RATING RATIONALE

06Apr2026

Nirman Associates Pvt. Ltd.

Brickwork Ratings reaffirms the long-term and short-term ratings at BWR BBB-/Stable and BWR A3 for the Bank Loan Facilities of Rs. 74.00 Crs. of Nirman Associates Pvt. Ltd.

Particulars

Facilities**	Amount (Rs.Crs.)		Tenure	Rating#
Facilities**	Previous	Present	Tenure	Previous (05 Feb 2025)	Present
Fund Based	40.00	45.50	Long Term	BWR BBB- /Stable Assignment	BWR BBB - /Stable Reaffirmation
	(25.00)	(25.00)	Long Term	BWR BBB- /Stable Assignment	BWR BBB - /Stable Reaffirmation
	19.00	28.50	Short Term	BWR A3 Assignment	BWR A3 Reaffirmation
Grand Total	59.00	74.00	(Rupees Seventy Four Crores 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 reaffirms the long-term and short-term ratings at "BWR BBB-/Stable" and "BWR A3" for the bank loan facilities of Nirman Associates Pvt. Ltd.

The Rating has factored, inter alia, the diversified business profile, improved financial performance and stronger working capital management. The rating is constrained by the evolving operational trends as well as regulatory and market-related challenges faced by the company. Going forward, the company’s ability to scale up operations, enhance profitability and strengthen its liquidity and overall credit profile will remain key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that Nirman Associates Pvt. Ltd., 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 revenue and profitability margins show sustained improvement. The rating outlook may be revised to 'Negative' if the financial risk profile goes down.

KEY RATING DRIVERS

Credit Strengths:

Revenue Growth and Diversification: :
A consistent increase in revenue, driven by strong order inflows and execution. Improvement in Profitability in Higher EBITDA margins through better cost management or price realization. The company has an active network of 1.75 lakh stores, including small stores that may operate intermittently with a sufficient number of salespersons managing operations.
Working Capital Management: :
Strengthening of Liquidity by Improved cash flow from operations, better-working capital management, and strong cash reserves. Improved debt service coverage. Improved conversion cycle, with faster receivables collection and inventory turnover, while maintaining stable payables. Increase in current ratio to well in 1.23x, indicating better liquidity.
Improved Financial Risk/Performance :
Sales grew consistently, supported by moderate operating income increases, indicating steady market demand. Higher OPBDIT, OPBIT, and PAT in FY 2025 reflect improved efficiency and reduced cost escalation. From FY 2023 to FY 2025 reflects steady financial growth, stronger equity, improved liquidity, and better receivables management.

Credit Risks:

Operational Trends: :
Delays or issues in scaling up production or maintaining operational efficiency, leading to increased costs or lower revenues. Dependency on a few suppliers or buyers for raw materials or sales, which could increase business risk if relationships are strained.
Regulatory or Market Challenges: :
Lower-than-expected margins due to rising costs, competitive pricing pressures, or cost overruns. Adverse Regulatory or Market Conditions/ Any policy changes, environmental concerns, or sectoral downturns impacting operations. Any adverse developments related to governance, legal disputes, or operational mismanagement.

ANALYTICAL APPROACH - Standalone

Standalone - For arriving at its ratings, BWR has considered the standalone performance of Nirman Associates Pvt. Ltd. BWR has applied its rating methodology as detailed in the Rating Criteria (hyperlinks provided below).

RATING SENSITIVITIES

Positive :

Improvement total operating income while achieving net margin over 1.00% on a sustained basis.
Total Debt/TNW below 1.50 times on a sustained basis.
Continuous improvement in ISCR above 3.00x

Negative :

Decline in Total Operating income below Rs.950.00cr and deterioration in operating and net margins.
Deterioration in Total Debt/Adj TNW above 3x on a sustained basis.

LIQUIDITY INDICATORS - Adequate

Adequate liquidity characterized by sufficient cushion in accruals vis-a-vis repayment obligations and moderate cash balance of Rs. 19.54 Crores. No Capex is envisaged in the near future. Its bank limits are utilized to the extent of 36% and has sought enhancement in bank lines, supported by the above unity current ratio.

