Press Release April 21, 2026 RIVULIS IRRIGATION INDIA PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	88.00	ACUITE A- | CE | Stable | Reaffirmed	-	RBI
Total Outstanding	0.00	88.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

­Acuite has reaffirmed the long-term rating to 'ACUITE A- (CE)' (read as ACUITE A minus (Credit Enhancement)) on the Rs.88.00 crore bank facilities of Rivulis Irrigation India Private Limited (RIIPL). The outlook is "Stable". Rationale for rating The rating derives comfort from the credit enhancement in the form of Standby Letter of Credit (SBLC) issued by Rabo Bank, Netherlands and Bank Leumi, Israel, towards securing the facilities availed by RIIPL. Further, RIIPL holds strategic importance within the Rivulis group as its presence enables access to the Indian irrigation market. This is evidenced by the parent company, Rivulis Irrigation Limited, Israel (a subsidiary of Temasek Holdings Private Limited, Singapore), maintaining 100% equity ownership and undertaking timely infusion of funds through equity contributions and unsecured loans, along with extending the shared global brand, reflecting its long-term commitment to the Indian operations. However, the rating is constrained by the decline in the scale of operations, with operating revenue moderating to Rs. 209.97 Cr. in FY25 from Rs. 268.94 Cr. in FY24, coupled with a below-average financial risk profile and intensive working capital operations.

About the Company

­Rivulis Irrigation India Private Limited (RIIPL) was incorporated in 2014 at Pune as a wholly owned subsidiary of Rivulis Irrigation Limited, Israel and 100% step down subsidiary of Temasek Holdings Private Limited. The company is involved in manufacturing of irrigation products such as micro sprinklers, plastic import sprinkler, T tape Drip tape, Hydrodrip, drip line etc. The company has manufacturing facility in Vadodara, Gujarat. The company is a wholly owned subsidiary of an Israel based company Rivulis Irrigation Limited. The Current directors of the company are Mr. Kaushal Kumar Jaiswal, Mr. Manoj Kumar Bhatia, Mr. Eran Ossmy and Mr. Ram Weingarten.

Unsupported Rating

­ACUITE BB-/ Stable

Analytical Approach

­Acuite has considered the standalone view of business and financial risk profile of Rivulis Irrigation India Private Limited (RIIPL). Further rating derives comfort from credit enhancement in the form of Standby Letter of Credit (SBLC) issued by ‘Rabo bank, Netherlands’ and ‘Bank Leumi, Israel’ to secure these facilities availed by RIIPL.

Key Rating Drivers

Strengths

Facilities secured by SBLC from Rabo Bank, Netherlands and Bank Leumi, Israel RIIPL’s working capital facilities are fully secured by Standby Letters of Credit (SBLCs) issued by Rabo Bank, Netherlands and Bank Leumi, Israel, providing 100% security cover to the limits availed. The SBLCs are valid until May 31, 2026 in the case of Rabo Bank, Netherlands and June 2, 2026 for Bank Leumi, Israel. The rating factors in the timely renewal of the SBLCs, thereby ensuring that the lending bank’s exposure remains fully secured over the tenure of the facilities. Acuité also notes that any material adverse change in the credit profile of the SBLC-issuing banks or delays in the extension of the SBLC validity would remain a key rating sensitivity. Strategic Importance of the company to Parent  Rivulis Irrigation India Private Limited is of strategic importance to its parent for presence in the Indian market and benefits from its association with Rivulis Irrigation Limited, Israel, which provides access to global irrigation technologies, technical expertise, and established operational practices. Alignment with the Israel-based parent enables the Indian entity to adopt internationally developed processes and product innovations while addressing local market requirements. This relationship facilitates effective adaptation of offerings to Indian agro-climatic conditions and enables the company to operate in line with the broader objectives and experience of the Rivulis group in serving the Indian market.

