Press Release

Press Release

July 21, 2026

TARANJOT RESOURCES PRIVATE 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	44.50	ACUITE BBB+ \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	385.50	-	ACUITE A2 \| Assigned	RBI
Total Outstanding	0.00	430.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 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 the Rs. 430.00 crore bank facilities of Taranjot Resources Private Limited (TRPL). The outlook is ‘Stable’.

Rationale for rating assigned
The rating assigned factors TRPL's established track record in the coal trading business, experienced management, healthy growth in traded volumes along with improving operating profitability, and its moderate capital structure. The rating also factors in the company's adequate liquidity position, supported by healthy cash accruals against minimal debt repayment obligations and moderate utilization of working capital limits. However, the rating remains constrained by the company's moderately intensive working capital cycle, resulting from minimum inventory holding and customer credit requirements, as well as its exposure to intense competition in the fragmented coal trading industry, cyclical demand conditions, coal price volatility, and regulatory risks.

About the Company

Founded in 2017, TRPL operates in the coal screening and trading sector. The company sources coal both domestically and through imports, with Indonesia being its primary international supplier. TRPL runs coal screening facilities in Gujarat, at Palsana (Surat) and Morbi. The current directors of the company are Mr. Gurmeet Singh and Mr. Amit Bajaj

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of TRPL to arrive at the rating.

Key Rating Drivers

Strengths

Established track record and experienced promoters
TRPL is promoted by Mr. Gurmeet Singh, who possesses nearly two decades of experience in the coal trading industry. His extensive industry expertise has enabled the company to develop strong market understanding and establish a robust network of overseas and domestic suppliers, ensuring seamless coal availability. The company procures coal from both domestic and international sources and supplies it to a diversified customer base across industries such as power generation, chemicals, metals, paper, and ceramics. TRPL maintains healthy and long-standing relationships with its customers, with the top 10 customers contributing around 45% of the company's total revenue in FY26 (Prov.).
Acuité believes that the company will continue to benefit from the promoters' extensive industry experience, established supplier network, and customer relationships over the medium term.

Healthy volume growth and improving margins
The company has demonstrated steady growth in its trading volumes, with traded quantity increasing at a CAGR of approximately 20% over the last three years. However, operating income declined to Rs. 2,375.96 crore in FY26 (Prov.) from Rs. 2,789.52 crore in FY25, primarily due to lower price realizations arising from the sale of lower-GCV coal during the year. Further, the company registered healthy growth in revenue and traded volumes during Q1 FY27, supported by the execution of a large order during the quarter.
Despite the decline in revenue, the company improved its operating profitability, with EBITDA margin expanding by 126 basis points over the last two years to 4.81% in FY26 (Prov.). The improvement was driven primarily by lower administrative and selling expenses, including professional fees, commission expenses, and other trading-related costs.
However, the improvement in operating profitability was offset by a sharp rise in finance costs, resulting in moderation in the company's profit after tax in FY26 (Prov.).

Moderate capital structure
The company's net worth improved and remained healthy at Rs. 306.19 crore as on March 31, 2026 (Prov.), compared to Rs. 258.62 crore as on March 31, 2025, supported by the accretion of profits to reserves. The net worth includes Rs. 15 crores of unsecured loans from promoters and related parties, which have been considered as quasi-equity.
Further, the company's debt levels reduced to Rs.325.23 crore as on March 31, 2026 (Prov.) from Rs. 399.26 crore as on March 31, 2025, owing to the significant realization of receivables towards the year end, which resulted in lower utilization of working capital limits. Consequently, the gearing level improved to 1.06 times as on March 31, 2026 (Prov.) from 1.54 times as on March 31, 2025. The company does not have any significant long-term debt and relies primarily on short-term working capital borrowings to fund its operations. Accordingly, debt protection metrics remained moderate, with the interest coverage ratio (ICR) standing at 2.19 times as on March 31, 2026 (Prov.).
Acuité believes that the company's capital structure is likely to remain moderate over the medium term, supported by healthy net worth levels and prudent management of working capital borrowings.

