Press Release

June 08, 2026

KRISHNA TISSUES 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	295.22	ACUITE BBB+ \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	159.00	-	ACUITE A2 \| Reaffirmed	RBI
Total Outstanding	0.00	454.22	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has reaffirmed its long-term rating of ACUITE BBB+ (read as ACUITE triple B plus) and short-term rating of ‘ACUITE A2’ (read as ACUITE A two) on Rs.454.22 Cr. bank facilities of Krishna Tissues Private Limited (KTPL). The outlook remains ‘Stable’.

Rating Rationale

The rating reaffirmation reflects the stable operating performance with steady improvement in revenues with stable profitability. The rating also derives comfort from the experienced promoters, established operational track record, diverse geographical presence of the company and moderate financial risk profile supported by a healthy tangible net worth, comfortable gearing levels and adequate debt protection metrics along with adequate liquidity position. However, the rating remains constrained by the working capital-intensive nature of operations, as reflected in elevated inventory levels and susceptibility of profitability to volatility in raw material prices and forex risk in an intensely competitive paper and packaging industry.

About the Company

Incorporated in 2005, Krishna Tissues Private Limited (KTPL) is engaged in the manufacture of duplex board for primary packaging and kraft paper used in manufacturing kraft board which in turn is widely used in secondary packaging. The company is headed by Mr. Jyoti Kumar Bajaj and Mr. Kanti Kumar Bajaj. KTPL has the integrated duplex board unit in West Bengal and is one of the largest manufacturers of kraft paper in India. It has two units with different product lines - one is coated duplex board unit with current capacity of 115,500 MTPA in Ghoraghata, Bagnan, West Bengal and the other is kraft paper unit with a capacity of 180,000 MTPA in Burdwan, West Bengal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of KTPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management supported by geographical presence

KTPL is promoted by Mr. Jyoti Kumar Bajaj and Mr. Kanti Kumar Bajaj having over a decades of experience in the paper manufacturing and trading business. The management has aided in the company’s geographical divergence into countries like China, Bangladesh, Singapore, to name a few. Post Bangladesh crises management has gradually shifted its focus to domestic market, expanding in China as well as exploring Middle East countries. The company import raw materials mainly from South America and Europe driven by high fibre content and not subject to recycling. Acuite derives comfort from the company’s diversified presence and from the extensive experience of the promoters.

Increase in Operating Income with Improved Margins

KTPL’s operating income increased to Rs. 734.39 Cr in FY26 (Prov.) from Rs. 680.49 Cr in FY25, driven primarily by volume growth, partly offset by a decline in average selling prices (ASP) from FY2024 to FY2025 with marginal improvement in FY2026. Exports were impacted in FY2025 due to geopolitical disruptions, particularly the Red Sea crisis, affecting trade flows to distant markets; however, in FY2026, the company focused on product diversification and increased domestic sales, supporting volume growth. The EBITDA margin improved to 13.73% in FY26 (Prov.) from 13.13% in FY25, supported by better cost efficiency. The company’s location in Burdwan enables access to paddy husk at relatively lower cost, aiding input cost control. As a result, margins remained steady with effective cost management. Consequently, the PAT margin increased to 4.29% in FY26 (Prov.) from 4.09% in FY25. Acuite believes that , the company is likely to maintain stable performance over the medium term, supported by relatively steady demand. .

Moderate financial risk profile

The company’s financial risk profile is moderate marked by high networth along with comfortable gearing and moderate debt protection metrics. The tangible net worth of the company increased to Rs.451.33 Cr. as on March 31, 2026 (Prov.) from Rs.417.84 Cr. as March 31, 2025 due to accretion of reserves. Unsecured loans from promoters and relatives of Rs.157.85 Cr. are treated as quasi equity as per the undertaking received to maintain this amount in the business till the tenure of bank facilities. The company also have preference share capital of Rs.8.01 Cr. in FY2026(Prov). The gearing stood comfortable at 0.82 times as on FY 2026(Prov.) as compared to 0.69 times as on FY2025. Total debt of Rs. 371.45 Cr. as on March 31, 2026 (Prov.) includes Rs 263.97 Cr. short -term Debt and Rs 107.48 Cr. as long term debt. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.33 times as on FY2026(Prov). as against 1.44 times as on 2025. The Interest Coverage Ratio (ICR) stood at 2.02 times as on FY2026(Prov). as against 1.93 times as on FY2025. Further, the debt service coverage ratio (DSCR) stood moderate at 1.87 times as on FY2026(Prov). The Net Cash Accruals/Total Debt (NCA/TD) stood at 0.12 times as on FY2026(Prov). Acuite believes that the financial risk profile of the company will improve in the medium term on the back of no major debt funded capex plans.

Weaknesses

Working capital intensive nature of operations

KTPL’s operations are working capital intensive as reflected in Gross Current Assets (GCA) of 323 days in FY2026(Prov). as compared to 325 days in FY2025. The high GCA days are majorly due to elongated inventory cycle and high other current assets which includes balance with revenue authorities of Rs.3.77 Cr, other receivables and advances of Rs.25.26 Cr. and advances to trade creditors of Rs. 12.84 Cr. as on March 31, 2026 The inventory days stood high at 294 days in FY2026(Prov) as compared to 296 days in FY2025. The company maintains higher inventory levels due to long lead times (3–4 months) for imported raw materials, ensuring uninterrupted operations and timely order fulfilment. However, the debtor period stood comfortable at 36 days in FY2026(Prov). as compared to 36 days in FY2025. The credit with customers is around 40-60 days. The creditor days stood high at 116 days as on FY2026(Prov) as against 193 days in FY2025. The credit terms with their suppliers in an average is around 3 months and backed by Letter of Credit. Acuite believes that, the working capital management of the company is expected to remain intensive on the back of high inventory requirements.

