Press Release

Press Release

June 26, 2026

N R VANDANA TEX INDUSTRIES LIMITED (ERSTWHILE N R DESIGN CENTRE PRIVATE 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	25.00	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	75.00	ACUITE BBB- \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	100.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned a long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) to the Rs. 25 Cr. bank facilities of N R Vandana Tex Industries Limited (Erstwhile N R Design Centre Private Limited). The outlook is 'Stable'.
Acuite has reaffirmed its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 75 Cr. bank facilities of N R Vandana Tex Industries Limited (Erstwhile N R Design Centre Private Limited). The outlook is 'Stable'.

Rationale for Rating

The rating reflects the benefits derived from the company’s established presence in the textile industry and the considerable experience of its management, which together support operational stability and continuity. The rationale also takes into account the steady scale-up in operations over the years, as reflected in the company’s growing revenue profile, supported by healthy demand conditions and improved Volume sales. Profitability margins have also shown an improving trend, aided by better operational efficiencies. The financial risk profile of the company remains comfortable, underpinned by adequate net worth base, moderate gearing levels, and satisfactory debt protection metrics. The company has adequate liquidity, marked by sufficient net cash accruals without any debt repayment obligations. However, the company’s operations remain working capital intensive in nature, characterised by elevated inventory levels and receivables, resulting in moderate utilisation of bank limits. The rating is, constrained by the company’s presence in a highly competitive and fragmented textile industry, which limits pricing flexibility and exerts pressure on margins.

About the Company

Kolkata based, N R Vandana Tex Industries Limited (Erstwhile N R Design Centre Private Limited) was incorporated in 1992. The company is engaged in manufacturing cotton sarees, bedsheets and suits. Present directors are Mr. Narain Prasad Lohia, Mr. Prabhu Lohia, Mr. Gyanesh Lohia, Mr. Bhargav Samirbhai Vyas, Mrs. Vandana Nahata.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of N R Vandana Tex Industries Limited to arrive at its rating.

Key Rating Drivers

Strengths

Benefits derived from management
The operations of the company are managed by Mr. Gyanesh Lohia, Mr. Prabhu Lohia, Mr. Narain Prasad Lohia. The company has geographical presence in East, North and South India. It also has an established wholesaler network of about 1,397 which helps company to expand its business. Acuite believes that the experienced management and presence across India will help the company going forward.

Revenues and operating profitability
The company’s revenue increased to Rs. 304.69 crore as on March 31, 2026, from Rs. 270.80 crore as on March 31, 2025, driven by higher volume of saree sales. Operating profitability improved to 7.98% in FY2026 from 7.12% in FY2025, supported by better absorption of fixed costs. Acuite believes that the scale of operations and operating profitability will improve over the near to medium term.

Moderate financial risk profile
The financial risk profile of the company is marked improving net worth, moderate gearing and debt protection metrics. The adjusted tangible net worth of the company stood at Rs. 79.24 Cr. as on March 31, 2026 as compared to Rs. 47.38 Cr. as on March 31, 2025 due to accretion to reserves and infusion in equity capital. Acuite has considered unsecured loans of Rs. 11.07 Cr. as quasi equity, and the same has been subordinated to bank loans. The gearing of the company stood at 1.14 times as on March 31, 2026 as compared to 1.15 times as on March 31, 2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) though improved but stood high at 2.32 times as on March 31, 2026 as compared to 3.19 times as on March 31, 2025. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio (ICR) of 2.44 times as on March 31, 2026 and debt service coverage ratio (DSCR) of 1.96 times for March 31, 2026. The net cash accruals to total debt (NCA/TD) stood at 0.12 times as on March 31, 2026 as compared to 0.16 times as on March 31, 2025. Acuité believes that the financial risk profile will remain moderate over the medium term, with steady cash accruals in the absence of any debt funded capex plans.

Weaknesses

Intensive Working Capital Cycle

The working capital cycle of the company is intensive as reflected by Gross Current Assets (GCA) of 294 days for March 31, 2026 as compared to 256 days for March 31, 2025. The GCA days are high on account of high debtor days, high inventory level and emantes from other current assets. The debtor period stood at 195 days as on March 31, 2026, compared to 173 days as on March 31, 2025. The increase is primarily attributable to the company extending higher credit periods to distributors to strengthen relationships and provide greater flexibility to its channel partners. NRVTIL has indicated that debtor levels are typically elevated in March due to higher quarter-end booking. While the standard collection cycle is around 120 days, it can extend up to 180 days in southern markets, where a six-month payment cycle is common. The inventory days of the company stood at 96 days as on March 31, 2026 (comprising approximately 30 days of raw materials and 66 days of finished goods), compared to 81 days in FY2025. The increase is primarily due to higher procurement of raw materials during February and March to safeguard against market instability. This was necessitated by disruptions in production and supply chains of fabric units in Surat, prompting NRVTIL to maintain adequate buffer stock. Additionally, inventory levels remain slightly elevated due to the need to stock a diverse range of SKUs to meet wholesalers’ requirements. The company procures raw materials like grey fabric, ready to use bleach which undergoes bleaching or dyeing, mostly from Surat and Mumbai. The creditors stood at 156 days as on March 31, 2026 as compared to 186 days as on March 31, 2025. Acuité believes that the working capital operations of the company will remain at similar levels over the medium term given the nature of the business.

Susceptibility to competitive pressures in a fragmented industry
The company operates in a highly fragmented textile industry, exposing it to intense competition from numerous organized and unorganized players. This limits pricing power and margins, given the commoditized nature of products and low entry barriers.

Rating Sensitivities

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

Sustained growth in operating income, with revenues increasing above ~Rs. 380 cr on a sustained basis, along with improvement in profitability margins
Further strengthening of financial risk profile through higher net worth and conservative capital structure
Improvement in working capital cycle with GCA below 200 days leading to lower reliance on bank borrowings

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

Deterioration in operating margins due to cost pressures or competitive intensity
Elongation in the working capital cycle, with Gross Current Assets (GCA) days increasing beyond ~350 days, leading to higher dependence on external borrowings
Any significant weakening in financial risk profile, including decline in net worth or increase in leverage

Liquidity Position

Adequate

The company has adequate liquidity marked by net cash accruals of Rs 10.80 Cr. as on FY2026 as against nil debt repayment over the same period. The cash and bank balance stood at Rs. 0.84 Cr. as on March 31, 2026 and Rs. 0.59 Cr. as on March 31, 2025. Further, the current ratio of the company stood at 1.33 times as on March 31, 2026 as compared to 1.27 times as on March 31, 2025. The average bank utilization limit for 6 months ended April 2026 is 78.55 percent. Acuité believes that the liquidity of the company is to remain adequate over the near to medium term on account of steady cash accruals in the absence of any debt funded capex plan .

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	304.69	270.80
PAT	Rs. Cr.	10.46	8.21
PAT Margin	(%)	3.43	3.03
Total Debt/Tangible Net Worth	Times	1.14	1.15
PBDIT/Interest	Times	2.44	2.44

FY2026 financials are based on abridged financial statements .

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
26 Aug 2025	Cash Credit	Long Term	16.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	45.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	14.00	ACUITE BBB- \| Stable (Assigned)

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.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE BBB- \| Stable \| Assigned
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.	7.00	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.