Press Release

Press Release

March 17, 2026

SEA FOODS PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	21.50	ACUITE BB+ \| Stable \| Reaffirmed	-
Bank Loan Ratings	3.32	-	ACUITE A4+ \| Reaffirmed
Total Outstanding	24.82	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating to 'ACUITE BB+' (read as ACUITE Double B plus) and the short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on bank facility of Rs 24.82 Cr. of Sea Foods Private Limited. The outlook remains ‘Stable’.

Rationale for rating
The rating reaffirmation reflects the company’s experienced management team and its long-standing relationships with key clients in US and Europe, which continue to support business stability. The revenue increased in FY2025 due to increased demand from US market. The Company’s financial risk profile remains comfortable, supported by a healthy capital structure and debt protection metrices. With healthy Year-to-date financial and seasonal sales momentum, Acuité expects the Company’s performance to remain at same level over the medium term. The rating is constrained by highly fragmented and competitive nature of business along with seasonal risks associated with procurement.

About the Company

Incorporated in 1992, Sea Foods Private Limited (SFPL) is managed by Mr. Krishnendu Jana and Ms. Subal Kumar Manna. The company is involved in the export of a wide variety of marine products such as black tiger prawn, Vannamei, sea shrimps and fish to countries such as Japan, Vietnam, China, USA and UAE. The company’s processing facility is located at Shankarpur (West Bengal).

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of SFPL while arriving at the rating.

Key Rating Drivers

Strengths

Established operations and experienced management
The company has established a long presence in the marine product industry spanning over two decades. The operations are aided by the extensive experience of the promoters Mr. Krishnendu Jana and Ms. Subal Kumar Manna, who possess around three decades of industry knowledge. Acuité believes that the vintage of the promoters and the long-standing operations of the company will continue to support the growth plans going forward.
Increase scale of operations
The company’s scale of operations remained healthy, with the revenues increased significantly to Rs. 281.80 Cr. in FY2025 (which include sale of product : Rs. 266.20 Cr. , Duty drawback : Rs 8.77 Cr , sale of licence : Rs. 6.83 Cr.) from Rs. 197.08 Cr. in FY2024 (which include sale of product : Rs. 187.38 Cr , Duty drawback : Rs 5.28 Cr , sale of licence : Rs. 4.42 Cr.) due to increase in demand of Shrimp in USA. The company has already achieved Rs 233.48 Cr. in 10MFY26 as against Rs. 222.92 Cr. in 10MFY25. The company is expected to close FY26 at the same level as achieved in March 2025. However, the operating margin of the company stood at 5.97 per cent in FY2025 from 6.21 per cent in FY2024 owing to increase in the operative costs such as freights charges. Also the PAT margin stood at to 3.07 per cent in FY2025 compared to 3.11 per cent in FY2024. Acuité believes that the scale of operations of the company will remain healthy over the medium term supported by steady demand for the products.
Moderate financial risk profile
The moderate financial risk profile of the company is marked by improving net worth, comfortable gearing and healthy debt protection metrics. The tangible net worth of the company increased to Rs. 49.18 Cr. as on FY2025 from Rs. 40.61 Cr. as on FY2024 due to accretion of reserves. Gearing of the company stood comfortable at 0.52 times as on FY2025 as against 0.47 times as on FY2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.95 times as on FY2025 as against 1.13 times as on FY2024. The healthy debt protection metrics is marked by Interest Coverage Ratio at 4.97 times as on FY2025 and Debt Service Coverage Ratio at 2.81 times as on FY2025. The Net Cash Accruals/Total Debt (NCA/TD) stood at 0.38 times as on FY2025. Acuité believes that going forward the financial risk profile will remain above average over the medium term, in the absence of any major debt funded capex plans.

Weaknesses

Working capital Intensive nature of operations
The company’s working capital management is intensive in nature marked by moderate Gross Current Assets (GCA) of 110 days as on FY2025 as compared to 126 days on FY2024. The fall in the GCA days is on account of decrease in the debtor cycle over the same period. The debtor days fall to 76 days as on FY2025 as compared to 90 days as on FY2024. The inventory period stood at 34 days as on FY2025 compared to15 days as on FY2024, Inventory levels increased in FY2025 as the company was unable to achieve better market realizations and therefore held back sales in anticipation of improved prices, leading to higher stock accumulation. Acuité believes that the working capital operations of the company will remain at similar levels as evident from the moderate collection mechanism and medium to low inventory level over the medium term.

Exposure to risks inherent in sea food industry
The shrimp processing and export industry is characterized by fragmentation, with numerous small players, and a heavy reliance on shrimp farms for raw materials, which constrains bargaining power. Furthermore, the procurement price of shrimp is subject to fluctuations based on catch and availability during specific periods, resulting in the company’s exposure to price volatility.. Moreover, the company faces risks related to changes in regulations and demand trends in client countries.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Revenue growth by 30% to 40%.
Sustenance of the financial risk profile.

Potential triggers (individual or collective) for a downward rating action:

EBITDA margin below 4 per cent
Intensive nature of working capital cycle

Liquidity Position

Adequate

The company’s liquidity is adequate marked by steady net cash accruals of Rs. 9.63 Cr. as on FY2025 as against long term debt repayment of only Rs. 1.24 Cr. over the same period. The cash and bank balances of the company stood at Rs. 1.22 Cr. as on FY2025. The current ratio stood comfortable at 1.97 times as on FY2025 as compared to 1.77 times as on FY2024. The fund-based limit utilisation of the company stood at 87% per cent over 5 months ended December FY2025. Limits are enhanced during peak season by Rs.8 crore for EPC facility. Furthermore, the promoters are in a position to infuse funds as and when required to support the operations. Acuité believes that, going forward, the liquidity position of the company will remain adequate due to steady accruals.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	281.80	197.08
PAT	Rs. Cr.	8.65	6.14
PAT Margin	(%)	3.07	3.11
Total Debt/Tangible Net Worth	Times	0.52	0.47
PBDIT/Interest	Times	4.97	4.70

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
24 Dec 2024	Stand By Line of Credit	Short Term	2.60	ACUITE A4+ (Reaffirmed)
	Proposed Short Term Bank Facility	Short Term	0.42	ACUITE A4+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.30	ACUITE A4+ (Reaffirmed)
	FBN/FBP/FBD/PSFC/FBE	Long Term	21.50	ACUITE BB+ \| Stable (Reaffirmed)
27 Sep 2023	Stand By Line of Credit	Short Term	2.60	ACUITE A4+ (Reaffirmed)
	Proposed Short Term Bank Facility	Short Term	0.42	ACUITE A4+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.30	ACUITE A4+ (Reaffirmed)
	FBN/FBP/FBD/PSFC/FBE	Long Term	21.50	ACUITE BB+ \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.30	Simple	ACUITE A4+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	FBN/FBP/FBD/PSFC/FBE	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	21.50	Simple	ACUITE BB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Short Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.42	Simple	ACUITE A4+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Stand By Line of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.60	Simple	ACUITE A4+ \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
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.