unit is located at Khasra no 60/3, Khatauni no.1291, Balwani Village, Kaithal District, Haryana 136027. The company started its commercial operations in May 2025.

ESG Profile

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

Environmental: Performance is evaluated based on carbon emissions, energy and water consumption, waste management, and the adoption of clean energy technologies (like solar and wind).

Social: The focus is on workplace safety, workforce diversity, employee well-being, and gender-sensitive safety measures at field sites.

Governance: Strength is measured by board independence, committee effectiveness (audit/ESG), the separation of the Chair and CEO roles, and strong risk management and compliance systems.

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY(IF ANY)

Not Applicable

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS(including withdrawal and suspended)

Name of Instrument (NCD/Bank Loan /Non- Fund Based facilitates/ Commercial Paper etc.)	Current Rating  (2026)			2026 (History)		2025		2024		2023
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	37.90	BWR BB/Stable (Reaffirmation/Withdrawal)	17Jun2026	BWR BB Stable (Reaffirmation)	28Apr2025	BWR BB Stable (Assignment)	NA	NA	NA	NA
Grand Total		37.90	(Rupees Thirty Seven Crores and Ninety lakhs Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• BWR Withdrawal Policy
• Power-Power Generation Projects

Analytical Contacts
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@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	Term Loan - Sanctioned	37.18	_	37.18	Simple##
2	Canara Bank	OCC/ODBD - Sanctioned	0.72	_	0.72	Simple##
Total			37.90	0.00	37.90
TOTAL (Rupees Thirty Seven Crores and Ninety lakhs Only)

## 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.

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