Press Release September 08, 2026 Agro Phos (India) 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	33.25	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	18.50	-	ACUITE A3 | Assigned	RBI
Total Outstanding	0.00	51.75	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 BBB-' (read as ACUITE triple B minus) on the Rs. 33.25 Cr. bank facilities and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 18.50 Cr. bank facilities of Agro Phos (India) Limited. The outlook is 'Stable'. Rationale for rating The rating takes into cognizance established presence for more than two decades, extensive experience of the management in the fertilizer industry, the increase in scale of operations to Rs. 147.95 Cr. in FY 26 from Rs. 119.88 Cr. in FY 25 on account of increase in volume sold and realization supported by stable operating profitability which stood at 11.13 percent in FY 26 as compared to 11.66 percent in FY 25. The financial risk profile is moderate marked by improving net worth, low gearing, and comfortable debt protection metrics. The liquidity position of the company is adequate, backed by sufficient cash accruals against minimal repayment obligations and moderate bank limit utilisation. However, the rating is constrained by the working capital intensive nature of operations, as reflected in elevated inventory and receivables, dependence on imported raw materials (about 50%) exposing the company to global price and forex risks, and regulatory uncertainties in the fertilizer sector, including potential delays or changes in government subsidy support impacting profitability.

About the Company

Based in Indore, Agro Phos (India) Limited was incorporated in 2002. The company is engaged in manufacturing of  Single Super Phosphate (SSP) fertilizers (96% of revenue contribution in FY 2026). Additionally, they are also involved in the trading of fertilizers (4% of revenue contribution in FY 2026). The company has an installed capacity of 1,60,500 MT for manufacturing fertilizers at Indore, Madhya Pradesh. The directors of the company are Mr. Raj Kumar Gupta, Mr. Abhishek Kalekar, Mr. Vishnu Kant Gupta, Ms. Maya Vishwakarma, Mr. Mahesh Kumar Agarwal and Mrs. Sakina Dharwala.

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has taken standalone business and financial risk profile of Agro Phos (India) Limited to arrive at the rating.

Key Rating Drivers

Strengths

Benefits derived from Experienced promoters The operations of the company are managed by Mr. Raj Kumar Gupta who has decades of experience in the fertilizer industry. The company has a dealer distribution network of about 750 dealers across Madhya Pradesh, Chhattisgarh, West Bengal, Bihar, Rajasthan, Gujarat among others. Acuite believes that the experience of promoters over decades in manufacturing fertilizers and relationship with customers and suppliers will benefit the company going forward. Increase in Revenues and stable operating profitability in FY 26 The revenues have increased to Rs. 147.95 Cr. in FY 26 as compared to Rs. 119.88 Cr. in FY 25 on account of increase in quantity sold and realization. The company has booked revenues of Rs. 28.92 Cr. for Q1FY 27. The operating profitability remained stable at 11.13 percent in FY 26 as compared to 11.66 percent in FY 25. Acuite believes that the scale of operations and operating profitability is expected to improve over the near to medium term. Moderate Financial risk profile The financial risk profile is moderate marked by an increase in the net worth to Rs. 70.54 Cr. as on March 31,2026 as compared to Rs. 64.24 Cr. as on March 31,2025 due to accretion of reserves. Gearing stood at 0.42 times as on March 31, 2026 as against 0.44 times as on March 31,2025. The debt protection metrics is marked by Interest Coverage Ratio at 4.47 times as on March 31, 2026 and Debt Service Coverage Ratio at 3.37 times as on March 31, 2026. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.18 times as on March 31, 2026 as compared to 1.44 times as on March 31,2025. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.34 times as on March 31, 2026 as compared to 0.26 times as on March 31,2025. Acuité believes that going forward the financial risk profile is expected to remain moderate over the medium term with steady cash accruals in the absence of any major debt funded capex plans.

Weaknesses

Intensive working capital cycle The working capital cycle of the company is intensive marked by Gross Current Assets (GCA) of 312 days as on March 31, 2026 as compared to 388 days as on March 31, 2025. The debtor days improved to 65 days as on March 31,2026 as compared to 68 days as on March 31, 2025. For off season, the days range from 50-60 days when the payments are received whereas for peak season, the payments are received immediately. Furthermore, the inventory days improved to 128 days as on March 31, 2026 as compared to 198 days as on March 31,2025. The inventory days remain volatile on account of import of raw materials to avail price benefits. 50% of the raw materials are imported from Middle East countries like Egypt, Jordan, Israel, Morocco, Jordan among others. Additionally, due to the current geopolitical issues in the region, the company is maintaining higher inventory levels to mitigate supply chain disruptions and ensure continuity of operations. The other current assets amount to Rs. 51.92 Cr. as on March 31, 2026 as compared to Rs. 47.77 Cr. as on March 31, 2025 majorly comprises of subsidy receivable. The creditor days improved to 143 days as on March 31, 2026 as compared to 217 days as on March 31,2025. Import purchases are backed by Letters of Credit (LCs) with a credit period of up to 180 days. Acuité believes that going forward the working capital operations of the company is expected to remain in the similar levels in the medium term. Exposure to regulatory risks in the fertilizer industry The fertilizer industry remains strategically important yet highly regulated, with subsidies forming a key component of profitability. Under the Nutrient-Based Subsidy (NBS) regime, subsidy rates are fixed by the Government, while retail prices are market-linked, exposing manufacturers to volatility in input costs, especially given their reliance on imported raw materials like rock phosphate and phosphoric acid. This, along with currency fluctuations, impacts margins. Additionally, delays in subsidy disbursements often stretch working capital and increase dependence on short-term borrowings. Any changes in subsidy policies or regulatory framework thus remain key rating sensitivities.

Rating Sensitivities

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

­Increase in the revenues with a growth of 20 percent Sustained operating profitability in the near term Improvement in the working capital cycle, leading to GCA below 200 days

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

Deterioration in the scale of operations and operating profitability to less than 8 percent Further elongation of working capital cycle to more than 350 days Adverse regulatory changes, including reduction or delay in government subsidy support, impacting cashflows and liquidity

Liquidity Position

Adequate

­The liquidity position is adequate marked by net cash accruals of Rs.10.14 Cr. as on March 31, 2026 as against long term debt repayment of Rs. 0.23 Cr. over the same period. The cash and bank balances stood at Rs. 2.23 Cr. as on March 31, 2026 as compared to Rs. 0.11 Cr. as on March 31,2025. The current ratio stood at 1.57 times as on March 31, 2026 as compared to 1.43 times as on March 31,2025. The average bank limit utilization stood at 81 percent over the last 6 months ended, July 2026. The company has capex plans of about Rs. 4 Cr. for manufacturing of urea, the funding by way of term loans of Rs. 2 Cr. and balance internal accruals. Acuité believes that going forward the liquidity position of the company wis expected to remain adequate on account of steady accruals as against minimal debt repayment obligations, moderate bank limit utilisation and absence of aby debt funded capex plans.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	147.95	119.88
PAT	Rs. Cr.	8.18	5.26
PAT Margin	(%)	5.53	4.38
Total Debt/Tangible Net Worth	Times	0.42	0.44
PBDIT/Interest	Times	4.47	3.88

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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