Press Release

Press Release

March 06, 2026

REGENT GARAGE PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	65.00	ACUITE BBB- \| Negative \| Reaffirmed	-
Total Outstanding	65.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long term rating of "ACUITE BBB-" (read as ACUITE triple B minus) on the Rs. 65.00 crore bank facilities of Regent Garage Private Limited (RGPL). The outlook is revised from "Stable" to "Negative".

Rationale for rating
The revision in outlook reflects the weakening of the business risk profile of the company, marked by operating income of Rs.267.83 Crore in FY2025 as against Rs.341.03 Crore in FY2024 along with EBITDA Margin and PAT Margin at 1.68% and 1.15% in FY2025 respectively as against 3.16% and 2.43% in FY2024 owing to the slowdown in sales of Audi India, for which the company operates as an authorized dealer. The rating further remains constrained by the average financial risk profile marked by gearing ratio at 2.22 times and interest coverage ratio and debt service coverage ratio at 1.63 times and 1.02 times, respectively, as on 31st March 2025. However, the rating draws comfort from the extensive experience of promoters spanning over two decades in the same line of business coupled with an established market position in the Delhi region on the back of long track record of operations. The rating also factors in the adequate liquidity profile backed by sufficient net cash accruals against debt repayment obligation and the flexibility of the director/promoter to infuse funds as well as the moderately intensive working capital operations as reflected by GCA days of 111 days as on 31^st March 2025. Acuite notes that the operations of the company are vulnerable to the inherent cyclical nature of the automobile industry and the intense competition among the dealers, however ability of the company to improve its profitability margins while scaling up its operations in the near to medium term will be a key rating sensitivity.

About the Company

Regent Garage Private Limited (RGPL) started operations in the year 2002. The company is an authorised dealer for all passenger vehicles of Audi and is engaged in the sale of new and pre-owned cars, servicing of vehicles and sale of spare parts and accessories. The company has completed more than 10 years as an Audi dealer. The directors of the company are Mr. Raghav Chandra, Mr. Dinesh Goyal and Mr. Shiwesh Kumar Thakur. The registered office is located in New Delhi.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Regent Garage Private Limited (RGPL) to arrive at this rating.

Key Rating Drivers

Strengths

Experienced promoter and established track record of operations
The company was incorporated in 2002 and is engaged in the dealership of ‘Audi’ cars in the South Delhi Region. The company is promoted by Mr. Raghav Chandra, who has more than two decades of experience in the automobile dealership business, which helped the company establish long-term relations with Audi India. The company currently owns one showroom in South Delhi and two workshops for services and sale of spares parts and accessories. Additionally, the company plans to open an outlet in Agra in FY2027, with a specific focus on the sale of pre-owned cars. The company has already initiated the approval process with Audi and the same is expected around March or April 2026. Subject to Audi’s approval, the company plans to avail external debt for construction and commissioning as well to support inventory and receivables in the ramp-up phase. This outlet is expected to enhance the revenue of the company over the medium term along with the existing showroom/workshops. Acuité believes that the company will continue to derive benefit from its established market position in the Delhi region and the promoters' extensive understanding of the market dynamics.

Moderate Working capital operations
The working capital operations of the company are moderate, marked by GCA days of 111 days as on 31^st March 2025. The inventory days stood at 68 days as on 31^st March 2025 as against 49 days 31^st March 2024 as the company maintains inventory of all the models of cars for display at its showroom. Additionally, other current assets are high in FY2025 which stood at Rs.19.69 Cr., which majorly includes prepaid expenses, advances to suppliers and service providers, loans and advances to employees and related parties, balance with government authorities, receivables and recoveries, etc. Further, debtor days stood at 15 days as on 31^st March 2025 and the creditor days stood at 4 days as on 31^st March 2025. Acuité expects the working capital operations to likely remain in similar range in the near to medium term owing to the nature of operations.

