Press Release

Press Release

September 03, 2025

OLYMPIA INDUSTRIES LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.00	ACUITE BB+ \| Stable \| Reaffirmed	-
Total Outstanding	25.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of 'ACUITE BB+' (read as ACUITE Double B plus) on the Rs.25.00 Cr. bank facilities of Olympia Industries Limited (OIL). The outlook is 'Stable'.

Rationale for rating reaffirmation
The rating reaffirmation factors in the improvement in operating revenue albeit moderation in operating profitability owing to change in the business model from B2C to B2B. Further, the rating draws comfort from the diversified product portfolio, established customer relationship with reputed purchase & sales channels and experienced management. However, the rating remains constrained by the company’s moderate financial risk profile, intensive working capital operations and inherent limitation of trading & distribution business.

About the Company

Incorporated in 1987, OIL was initially engaged into manufacturing of dyed and blended yarns in Gujarat and Maharashtra. However, since 2014, the company has shifted its core operations to the distribution of consumer goods including FMCG, baby care, home and kitchen appliances, electronic items, beauty and personal care products, air conditioners, pet care items, and watches through multiple e-commerce platforms such as Amazon, Flipkart, Nykaa, and Myntra. The company has its warehouses in Mumbai, Bengaluru, Kolkata, Hyderabad, and Gurgaon. The current directors of the company are Mr. Naresh Parsharam Waghchaude, Mr. Pravin Kumar Shishodiya, Mr. Navin Kumar Pansari, Mr. Kamlesh Ramanlal Shah, Ms. Pooja Anurag Jiwrajka and Mr. Bhushan Arun Patil.

Unsupported Rating

Not Applicable.

Analytical Approach

Acuité has considered the standalone business and financial risk profile of OIL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management, established marketing channel and diversified product profile
The operations of OIL are led by Mr. Navin Pansari, who possesses more than three decades of experience in the distribution of electronic peripherals and apparels, among others. Further, OIL sells a diversified range of products which includes FMCG, baby care, electronic appliances among others of various reputed companies on several ecommerce marketplaces such as Amazon Seller Services Private Limited, Flipkart India Private Limited, Nykaa ERetail Limited, Myntra Jabong India Private Limited. Therefore, Acuité believes that the company will benefit from its experienced management which will help the company to maintain long standing relations with its clients.?

Growth in operating revenue albeit moderation in operating profitability
The revenue of the company grew by ~52% in FY2025 to Rs. 282.51 Cr. from Rs. 189.09 Cr. in FY2024 due to increase in volumes sold under B2B business model. In FY2025, the sales mix shifted significantly, with B2B contributing 80% and B2C accounting for 20%, as opposed to an even 50:50 split in FY2024. However, this shift led to a moderation in operating profitability, with the operating profit margin declining to 2.63% in FY2025 as compared to 3.47% in the previous year. As of Q1 FY2026, the company has recorded revenue of Rs. 74.60 Cr. at an EBITDA margin of 2.56%. Going forward, the ability to maintain the growth in scale of operations with improving margins shall be a key rating monitorable.

Weaknesses

Moderate financial risk profile
The financial risk profile of the company is moderate with moderate net worth (adjusted for asset revaluation reserve) and gearing and average debt protection metrics. The tangible net worth stood moderate at Rs. 43.00 Cr. as on March 31st, 2025, with a gearing at 1.32 times as on March 31, 2025 (1.22 times as on March 31, 2024). The debt protection metrics however stood average with interest coverage ratio (ICR) of 1.49 times and debt service coverage ratio (DSCR) below unity at 0.97 times in FY2025. The Debt to EBITDA ratio remained high at 7.11 times as on March 31, 2025 (7.23 times as on March 31, 2024).
Acuite expects the financial risk profile to improve over the medium term, supported by better business performance and no major debt-funded capex plans.

Intensive working capital operations
The working capital management of the company is intensive in nature marked by gross current assets (GCA) of 167 days as of March 31,2025 (239 days as of March 31, 2024). The GCA days are mainly driven by reduced but high inventory days which stood at of 114 days as on March 31, 2025 (183 days as on March 31,2024) as the company is required to maintain adequate stock of inventory. The debtor days stood at 54 days in FY2025 (41 days in FY2024). Therefore, the company’s reliance on bank limits remains moderate with average utilisation at ~76.56% for the last 06 months ended August 25.
Acuité believes that the working capital operations of the company will remain at similar levels given the nature of the industry over the medium term.

Inherent limitations of trading & distribution business
The trading & distribution of the products are significantly dependent on market and consumer behaviour, supply chain dynamics, reputation of the brands, changes in any trade policies, etc. Any downside on these parameters may affect the performance the company.

Rating Sensitivities

Continued growth in scale of operations while maintaining profitability margins
Elongation in the working capital cycle leading to stretch in the liquidity position.
Significant increase in debt levels affecting the financial risk profile.

Liquidity Position

Adequate

While the FY25 net cash accruals of Rs 2.15 Cr. were not fully sufficient to repay debt obligations of Rs 2.36 Cr., the same was managed by the company through other sources and going forward in the absence of any significant debt obligations (~Rs. 0.93-0.57 Cr.), the net cash accruals are expected to remain sufficient in the range of Rs.2.56- 3.06 Cr. Also, the company’s reliance on bank limits stood moderate with average utilisation at ~76.56% for the last 06 months ended August 25. The current ratio stood moderate at 1.46 times as on March 31, 2025. The company maintained unencumbered cash and bank balance of Rs. 0.02 Cr. as on March 31, 2025.

Outlook: Stable

Other Factors affecting Rating

None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	282.51	189.09
PAT	Rs. Cr.	1.30	0.79
PAT Margin	(%)	0.46	0.42
Total Debt/Tangible Net Worth	Times	1.32	1.22
PBDIT/Interest	Times	1.49	1.55

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

Not Applicable.

Any other information

The rating is currently under the appeal process as per company's request.

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
07 Jun 2024	Cash Credit	Long Term	25.00	ACUITE BB+ \| Stable (Reaffirmed)
20 Nov 2023	Cash Credit	Long Term	25.00	ACUITE BB+ \| Stable (Downgraded from ACUITE BBB- \| Stable)
01 Sep 2023	Cash Credit	Long Term	25.00	ACUITE BBB- \| Stable (Reaffirmed)
09 Jun 2022	Cash Credit	Long Term	22.00	ACUITE BBB- \| Stable (Reaffirmed)
09 Jun 2022	Proposed Long Term Bank Facility	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE BB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kirti Berlia
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.

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