Weaknesses

Moderately intensive working capital operations
The company's working capital operations remain moderately intensive, as reflected in its gross current asset (GCA) days of 90 days in FY26 (Prov.), though improving from 110 days in FY25. The improvement was primarily driven by lower inventory and receivables levels as on year end. Debtor days reduced to 51 days in FY26 (Prov.) from 58 days in FY25. The company generally extends a credit period of 30 to 120 days to its customers. Further, inventory days declined to 32 days in FY26 (Prov.) from 39 days in FY25, with inventory levels typically maintained in the range of 30 to 50 days. On the procurement side, the company avails supplier credit of 30 to 120 days, supported by letters of credit. Consequently, creditor days stood at 17 days in FY26 (Prov.), compared to 41 days in FY25.
Acuité believes that the company's working capital cycle is likely to remain moderately intensive over the medium term, driven by the inherent nature of the coal trading business and the credit period extended to customers.

Exposure to intense competition, cyclical demand, and regulatory risks
The coal trading industry remains highly fragmented, characterized by the presence of numerous players and intense competition due to relatively low entry barriers. Further, the company's end-user industries are closely linked to overall economic activity, exposing its business risk profile to cyclical fluctuations in demand. The company is also susceptible to volatility in coal prices and changes in regulatory policies governing the coal sector, which may impact demand, operating performance, and profitability.

Rating Sensitivities

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

Sustained improvement in trading volumes and better price realizations, resulting in higher revenues and stable margins leading to generation of net cash accruals above Rs 75-80 Cr.
Timely collection of receivables, leading to improved liquidity and working capital management.

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

Decline in operating performance adversely impacting net cash accruals generation below Rs 35-40 Cr.
Any further increase in debt levels, leading to higher leverage and debt servicing obligations.
Sustained elongation in working capital cycle

Liquidity Position

Adequate

The company's liquidity position is adequate, as reflected by healthy net cash accruals (NCA) of Rs. 50.57 crore in FY26 (Prov.) against nominal long-term debt repayment obligations of Rs. 1.24 crore during the same period. Further, the company is expected to generate sufficient net cash accruals in the range of Rs. 50-65 crore against scheduled debt repayments of below Rs. 2 crores over the medium term. The current ratio stood at a moderate 1.31 times as on March 31, 2026 (Prov.). The company-maintained cash and cash equivalents of Rs. 0.32 crore as on the same date. Furthermore, the average utilization of its fund-based and non-fund-based working capital limits remained moderate at 62.4 per cent and 75.6 per cent, respectively, during the 12 months ended March 2026.
Acuité believes that the company's liquidity position is likely to remain adequate over the medium term, supported by healthy cash accruals, low scheduled debt repayments, and moderate utilization of working capital limits.

Outlook - Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	2375.96	2789.52
PAT	Rs. Cr.	47.57	49.93
PAT Margin	(%)	2.00	1.79
Total Debt/Tangible Net Worth	Times	1.06	1.54
PBDIT/Interest	Times	2.19	2.33

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

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
AXIS BANK LIMITED	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 \| Assigned
Bandhan Bank	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.00	Simple	ACUITE BBB+ \| Stable \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB+ \| Stable \| Assigned
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.	8.00	Simple	ACUITE BBB+ \| Stable \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.50	Simple	ACUITE BBB+ \| Stable \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.50	Simple	ACUITE BBB+ \| Stable \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Credit Exposure Limit (FCNR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE A2 \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Credit Exposure Limit (FCNR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE A2 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Credit Exposure Limit (FCNR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE A2 \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	29.00	Simple	ACUITE A2 \| Assigned
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	47.50	Simple	ACUITE A2 \| Assigned
YES BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	60.00	Simple	ACUITE A2 \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	85.00	Simple	ACUITE A2 \| Assigned
Federal Bank Limited	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	45.00	Simple	ACUITE A2 \| Assigned
Bandhan Bank	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	42.00	Simple	ACUITE A2 \| Assigned
AXIS BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	70.00	Simple	ACUITE A2 \| 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.	5.50	Simple	ACUITE BBB+ \| Stable \| Assigned

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

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.