Press Release

Press Release

July 27, 2026

RRR JEWELLERS LLP
Rating Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	50.00	ACUITE BB- \| Stable \| Upgraded	-	RBI
Total Outstanding	0.00	50.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded its long-term rating to 'ACUITE BB-' (read as ACUITE double B minus) from 'ACUITE B+' (read as ACUITE B plus) on the bank facilities of Rs.50.00 Crore of RRR Jewellers LLP. The outlook is 'Stable'.

Rationale for Rating
The rating upgrade reflects the improvement in the firm's scale of operations on the back of completion of around two years of operations coupled with improved profitability levels. The rating continues to draw comfort from the promoters' extensive experience in the industry and the firm's adequate liquidity position. However, the rating remains constrained by its modest scale of operations, average financial risk profile, moderately intensive working capital requirements, and the inherent risk of capital withdrawal associated with its constitution as a partnership firm.

About the Company

Andhra Pradesh based, RRR Jewellers LLP was established in the year 2024. The firm is engaged in the business of retail trade operations of Gold & silver Jewellery, Silver articles and Diamonds etc. through their retail outlet (showroom) at Vizianagaram, AP which commenced operations in 2024. The partners of the firm are Mr. Veerabadra Swamy Kolagatla, Mr. Srinivas Ravva, Mr. Bujji Narasimhulu Battula, Mr. Pachigolla Ramarao, Mr. Andal Praveena Manchukonda, Mr. Seetharama Murty Kedarisetty, Mrs. Venkata Ramani Kolagatla, Mrs. Kedarisetty Venkataratnam, Mr. Battula Pattabhi Raman, Mr. Gopalakrishna Manchukonda and Mr. Vijay Kumar Ravva.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profiles of RRR Jewellers LLP to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Management
The firm has a total of 11 partners. All the partners are in various lines of business from years. The partners have vast experience in managing the businesses. Out of 11 partners 2 (Gopalkrishna Manchukonda and Andal Praveena Manchukonda) are having family business of gold jewellery. This extensive experience of the partners helps the firm to forge its successful entry in retailing of gold jewellery.

Improvement in scale of operation and profitability
The operations of the firm started in July 2024. The revenue of the firm remained modest and stood at Rs.173.26 crore in FY2026 (Prov.) as against Rs.114.30 crore in FY2025 on the back of growing demand from nearby areas. Further, the firm has booked a revenue of ~Rs.50 crore in Q1FY27 and are targeting to close the year in the range of Rs.175 -200 crore in FY2027and FY2028. The profitability of the firm also improved with EBITDA margin of 3.64 per cent in FY26 (Prov.) as against 1.66 per cent in FY25. The PAT margin also improved and stood at 1.13 times in FY26 (Prov.) as against a negative PAT margin of (1.14) per cent in FY25.
Acuite believes that the operating performance of the firm would improve steadily on the back of steady demand.

Weaknesses

Moderately intensive working capital nature of operations
The working capital operations of the firm are moderately intensive marked by high gross current asset (GCA) days of 191 days for FY2026 (Prov.). The high GCA days are primarily on account of high inventory holding. The inventory days are high at 192 days in FY2026 (Prov.). The inventory days remain high, primarily due to the nature of the jewellery retail business, which necessitates maintaining a substantial inventory across various designs, categories, and price points to cater to customer preferences. Accordingly, the firm maintained a high inventory level of Rs.87.75 crore as on March 31, 2026 (Prov.), resulting in elevated inventory holding days. The debtor days of the firm are at around 1 day in FY2026 (Prov.). Against this, the creditors are at around 2 days in FY2026 (Prov.). The bank limit utilization of the firm stood at 92.96 per cent for last six months ending June 2026.
Acuité believes the working capital cycle of the firm will remain moderately intensive owing to high levels of inventory to be maintained.

Average Financial Risk Profile
The financial risk profile of the firm remained average marked by low net worth, high gearing and moderate debt protection metrics. The tangible net worth of the firm stood at Rs.13.97 Cr. as on March 31, 2026 (Prov.), as against Rs.16.92 Cr. as on March 31, 2025. The decline in the partner capital account is marked by losses during the last year and partial withdrawal from the partner. The gearing of the firm stood high at 2.85 times as on March 31, 2026 (Prov.). The gearing of the firm is high due to the need of high levels of unsecured loans required to sustain the operations of the firm owing to high levels of inventory required. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 5.66 times as on March 31, 2026 (Prov.). The debt protection metric of the firm stood moderate marked by Interest coverage ratio (ICR) of 1.55 times and Debt services coverage ratio (DSCR) of 1.44 times as on March 31, 2026 (Prov.).
Acuité believes that the financial risk profile of the firm will improve moderately in near to medium terms.

Inherent risk of capital withdrawal in a partnership firm
The firm is susceptible to the inherent risk of capital withdrawal given its constitution as a partnership. Any significant withdrawal from the partner’s capital will have a negative bearing on the financial risk profile of the firm.

Rating Sensitivities

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

Significant growth in operating revenues and profitability.
Improvement in financial risk profile with Debt/Equity below 1.5 times and Debt/EBITDA below 3 times.
Improvement in working capital cycle

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

Deterioration in the revenues and profitability with revenue below Rs.100 Cr.
Elongation in working capital cycle deteriorating the liquidity position.
Deterioration in financial risk profile owing to unexpected debt funded capex or significant withdrawals from partners capital.

Liquidity Position

Adequate

The liquidity position of the firm is adequate marked by adequate net cash accruals which stood at Rs.2.28 crore as against repayment debt obligation of Rs.0.32 crore. Further the cash accruals are expected to be in the range of Rs.2.40-2.80 crore as against debt repayment obligation of ~ Rs. 0.30 crore during FY27-28. The unencumbered cash and bank balance of the firm stood at Rs. 0.19 crore in FY2026 (Prov.). The current ratio stood at 1.31 times in FY2026 (Prov.). The bank limit utilization of the firm stood at 92.96 per cent for last six months ending June 2026.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	173.26	114.30
PAT	Rs. Cr.	1.95	(1.31)
PAT Margin	(%)	1.13	(1.14)
Total Debt/Tangible Net Worth	Times	2.85	2.73
PBDIT/Interest	Times	1.55	0.57

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
• 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
28 Apr 2025	Cash Credit	Long Term	35.00	ACUITE B+ \| Stable (Assigned)
	Term Loan	Long Term	1.00	ACUITE B+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	14.00	ACUITE B+ \| 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
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	28 Mar 2024	Not avl. / Not appl.	Not avl. / Not appl.	35.00	Simple	ACUITE BB- \| Stable \| Upgraded ( from ACUITE B+ )
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.	14.00	Simple	ACUITE BB- \| Stable \| Upgraded ( from ACUITE B+ )
THE KARUR VYSYA BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	28 Mar 2024	Not avl. / Not appl.	31 May 2027	1.00	Simple	ACUITE BB- \| Stable \| Upgraded ( from ACUITE B+ )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
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.