Press Release June 19, 2026 BHOLE NATH FOODS LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	12.00	ACUITE BBB | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	88.32	ACUITE BBB | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	12.00	-	ACUITE A3+ | Reaffirmed	RBI
Total Outstanding	0.00	112.32	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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) and short-term rating of ‘ACUITE A3+ (read as ACUITE A Three Plus) on the Rs. 100.32 Cr. bank facilities of Bhole Nath Foods Limited (BNFL). The outlook is 'Stable'. Acuite  has also assigned its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs.12.00 Cr. bank facilities of Bhole Nath Foods Limited (BNFL). The outlook is 'Stable'. Rationale for Rating Reaffirmation The rating reaffirmation considers steady growth in revenues albeit thin profitability margins, adequate liquidity position and moderate financial profile risk profile, characterized by a moderate net worth and comfortable gearing. The ratings continue to derive comfort from the extensive experience of the promoters in the rice processing industry, their long-standing relationships with customers and suppliers. However, the rating remains constrained by the moderately intensive working  capital operations, susceptibility of profitability to volatility in raw material prices and foreign exchange rates, regulatory risks associated with rice exports and climatic factors impacting paddy availability in an intensely competitive rice milling industry.

About the Company

­Bhole Nath Foods Limited (BNFL) was incorporated as a private limited company in June 1997 and was subsequently converted into an unlisted public limited company in February 2017. The company initially operated as a trader of spices and grains in Punjab. It is promoted by Mr. Ashok Kumar (Managing Director) along with his four brothers—Mr. Vijay Kumar Kapoor, Mr. Pradeep Kumar Kapoor, Mr. Rakesh Kumar Kapoor, and Mr. Gulshan Kapoor. Since 2000, BFL has transitioned into rice milling operations. The company currently operates four manufacturing facilities located at Khera, Kalan, Narela, and Delhi, with an aggregate installed capacity of 9,720 metric tons per month. Its product portfolio is marketed under established brand names, including ‘Eravat’, ‘Monal’, ‘Cheetal Basmati Rice’, and its flagship brand ‘Delhi Great’. In addition to branded rice, the company is also engaged in the trading of by-products such as broken rice and rice bran.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Bhole Nath Foods Limited (BNFL) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced promoters and long track record of operations BNFL was initially engaged in trading of spices and grains and later since 2000 the company has been engaged in rice milling, thus having a long track record of operations of almost two decades in rice milling industry. The company is promoted by Mr. Ashok Kumar and his four brothers Mr. Vijay Kumar Kapoor, Mr. Pradeep Kumar Kapoor, Mr. Rakesh Kumar Kapoor and Mr. Gulshan Kapoor look after the day-to-day operations of the company. The promoters have an experience of almost two decades in the rice milling industry. Acuite believes the company will benefit from its experienced management and its presence for over two decades in the aforesaid industry. Steady growth in revenues albeit thin profitability margins The company reported a moderate revenue growth to Rs. 455.29 crore in FY2026 (Prov.), reflecting an increase of ~4.43% over Rs. 435.99 crore in FY2025. The growth was primarily driven by improved price realisations during the year. Operating profitability witnessed a marginal improvement, with margins rising to 3.65% in FY2026 (Prov.) from 3.39% in FY2025, supported by moderation in raw material costs. However, net profitability remained thin, with PAT margins  at 0.80% in FY2026 (Prov.) and FY2025 due to low value additive business and higher interest costs arising from increased debt levels. The profitability profile continues to remain modest, characteristic of the rice milling industry, wherein margins are structurally thin given the significant influence of government regulations on pricing. Acuite believes, the operating risk profile will show stable growth over the medium term, supported by established procurement network and steady demand for the rice and supported by robust global demand for rice and increasing export opportunities. Moderate financial risk profile The company’s financial risk profile is moderate, marked by moderate net worth, moderate gearing and above average debt protection metrics. The company’s net worth stood at Rs. 71.40 Cr. as on March 31, 2026(Prov.) against Rs. 67.78 Cr. as on March 31, 2025. The improvement in net worth is due to accretion of profits to reserves. The gearing (debt-equity) of the company improved and stood at 1.21 times as on March 31, 2026(Prov.), as against 1.31 times as on March 31, 2025. The company has a total debt of Rs. 86.30 Cr. as on March 31, 2026(Prov.), as against Rs. 88.90 Cr. as on March 31, 2025. The total debt of Rs. 86.30 Cr. consists of Rs. 81.76 Cr. of short-term debt, Rs. 2.78 Cr. of long-term debt, Rs. 1.76 Cr. of current maturities of long-term debt. The DEBT-EBITDA stood high at 4.81 times as on 31st March 2026(Prov.) as against 5.66 times as on 31st March 2025. The interest coverage ratio (ICR) stood at 2.27 times as on March 31, 2026(Prov.), as against 2.29 times as on March 31, 2025. The Debt Service Coverage Ratio (DSCR) stood at 1.58 times in 2026(Prov.) compared to 1.30 times in the previous year. The Net Cash Accruals to Total debt (NCA/TD) stood at of 0.10 times for FY2026(Prov.). The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.78 times as on March 31, 2026(Prov.) as compared to 1.71 times as on March 31, 2025. The financial risk profile is expected to remain moderate over the medium term in the absence of any major debt funded capital expenditure plan.