The company reported net cash accruals of Rs. 6.46 Crores, with no CPLTD, as the company has not availed any long-term borrowings from banks or NBFCs. The Net Cash Accruals are expected to increase to Rs. 7.95 Crores in FY26. ISCR remained comfortable at 2.70 times in FY25. The company's EBITDA stood at Rs. 14.10 Crores in FY25 (audited financials) against interest and finance charges of Rs. 5.22 Crores. The EBITDA level remained adequate to service the interest obligations year on year. The tangible net worth of the company stood at Rs. 23.97 Crores in FY25. Hence, the liquidity position of the company is considered to be adequate.

ABOUT THE ENTITY

Macro Economic Indicator	Sector	Industry	Basic Industry
Fast Moving Consumer Goods	Fast Moving Consumer Goods	Diversified FMCG	Diversified FMCG

Nirman Associates Private Limited (NAPL) incorporated in September 2020. The company was incorporated as a partnership firm in 2002 and reconstituted as a private limited in 2020, the company has taken over the operations along with all the Assets and liabilities of M/s Nirman Associates as per the agreement dated April 01, 2021. The Company is engaged in the trading of FMCG goods as distributors of P&G and Gillette India in Haryana, Himachal Pradesh and Chandigarh.the company has taken over the operations along with all the Assets and liabilities of M/s Nirman Associates which was a Partnership firm operational for the past 15 years.

The Company is engaged in the trading of FMCG goods as distributors of P&G and Gillette India in Haryana, Himachal Pradesh and Chandigarh. Major products which the company distributes include Ariel, Tide, Pamper, Whisper, Pantene, Olay, Oral-B etc.

The company is headquartered in Faridabad, and directly covers more than 86,000 stores through 29 branches across the region. Operating in the consumer services industry, NAPL specializes in distributing fast-moving consumer goods (FMCG) and hygiene/healthcare products. The key managerial personnel include Mr. Pawan as Chief Financial Officer with Mr. Ramandeep Singh Chhabra and Ms. Jagjot Kaur Chhabra serving as directors. The company employs approximately 1,156 individuals.

ESG Profile

Based on the assessment, the entity’s ESG profile is not expected to materially affect its creditworthiness

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	919.39	1017.29	1060.01
EBITDA	Rs.Crs.	6.38	11.24	14.10
PAT	Rs.Crs.	2.40	5.64	6.00
Tangible Net Worth	Rs.Crs.	11.11	16.77	23.97
Total Debt / Tangible Net Worth	Times	2.63	1.97	2.81
Current Ratio	Times	1.27	1.34	1.23

KEY COVENANTS OF THE FACILITY RATED

The terms of sanction of the rated facilities include standard covenants normally stipulated for such facilities. However, there are some special covenants such as Current Ratio >1.17x, TOL/Adj TNW <4.00x and Adj Debt/Equity <3.00x which are complied by the company.

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

ANY OTHER INFORMATION

No Other Information.

RATING HISTORY FOR THE PREVIOUS 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	45.50	BWR BBB-/Stable (Reaffirmation)	05Feb2025	BWR BBB- Stable (Assignment)	NA	NA	NA	NA
FB SubLimit	LT	(25.00)	BWR BBB-/Stable (Reaffirmation)	NA	NA	NA	NA	NA	NA
Fund Based	ST	28.50	BWR A3 (Reaffirmation)	05Feb2025	BWR A3 (Assignment)	NA	NA	NA	NA
Grand Total		74.00	(Rupees Seventy Four Crores Only)

Hyperlink/Reference to applicable Criteria

Analytical Contacts
Harish R Ratings Analyst harish.r@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

Nirman Associates Pvt. Ltd.

ANNEXURE-I

Details of Bank Facilities rated by BWR

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	Axis Bank Ltd.	Cash Credit - Sanctioned	45.50	_	45.50	Simple##
	Sub-Limit (WCDL) - Sanctioned	(25.00)
2	Axis Bank Ltd.	Adhoc Facilities FB (CC/TL/OD) - Sanctioned	_	_	0.00	Simple##
3	TATA Capital Financial Services Limited	Inventory Funding Facility - Sanctioned	_	28.50	28.50	Simple##
Total			45.50	28.50	74.00
TOTAL (Rupees Seventy Four Crores 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.

ANNEXURE-II

INSTRUMENT DETAILS

Instrument	Issue Date	Amount (Rs.Crs)	Coupon Rate (%)	Maturity Date	ISIN Particulars	Complexity of the Instrument
Nil	Nil	Nil	Nil	Nil	Nil	Nil

ANNEXURE-III

List of entities consolidated

Name of Entity	% Ownership	Extent of consolidation	Rationale for consolidation
Nil	Nil	Nil	Nil

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