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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 75.00 | ACUITE BB | Stable | Assigned | - |
| Total Outstanding | 75.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has assigned its long-term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs.75 Cr. of bank loan facilities of Himalaya Wine Company Private Limited (HWCPL). The Outlook is 'Stable'.
Rationale for Rating The assigned rating factors in the management’s decades of extensive experience across diverse sectors, including hospitality & tourism, sugar, and alcoholic beverages, etc. The company obtained the licence to establish its distillery unit in FY23 and commenced commercial operations in December 2023. Consequently, FY25 represents the first full year of operations. The rating draws comfort from the improvement in the scale of operations during 9M FY26 compared with FY25, its moderate financial risk profile, and an adequate liquidity position. Acuite also notes that the company is currently undertaking a capacity expansion by setting up a bottling plant funded through mix of debt & infusion of unsecured loans, which may further moderate the financial risk profile going forward. The rating remains constrained by the highly regulated nature of the industry, susceptibility of margins to fluctuations in raw material prices, and the company’s working-capital-intensive operations. |
| About the Company |
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Himalaya Wine Company Private Limited (HWCPL), based in Uttarakhand, was incorporated in 2005 with the primary objective of establishing manufacturing facilities for the production of fine-quality spirits in India currently having installed capacity of 10 KLPD. The company is engaged in the manufacturing of alcoholic beverages along with related allied services. The operations of HWCPL are managed by its directors—Mr. Pankaj Khanna, Mr. Ansh Khanna, Mr. Mukund Prasad, and Mr. Arvind Prasad.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
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Acuite has considered the standalone business and financial risk profile of Himalaya Wine Company Private Limited.
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| Key Rating Drivers |
| Strengths |
| Experienced Management
The company is jointly managed by the Prasad and Khanna families and is led by highly experienced professionals with decades of expertise across diverse sectors, including hospitality and tourism, sugar, alcoholic beverages, and related industries. The management team is also associated with several other business ventures, such as L H Sugar Factories Limited (rated Acuité A-/Stable), Leisure Hotels Limited, Banglow Holiday Pvt. Ltd., The Boat House Club Ltd., Peak Spirits LLP, Peak Brands LLP, Massale Wines LLP, and Madya Beverages LLP, among others. Acuité believes that the extensive experience of the promoters and their established relationships with customers and suppliers will enable the company to scale up its operations over the medium term. Improving Scale of Operations & Profitability Since FY25 was the company’s first full year of operations, it reported a net revenue of Rs. 12.60 crore, an EBITDA of Rs. 2.57 crore, and a PAT of Rs. 0.84 crore. The EBITDA margin and net margin stood at 20.42% and 6.67%, respectively for FY 25. Furthermore, the company has already achieved net revenue of Rs. 24.09 crore up to December 2025. HWCPL currently has a presence in nine states across India and has applied for licences in additional states to expand its market footprint. Acuité believes that, going forward, the company will be able to scale up its operations while maintaining healthy profitability margins over the near to medium term. Moderate Financial Risk Profile The financial risk profile of the company is moderate, marked by its tangible net worth, gearing levels, and debt-protection metrics. The tangible net worth improved from Rs. 24.52 crore as on March 31, 2024, to Rs. 31.98 crore as on March 31, 2025. This improvement is primarily driven by profit accretion to reserves, the treatment of unsecured loans as quasi-equity, and an increase in equity share capital and securities premium. The company’s gearing and TOL/TNW stood at 1.10 times and 1.50 times, respectively, in FY25. Debt-protection indicators remained comfortable, with the ISCR and DSCR at 1.89 times and 1.19 times, respectively, for FY25. Acuité believes that the financial risk profile is expected to remain moderate over the near term, given the debt-funded capex planned by the company. |
| Weaknesses |
| Regulatory Nature of Operations
The liquor industry is highly regulated, with state governments exercising significant control over production, pricing, distribution, and sales. Any change in government policies particularly related to excise duty structures, licence renewal norms, or distribution frameworks can materially impact industry players. The sector also remains exposed to frequent policy revisions driven by state-specific revenue considerations, social regulations, and political developments. Further, delays in licence approvals, changes in allocation quotas, or restrictions on inter-state movement of alcoholic beverages can affect operational efficiency and sales volumes. Companies operating in this sector, therefore, maintain strict compliance with regulatory requirements and remain agile to adapt to evolving policy environments. Susceptibility of Margins to Volatility in Raw Material Prices The company’s profitability remains susceptible to fluctuations in the prices of key raw materials such as ENA, barley, yeast, and botanicals. Any adverse movement in these input costs can weigh on margins, especially since the company has limited pricing power in most states due to the regulated nature of the liquor industry. In addition, the availability and quality of grains and ENA are closely linked to seasonal factors, agricultural output, and supply-chain dynamics. Variations in crop yield, changes in MSP-linked pricing, or supply disruptions can exert further pressure on procurement costs. The industry has also witnessed periods of sharp volatility in ENA prices driven by demand–supply imbalances across states. Given these constraints, maintaining stable margins requires efficient sourcing mechanisms, long-term supplier relationships, and prudent inventory management. Acuité notes that any sustained increase in raw material prices without a corresponding upward revision in state-controlled selling prices may impact the company’s profitability over the near to medium term. Intensive working capital operations The company’s working capital operations remain intensive, as reflected by Gross Current Assets (GCA) of 562 days in FY25. The high GCA is primarily driven by an elevated inventory holding period of 428 days. Inventory levels tend to remain high for alcohol manufacturers, particularly when companies maintain substantial volumes of finished goods—often aged or stored in bonded warehouses for extended durations—to meet regulatory norms or demand cycles. The debtor days stood at 139 in FY25, further contributing to the stretched working capital cycle. Given the nature of the liquor industry, where credit terms with distributors and supply-chain partners are often elongated, working capital intensity is inherent to the business model. Acuite believes that the company’s working capital operations are expected to remain intensive over the near to medium term due to its business dynamics, ageing-related inventory requirements, and expansion-driven scale of operations. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The liquidity profile of the company is adequate marked by generating net cash accruals of Rs. 1.96 Cr. in FY 25 against maturing debt obligation of Rs. 1.42 cr. for the same year. The company has a cash & bank balance of Rs. 1.13 cr. The current ratio of the company is 1.04 times for FY 2025. The average fund based bank limit utilization for last twelve months ended December 2025 is 88.29%. Acuite believes that the liquidity of the company is expected to remain adequate in near to medium term with largely steady accruals against debt repayments and moderate debt funded capex plans.
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| Outlook - Stable |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 12.60 | 4.56 |
| PAT | Rs. Cr. | 0.84 | 0.03 |
| PAT Margin | (%) | 6.67 | 0.75 |
| Total Debt/Tangible Net Worth | Times | 1.10 | 1.00 |
| PBDIT/Interest | Times | 1.89 | 12.15 |
| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
Rating History : |
| Not Applicable |
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