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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 485.22 | ACUITE BBB+ | Stable | Reaffirmed | - |
| Bank Loan Ratings | 96.00 | - | ACUITE A2 | Reaffirmed |
| Total Outstanding | 581.22 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of 'ACUITE BBB+' (read as ACUITE triple B plus) on Rs. 485.22 Cr. bank facilities and the short-term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs.96.00 Cr. bank facilities of Gangamai Industries and Constructions Private Limited (GICPL; Erstwhile Gangamai Industries and Constructions Limited). The outlook is 'Stable'.
Rationale for rating The rating reaffirmation takes into consideration the established track record of operations of the company along with a diversified product portfolio into sugar business & engineering, procurement and construction (EPC) segment. The rating also factors the improved scale of operations in FY25 despite lowering of margins on account of headwinds faced in the sugar business owing to lower production and subsequent reduced crushing during ESY FY24-FY25. Further, the rating draws comfort from the moderate financial risk profile, expected recovery in the sugar business in ESY FY25-FY26 coupled along with an order book of ~Rs.426 Cr. (1.06 times of FY25 revenue from the segment) in the construction business showing moderate revenue visibility. The rating is however constrained by the substantial investments in the road projects through SPVs (though reduced in FY25) and ability of the company to execute the same in time, intensive working capital operations and inherent challenges of the sugar & EPC business. |
| About the Company |
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Gangamai Industries and Constructions Private Limited (GICPL; Erstwhile Gangamai Industries and Constructions Limited) is a part of Padmakar Mulay Group of Industries, Aurangabad, Maharashtra. The company was initially a closely held public limited company, got converted into private limited w.e.f. 29th January, 2024. Established in 1999, the company was primarily engaged into the business of sugar production and currently holds 9,000 TCD cane crushing plant in Ahmednagar, Maharashtra along with 300 KLPD distillery, 500 KLPD Ethanol plant and 32MW Cogen power plant installed in its manufacturing unit. In 2006, the company also expanded itself into undertaking irrigation projects under construction division. Further in 2010, the company also established windmill power generation plants with a capacity of 5.5 MW across Maharashtra & Rajasthan. Furthermore, in 2017, the company expanded its constructions operations by the way of engineering, procurement and construction (EPC) contracts and road projects under hybrid annuity model (HAM). The company is currently managed by Mr. Ranjeet Mulay.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Acuité has considered standalone business and financial risk profile of GICPL to arrive at the rating. |
| Key Rating Drivers |
| Strengths |
| Experienced management with a long track record of operations
Incorporated in May 1999, GICPL is a part of Padmakar Mulay Group of Companies of Aurangabad. The group has more than 40 years of track record in diversified business interests of agriculture, sugar, construction and education sector and holds an established market position in the industry. The group is led by Mr. Padmakar H Mulay an industrialist having more than 45 years of rich experience. The current managing director of GICPL, Mr. Ranjeet Padmakar Mulay holds an experience of more than 24 years in the sugar industry. Hence, longstanding experience in the industry has enabled the company to create strong relationships with its customers from both government and private players. Diversified business portfolio The company has a diversified business portfolio with revenues flowing in from sugar (58.78% of FY25 revenue), construction (40.98%) and windmill business (0.24%). Through the sugar business, the company has sufficient arrangements and agreements made with the farmers for daily procurement of cane. Further on the distillery business, the company has tie ups with reputed oil marketing companies such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). Furthermore, in the windmill business, the GICPL has signed power purchase agreement with the Rajasthan State Electricity Board and Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 15 years. On the construction front, the company is majorly engaged into road EPC contracts with National Highway Authority of India (NHAI), Public Works Department (PWD) of Maharashtra and Maharashtra State Road Development