Press Release July 30, 2025 PREMIER IRRIGATION ADRITEC PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.76	ACUITE BBB | Negative | Assigned	-
Bank Loan Ratings	64.16	ACUITE BBB | Negative | Reaffirmed | Stable to Negative	-
Bank Loan Ratings	1.24	-	ACUITE A3+ | Assigned
Bank Loan Ratings	63.76	-	ACUITE A3+ | Reaffirmed
Total Outstanding	134.92	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed the long-term rating of 'ACUITE BBB' (read as ACUITE triple B) and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on Rs. 127.92 Cr. bank facilities of Premier Irrigation Adritec Private Limited (PIAPL). The outlook is  revised from"Stable" to Negative". Acuite has assigned the long-term rating of 'ACUITE BBB' (read as ACUITE triple B) and short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on Rs. 7.00Cr. bank facilities of Premier Irrigation Adritec Private Limited (PIAPL). The outlook is "Negative". Rationale for Rating The reaffirmation and revision in outlook is primarily driven by a decline in operating income in FY25 (Provisional), attributed to delays in issuance of work orders due to election-related activities, decline in exports to Bangladesh and the absence of new projects under the Jal Jeevan Scheme. Profitability margins have also weakened over the years which is a direct fallout of reduced operating profits and coupled with high interest costs. Additionally, the working capital cycle remains stretched, largely due to elongated receivables cycle linked to subsidy-based model. This resulted in dependence on bank lines for funding. Going forward, sustained improvement in revenue, along with profitability margins and working capital cycle, will be key monitorable factors. The ratings further factor the moderate financial risk profile marked by steady networth, gearing below unity and moderate debt protection metrics. The adequate liquidity position of the company is reflected by low but sufficient accruals against debt repayments, comfortable current ratio, cash and bank balances and no debt funded capex plans. However, the company availed inter corporate deposits and adhoc facility to manage liquidity due to delayed payments from governments. Comfort is drawn from the longstanding operations of the company, extensive experience of the promoters in the agricultural sector and favourable outlook for micro irrigation system. The company maintains strong relation with its customers evident from the repeat orders from Karnataka, Tamil Nadu, West Bengal and others and has also secured new orders. However, these strengths are partially offset by susceptibility to any change in government policy and volatility in raw material prices.

About the Company

Premier Irrigation Adritec Private Limited (PIAPL) is a leading manufacturer of irrigation equipment in India with over 60 years of experience. They are known for their drip irrigation and sprinkler systems. The day-to-day operations of the company is managed by their Managing Director, Mr. Shrikant Goenka. PIAPL was formed in 2008 from a joint venture between Premier Irrigation, a pioneer in Indian irrigation and Adritec Group International (AGI), a global irrigation company. PIAPL bought back the shares of AGI in FY23. The registered office of the company is in Kolkata. The manufacturing facility is in Nagpur.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuite has considered the standalone business and financial risk profile of PIAPL to arrive at the rating.

Key Rating Drivers

Strengths

­­­Long track record of operations and experienced management The company has a long operational track record of six decades in the manufacturing of modern irrigation equipment and systems in India. The day to day operations of the company is managed by Mr. Shrikant Goenka and a team of experienced and qualified professionals. Acuité believes that the long operational track record of the company coupled with the extensive experience of the management will continue to benefit the company going forward, resulting in improving scale of operations. Moderate Financial Risk profile The company has a moderate financial risk profile marked by steady net worth, gearing below unity, and moderate debt protection metrics. The tangible net worth stood at Rs. 89.16 Cr. as on March 31, FY25 (Prov.) as against Rs. 86.80 crore as on March 31, FY24 due to small but steady accretion of reserves. The gearing ratio stood below unity at 0.65 times in FY25 (Prov.) as against 0.36 times in FY24. The external debt was undertaken to set up a solar power plant leading to lower carbon emissions and saving power costs. The short-term debt includes Foreign Currency Non-Resident (FCNR) of Rs.22.84 Cr. and Cash credit of Rs.29.75 Cr. The interest coverage ratio and debt service coverage ratio declined to 1.59 times and 1.16 times respectively as of March 31, 2025 (Prov.) as against 2.23 times and 1.39 times respectively as on March 31, 2024. This has been a result of decline in profitability over the past years. Acuite believes that the company’s financial risk profile will remain at moderate level over the medium term backed by steady cash accruals and no debt funded capex plans.