Weaknesses

Decline in Revenue and Profitability
The company registered revenue of Rs.267.83 Crore in FY2025 as against Rs.341.03 Crore in FY2024. The decrease in revenue is primarily attributable to significant slowdown in sales of Audi India, for which the company operates as an authorised dealer. The company also derives income from lease rentals along with the Audi dealership business wherein the company has signed long term agreements and has rented out its three properties located in Faridabad, MCIE Estate (Mathura Road) and Gurugram to reputed clientele such as Skoda Auto Volkswagen India Private Limited, Mahindra & Mahindra Limited, among others. This rental income supports covering the company's long-term debt obligations, to an extent. Further, the EBITDA margin of the company stood at 1.68% in FY2025 as against 3.16% in FY2024 on account of lower absorption of operating expenses, amid a decline in sales volumes. Likewise, the PAT margin stood at 1.15% in FY2025 from 2.43% in FY2024. The company has clocked revenue of Rs.204.37 Cr. till January 2026 and expects the revenue and profitability to be supported going forward by the addition of a new outlet in Agra in FY2027, subject to Audi's approval coupled with the anticipated launch of new variants/models of Audi in India. Acuite believes that the ability of the company to scale up its operations while sustaining its profitability margins will remain a key rating sensitivity.

Average Financial Risk Profile
The financial risk profile of the company is average, marked by the net worth of Rs.48.88 Crore as on 31^st March 2025 against Rs.45.81 Crore as on 31^st March 2024 on account of low accretion of profits into reserves. The capital structure of the company is marked by gearing ratio, which stood at 2.22 times as on 31^st March 2025 against 2.05 times as on 31^st March 2024. Further, coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 1.63 times and 1.02 times respectively as on 31^st March 2025 against 2.26 times and 1.28 times respectively as on 31^st March 2024. The TOL/TNW ratio of the company stood at 2.60 times as on 31^st March 2025 against 2.54 times as on 31^st March 2024 and DEBT-EBITDA stood at 6.18 times as on 31^st March 2025 against 3.97 times as on 31^st March 2024. Acuité expects that the financial risk profile of the company to remain moderate and the same will be a key rating monitorable in the near to medium term.

Thin profitability margins led by intense competition
As the company is in the dealership business, it faces stiff competition from market leaders in the industry with companies launching new models at competitive prices. Further, RGPL also faces competition from other dealers of Audi. Acuite believes that the company's ability to improve its margins from service segments and through the sale of automobile ancillaries would be a key monitorable factor.

Rating Sensitivities

Movement in topline and profitability margins of the company
Movement in Financial Risk Profile
Larger than expected debt funded capex

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.5.78 Crore as on 31st March 2025 against the debt repayment obligation of Rs.5.44 Crore over the same period. Additionally, the cash and bank balance available with the company stood at Rs.1.53 Crore as on 31st March 2025 and the unsecured loan from the director/promoter and related parties stood at Rs.5.17 Crore in FY2025 as against Rs.2.77 Crore in FY2024, providing further comfort to the liquidity. The current ratio of the company stood at 0.91 times as on 31st March 2025 against 0.80 times as on 31st March 2024. Further, the fund based working capital limits stood utilised at 91.17% in the last six months ended January 2026. Acuité expects the liquidity position of the company to remain adequate in the near to medium term, backed by its sufficient net cash accruals against the debt repayment obligations and the flexibility of the director/promoter to infuse funds.

Outlook: Negative

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	267.83	341.03
PAT	Rs. Cr.	3.07	8.30
PAT Margin	(%)	1.15	2.43
Total Debt/Tangible Net Worth	Times	2.22	2.05
PBDIT/Interest	Times	1.63	2.26

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
• 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
06 Dec 2024	Cash Credit	Long Term	6.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB)
	Term Loan	Long Term	14.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB)
	Inventory Funding	Long Term	42.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB)
28 Dec 2023	Cash Credit	Long Term	6.00	ACUITE BB (Reaffirmed & Issuer not co-operating*)
	Term Loan	Long Term	14.00	ACUITE BB (Reaffirmed & Issuer not co-operating*)
	Inventory Funding	Long Term	42.00	ACUITE BB (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	3.00	ACUITE BB (Reaffirmed & Issuer not co-operating*)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	49.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.21	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 May 2027	4.79	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
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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