Corporation (MSRDC) and holds an outstanding order book of ~Rs.426 Cr. as on December 31, 2025. Also, GICPL has undertaken two HAM projects under two separate SPVs namely, Gangamai Kalyan ACR Private Limited (Gangamai Kalyan), project cost of Rs.962.70 Cr for which final COD has been achieved in May’2024 and the bi- annual annuity is receivable every 6 months i.e. in February and August. Till February 2026, 4 annuities have been received, and no delays have been observed there. Further, DSRA and MMR is also maintained at required levels. The second HAM project, Agroh Vadodara Mumbai Expressway Private Limited (Agroh Vadodara), having project cost of Rs.1,002.86 Cr. for which 90% work has been completed and accordingly the last milestone has been achieved. Hence, the company has applied for COD. For all the HAM projects, GICPL is appointed as the EPC contractor for work execution. The company is actively bidding on expanding its HAM project portfolio and has focus on growing its ethanol business over the medium term. Stable scale of operations albeit decline in margins The overall revenue of the company stood improved at Rs.988.08 Cr in FY25 against Rs.956.47 Cr. in FY24. The improvement in revenue is mainly driven by the sugar division which contributed to the extent of Rs.575.92 Cr in FY25 against Rs.463.09 Cr in FY24, mainly driven by export of sugar post lifting of export restrictions. The export ban on sugar was lifted in January 2025 and GICPL received export quota of 2,97,000 quintals out of which it has already made exports for 2,16,000 quintals till 9MFY26. Moreover, on the domestic front, the sales are being made as per the monthly quota which is received to the company. However, despite the increase in exports, the crushing days reduced to 116 days in FY25 from 150 days in FY24 and the production also reduced to 51,030 MT in FY25 against 97,655 MT during FY24; which was mainly due to shortage of sugarcane supply on account of lower rainfall. This lead to moderation in operating margin to 11.25% in FY25 against 15.93% in FY24. The income from construction business stood moderated at Rs.401.54 Cr in FY25 against Rs.482.73 Cr. in FY24. This was on account of lower billing during the year, consequently billed in month of April’25. Further, the margins continue to remain in the range on 13%. Going forward, the revenue growth shall also be supported by the timely execution of the current outstanding construction orderbook of ~Rs.426 Cr (1.06 times of FY25 revenue) and receipt of fresh contracts. GICPL recorded top line of ~Rs.626 Cr. till 9MFY26. Moreover, the sustenance of topline along with stable operating and profitability margins shall remain a key rating sensitivity. Moderate financial risk profile The company has a moderate financial risk profile marked by improving tangible net worth of Rs.381.46 Cr. as on 31st March 2025 against Rs.357.76 Cr. as on 31st March 2024. The net worth includes unsecured loans from promoters of Rs.79.25 Cr. recognised as quasi equity, in line with sanction terms. The gearing level stood improved at 1.36 times as on 31st March, 2025 (1.54 times as on 31st March, 2024) due to improved net worth. Moreover, due to increase in borrowings on account of equipment loan, the coverage ratios lowered but stood moderate with interest coverage ratio of 2.40 times in FY25 (2.33 times in FY24) and debt service coverage ratio of 1.22 times in FY25 (1.46 times for FY24). However, the Debt/EBITA remains high at 4.05 times in FY25 against 3.66 times in FY24. Going forward, the financial risk profile is expected to remain in similar lines on the back of steady cash accruals and absence of any significant debt funded capex. |
| Weaknesses |
| Substantial investment in road projects
The company holds investments in HAM subsidiaries and other business of Rs.132.64 Cr (34.77% of net worth) as on 31st March, 2025 against Rs.239.10 Cr (66.83% of net worth) as on 31st March, 2024. These investments majorly include intercorporate deposits towards the HAM SPV - Gangamai Kalyan to the extent of Rs.13.49 Cr. in FY25 (Rs.149.38 Cr. in FY24) and equity investment of Rs.61.74 Cr. in FY25 (Rs.32.31 Cr. in FY24) towards the other HAM SPV- Agroh Vadodara. During FY25, the company made investments of Rs 30 Cr. in Gangamai Kalyan. However, project is now completed, significant amount against the inter-corporate deposit has been repaid to GICPL through refinancing post the COD. Furthermore, the company has a continuous focus on expanding its HAM portfolio’s for which investments are expected to increase over the medium term. These investments are expected to be funded by internal accruals, infusion