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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 700.00 | ACUITE A- | Stable | Reaffirmed | - |
| Total Outstanding | 700.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A Minus) on Rs. 700 Cr. of Non Convertible Debentures (NCD) of Hella Chemical Market Private Limited (HCMPL). The outlook is 'Stable'.
Rationale for rating The rating factors in the diversified revenue portfolio of the group in construction supplies with strong market position in key segments resulting in healthy y-o-y growth in the operating performance of the group. The rating also draws comfort from the presence of reputed investors such as Tiger Global, Fundamental, etc. and strong resource mobilisation ability of the group in terms of equity raise and debt refinancing over the years. The rating is however constrained by the significant capex and acquisitions done over the years, primarily driven by external debt which has impacted the financial risk profile leading to stretched coverage indicators. However, with significant debt refinancing and fund raising in FY26, moderate improvement in debt protection metrics is expected over the medium term and shall remain a key rating sensitivity. The rating is further constrained by the intensive working capital operations of the group marked by elevated debtor days and limited track record of operations. |
| About the Company |
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Incorporated in March 2021, HCMPL is a 100% subsidiary of Hella Infra Market Limited (HIML, formerly known as Hella Infra Market Pvt Ltd). The company operates through its digital platform and brand name ‘Chemical.Market’ which is a one-stop digital-enabled service provider for the chemical industry engaged in the supply of all kinds of organic and inorganic chemical compounds & specialized chemicals. The company deals in buying, selling (on a wholesale cash and carry basis), importing, exporting, supplying, distributing, storing of construction chemicals, chemical compounds (organic and inorganic) in all forms, chemical admixtures, pharmaceutical medicines, paints, petroleum products, chemical products of any nature and kind whatsoever, byproducts and joint product thereof. The company is based in Thane and current directors of the company are Mr Souvik Sengupta & Mr Aaditya Sharda.
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| About the Group |
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Established in 2016, Hella Group is a Thane based manufacturer cum aggregator dealing in various types of construction materials. The group provides a wide range of industrial products (concrete, steel, cement, aggregates), building materials & services (walling, wood, plumbing, roofing), consumer interior essentials (tiles and sanitary ware, modular kitchen and hardware, paint, electrical appliances) and chemical compounds. It runs its business through India’s first multi-product and multi-channel construction material platform – Infra.Market which is one of the biggest marketplaces and aggregators in the country having a tie-up with more than 500+ suppliers and 9000+ retail stores (of which 1250+ retailers are dealer stores operating under the group's brand name). The group has also recently launched 30+ premium franchise stores measuring 10,000 sq. ft. Further, it has established a key presence across 22+ states in India and also has an export presence in Middle East and Asian countries such as Jordan, Vietnam, Singapore, Dubai, UK, Hong Kong, etc.
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| Unsupported Rating |
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Not applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| To arrive at the rating of Hella Chemical Market Private Limited (HCMPL), Acuite has consolidated the financial and business profiles of HCMPL, its parent company Hella Infra Market Limited (HIML, formerly known has Hella Infra Market Private Limited) including all the subsidiaries and associates of HIML. The consolidation takes into account the integrated nature of business of companies, cashflow fungibilities, operational linkages and common management. The rating also factors the corporate guarantee extended by HIML to HCMPL.
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| Key Rating Drivers |
| Strengths |
| Sustained equity infusions supported by reputed investors and strong resource mobilisation ability
The group is backed by reputed investors like Tiger Global, Accel India, Evolvence India, Sacap Capital, etc who have been with the group since 2019 and extended support in the form of equity infusions in each of the fund raising rounds. On an overall basis, group has raised Rs 3058 Cr. from FY20 to FY25 (excluding Rs. 900 Cr. against swap acquisition of tile companies in FY25). Further in FY26, the group raised Rs 879.00 Cr till February 2026 and planning to further raise of Rs 60.00 Cr. in the month of March 2026. Overall from FY19 to recent raise in FY26, the valuation have grown multi fold from Rs. 100.00 Cr. to Rs 25,000 Cr. respectively. Also, the group has refinanced total debt of Rs. 1,250 Cr. (Rs 1000.00 Cr - committed amount and Rs 250.00 Cr. under green shoe option) in FY26, against which Rs 750 Cr. is refinanced in FY26 and balance Rs 250 Cr. to be received in early of April-26/May-26.The equity raised and debt refinanced is to meet the repayment obligations and capex requirements of the group. Diversified revenue streams with strong market position in key segments The group is engaged in all sorts of construction materials with key focus on products which have a fragmented market, drive macroeconomic shifts and high export potential. The key focus is to establish a robust distribution system expanding at B2B levels and develop a strong brand. The group has secured strong domestic market positions, with being the largest manufacturer of ACC blocks and 2nd highest ranking in categories like Concrete and Tiles. Majority of the product portfolio expansion is on account of acquisitions including Equiphunt in 2020, RDC Concrete in 2021 and Shalimar Paints in 2022. The group has also ventured into new segments such as Bath & Fittings in 2020, Walling Manufacturing in 2023 and Wood Panel & Modular Kitchen in 2024. The extensive product range offers an edge over the competitors and allows to capture larger share of customers wallet through cross selling opportunities. Strong growth in operating performance The operating revenues of the group has been growing at a strong pace with Rs 14,527.23 Cr. in FY2024 to Rs 18,469.67 Cr. in FY2025 posting a growth of ~27 percent. This growth in revenues is majorly attributable to the concrete segment (30.6% of FY25 revenue), steel segment (21.3%) and chemical segments (12.5%). With increasing share of private labels in the revenue mix, the operating margins have also improved significantly from 7.13% in FY24 to 8.20% in FY25 mainly on account of increasing economies of scale. The group recorded a revenue of Rs 14,388 Cr. for 9MFY26 with an EBITDA margin of 8.19%. Currently, majority of revenue is driven from B2B channel mix (74.50% of FY25 revenue), however, the group has a constant focus on expanding its retail network as well through development of extensive distribution network. |