Weaknesses

Decline in scale of operations and profitability The operating income of the company declined to Rs. 209.97 Cr. in FY2025 from Rs. 268.94 Cr. in FY2024, primarily due to lower sales volumes. The decline in revenue was mainly on account of lower offtake from government departments, which form a significant portion of the company’s customer base. Sales were adversely impacted during FY2025 owing to the Central elections along with state elections in Andhra Pradesh and Maharashtra. The operating profitability of the company declined sharply, with operating margin turning negative at (-)5.66% in FY2025 as against a positive margin of 5.76% in FY2024. The deterioration in margins was primarily attributable to an increase in raw material costs. Further, lower capacity utilisation led to a relatively higher fixed cost and lower absorption of the same, which further impacted profitability. Consequently, the PAT margin deteriorated to (-)13.17% in FY2025 from 0.94% in FY2024. The company achieved revenues of Rs. 166.89 crore during 9MFY26. Acuité believes that the company’s ability to improve its operating profitability while scaling up its operations will remain a key rating sensitivity. Below-average financial risk profile The financial risk profile of the company remains below average, marked by negative net worth, weak debt protection metrics, and adverse gearing levels. The tangible net worth stood negative at Rs. (-)5.77 crore as on March 31, 2025, as against Rs. 21.77 crore as on March 31, 2024. The deterioration in net worth is primarily on account of losses incurred during FY2025. Owing to the erosion of net worth, the gearing level deteriorated and stood at (-)15.83 times as on March 31, 2025 as against 3.96 times as on March 31, 2024. The debt protection indicators also weakened significantly, with interest coverage ratio declining to (-)0.91 times in FY2025 from 1.71 times in FY2024. The debt service coverage ratio (DSCR) stood at (-)0.60 times in FY2025 as against 0.71 times in FY2024. In May 2025, the parent company, Rivulis Irrigation Limited, Israel, infused equity of Rs. 25.75 Cr. into RIIPL. Further, in January 2026, the parent company extended an unsecured ECB loan of Rs. 23.25 Cr. The proceeds are proposed to be utilised towards working capital requirements. Acuité believes that the financial risk profile of the company will remain in the same range, supported by parental support and the absence of any major debt-funded capex plans over the near to medium term. Intensive working capital operations The operations of the company remain working capital intensive, as reflected by elevated gross current assets (GCA) days. The GCA days stood at 467 days in FY2025 as against 382 days in FY2024. The stretched working capital cycle is primarily driven by high receivable days, which stood at 368 days in FY2025 compared to 313 days in FY2024, mainly due to a large exposure to government customers. The creditor days also remained elevated at 476 days in FY2025 as against 382 days in FY2024. Inventory holding stood at 55 days in FY2025 compared to 45 days in FY2024. Acuité believes that the company’s operations will continue to remain working capital intensive over the medium term, given the inherent nature of its business and customer profile.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­Acuite takes into consideration the benefit derived by RIIPL from the credit enhancement in the form of standby letter of credit (SBLC) issued by ‘Rabo Bank, Netherlands’ and ‘Bank Leumi, Israel’ for the facilities availed. The SBLC is a legally enforceable, irrevocable, unconditional and covers the entire amount. Stress Case Scenario While the rating has been derived on the standalone credit risk profile and cash flows of the entity, Acuite believes, given the SBLC from ‘Rabo bank, Netherlands’ and ‘Bank Leumi, Israel’, in case of any stress case scenario, the required support would come from ‘Rabo bank, Netherlands’ and ‘Bank Leumi, Israel’.

Rating Sensitivities

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

Growth in operating income by more than 50%. Significant improvement in the operating profitability position. Improved capital structure with comfortable debt protection metrics.

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

­Timely extension of the validity of SBLC by the issuing bank. Any movement in the credit profile of the current SBLC issuing bank.

All Covenants

­SBLC to be renewed before maturity/expiry date. SBLC to be unconditional and irrevocable. SBLC should allow multiple invocations. SBLC to be irrevocable and payable without any lien/set off/deduction

Liquidity Position

Adequate

The overall liquidity profile of the company is adequate, supported by banking facilities backed by a Standby Letter of Credit (SBLC) and timely support from the parent company through equity infusion and an unsecured ECB loan. However, on a standalone basis, the liquidity position remains stretched. The company reported negative net cash accruals of Rs. 23.95 Cr. in FY2025 against debt obligations of Rs. 6.47 Cr., comprising repayment obligations towards the ECB loan from the parent company, which were met through management of working capital operations. The cash and bank balance remained minimal and stood at Rs. 0.01 crore as on March 31, 2025. The average utilisation of fund-based bank limits stood high at 87.62%, while non-fund-based limits were utilised at 90.58% during the twelve months ended December 2025, indicating limited liquidity headroom. Further, the current ratio stood below unity at 0.94 times as on March 31, 2025. Acuité believes that the liquidity profile of the company will remain a key rating monitorable over the medium term.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	209.97	268.94
PAT	Rs. Cr.	(27.65)	2.52
PAT Margin	(%)	(13.17)	0.94
Total Debt/Tangible Net Worth	Times	(15.83)	3.96
PBDIT/Interest	Times	(0.91)	1.71

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 • Explicit Credit Enhancements: https://www.acuite.in/view-rating-criteria-49.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 22 Jan 2025 Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 16.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 22.00 ACUITE A- | Stable (Assigned) Secured Overdraft Long Term 19.90 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 0.10 ACUITE A- | Stable (Reaffirmed) 31 Dec 2024 Secured Overdraft Long Term 19.90 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 13.00 ACUITE A- | Stable (Reaffirmed) Cash Credit Long Term 30.00 ACUITE A- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 3.10 ACUITE A- | Stable (Reaffirmed) 03 Oct 2023 Cash Credit Long Term 30.00 ACUITE A- | Stable (Upgraded from ACUITE BBB | Stable) Cash Credit Long Term 13.00 ACUITE A- | Stable (Upgraded from ACUITE BBB | Stable) Secured Overdraft Long Term 19.90 ACUITE A- | Stable (Upgraded from ACUITE BBB | Stable) Proposed Long Term Bank Facility Long Term 3.10 ACUITE A- | Stable (Upgraded from ACUITE BBB | Stable)

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

­ Sr. No Company Name 1 Rivulis Irrigation India Private Limited 2 Rabo Bank, Netherlands 3 Bank Leumi, Israel

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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