from promoters or refinancing of the completed HAM projects. Acuité believes that ability of the company to achieve financial closures and complete projects in a timely manner shall be a key rating sensitivity. Working capital intensive operations The company’s operations are working capital intensive as evident from high gross current asset (GCA) of 222 days as on 31st March, 2025 (300 days as on March 31, 2024). This is majorly due to the inventory levels which stood at 127 days in FY25 (157 days for FY24), majorly consisting of the sugar stock and molasses used to produce ethanol. The average inventory holding period is around 70-80 days. Further, the debtor days also stood improved at 38 days in FY25 (43 days for FY24) which majority debtors are related to the construction segment. The company gets advance payments from the customers of the sugar segment. The creditor days of the company stood moderated at 40 days in FY25 (69 days for FY24). The average utilization for the fund-based facilities remained utilized at ~49% and for the non-fund-based facilities, the average utilization stood at ~69% for the last 9 months ended December 2025. Inherent challenges in sugar and road construction business Sugar industry is cyclical by nature and is vulnerable to the government policies for various reasons like its importance in the Wholesale Price Index (WPI) as it classifies as an essential commodity. The government on its part resorts to various regulations like fixing the raw material prices in the form of State Advised Prices (SAP) and Fair & Remunerative Prices (FRP). All these factors impact the cultivation patterns of sugarcane in the country and thus affect the profitability of the sugar companies. Further, GICPL does road construction work mainly for NHAI, PWD Maharashtra and MSRDC which indicates that the firm’s revenues are highly dependent on number and value of tenders floated by such authorities. Moreover, any delays in the project execution along with the delayed receipt from authorities and site related issues are likely to result in higher working capital requirements. |
| ESG Factors Relevant for Rating |
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Issues such as water usage and efficiency along with waste disposal, releasing air impurities and energy intensive production process are some environmental issues relevant to Sugar Industry. On the Social front, safety and well-being of the employees and member farmers is the foremost material issue the companies in this industry. Strict adherence to government interventions and policy frameworks are key governance issues.
Further, for the construction industry; it is important to take environmental considerations like management of air quality during the processes, air pollutant emissions and GHG emissions. Also, the environmental management practices like water and energy efficiency are also important. On the social front, the safety of the employees is of paramount importance. Community support and development of safe practices are important to assess the impact on society. Lastly, upholding business ethics and fundamental values is a material issue in the construction industry. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Adequate |
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Liquidity position of the company is adequate as reflected from sufficient Net cash accruals (NCA) of Rs.65.28 Cr. in FY25 towards maturing debt obligations of Rs.43.50 Cr. Besides, the company also had unencumbered cash and bank balances of Rs.2.44 Cr. as on 31st March, 2025. Going forward, company is expected to generate cash accruals in the range of Rs.65-70 Cr. over the medium term, while repayment obligations are expected to be in the range of Rs.15-25 Cr. for the same period. Additionally, the company receives support from promoters for infusions in the form of equity or unsecured loans whenever needed. The average utilization for the fund based facilities remained utilized at ~49% and for the non-fund based facilities, the average utilization stood at ~69% for the last 9 months ended December 2025. Further, the current ratio stood moderate at 1.16 times in FY25 (1.17 times in FY24).
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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. | 988.08 | 956.47 |
| PAT | Rs. Cr. | 24.11 | 38.94 |
| PAT Margin | (%) | 2.44 | 4.07 |
| Total Debt/Tangible Net Worth | Times | 1.36 | 1.54 |
| PBDIT/Interest | Times | 2.40 | 2.33 |
| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable. |
| 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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