| Weaknesses |
| Dependence on external debt to support acquisitions, capex and working capital significantly impacted financial risk profile, expected to improve through equity infusions and debt refinancing
While, tangible net worth of the group stood improving at healthy levels to Rs 3,709.27 Cr. in FY2025 as against Rs 2,009.15 Cr. in FY24, the significant dependence on external debt to support acquisitions, capex, working capital and lease liabilities however led to an increase in the debt. The gearing though improved remained high at 1.77 times in FY 2025. Moreover, the debt protection metrics stood low with debt service coverage ratios remaining below unity in FY25.However, the recent debt refinancing of Rs 1,250 Cr. and equity raise of Rs 879 Cr. in FY26 (till Feb-26) is expected to improve the financial risk profile significantly over the medium term. Additionally, the management also proposes for raising funds through initial public offer by Q2FY27, approval received from SEBI on DRHP in Jan 2026. While listing being pending, the same has not been factored in the rating, however, successful fund raising shall further improve the capital structure and be a key rating monitorable. Intensive working capital requirements The working capital operations of the company is intensive marked by high gross current asset days of 173 days in FY2025 (163 days in FY2024). This is mainly attributable to elevated debtor levels which stood at 124 days in FY2025. Further other current assets including advance to suppliers and balance with government authorities also contributed to high GCA days. The receivable days is expected to remain in the range of 120 days over the medium term. The company sources materials from leading players like Ultratech, JSW Steel, etc. Further, since the company is majorly supplying materials directly from manufacturer and key materials such as concrete is perishable in nature, inventory maintenance is low at 10-20 days. Limited track record and inherent challenges of construction business The group has a relatively short operating track record as operations started in 2016. Also, the construction sector is fragmented with low entry barriers and numerous small players, hence exposes the company to intense competition risks. Further, growth in construction industry is vulnerable to the developments in infrastructure and real estate sector. |
| ESG Factors Relevant for Rating |
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The group has commitment to energy management and product stewardship. On the environment safeguard front, the group preserves natural resources and reduces energy intensive processes by engaging in use of recycled metal scrap and production of secondary steel, exports chemical raw materials to make sustainable and alternative fuels like Bio-diesel, is setting up recyclable and low energy consuming Oriented Polyvinyl Chloride pipes to replace the traditional cement pipes.Further, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. Further, it promotes gender diversity and inclusivity. The board comprises of a strong team of promoters and experienced industry professionals. Also, to manage the corporate governance anti bribery, anti corruption and whistleblower policy has been framed. The group ensures efficient credit risk management and indulges in data privacy and data security practices.
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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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| All Covenants |
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| Liquidity Position |
| Adequate |
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Historically, the liquidity of the group has been stretched with accruals of Rs 668.92 Cr. in FY25 as against repayment obligations of Rs 1,648.91 Cr. for the same period and debt servicing was managed through debt raise and refinancing. With the equity raise of Rs 879 Cr till Feb-26 and debt refinancing of Rs 750.00 Cr. in FY26, the group's liquidity is expected to remain adequate over the medium term. Further, the group is expected to generate net cash accruals of ~Rs 1,000.00 Cr - 1,200.00 Cr. in FY27 - FY28 respectively as against annual repayment of ~Rs 580.00 Cr to 1,017.00 Cr. The current ratio of the group stood moderate at 1.10 times as on March 31,2025. Further, group maintained total cash balance of Rs 940.61 Cr. as on December 31, 2025, of which Rs 326.57 Cr. is unencumbered. The overall utilisation of fund-based limits stood at ~79.51% for seven months ending on February 28, 2026.
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| Outlook-Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 18469.67 | 14527.23 |
| PAT | Rs. Cr. | 219.74 | 378.04 |
| PAT Margin | (%) | 1.19 | 2.60 |
| Total Debt/Tangible Net Worth | Times | 1.77 | 2.17 |
| PBDIT/Interest | Times | 1.92 | 2.20 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any Other Information |
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None
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| Applicable Criteria |
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• 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 • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
| Note on complexity levels of the rated instrument |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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