Press Release

Press Release

July 20, 2026

A S MOTORS 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	64.85	ACUITE BB+ \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	34.15	-	ACUITE A4+ \| Assigned	RBI
Total Outstanding	0.00	99.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 long term rating of 'ACUITE BB+' (Read as ACUITE double B plus) and short-term rating of 'ACUITE A4+' (Read as ACUITE A four plus) on the bank facilities of Rs.99.00 Cr. of A S Motors Private Limited (ASMPL). The outlook is 'Stable'.

Rationale for Rating
The rating takes into account the extensive experience of promoters spanning over three decades in the same line of business coupled with an established market position in the Gwalior region supported by long track record of operations coupled with long standing associations with Honda Motorcycle & Scooter India (HMSI) and Hyundai Motor India Limited (HMIL). Further, the rating reflects the stable operating performance with revenue largely unchanged at Rs.281.63 Cr in FY26 (Prov.) as against Rs.281.13 Cr in FY25. Operating margin has improved to 5.74% in FY26 (Prov.) from 4.48% in FY25 supported by higher margins from two-wheeler segment and after-sales services, which offset the impact of moderated demand in the passenger vehicle segment.
The rating further draws comfort from adequate liquidity and moderate working capital cycle. However, the strengths are partially offset by the average financial risk profile as reflected in the leverage capital structure with a gearing of 3.03 times and interest coverage ratio and debt service coverage ratio of 1.63 times and 1.11 times, respectively, as on 31st March 2026 (Prov.). Further, the rating is constrained by thin profitability margins inherent in the auto dealership business, intense competition and limited bargaining power with the OEMs, which restricts pricing flexibility.

About the Company

A S Motors Private Limited was incorporated in 1988 and promoted by Mr. Sanjay Garg and Mrs. Anjali Garg. The company has been an authorized dealer of Honda Motorcycle & Scooter India (HMSI) since 2002 and Hyundai Motor India Limited (HMIL) since 2014, engaged in the sale and servicing of two-wheelers and passenger vehicles, along with spare parts, accessories, and pre-owned vehicles. Mr. Vinayak Garg (son of Mr. Sanjay Garg) is also actively involved in the business operations since 2013. ASMPL operates nine outlets across Madhya Pradesh.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has taken a standalone approach of business and financial risk profiles of ASMPL to arrive at the rating.

Key Rating Drivers

Strengths

Experienced promoters and long-standing relation with authorized dealers

ASMPL is promoted by Mr. Sanjay Garg and team, who possesses over three decades of experience in the automobile dealership industry. Mr. Vinayak Garg has been actively involved in the business since 2013. The promoters' extensive industry experience has enabled ASMPL to build and maintain long-standing relationships with reputed original equipment manufacturers (OEMs) i.e. Honda Motorcycle & Scooter India (HMSI) and Hyundai Motor India Limited (HMIL)and strengthen its market position in Madhya Pradesh.
Acuite believes that the company's experienced management have supported its healthy market position and are expected to continue aiding its growth prospects over the medium term.

Stable operating revenue along with increase in profitability during FY26 (Prov.)

The company has reported stable revenue of Rs.281.63 crore in FY26 (Prov.) compared to Rs. 281.13 crore in FY25. While sales volumes in the passenger vehicle segment remained subdued due to moderating demand and increased competition, this was offset by growth in the two-wheeler segment and steady contributions from ancillary revenue streams. The company has achieved revenue of Rs.53.10 crore till Q1FY27 as against Rs.47.00 crore in Q1FY26. Sales of passenger vehicles are mostly sold towards the second half of the year, driven by higher demand during the festivals and annual Gwalior Mela resulting in decrease in purchase costs. The operating margin improved to 5.74% in FY26 (Prov.) as against 4.48% in FY25 supported by better margins in two-wheeler sales, along with continued income from after-sales services and other commission-based revenues. Acuite believes that the company’s diversified revenue profile and new model launches will continue to support its operating performance over the long term.