Susceptibility of profitability to volatility in raw material prices

The company operates in a highly competitive and fragmented paper industry, exposing it to pricing pressures and limiting its ability to pass on raw material cost increases. The kraft paper segment remains susceptible to volatility in wastepaper prices due to supply-demand dynamics and competition, which constrains margins and keeps the business risk profile moderate. Going forward, demand for both kraft paper and duplex board is expected to remain stable, supported by growth in packaging, particularly from e-commerce, FMCG, and printing segments; however, realizations are likely to remain competitive with limited upside amid adequate industry capacity. Overall profitability continues to be sensitive to fluctuations in key input costs, and any significant volatility in raw material prices may impact pricing dynamics and margins.

Rating Sensitivities

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

Sustained growth in revenues and profitability
Improvement in working capital management with GCA below 200 days

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

Significant decline in revenues or profitability
Elongation in working capital cycle exerting pressure on liquidity
Deterioration in financial risk profile with DSCR below 1.20 times

Liquidity Position

Adequate

The company’s liquidity position is adequate marked adequate cash accruals cash accruals of Rs.44.31 Cr. as against long term debt repayment of Rs.0.49 Cr. over the same period. Going forward the Net cash accrual will lie between Rs 54 Cr. to Rs 66 Cr. against debt repayment obligation between Rs 18 Cr. to Rs 24 Cr. The current ratio stood moderate at 1.49 times as on FY2026(Prov). The unencumbered cash balance stood at Rs.3.46 Cr. in FY2026(Prov). The GCA days stood high at 323 days in FY2026 as against 325 days in FY2025. The fund-based bank limit utilisation stood at 87.71 per cent, and non-fund-based utilization at 60.82 % over the six months ended March 2026. The company has interchangeability between the fund based and non-fund-based facilities, which provides the requisite financial flexibility in the working capital management. Acuite believes that the liquidity position of the company will continue to remain adequate due to steady accruals, absence of debt funded capex plans, moderate current ratio albeit a high working capital cycle.

Outlook: stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	734.39	680.49
PAT	Rs. Cr.	31.52	27.84
PAT Margin	(%)	4.29	4.09
Total Debt/Tangible Net Worth	Times	0.82	0.69
PBDIT/Interest	Times	2.02	1.93

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
10 Mar 2025	Letter of Credit	Short Term	3.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	12.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	9.27	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	54.00	ACUITE A2 (Reaffirmed)
	Letter of Credit	Short Term	46.00	ACUITE A2 (Reaffirmed)
	Cash Credit	Long Term	47.20	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	110.20	ACUITE BBB+ \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	72.31	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	34.80	ACUITE BBB+ \| Stable (Reaffirmed)
	Cash Credit	Long Term	55.44	ACUITE BBB+ \| Stable (Reaffirmed)
28 Mar 2024	Letter of Credit	Short Term	3.00	ACUITE A2 (Downgraded from ACUITE A2+)
	Letter of Credit	Short Term	12.00	ACUITE A2 (Downgraded from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2 (Downgraded from ACUITE A2+)
	Bank Guarantee (BLR)	Short Term	9.27	ACUITE A2 (Downgraded from ACUITE A2+)
	Letter of Credit	Short Term	54.00	ACUITE A2 (Downgraded from ACUITE A2+)
	Letter of Credit	Short Term	46.00	ACUITE A2 (Downgraded from ACUITE A2+)
	Term Loan	Long Term	4.70	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Term Loan	Long Term	7.80	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	110.20	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	55.44	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Proposed Long Term Bank Facility	Long Term	59.81	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	34.80	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
	Cash Credit	Long Term	47.20	ACUITE BBB+ \| Stable (Downgraded from ACUITE A- \| Stable)
06 Jan 2023	Cash Credit	Long Term	47.20	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	3.33	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	1.27	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	58.27	ACUITE A- \| Stable (Reaffirmed)
	Term Loan	Long Term	8.61	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	75.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	35.20	ACUITE A- \| Stable (Assigned)
	Cash Credit	Long Term	55.44	ACUITE A- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	0.83	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	30.00	ACUITE A- \| Stable (Reaffirmed)
	Cash Credit	Long Term	4.80	ACUITE A- \| Stable (Assigned)
	Letter of Credit	Short Term	3.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	12.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A2+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	9.27	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	46.00	ACUITE A2+ (Reaffirmed)
	Letter of Credit	Short Term	54.00	ACUITE A2+ (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A2 \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	110.20	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	34.80	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	56.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Bandhan Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	48.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
Bandhan Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	27.00	Simple	ACUITE A2 \| Reaffirmed
Indian Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE A2 \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	19.00	Simple	ACUITE A2 \| Reaffirmed
Punjab National Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	46.00	Simple	ACUITE A2 \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	54.00	Simple	ACUITE A2 \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	46.22	Simple	ACUITE BBB+ \| Stable \| 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

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	SEBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts	SEBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	RBI
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁶	Not applicable

⁶ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.