Press Release March 16, 2026 SHRIRAM FOOD INDUSTRY LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	100.00	ACUITE A- | Stable | Assigned	-
Bank Loan Ratings	200.00	-	ACUITE A2+ | Assigned
Total Outstanding	300.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long-term rating of ‘ACUITE A-' (read as ACUITE A minus) and its short-term rating of ‘ACUITE A2+' (read as ACUITE A two Plus) on Rs 300.00 Cr. bank facilities of Shriram Food Industry Limited (SFIL). The outlook is 'Stable'. Rationale for rating  The rating assigned factors in the improving operating performance of the company, reflected by a robust 104.10 percent revenue growth in FY2025 with topline of Rs 1,359.51 Cr. and sustained momentum in 10MFY2026, during which SFIL achieved revenues of Rs 1,075.36 Cr. The recent capacity enhancement at the Nagpur facility coupled with the commencement of the new Kandla unit is expected to further support scale-up and improve operating performance over the near to medium term. Further, SFIL’s financial risk profile remains healthy with a growing net worth and healthy debt protection metrics. The same is expected to strengthen further, supported by the absence of significant debt-funded capex, anticipated improvement in net worth post the proposed IPO, and partial debt reduction through utilisation of IPO proceeds. The company’s moderately efficient working capital cycle and adequate liquidity position also underpin the credit profile. It further factors in the experience of the promoters, who possess more than a decade of operational track record in the rice milling and export industry. These strengths, however, are partly offset by the company’s range-bound profitability, which remains susceptible to fluctuations in raw material prices, as well as regulatory and climatic risks inherent to the agro-commodity sector. Since company is majorly into exports, variability in export policies affecting paddy demand and supply could influence margins and operating performance.

About the Company

Incorporated in year 2014 ,Shriram Food Industry Limited (SFIL) is engaged in rice processing, trading, milling, and grinding. The company operates on a Business-to-Business (B2B) model and is active in both the trading and manufacturing segments of the rice industry. SFIL operates a rice-processing facility located in Nagpur, with an installed capacity of 1,63,200 MT per annum (enhanced from 76,800 MT per annum). To further augment its overall processing capabilities, the company has established a new unit in Kutch with the installed capacity 500 MT per day, operational from February 2026.

About the Group

Shriram Food Industry Limited (SFIL) has incorporated a wholly owned subsidiary, Shriram Food Industry Pte. Ltd., in Singapore on November 11, 2025. The subsidiary is primarily engaged in trading of rice. Director Mr Nitesh Chaudhari looks over the operations of this entity. The company undertakes MTT (Merchant Trade Transactions) where in cargo moves directly from suppliers in Thailand and Myanmar to international buyers in Middle East and African countries.

Unsupported Rating

­Not applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­Acuité considered consolidated business and financial risk profiles of Shriram Food Industry Limited (SFIL)and Shriram Food Industry Pte. Ltd to arrive at the rating. The consolidation is in the view of wholly owned subsidiary, common management and operational linkages.