Moderate working capital cycle
The working capital cycle of the company has improved but remains moderate marked by Gross Current Assets (GCA) of 102 days in FY26 (Prov.) as against 110 days in FY25 due to surplus cash and bank balances. The inventory days stood at 48 days as on March 31, 2026 (Prov.) as against 54 days as on March 31, 2025. The company holds roughly 2 months of inventory. However, in FY25, there was high holding of inventory which reflected an industry-wide trend of slower retail off-take in early FY25 and higher stock requirements for new model launch.
The debtor days stood at 26 days as on March 31, 2026 (Prov.) as against 28 days as on March 31, 2025. Sales to customers are made on a cash and carry model. However, vehicles are bought on vehicle financing basis through banks/NBFCs resulting in a payment cycle within 30 days. Against this, the creditors stood at 1 days in FY26 (Prov.) as against 4 days in FY25. The credit terms with suppliers are on an advance basis. Acuite believes that the working capital cycle of the company will remain at the similar levels over the medium term.

Weaknesses

Average Financial Risk profile
The financial risk profile of the company is average marked by increase in net worth, improved but high gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs.25.98 Cr as on March 31, 2026 (Prov.) from Rs.21.05 Cr as on March 31, 2025, due to accretion to reserves and unsecured loans from promoters treated as quasi equity. The gearing improved but remained high at 3.03 times in FY26 (Prov.) from 4.27 times in FY25, due to reliance on short term borrowings. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.21 times in FY26 (Prov.) as against 4.52 times in FY25. The debt protection metrics of the company stood moderate marked by Interest coverage ratio (ICR) of 1.63 times and debt service coverage ratio (DSCR) of 1.11 times for FY2026 (Prov.) as against 1.58 times and 1.03 times respectively in FY25. Acuite believes that the financial risk profile will remain on similar levels over the medium term in absence of debt funded capex plans and steady accruals.

Intense competition in the industry
The company faces intense competition from other dealers in the nearby region. Moreover, dealers have limited bargaining power with the OEMs considering the fragmented nature of industry which ultimately impacts the profitability margins. The PAT margin stood at 0.90% in FY26 (Prov.) as against 0.59% in FY25. Product margins are fixed by the OEMs, restricting incremental profits for the company. Further, the company is exposed to inherent cyclicality in the Indian automobile industry as well as regulatory challenges.

Rating Sensitivities

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

Increase in revenue above Rs.350-400 Cr. with improvement in profitability
Improvement in working capital cycle of the company
Reduction in gearing to 1.50-2.00 times with improvement in debt protection metrics

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

Decline in revenue below Rs.200 Cr. with any impact on profitability
Increase in gearing above 4 times and any deterioration in debt protection metrics

Liquidity Position

Adequate

The liquidity position of the company remains adequate characterised by sufficient net cash accruals of Rs.5.10 Cr. in FY26 (Prov.) against debt repayment obligations of Rs.3.58 Cr. over the same period. The company maintains surplus cash and bank balances stood at Rs.13.97 Cr. in FY26 (Prov.) as against Rs.13.36 Cr. in FY25. The average bank limit utilisation of fund-based limits stood moderate at 80.63% for the past six months ended May 2026. The current ratio stood at 0.97 times in FY26 (Prov.) as against 0.92 times in FY25. Acuite believes the liquidity remains adequate on similar levels on account of sufficient accruals against debt repayment, surplus cash and bank balances, moderate bank limit utilization albeit low current ratio over the medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	281.63	281.13
PAT	Rs. Cr.	2.54	1.65
PAT Margin	(%)	0.90	0.59
Total Debt/Tangible Net Worth	Times	3.03	4.27
PBDIT/Interest	Times	1.63	1.58

Status of non-cooperation with previous CRA (if applicable)

Other Credit Rating Agency, vide its press release dated March 26th, 2026 had denoted the rating of A S Motors Private Limited as 'BB-/Stable/A4; DOWNGRADED, REAFFIRMED AND ISSUER NOT CO-OPERATING.

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
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.35	Simple	ACUITE BB+ \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BB+ \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.15	Simple	ACUITE A4+ \| Assigned
Bank Of Baroda	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	21.00	Simple	ACUITE A4+ \| Assigned
Bank Of Baroda	Not avl. / Not appl.	Dropline Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	16.60	Simple	ACUITE BB+ \| 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.	0.23	Simple	ACUITE BB+ \| Stable \| Assigned
Bank Of Baroda	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	17.67	Simple	ACUITE BB+ \| Stable \| Assigned
Union Bank of India	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BB+ \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Stand By Line of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.

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