­Established track record of operations and experienced management in cashew industry
Gayathri Exports (GE) is a Karnataka-based partnership firm established in 1995. The firm is engaged in processing of raw cashew nuts into cashew kernels, as well as trading raw cashew nuts, cashew kernels, and other cashew allied products. Mr. Bola Prabhakar Kamath has extensive experience in the cashew processing industry, spanning more than five decades. The firm is managed by Mr. Bola Prabhakar Kamath and his sons, Mr. Bola Srinivas Kamath and Mr. Bola Prashanth Kamath. The firm primarily imports raw cashew nuts and has established ties with suppliers across African countries, from Ivory Coast, Benin, Tanzania, and other countries. It also exports approximately 34.23% in FY26(Prov.) catering primarily to markets such as the Middle East, Europe and other international destinations. Acuité believes that the partners' extensive industry experience, along with established relationships with customers and suppliers, will aid GE's business risk profile in the medium term.

Moderate financial risk profile
GE’s financial risk profile remains moderate, marked by a comfortable capital structure. low leverage and comfortable debt protection metrics. The firm’s net worth improved to Rs.37.63 crore as on March 31, 2026 (Prov.) from Rs.35.52 crore as on March 31, 2025, supported by internal accruals, albeit moderated by partner withdrawals. The total debt stood at Rs.7.48 crore as on March 31, 2026 (Prov.), comprising of (Rs.3.34 crore of long-term borrowings and Rs.4.13 crore of short-term borrowings) compared to Rs.6.47 crore as on March 31, 2025, indicating a marginal increase in borrowings. However, the gearing remained low at 0.20x in FY26 (Prov.) as against 0.18x in FY25. Debt protection metrics moderated, with the interest coverage ratio (ICR) at 4.38 times in FY26 (Prov.) compared to 10.53 times in FY25, and debt serive coverage ratio (DSCR) at 2.49 times against 3.93 times during the same period. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) improved to 0.29 times in FY26 (Prov.) from 0.41 times in FY25, reflecting a comfortable leverage position. Acuité believes that the financial risk profile of GE will remain moderate over the medium term, supported by its low leverage and adequate debt servicing ability, albeit exposed to margin volatility.

Moderate working capital operations
The firm working capital operations are moderate, marked by gross current assets (GCA) of 86 days in FY26 (Prov.) as against 50 days in FY25. The deterioration in GCA days is primarily driven by higher inventory holding period of 52 days in FY26 (Prov.) compared to 11 days in FY25, as the firm undertook strategic stocking of raw cashew nuts during the procurement season amid supply constraints and price volatility. The firm typically maintains higher inventory levels of raw materials during peak procurement season, given the seasonal availability of cashew crops. The debtor cycle remains comfortable with receivable days improving to 3 days in FY26 (Prov.) from 8 days in FY25, reflecting efficient collection mechanisms. However, creditor days remain negligible at around 1 day in both years, indicating limited reliance on supplier credit. The average utilisation of the fund-based limits stood low at ~22.15% over the 6-month ending May-2026, providing adequate liquidity buffer. Acuité believes that GE’s working capital cycle will continue to remain inventory-driven, exposing it to risks associated with raw material price volatility and availability over the medium term.

Modest scale of operations albeit decline in profitability
The operating income of Gayathri Exports remained modest at Rs.139.10 crore in FY26 (Prov.), as against Rs.145.90 crore in FY25, indicating a slight moderation in scale. The firm continues to maintain a diversified revenue profile with presence across both domestic (~66%) and export (~34%) markets, catering to regions such as the Middle East and Europe. While sales volumes of cashew kernels declined during FY26, improved realizations of Rs.692/kg (vs Rs.641/kg in FY25) supported the topline. However, profitability witnessed a sharp decline, with EBITDA margins moderating to 6.91% in FY26 (Prov.) from 14.81% in FY25. Similarly, PAT declined to Rs.4.15 crore in FY26 (Prov.) from Rs.12.42 crore in FY25, with PAT margins moderating to 2.98% from 8.51% during the same period. The decline in profitability was primarily due to elevated raw material costs and forex fluctuations, given the firm’s dependence on imported raw cashew nuts. The firm also derives a significant portion of its revenues from manufacturing (~73%), with the balance from trading activities (~27%), providing some diversification to its operations. Acuité believes that while the firm benefits from its established presence, diversified market reach and experienced management, its business risk profile continues to remain exposed to volatility in raw material prices, forex movements and industry cyclicality, which may impact profitability over the medium term.

Risk of capital withdrawal associated with the partnership nature.
The risk of capital withdrawal for Gayathri Exports remains moderate considering the partnership nature of the firm, wherein capital can be withdrawn by partners at their discretion. However, this risk is mitigated to an extent by the firm’s track record of profit retention and gradual accretion to net worth over the years. Acuité believes that any substantial withdrawal of capital by the partners is likely to have an adverse impact on the capital structure.

Exposure to agro climatic risk and highly fragmented and intensely competitive cashew industry
The domestic cashew industry is highly fragmented with the presence of many unorganized players, owing to low entry barriers. Intense price competition, along with low product differentiation, limits the firm’s pricing flexibility. Cashew prices are highly volatile. Kernel prices are determined by buyers and brokers, in line with the prevailing demand-supply scenario. Acuite believes that any substantial fluctuations in the raw material price is likely to have an adverse impact on the revenue profile of the firm.