| Long operational track record
The group has an established track record of over two decades in the commodity trading business. The key promoters, Mr. Omi Bagadiya, Mr. Anand Kumar Agarwal, Mr. Anurag Agarwal and Mr. Pankaj Agarwal, have extensive industry experience spanning over six decades. Their longstanding presence in the industry has enabled the group to establish strong relationships with key suppliers and reputed customers across domestic and international markets. The group trades into diverse segments like iron ore, agri commodity Acuité derives comfort from the extensive experience of the promoters and believes that their established relationships will continue to support the group’s scale of operations over the medium term.
Average Financial Risk Profile
The group’s financial risk profile remained average, marked by a moderate capital structure and modest debt protection metrics. The tangible net worth increased to Rs.227.67 Cr. as on March 31, 2026 (Prov.) from Rs.187.20 Cr. as on March 31, 2025, supported by accretion to reserves, equity infusion and Foreign Currency Translation Reserve (FCTR). Further, fixed assets increased by Rs.34.12 Cr. in FY26 (Prov.), primarily due to recognition of Right-of-Use (ROU) assets pertaining to accommodation, buildings and motor vehicles at the subsidiary level. The gearing of the group stood modest at 1.27 times in FY26 (Prov.) as against 1.65 times in FY25. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.73 times in FY26 (Prov.) as against 2.88 times in FY25. The debt protection metrices of the group marked by Interest coverage ratio (ICR) of 1.42 times and debt service coverage ratio (DSCR) of 0.86 times for FY2026 (Prov.) as against (0.54) % and (0.41) % respectively for FY25. Acuité believes that the group’s financial risk profile is likely to remain at similar levels over the medium term, supported by its improved capital structure, while improvement in debt protection metrics will remain a key monitorable.
Moderate working capital cycle
The working capital cycle of the group remains moderate marked by Gross Current Assets (GCA) of 167 days for FY2026 (Prov.) as compared to 182 days for FY2025. The inventory days of the group stood at 21 days in FY2026 (Prov.) as compared to 33 days in FY2025. The group maintains inventory of IOF/IOP and agricultural commodities to facilitate customs clearance and timely shipments. The debtor days stood at 69 days in FY2026 (Prov.) against 88 days in FY2025. In the rice segment, payments are generally realised within 30-40 days under LC arrangements. The other current assets include mainly advances to suppliers, short term advances given to entities, cash and bank balances and others. Against this, the creditor days stood at 30 days in FY26 (Prov.) as against 37 days in FY25. For IOF procured directly from mines in Odisha, payments are generally made in advance, while for other commodities, payments are typically made within 2-3 days of receipt at the godown. Acuite believes that the group’s working capital cycle is likely to remain moderate over the medium term.
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| Moderation in revenues with fluctuations in derivatives
The group’s operating revenue moderated by around 12% to Rs.1,231.53 Cr. in FY26 (Prov.) from Rs.1,398.40 Cr. in FY25, primarily on account of lower sales volumes and realizations amid prevailing market conditions. Further, the group reported revenues of around Rs.324.92 Cr. during Q1FY27.
The group has diversified its product portfolio with an increased focus on coal trading since FY25, comprising imported as well as domestically procured coal. Further, revenues from iron ore trading remain susceptible to international price movements and demand from key export markets, particularly China, while the timing of export shipments may also result in year-on-year revenue fluctuations. The group also trades in agricultural commodities, including parboiled rice, primarily exported to Bangladesh government entities backed by Letter of Credit, and plans to explore opportunities in wheat trading through upcoming tenders.
Despite moderation in revenues, the group’s EBITDA margin improved to 3.51% in FY26 (Prov.) from 2.75% in FY25, primarily aided by lower raw material costs.
Further, Bagadiya Brothers Singapore Pte Limited undertakes commodity hedging to mitigate risks arising from underlying business exposures in international markets. Consequently, the group’s reported profitability has historically remained susceptible to fluctuations in derivative gains/losses.
In contrast, a derivative loss of Rs.64.85 Cr. in FY25 resulted in a reported PAT loss of Rs.59.55 Cr. Nevertheless, the adjusted PAT margin improved to 0.36% in FY25 from (3.06) % in FY24, reflecting an improvement in underlying profitability, aided by lower interest costs and other income.
Acuite believes sustainability of operating performance and profitability, while limiting volatility arising from commodity price movements and derivative exposures, will remain monitorable.
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