Key Rating Drivers

Strengths

Experienced management with an established track record of operations   SFIL forms part of the Greta Group and is currently led by Mr. Anup Goyal and Mr. Nitish Choudhari, both of whom possess extensive experience across sectors such as energy, metals, scrap recycling, and mining. The company has developed a strong track record in the rice industry, leveraging over a decade of operational experience to establish long-standing relationships in both domestic and international markets. It primarily exports non-basmati rice, with a diverse product portfolio comprising parboiled rice, white rice, and 100% broken rice. The company is recognized as a 3-Star Export House and exports processed rice to key international markets, including the USA and China, supported by advanced milling technologies and robust infrastructure. It derives majority of revenue from export across Asia, Africa, Russia, and the Middle East, supplying rice to over 33 countries. Additionally, SFIL holds GACC (General Administration of Customs of the People’s Republic of China) approval, which further strengthens its trade access to China and reinforces its position in the global rice export market. Improving operational performance The company reported revenues of Rs. 1,359.51 Cr. in FY2025, a significant increase from Rs. 666.09 Cr. in FY2024, reflecting a growth of 104.10%. This sharp rise was primarily driven by improved export demand following the easing of export regulatory restrictions in October 2024 along with removal of export duty on parboiled rice and the MEP on white rice. Further, till January 2026, group has achieved revenue of Rs. 1,075.36 Cr, which includes approximately Rs. 450 Cr. (USD 49 million) contributed by its wholly owned subsidiary (WOS) in Singapore. The company’s profitability improved in FY2025, supported by higher operating scale and better cost absorption. The operating profit margin increased to 5.28 percent in FY2025, compared with 3.58 percent in FY2024, reflecting efficiencies arising from the significant growth in revenue and control over overhead expenses. The PAT margin also improved to 3.14 percent in FY2025, as against 2.17 percent in FY2024. Going forward, with the capacity enhancement at Nagpur plant and commissioning of new capacity at Kandla unit, growth in operating performance is expected to over the medium term. Healthy financial risk profile The company’s financial risk profile remains healthy marked by improving net worth, comfortable gearing and strong debt protection metrics. The tangible net worth of the company increased to Rs 145.54 Cr. as on March 31,2025 from Rs 102.75 Cr. as on March 31,2024 primarily driven by healthy accretion of profits to reserves. Further, debt levels have remained moderate with majorly consisting of working capital borrowings. Additionally, the company availed a term loan of Rs. 25.75 Cr. in January 2026 for setting up its new manufacturing unit at Kandla, Gujarat. However, debt protection metrics remain healthy with interest coverage ratio (ICR) at 5.50 times and debt service coverage ratio (DSCR) at 4.40 times in FY25. Moreover, the TOL/TNW stood moderate at 1.82 times as on March 31, 2025, expected to reduce in FY26 on account of improving net worth. Acuite expects the group’s financial risk profile to improve over the near to medium term, supported by the absence of any major debt-funded capex, expected enhancement in net worth post IPO, and partial debt reduction following the utilisation of IPO proceeds. Efficient working capital nature of operations The working capital cycle of the company is marked moderately efficient with gross current asset (GCA) 87 days as on March 31,2025 (63 days as on March 31,2024) owing to low inventory holding and efficient recovery from debtors. Inventory days stood at 28 days as on March 31,2025 (31days as on March 31,2024). Debtors stood at 56 days as on March 31,2025 as compared to 17 days as on March 31,2024 due to high last quarter sales in FY2025.

Weaknesses

­Commodity price fluctuations Paddy, the main raw material required for rice is a seasonal crop and production of the same is highly dependent upon monsoon season. Environmental factors, sound fertility of soil and seasonal monsoon control the output of the paddy cultivation affecting the demand supply dynamics of basmati/non-basmati rice year-on-year resulting in price flux. Furthermore, paddy price is largely dependent on several external factors like domestic demand outlook, international trade regulations and domestic productions. This exposes the company to the risk related with fluctuation in raw material price. Regulatory changes and volatility in forex rates The price and trade of commodities is highly vulnerable to export restrictions by the government depending on domestic demand-supply scenario, level of inflation, imposed trade restrictions to maintain domestic supplies and low prices, including export duties. Thus, any adverse change in government policies can affect volumes and margins of the industry players as reflected in FY2024. Furthermore, SFIL is majorly into exports, therefore, remains exposed to foreign exchanges risks.

Rating Sensitivities

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

­ Steady growth in scale of operations above Rs 2,000.00 Cr coupled with improvement in operating margins Improvement in debt coverage indicators

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

­ Elevation in debt levels leading to increase in TOL/TNW above 1.2x Elongation of working capital cycle Any adverse impact of government regulations affecting the operations

Liquidity Position

Adequate

SFIL liquidity position remains adequate as reflected by generation of net cash accruals of Rs 45.56 Cr. in FY2025 with absence of the long-term debt obligations. Over the medium term, the company is expected to generate cash accrual in the range of Rs 45.00 Cr - Rs 57.00 Cr. as against its maturing repayment obligations in the range of ~Rs. 3.00 Cr to Rs 6.00 Cr. over the medium term. The cash and bank balance stood at Rs. 2.97 Cr. and current ratio stood comfortable at 1.46 times as on March 31,2025. The average bank limit utilisation for fund-based facilities stood at 30.65 percent for the six months ended with January 2026 providing additional buffer to the liquidity.

Outlook-Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1359.51	666.09
PAT	Rs. Cr.	42.75	14.49
PAT Margin	(%)	3.14	2.17
Total Debt/Tangible Net Worth	Times	1.53	0.23
PBDIT/Interest	Times	5.50	6.07

Status of non-cooperation with previous CRA (if applicable)

­None

Any Other Information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 :

­Not applicable

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. 55.00 Simple ACUITE A- | Stable | Assigned AXIS BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 45.00 Simple ACUITE A- | Stable | Assigned H D F C Bank Limited Not avl. / Not appl. Post Shipment Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 200.00 Simple ACUITE A2+ | Assigned

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

­ Sr No Name of the entity 1 Shriram Food Industry Limited 2 Shriram Food Industry Pte. Ltd

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Divya Bagmar 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.