Press Release March 06, 2026 UTTAR PRADESH BEEJ VIKAS NIGAM Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE A | Stable | Assigned	-
Bank Loan Ratings	100.00	ACUITE A | Stable | Reaffirmed	-
Total Outstanding	150.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has reaffirmed its long term rating of "ACUITE A" (read as ACUITE A) on the bank facilities of Rs.100 Crore of Uttar Pradesh Beej Vikas Nigam (UPBVN). The outlook is 'Stable'. Acuite has assigned its long term rating of "ACUITE A" (read as ACUITE A) on the bank facilities of Rs.50 Crore of Uttar Pradesh Beej Vikas Nigam (UPBVN). The outlook is 'Stable'. Rationale for rating The rating is driven by comfort from Government of Uttar Pradesh (GoUP) since more than 90% shareholding is with GoUP and it holds strategic importance to the GoUP for catering to the seed requirement of the state by supplying seeds to Agriculture department. The rating also considers the support extended by the UP state through infusion of equity in the company. The rating also factors in the improved operating income of the company, which stood at Rs.358.18 Cr. in FY2025 as against Rs.229.20 Cr. in FY2024. Moreover, the company has registered sales of Rs.352.40 Cr. till 9M FY2026. The increase in revenue is contributed by the increase in sales volume in FY2025. Furthermore, the EBITDA and PAT margin of the company stood at 7.92 percent and 7.53 percent, respectively in FY2025. Additionally, the financial risk profile of the company remained healthy, marked by net worth of Rs.149.25 Crore as on 31st March 2025, interest coverage ratio and debt service coverage ratio at 8.53 times and 8.53 times respectively as on 31st March 2025 and the liquidity position is also strong, marked by steady cash accruals, comfortable current ratio and adequate cash and bank balance. However, the rating remains constrained by intensive working capital operations of the company along with agro-climatic risks in the business.

About the Company

­Uttar Pradesh Beej Vikas Nigam is Incorporated in 2002 and is a Government of Uttar Pradesh owned company and located at Lucknow (Uttar Pradesh). The directors of company are Mr. Satyendra Kumar Singh, Mr. Rajeshwar Singh, Mr. Piyush Kumar Sharma, Mr. Ravinder and Mr. Pankaj Tripathi. Uttar Pradesh Beej Vikas Nigam is engaged in Production of seeds, growing of crops and horticulture.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has taken the standalone view on the business and financial risk profile of Uttar Pradesh Beej Vikas Nigam (UPBVN). Further, Acuité has also factored in the support extended from the State Government of Uttar Pradesh.

Key Rating Drivers

Strengths

­Strategic Importance of UPBVN to GoUP UPBVN is a 90% owned entity of GoUP and holds a strategic importance to GoUP in terms of Agriculture requirements of the state. The company is engaged in production of seeds, growing of crops and horticulture. The company caters to the seed requirements of UP Agriculture department. The directors of the company are Mr. Satyendra Kumar Singh, Mr. Rajeshwar Singh, Mr. Piyush Kumar Sharma, Mr. Ravinder and Mr. Pankaj Tripathi who have more than two decades of experience in the agriculture industry. The company sells to dealers mostly to S & F and Agri junction. Acuité believes that the UPBVN, being strategically important to GoUP, shall continue to benefit from operational and management support of GoUP time to time. Increase in revenue albeit decrease in profitability margins The operating income of the company improved and stood at Rs. 358.18 Crore in FY25 against Rs. 229.20 Crore in FY24 supported by the increase in sales volume in FY2025 as compared to the previous year. Despite the increase in revenue, operating margin of the company stood at 7.92% in FY25 against 8.30% in FY24 owing to the increase in raw material procurement price in FY2025. Likewise, PAT margins also stood at 7.53% in FY25 against 9.85% in FY24. Moreover, the company has achieved the revenue of Rs. 352.40 Cr. till 9M FY2026. The company is expected to achieve better topline in next financial years with slight improvement in the margins. Healthy Financial Risk Profile The company’s financial risk profile is marked by a healthy net-worth and comfortable debt protection metrics. The company’s net-worth of Rs. 149.25 Crore as on 31st March 2025 against Rs. 122.29 Crore as on 31st March 2024, on an account of accretion of profit into reserves. Further, the long-term debt position of the company is nil as on 31st March, 2025 as well as 31st March, 2024. The interest coverage ratio and debt service coverage ratio of the company stood at 8.53 times and 8.53 times as on 31st March 2025 respectively against 11.38 times and 11.38 times as on 31st March 2024 respectively. Also, the TOL/TNW ratio stood at 1.02 times as on 31st march 2025 against 0.99 times as on 31st March 2024. Acuite believes that company financial risk profile will remain healthy over the medium term.

Weaknesses

­Intensive working capital operations The working capital cycle of the company remained high with GCA days at 222 days as on 31st March 2025 against 271 days as on 31st March 2024. The high in GCA days is on an account of debtor days’ which stood at 114 days as on 31st March 2025 against 178 days as on 31st March 2024. As company’s working capital cycle is different from other industries as commonly known they have two seasons namely Kharif and Rabi. The creditor days of the company stood at 145 days as on 31st March 2025 against 175 days as on 31st March 2024. Acuite believes that the operations of the company will remain working capital intensive on an account of nature of the agriculture industry. Exposed to risk of agro-climatic conditions UPBVN’s business is seasonal and exposed to agro-climatic risks, and the production is highly dependent on rainfall and other climatic conditions required for the cultivation of various crops. Any adverse agro-climatic conditions can affect the overall demand for seeds from farmers, which may result in inventory pile-up. Also, the company is exposed to uncertainty relating to production on account of agro-climatic risks, which may hamper crop output and quality. Acuité believes that the company’s ability to scale up its operations, considering the challenging operating environment, along with managing the working capital cycle, will remain a key rating sensitivity factor.

Rating Sensitivities

­Movement in the scale of operations and profitability Movement in working capital operations

Liquidity Position

Strong

­The liquidity profile of the company is strong. The company has net cash accruals of Rs. 27.73 Cr. in FY25 Crore against nil debt obligation for the same period. The cash and bank balance stood at Rs. 60.25 Crore and an investment in fixed deposits of Rs. 76.00 Crore as on 31st March 2025 which is entirely unencumbered. The current ratio of the company stood at 2.03 times as on 31st March 2025. The average bank limit utilization of the company stood at 35.25% in last 7 months ending January 2026. Further, the company does have season between April to January and accordingly, the cash credit limit is being utilized by the company during the same period only. Acuite believes that the liquidity profile of the company will remain strong in near to medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	358.18	229.20
PAT	Rs. Cr.	26.96	22.57
PAT Margin	(%)	7.53	9.85
Total Debt/Tangible Net Worth	Times	0.00	0.00
PBDIT/Interest	Times	8.53	11.38

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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • State Government Ratings : https://www.acuite.in/view-rating-criteria-26.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 18 Feb 2026 Cash Credit Long Term 100.00 ACUITE A | Stable (Upgraded from ACUITE A- | Stable) 28 Nov 2024 Cash Credit Long Term 100.00 ACUITE A- | Stable (Reaffirmed) 31 Aug 2023 Cash Credit Long Term 100.00 ACUITE A- | 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 UCO BANK Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE A | Stable | Reaffirmed INDIAN OVERSEAS BANK Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A | Stable | Assigned

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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr.No. Company Name 1 ­Government of Uttar Pradesh 2 Uttar Pradesh Beej Vikas Nigam

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg 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.