Press Release

Press Release

February 26, 2026

AVI AGRI BUSINESS LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	24.00	ACUITE BBB- \| Stable \| Assigned	-
Bank Loan Ratings	155.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Bank Loan Ratings	45.00	-	ACUITE A3 \| Reaffirmed
Total Outstanding	224.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.155.00 Cr. bank facilities and its short-term rating of ‘ACUITE A3' (read as ACUITE A three) on the Rs.45.00 Cr. bank facilities of Avi Agri Business Limited (AABL). The outlook is ‘Stable’.

Further, Acuité has assigned its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.24.00 Cr. bank facilities of Avi Agri Business Limited (AABL). The outlook is ‘Stable’.

Rationale for rating
The rating reaffirmation considers improved operating performance, marked by a moderate recovery in revenues and profitability supported by stabilization in international demand and favourable global shipping conditions. The company has demonstrated healthy growth in margins, strengthened capital structure with reduced leverage, and improved debt protection metrics. Liquidity remains adequate with sufficient accruals against minimal repayment obligations, while working capital operations are moderate.

The rating is, however, constrained by the company’s exposure to fluctuations in raw material prices, dependence on global demand trends, and vulnerability to geopolitical developments that may impact exports. Sustained improvement in profitability and prudent management of working capital will remain key monitorable.

About the Company

Incorporated in 2009, Avi Agri Business Limited is a public limited company with registered office located in Indore, Madhya Pradesh. It was initially constituted as a private limited company and was converted to a closely held public limited company. The company is promoted and managed by Mr. Vinod Kumar Jain. The company is a part of AV group. AV group consists of flagship company Suraj Impex India Private Limited and other group company Excel Agri Business Private Limited. AABL is engaged in soya extraction (soya crude oil & de-oiled cake), edible oil, lecithin liquid and powder, soya flour and grits and soya white flakes.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of AABL.

Key Rating Drivers

Strengths

Established track record and improvement in operating performance
AABL has been operational for more than one decade. The company is promoted and managed by Vinod Kumar Jain who has an experience of over 35 years in the agro industry. The company is ISO 9001:2015 certified towards quality management. The company deals in multiple products including soya de-oiled cake, soya crude oil, soya hi-protein meal, lecithin power and liquid etc. Soya De oil cake and Soya refined oil are sold domestically whereas Soya Hiprotein meal is exported substantially to European countries due to non-genetically modified sources.

AABL’s operating performance has witnessed a robust growth in FY2025 as compared to FY2024 and FY2023. The operating income stood at Rs.2,442.41 Cr. in FY2025 against Rs.1,806.13 Cr. in FY2024 and Rs.2,006.48 Cr. in FY2023. The revenue in 9MFY2026 stood at Rs.1,664 Cr. In FY2025, the company has experienced significant growth compared to FY2024 and FY2023 on account of stabilization of international demand and improved global shipping conditions which facilitated the recovery of export orders, particularly from European markets. The operating profit margin improved to 2.71% in FY2025 against 0.12% in FY2024 and 1.88% in FY2023. The PAT margin also improved to 1.16% in FY2025 against (0.99) % in FY2024 and 0.36% in FY2023.

Acuite believes the company shall benefit due to its diverse product portfolio and promoter experience over the medium term.

Moderate financial risk profile
AABL’s financial risk profile is moderate marked by healthy net worth, below unity gearing and moderate debt protection metrics. The net worth stood at Rs.160.35 Cr. as on March 31, 2025, against Rs.132.06 Cr. as on March 31, 2024. The net worth improved on account of accretion of profits into reserves. The gearing ratio reduced below unity at 0.88 times as on March 31, 2025, against 1.45 times as on March 31, 2024. The TOL/TNW stood moderate at 1.76 times as on March 31, 2025. Further, debt coverage ratios stood comfortable with interest coverage ratio at 3.27 times and debt service coverage ratio at 2.16 times in FY2025 (0.15 times and 0.37 times respectively in previous year).

Acuite’ believes that financial risk profile of AABL is expected to improve over medium term in absence of any debt funded capex plan.

Weaknesses

Moderate nature of working capital operations
AABL’s working capital operations are moderate in nature marked by gross current days of 58 days in FY2025 against 62 days in FY2024. The debtor days stood at 13 days in FY2025 against 02 days in FY2024. The company typically receives ~100% of its receivables within 30 days. The inventory days stood at 37 days in FY2025 against 52 days in FY2024. The creditors days stood at 15 days in FY2025 against 9 days in FY2024. The bank limit utilization for fund based limits stood moderate at ~67.73% for the past 09 months ending Dec 25.
Acuite’ believes that working capital operations of AABL may continue to remain moderate over the medium term.

Susceptible to volatility in agriculture commodity prices and change in government policies
The commodity market is inherently volatile, with prices influenced by multiple factors including government regulations, weather patterns, and global demand-supply dynamics. Any abrupt fluctuation in these prices can materially affect the operations of companies like AABL.

Rating Sensitivities

Continued improvement in revenues and profitability.
Significant elongation in working capital cycle.
Increase in debt level affecting the financial risk profile.

Liquidity Position

Adequate

AABL generated sufficient cash accruals of Rs.36.35 Cr. in FY2025 against repayment obligation of Rs.5.88 Cr. during the same period. Going ahead, the company is expected to generate healthy accruals in the range of Rs.31-34 Cr. against minimal debt obligation of Rs.4.03 Cr. in FY2026 and nil obligation in FY2027.
The reliance on working capital limits is moderate with average bank limit utilization for fund based limits at ~67.73% for the past 09 months ending Dec 25. The current ratio stood moderate at 1.38 times as on March 31, 2025. AABL maintained unencumbered cash and bank balance of Rs. 0.81 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.	2442.41	1806.13
PAT	Rs. Cr.	28.28	(17.88)
PAT Margin	(%)	1.16	(0.99)
Total Debt/Tangible Net Worth	Times	0.88	1.45
PBDIT/Interest	Times	3.27	0.15

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
27 Jun 2025	Packing Credit	Short Term	39.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	109.00	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	6.50	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.51	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Loan	Long Term	17.99	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	26.00	ACUITE BBB- \| Stable (Reaffirmed)
04 Apr 2024	Packing Credit	Short Term	39.00	ACUITE A3 (Downgraded from ACUITE A3+)
	Covid Emergency Line.	Long Term	9.34	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Stable)
	Covid Emergency Line.	Long Term	2.03	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	26.00	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Stable)
	Proposed Long Term Loan	Long Term	14.63	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	109.00	ACUITE BBB- \| Stable (Downgraded from ACUITE BBB \| Stable)
05 Jan 2023	Packing Credit	Short Term	39.00	ACUITE A3+ (Assigned)
	Cash Credit	Long Term	109.00	ACUITE BBB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	15.84	ACUITE BBB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	3.45	ACUITE BBB \| Stable (Assigned)
	Cash Credit	Long Term	26.00	ACUITE BBB \| Stable (Assigned)
	Proposed Long Term Loan	Long Term	6.71	ACUITE BBB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	124.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
CENTRAL BANK OF INDIA	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	24.00	Simple	ACUITE BBB- \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Packing Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE A3 \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
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.