Weaknesses

­Decline in scale of operations PIAPL’s operating income declined to Rs. 243.72 Cr. in FY25 (Prov.) as against Rs. 293.55 Cr. in FY24. The revenue declined in FY25 because work orders were not issued due to Election Code of Conduct, decline in exports to Bangladesh, lack of newer project tenders under Jal Jeevan Scheme and introduction of new payment system. Despite the above reasons, sales of Drip Irrigation Systems (DIS) have increased in FY25 due to the introduction of this mechanism in tea plantations and offering better margins than Sprinkler Irrigation System (SIS). Further, the company has reported revenue of ~Rs. 25.00 Cr. in Q1FY26. During FY25 (Provisional), the company recorded highest sales from Karnataka, followed by Tamil Nadu and West Bengal. The EBITDA margins stood at 6.23% in FY25 (Prov.) as against 7.74% in FY24 and 9.53% in FY23. In FY24, profitability declined due to first time implementation of Direct Benefit Plan for retirement benefits and one-time royalty payment to Adritec Group International post buyback of their shares. Further, operating margin declined in FY25 due to increase in selling expenses, primarily driven by higher commission/discount on sales. The PAT margin stood at 0.97% in FY25 (Prov.) as against 2.35% in FY24 and 3.45% in FY23. Acuite believes that the scale of operations will increase over the medium term backed by normalization of demand post-election and recovery in other business segments. Intensive Working capital cycle The operations of the company are working capital intensive as reflected by Gross Current Assets (GCA days) of 304 days in FY25 (Prov.) as against 233 days in FY2024 mainly due to debtor days. The debtor days stood at 232 days in FY25 (Prov.) as against 159 days in FY2023 due to introduction of new payment process in subsidy-based business. Most payments were released only by February–March 2025, and the system is now gradually stabilizing. Payments from Tamil Nadu, West Bengal and Karnataka have improved since June 2025. The inventory days stood at 64 days in FY25 (Prov.) as against 66 days in FY2024. The company leverages idle inventory to meet regional demand, thereby reducing the need for fresh production. Against this. the company has high dependence on its suppliers as reflected from creditor days of 211 days in FY25 (Prov.) as against 197 days in FY24. Acuite believes that the working capital cycle will remain intensive due to larger dependence on subsidy-based business but improved payments from state governments are expected to reduce receivables cycle. Susceptibility to volatility in raw material prices The company is vulnerable to adverse fluctuations in raw material prices. Raw materials (high- and low-density polyethylene) are predominantly crude oil derivatives, and their prices move in line with crude oil rates. Acuite believes that the profitability margins are susceptible to raw material prices and will remain a key monitorable factor.

Rating Sensitivities

­Movement in operating income and profitability margins Working capital cycle

Liquidity Position

Adequate

­The company has an adequate liquidity profile as reflected from sufficient net cash accruals of Rs. 4.65 Cr. in FY25 (Prov.) as against a long-term debt repayment of Rs. 2.71 Cr. over the same period. The Current ratio stood moderate at 1.52 times in FY25 (Prov.) as against 1.57 times in FY24. However, the GCA days stood intensive at 304 days in FY25 (Prov.) compared to 233 days in FY24. The fund-based limit remained utilised at 87.00 % (consolidated) for last 15 months ended June 2025 (included ad hoc limit of Rs.1.50 Cr. for 6 months from September 2024 till April 2025). PIAPL also took intercorporate deposits to manage their liquidity due to delayed payments from the governments. These were taken for typically 90-120 days. The cash and bank balance stood at Rs. 2.44 Cr. in FY25 (Prov.) compared to Rs. 2.94 Cr. in FY2024. Acuite believes the liquidity will continue to remain adequate because of sufficient cash accruals against debt repayments, moderate current ratio, cash balances and no debt funded capex plans

Outlook: Negative

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	243.72	293.55
PAT	Rs. Cr.	2.36	6.89
PAT Margin	(%)	0.97	2.35
Total Debt/Tangible Net Worth	Times	0.65	0.36
PBDIT/Interest	Times	1.59	2.23

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 21 May 2024 Bank Guarantee (BLR) Short Term 2.60 ACUITE A3+ (Reaffirmed) Letter of Credit Short Term 15.60 ACUITE A3+ (Reaffirmed) Letter of Credit Short Term 16.30 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 3.10 ACUITE A3+ (Reaffirmed) Bank Guarantee (BLR) Short Term 4.00 ACUITE A3+ (Reaffirmed) Letter of Credit Short Term 20.00 ACUITE A3+ (Reaffirmed) Proposed Long Term Bank Facility Long Term 0.53 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 15.60 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 18.64 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 28.00 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 0.88 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 0.59 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 0.56 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 0.43 ACUITE BBB | Stable (Reaffirmed) Covid Emergency Line. Long Term 1.09 ACUITE BBB | Stable (Reaffirmed) 21 Feb 2023 Bank Guarantee (BLR) Short Term 2.60 ACUITE A3+ (Assigned) Letter of Credit Short Term 15.60 ACUITE A3+ (Assigned) Letter of Credit Short Term 16.30 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 3.10 ACUITE A3+ (Assigned) Bank Guarantee (BLR) Short Term 4.00 ACUITE A3+ (Assigned) Letter of Credit Short Term 19.00 ACUITE A3+ (Assigned) Cash Credit Long Term 15.60 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 18.64 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 24.00 ACUITE BBB | Stable (Assigned) Term Loan Long Term 1.98 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 2.44 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 2.83 ACUITE BBB | Stable (Assigned) Covid Emergency Line. Long Term 1.83 ACUITE BBB | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.60 Simple ACUITE A3+ | Reaffirmed Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.10 Simple ACUITE A3+ | Reaffirmed State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE A3+ | Reaffirmed Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.60 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 28.00 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.64 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.76 Simple ACUITE BBB | Negative | Assigned Canara Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 31 Oct 2026 0.53 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative Punjab National Bank Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. 30 Nov 2026 0.64 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A3+ | Reaffirmed Canara Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.60 Simple ACUITE A3+ | Reaffirmed Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.46 Simple ACUITE A3+ | Reaffirmed Punjab National Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.24 Simple ACUITE A3+ | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.75 Simple ACUITE BBB | Negative | Reaffirmed | Stable to Negative

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Manvi Khaitan Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.