Press Release June 11, 2026 NHC FOODS LIMITED Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	60.00	ACUITE BBB | Stable | Assigned	-	RBI
Total Outstanding	0.00	60.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.60.00 crore bank facilities of NHC Foods Limited (NHC). The Outlook is 'Stable'. Rationale for Rating assigned The rating reflects the established track record of operations of the company and healthy experience of more than 25 years in the domestic agro-commodity business of the new management leader, Mr. Satyam Joshi. It also takes into account the improving scale of operations driven by growing trading activity and further diversification into manufacturing business. The rating further factors in the company’s demonstrated ability to mobilize resources through successful fund-raising initiatives, which have strengthened its net worth and supported its financial risk profile. However, the rating is constrained by moderately intensive working capital requirements arising from a long debtor cycle, significant investments in subsidiary companies engaged into diverse business and thin operating margins inherent to the trading business.

About the Company

Established in 1992, NHC is a BSE-listed, government-recognized three star export house with expertise in bulk trading of whole and ground spices, oilseeds, grains, rice, sugar, coffee, pulses, and a diverse range of other agri-commodities. The company caters to domestic markets, serving the varied requirements of more than 40 clients at present. In September 2024, NHC underwent a management transition led by Mr. Satyam Joshi who acquired the business from the then promoter - Mr. Apoorva Shah. The current directors of the company are Mr. Satyam Joshi, Mr. Manish Vyas, Mr. Narayanan Iyer, Ms. Anisha Sharma, Mr. Karan Nagdev and Mr. Ashish Shah.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of NHC Foods Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record and experienced management NHC Foods Limited was founded in 1992 by Mr. Apoorva Shah and was engaged in the export of agro commodities for nearly three decades. In September 2024, the company underwent a management transition, with Mr. Satyam Joshi assuming the role of Managing Director and holding a 13.85% shareholding. Mr. Joshi has over 25 years of experience in capital markets and domestic agri-trading, with expertise in commodities trading, logistics, and finance. At present the company caters only to the domestic markets. Improving scale of operations The company’s operating performance strengthened in FY26, with revenues increasing to Rs.444.28 crore compared to Rs.341.41 crore in FY25 and Rs.209.24 crore in FY24, driven by growth in overall trading activity. In November 2025, NHC acquired assets of a packaged drinking water and carbonated soft drinks facility at Kalyan, Bhiwandi, for Rs.8.5 crore, marking its entry into the manufacturing segment. The plant has the potential to generate an annual turnover of Rs.25 crore with operating margins of close to 20%, and the products are marketed under the brand name ‘Nature Day’. Acuite believes that the growth trajectory is expected to continue, supported by a focus on domestic trading and the stabilization of the newly acquired bottling facility. Strong resource mobilization ability and limited dependence on external debt Since the change in management, NHC had undertaken significant capital-raising initiatives over the past two years. The company underwent a rights issue of Rs.47.42 crore in December 2024, followed by a fresh equity infusion of Rs.8.05 crore and a foreign currency convertible bond (FCCB) issuance of Rs.258.33 crore in May 2026. Additionally on account of accretion of profits to reserves, the net worth increased to Rs.95.06 crore as of March 31, 2026, compared to Rs.80.57 crore in FY25 and Rs.25.82 crore in FY24. Further as mentioned by the management the FCCBs are to be converted into equity in the current financial year. On the borrowings side, total debt increased to Rs.52.47 crore as of March 31, 2026, from Rs.32.66 crore in FY25, primarily due to higher utilization of working capital limits toward year-end, resulting in gearing rising to 0.55x from 0.41x in FY25. TOL/TNW remained low at 0.70x as on March 31, 2026 (1.57x as on March 31, 2025) with comfortable debt service coverage ratio at 2.31x in FY26 (2.18x in FY25) and interest coverage ratio at 3.07x in FY26 (2.69x in FY25).

Weaknesses

Moderately intensive working capital operations NHC’s working capital operations are moderately intensive, as reflected in its gross current assets (GCA) of 112 days in FY26. The GCA cycle is largely influenced by elongated debtor days, which stood at 107 days, given the company’s need to provide credit terms of around 90–100 days to its customers. Inventory levels remain negligible at just 3 days, since the company does not maintain stock and instead procures materials directly for dispatch to client locations. On the liabilities side, most purchases are settled through spot payments, resulting in reliance on working capital limits to meet supplier obligations. The fund-based limits have been moderately utilized, with average utilization at 85.52% over the 12 months ended April 2026.  Further the company is proposing for an enhancement in its working limits to support its growing operation. Significant investment into subsidiaries engaged in diverse business NHC has made notable investments in wholly owned and step-down subsidiaries, including NHC International L.L.C-FZ in Dubai (acquired in December 2023), Conquer Enterprises Limited in Hong Kong (acquired in March 2026), both involved into trading businesses. Further in April 2026 it incorporated another subsidiary named NHC International UK Limited to setup a palm oil refinery and plantation business in Liberia, Africa. While these entities are debt-free at present and operate independently without any form of support from the parent company, the expansion into multiple geographies and sectors reflects a significant capital commitment. The investment raised through FCCB in the current year are completely parked into its newly incorporated UK business. Any further support or comfort extended by NHC to its subsidiaries leading to an impact on its own financial risk profile, will be key rating monitorable. Thin operating margins with inherent business risks Operating margins remained thin at 3.51% in FY26, compared to 4.48% in FY25 and 3.32% in FY24. The contraction was largely due to the company’s increased focus on domestic trading, compared to exports. Margins are expected to gradually improve with the contribution from the packaged drinking water business, offering higher profitability. At the same time, the agro-trading business carries inherent limitations, being dependent on climatic risks, market and consumer behaviour, supply chain dynamics and changes in trade policies. Any adverse developments in these areas may impact the company’s performance.

Rating Sensitivities

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

Enhanced operational scale accompanied by an improved revenue mix.  Increase in margins beyond 6% leading to healthy cash accruals

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

Any incremental debt raised beyond the planned levels on a standalone basis, weakening the company’s financial risk profile leading to TOL/TNW rising above 1 time. Any stretch in working capital operations Any further support or comfort extended by the parent to its subsidiaries affecting the debt servicing ability of NHC.

Liquidity Position

Adequate

The company’s liquidity profile remains adequate, supported by healthy net cash accruals of Rs.7.78 crore in FY26 against long-term debt repayments of Rs.0.5 crore. Further, over the next two years, net cash accruals are expected to remain in the range of Rs.10–17 crore, comfortably covering repayment obligations of less than Rs.1 crore. The company’s current ratio stood healthy at 2.51 times as of March 31, 2026, while cash and cash equivalents were Rs.0.23 crore on the same date. The fund-based limits have been moderately utilized, with average utilization at 85.52% over the 12 months ended April 2026.

Outlook - Stable

­

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	444.28	341.41
PAT	Rs. Cr.	6.10	6.69
PAT Margin	(%)	1.37	1.96
Total Debt/Tangible Net Worth	Times	0.55	0.41
PBDIT/Interest	Times	3.07	2.69

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

­None

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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

Contacts

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

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