Press Release

Press Release

February 11, 2026

ONKAR SUGAR AND DISTILLERY POWER PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	140.00	ACUITE B \| Stable \| Assigned	-
Total Outstanding	140.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned its long-term rating of ‘ACUITE B' (read as ACUITE B) on Rs. 140.00 Cr. bank facilities of Onkar Sugar and Distillery Power Private Limited (OSDPPL). The outlook is ‘Stable’.

Rationale for rating
The assigned rating considers OSDPPL’s below average financial risk profile with high debt levels and significant amount of unsecured loans given to the group companies. Additionally, the rating also factors stretched liquidity along with susceptibility to agro-climatic risks & volatility in sugar prices. However, these
Weaknesses are offset to some extent by the long operational track record of the promoter group in the sugar industry, its integrated operations with cogeneration and established farmer base in Kolhapur, Maharashtra.

About the Company

Incorporated in 2023, Onkar Sugar and Distillery Power Private Limited (OSDPPL) is a part of Onkar group, and operates a sugar mill with licensed capacity of 2500 TCD and a Co-gen of 8.5 MW. The mill was acquired from Reliable Sugar and Distillery Power Private Limited in December 2022. The unit of OSDPPL is located at Farale in Kolhapur having high supply of sugar cane. The directors of the company are Mr. Omraje Baburao Botre and Mr. Prashant Dadasaheb Botre.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Experienced promoter group
The Onkar group has a well-established presence in the sugar industry, with a track record spanning over 6 years along with a wide acceptance among local farmers thereby facilitating adequate and timely cane procurement, ensuring an adequate crushing period which has helped the company improve its scale of operations over the years. The group has 9 mills in the state of Maharashtra each having capacity of more than 2,000 TCD along with co-gen, distillery and sugar refining.

Integrated nature of operations
OSDPPL started its operations in 2023 with a total crushing capacity of 2,500 TCD at Farale in Kolhapur with a co-gen of 8.5 MW. The co-gen is partly used towards captive use, and the balance is sold to Maharashtra State Electricity Board (MSEB) at the rate of Rs.4.75/unit. However, the power generation through co-gen is susceptible to sugarcane availability for crushing and subsequent bagasse generation during the crushing process.

Weaknesses

Initial stage of operations
OSDPPL acquired the mill from Reliable Sugar and Distillery Power Private Limited (RSDPPL) in December 2022 for a consideration of ~Rs.200 Cr. and sugar season (SS) 22-23 was operated under RSDPPL itself. The operations began under OSDPPL from SS 23-24, resulting into limited scale of operations. Therefore, company generated revenue of Rs.157.67 Cr. in FY25 against Rs.13.63 Cr. in FY24. Further, the operating and PAT margin stood at 2.48% and 0.02% in FY25 respectively. In FY25, there was an industry wide shortage of sugarcane availability on account of excess rain which led to damages in the crop, delay in start of crushing season on account of state election and diversion of sugarcane for ethanol production. However, in the current year the crushing has improved on account of healthy crop sowing.

Below average financial risk profile
The company’s capital structure is expected to remain below average marked by low net worth base and high gearing over the medium term. The tangible net worth stood at Rs.5.94 Cr. as on 31st March, 2025 as against Rs.5.90 Cr. as on 31st March, 2024. The total debt of OSDPPL stood at Rs. 480.62 Cr. in FY25 against Rs.397.94 Cr. in FY24. Moreover, the debt coverage indicators are also weak with inadequate accruals against debt obligations and debt servicing being managed through loans from directors/ promoters.

Significant exposure to group companies
OSDPPL has significant exposure to its group companies in the form of loans and investment. These loans are given for financial support, are non-interest bearing and repayable on demand. However, any significant advances to group companies impacting the company’s liquidity will be monitorable.

Agro-climatic risks and cyclical trends in the industry
Profitability of sugar mills will remain vulnerable to the agro-climatic risks related to cane production. Being an agricultural product, the sugarcane crop is dependent upon weather conditions and is vulnerable to pests and diseases that may not only impact the yield per hectare but also the recovery rate. These factors can have a significant impact on the company’s revenue and profitability.

Rating Sensitivities

Improvement in operating income and profitability, leading to generation of sufficient net cash accruals to service the debt obligations.
Additional exposure to group companies through investments and loans and advances.
Improvement in the working capital operations.
Changes in government regulations.

Liquidity Position

Stretched

The liquidity position of OSDPPL is stretched marked by insufficient net cash accruals against the maturing debt repayment obligations. However, the repayment was managed through the group support. The net cash accruals though improved but stood low at Rs.0.74 Cr. in FY25 against Rs.0.12 Cr. in FY24. Further, the unencumbered cash and bank balance stood at Rs.13.02 Cr. in FY25 and the current ratio stood at 1.19 times during the same period. Additionally, the working capital limits are utilized at an average of ~ 53% for the last 6 months ended December 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	157.67	13.63
PAT	Rs. Cr.	0.03	0.04
PAT Margin	(%)	0.02	0.31
Total Debt/Tangible Net Worth	Times	80.93	67.39
PBDIT/Interest	Times	1.21	1.01

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

None

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 :

Not Applicable

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Kolhapur District Central Co-op Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	80.00	Simple	ACUITE B \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE B \| Stable \| Assigned
Kolhapur District Central Co-op Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	27 Apr 2026	25.00	Simple	ACUITE B \| Stable \| Assigned
Kolhapur District Central Co-op Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	18 May 2026	20.00	Simple	ACUITE B \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dhruvi Chauhan
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.

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