Press Release

Press Release

March 31, 2026

AMTRADE
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE BB \| Stable \| Reaffirmed	-
Bank Loan Ratings	5.00	-	ACUITE A4+ \| Assigned
Bank Loan Ratings	28.00	-	ACUITE A4+ \| Reaffirmed
Total Outstanding	43.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating of 'ACUITE BB' read as (ACUITE double B) and short-term rating at 'ACUITE A4+' read as (ACUITE A four plus) on Rs.38.00 crore bank facilities of Amtrade. The outlook is ‘Stable’. Further the Acuite has assigned the short-term rating of 'ACUTIE A4+' read as (ACUITE A four plus) on Rs.5.00 crore bank facilities of Amtrade.

Rationale for rating reaffirmation
The rating reaffirmation considers the stagnancy in operating performance and average financial risk profile. The rating also factors in the firm’s established operational track record and experienced management. However, the rating is constrained by the moderately intensive working capital operations and exposure to volatility and stiff competition in the commodity business couple with risk of capital withdrawal inherent in partnership firms.

About the Company

Established in 1999, Amtrade is a partnership firm based out of Mumbai, founded by Mr. Rajesh Madhavan, Mr. Gokuldas Madhavan and Mr. Suresh Madhavan. The firm specializes in international trade, engaging in the import and export of a diverse range of commodities, including textiles, fertilizers, agrochemicals, metals, minerals, construction materials, polymers, spices, agricultural products, and petroleum products.

In a strategic move in 2009, Amtrade diversified its business portfolio by acquiring a franchise from Aptech Ltd for the Maya Academy of Advanced Creativity (MAAC). Presently, Amtrade operates four MAAC centres strategically located in Maharashtra - Malad, Mira Road, Sakinaka, and Pune. Additionally, the company holds a franchise from Aptech Ltd for Lakmé Academy Lakmé Academy focuses on developing skilled professionals for the beauty and wellness industry, with established centres in Vashi and Sion. This strategic expansion aligns with Amtrade's commitment to excellence and diversification across industries.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of Amtrade to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operations
The firm established in 1999, is involved in the commodity trading business for more than two decades. The partners by Mr. Rajesh Madhavan, Mr. Gokuldas Madhavan, and Mr. Suresh Madhavan are also having over two decades of experience in the similar business. The partners have forged strong relationships with a diverse group of customers and suppliers. Acuité believes that the experience of the management in the industry is likely to benefit the firm over the near to medium term.

Stagnancy in revenue and profitability margins
Amtrade has seen a stagnancy in its operating performance in FY2025. Total operating income of the firm stood at Rs.126.66 Cr. in FY25 as against Rs. 125.03 Cr. in FY24 and Rs. 196.33 Cr. in FY23. For 11M FY26, the firm’s revenue stood at Rs. 120 Cr. Profitability of the firm has declined marginally with a range bound operating margin of 3.34 per cent in FY25 as against 3.97 percent in FY24. The moderation in operating margin is majorly due to increase in other expenses (CED coating which is done for coating of aluminium frames for precaution from corrosion before exporting the final products). Further, for 9M FY26 the firm has reported operating margin at 8.14 per cent and expected ~ 9 per cent operating margin in FY26 The expected improvement in operating margin in FY26 is attributed to the reduced share of low-margin export orders. PAT margins of the firm stood at 0.99 per cent in FY25 as against 0.34 per cent in FY24. Acuite, believes the operating performance of the company would improve steadily owing to the steady demand.

Weaknesses

Moderately Intensive working capital operations
Working capital operations of the firm are moderately intensive marked by gross current asset (GCA) of 202 days in FY25 as against 174 days in FY24 and 108 days in FY23. GCA days are driven by high debtor days. The firm offers a credit period of 30-45 days to its customers. Debtors’ collection days stood high at 123 days in FY25 as against 108 days in FY24 and 70 days in FY23. Inventory days stood at 41 days in FY25 as against 27 days in FY24 and 17 days in FY23. Majority of the products are imported from China and African countries for agro products. Creditor days stood at 24 days in FY25 as against 14 days in FY24 and 11 days in FY23. Limit utilisation. Acuite believes that working capital operations of the firm continue to remain moderately intensive considering elongated debtor days.

Average financial risk profile
Financial risk profile of the firm remained average with low net worth, high gearing and moderate debt protection indicators. Net worth of the firm stood at Rs. 21.80 Cr. as on March 31 2025 as against Rs. 20.55 Cr. as on March 31 2024. The improvement in the net worth is account of retention of profits to an extent. Gearing of the firm stood high at 2.35 times as on March 31 2025 as against 1.98 times as on March 31 2024. The total debt of the firm stood at Rs. 51.18 Cr. in FY25 as against Rs. 40.78 Cr. in FY24. Total debt of the firm comprises of short-term debt of Rs. 44.32 Cr. and unsecured loans of Rs. 1.28 Cr., CPLTD Rs. 1.02 Cr. and long term debt of Rs.4.56 Cr. Debt service coverage ratio (DSCR) stood average at 1.25 times in FY25 as against 1.18 times in FY24 and Interest coverage ratio stood average (ICR) at 1.57 times in FY25 as against 1.36 times in FY24. Total outside liabilities to Tangible net worth (TOL/TNW) stood at 2.72 times as on March 31 2025 as against 2.36 times as on March 31 2024. Net Cash Accruals to Total Debt (NCA/TD) of the firm stood at 0.04 times for FY25 and FY24. Acuite believes that financial risk profile of the firm likely to remain moderate on the back of low net worth base. remain

Capital withdrawal risk associated with partnership firm
Being a partnership firm, firm is exposed to the capital withdrawal risk. 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:

Sustained growth in operating scale and profitability with EBITDA above 5 per cent
Improvement in financial risk profile
???Improvement in working capital cycle

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

Deterioration in Financial Risk Profile with DSCR falling below 1.2 times
??????????????Elongation in working capital cycle

Liquidity Position

Adequate

The firm’s liquidity position is adequate. The firm generated net cash accruals of Rs. 2.17 Cr. in FY2025 as against debt obligation of Rs. 0.97 Cr. The firm is expected to generate NCAs of Rs. 5.50 Cr. as against debt obligations of Rs. 1.02 Cr. The working capital operations of the firm are moderately intensive marked by GCA days of 202 days in FY25 as against 174 days in FY24. The cash and bank balance stood at Rs. 0.06 Cr. as on March 31, 2025. The average utilization of the fund-based limits stood high at ~88 per cent. The current ratio of the firm stands at 1.32 times as on March 31, 2025 as against 1.44 times on March 31, 2024.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	126.66	125.03
PAT	Rs. Cr.	1.25	0.43
PAT Margin	(%)	0.99	0.34
Total Debt/Tangible Net Worth	Times	2.35	1.98
PBDIT/Interest	Times	1.57	1.36

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
06 Jun 2025	Letter of Credit	Short Term	28.00	ACUITE A4+ (Reaffirmed)
06 Jun 2025	Cash Credit	Long Term	10.00	ACUITE BB \| Stable (Reaffirmed)
08 Mar 2024	Letter of Credit	Short Term	28.00	ACUITE A4+ (Assigned)
08 Mar 2024	Cash Credit	Long Term	10.00	ACUITE BB \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Tamilnad Mercantile Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BB \| Stable \| Reaffirmed
Tamilnad Mercantile Bank Limited	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	28.00	Simple	ACUITE A4+ \| Reaffirmed
Tamilnad Mercantile Bank Limited	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A4+ \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Anuja Bele
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

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.