Weaknesses

­Moderately intensive nature of working capital operations The company’s working capital operations are moderately intensive, as reflected by the gross current assets (GCA) days, remained high at 132 days in FY2026(Prov.), compared to 126 days in FY2025. The GCA days are led by high debtor days and other current assets which mainly consists of loans and advance of Rs. 10.43 Cr. The debtor days increased to 81 days in FY2026(Prov.) against 67 days in FY2025. The inventory cycle has improved and stood at 39 days in FY2026(Prov.) as against 49 days in FY 2025, with most stock held as finished goods to meet demand. The inventory holding of the company is about 2-3 months. However, the creditors days increased to 35 days in FY2026(Prov.) as against 24 days in FY 2025. The payments are made to suppliers within 25-30 days. The average fund-based bank limit utilization for the past 12 months ending May 2026 is ~86.09 per cent. Acuite expects company’s working capital operations to remain moderately intensive in the medium term, given the inherent nature of its business. Susceptibility of profitability to volatility in raw material prices and foreign exchange rates and challenges posed by agro climatic conditions The company’s profitability remains vulnerable to fluctuations in the price of paddy, which is the key raw material. Being an agrocommodity, paddy prices are closely linked to monsoon performance and climatic variability, which can impact yield, availability, and procurement cost. Despite current expectations of a favourable monsoon and healthy paddy output in FY26, past volatility in raw material pricing continues to pose a structural risk. While the company partially mitigates currency fluctuation risk through packing credit facilities and forward contracts, it does not hedge its entire exposure, leaving profitability margins susceptible to adverse forex movements. Given the backdrop of declining export realizations in the global Basmati market, this exchange rate risk becomes even more pertinent. Competitive & fragmented nature of industry coupled with high level of government regulation The rice industry is characterized by intense competition due to its fragmented structure and low product differentiation. The company operates in a region densely populated by both organized and unorganized rice millers, many of whom engage in aggressive pricing practices. This results in limited pricing power and pressure on margins. Additionally, despite possessing modern infrastructure and export capabilities, the company must continually navigate a regulatory-heavy environment where compliance requirements, food safety standards, and documentation norms are subject to periodic revisions. Sustaining profitability in such an environment requires continuous operational efficiency, quality control, and adaptability to shifting regulatory expectations both domestically and abroad.

Rating Sensitivities

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

­Significant improvement in revenue and profitability Improvement in working capital management with GCA below 100 days on a sustained basis Improvement in financial risk profile

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

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

Liquidity Position

Adequate

The company’s liquidity position is adequate as reflected through sufficient net cash accruals against the repayment obligations. The company generated net cash accruals of Rs. 8.67 Cr. in FY2026 (Prov.) against repayment obligations of Rs. 2.60 Cr. for the same period. Further, the company is expected to generate cash accruals of Rs. 8.00 Cr. to Rs. 10.00 Cr. against its maturing repayment obligations of Rs. 1.00 Cr.- Rs. 2.00 Cr. in FY27-28. The current ratio stood moderate at 1.33 times as on March 31, 2026 (Prov.). The unencumbered cash and bank balances stood at Rs. 0.43 Cr. as on March 31, 2026 (Prov.).  The average fund-based bank limit utilization for the past 12 months ending May 2026 is ~86.09 per cent. Acuite believes that the liquidity position of the company will remain adequate over the medium term on account of expected sufficient cash accruals generation against repayment obligations.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	455.29	435.99
PAT	Rs. Cr.	3.62	3.48
PAT Margin	(%)	0.80	0.80
Total Debt/Tangible Net Worth	Times	1.21	1.31
PBDIT/Interest	Times	2.27	2.29

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 • 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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 27 Mar 2025 Stand By Line of Credit Short Term 10.00 ACUITE A3+ (Reaffirmed) Stand By Line of Credit Short Term 2.00 ACUITE A3+ (Assigned) Cash Credit Long Term 15.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 5.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 50.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 10.00 ACUITE BBB | Stable (Assigned) Working Capital Term Loan Long Term 2.54 ACUITE BBB | Stable (Reaffirmed) Working Capital Term Loan Long Term 3.04 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 2.74 ACUITE BBB | Stable (Reaffirmed) 15 Nov 2024 Stand By Line of Credit Short Term 10.00 ACUITE A3+ (Reaffirmed) Cash Credit Long Term 50.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 14.00 ACUITE BBB | Stable (Reaffirmed) Working Capital Term Loan Long Term 1.40 ACUITE BBB | Stable (Reaffirmed) Working Capital Term Loan Long Term 7.92 ACUITE BBB | Stable (Reaffirmed) 06 Oct 2023 Stand By Line of Credit Short Term 6.40 ACUITE A3+ (Reaffirmed) Stand By Line of Credit Short Term 3.60 ACUITE A3+ (Assigned) Cash Credit Long Term 43.00 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 7.00 ACUITE BBB | Stable (Assigned) Cash Credit Long Term 12.68 ACUITE BBB | Stable (Reaffirmed) Cash Credit Long Term 1.32 ACUITE BBB | Stable (Assigned) Working Capital Term Loan Long Term 1.40 ACUITE BBB | Stable (Assigned) Working Capital Term Loan Long Term 7.92 ACUITE BBB | Stable (Reaffirmed)

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Contacts

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

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