| Experienced promoters and long track record of operations
Incorporated in December 2004, SEIPL is a part of Shraddha Group which is led by Mr. Shivaji Bhaganwanrao Jadhav who is having more than 40 years of experience in engineering, procurement and construction (EPC) and wind mill power generator and around 2 decades of experience in sugar industry. The group currently has 2 sugar manufacturing units located each at Jalna, Parbhani and Jalgaon district of Maharashtra with a total installed capacity of 17,500 TCD (upgraded from 10,500 TCD as of December 2025). In addition, the group has commissioned a 350 KLPD ethanol plant, which became operational in the current crushing season (SS 2025–26). The extensive experience of management has helped the group in getting wide acceptance among local farmers, facilitating adequate and timely cane procurement, ensuring an adequate crushing period which has helped the group improve its scale of operations over the years. Further, the group holds an order book of Rs 1,044.84 Cr. as on January 01, 2025 in the EPC segment and has tied up its wind power capacity with Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a tariff rate of Rs.2.65 per unit till 2029.
Acuite believes that the group will continue to benefit from its established track record of operations and experience of its management team.
Diversified revenue streams and capacity expansions to improve operating performance
The group derives the majority of its revenue from sugar and its integrated operations, contributing 89% of FY25 revenue, followed by the EPC business at 4.99% and wind power at 3.68%. The operating revenue of the group declined to Rs. 582.62 Cr. in FY25 compared to Rs. 685.18 Cr. in FY24 on account of overall sugar production dip in the state of Maharashtra due to lower cane availability. The operating profit margin of the group also moderated to 19.17 percent in FY25 as against 21.34 percent in FY24 due to higher raw material cost marked by the group. However, revenue from the core sugar segment is expected to grow further in the current year, driven by the enhancement of its existing sugar crushing capacity and the commencement of commercial operations (COD) of its ethanol business from September 2025. Therefore, group recorded a revenue of Rs.482.86 Cr. in 9M FY26 and is expected to close the year at ~Rs 850 Cr. Furthermore, the group’s foray into solar setup across both the companies is expected to generate increment revenues from FY27.
Acuite believes that the group's scale of operations will continue to improve through the enhanced utilization of its existing capacity, onset of distillery unit and planned commencement of Solar setup.
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| Project risk
In FY26, the group has undertaken significant capital expenditure of Rs. 249.13 crore across its two companies—Rs. 124.10 crore in SEIPL and Rs. 125.03 crore in BSKL—funded through a debt-to-equity mix of 60:40. The capex is directed towards capacity enhancement, with SEIPPL adding 5,500 TCD and BSKL augmenting 4,000 TCD. The enhanced capacity commenced operations from December 31, 2025.
In addition, the group is setting up solar power projects across both companies, with an overall installed capacity of 109 MW at SEIPPL and 55 MW at BSKL. These projects entail a capital outlay of Rs. 454.50 crore and Rs.231.65 crore respectively, funded through a debt–equity mix of approximately 73:27. As of February 1, 2026, around 45% of the project cost has been incurred, with commercial operations (COD) for both plants scheduled for April 1, 2026. It is noted that the debt component for the BSKL solar project has not yet been tied up, which remains a key factor to be monitored in terms of funding progress and timely completion.
Leveraged capital structure driven by debt funded capex
The net worth of the group has shown improvement on a year-on-year basis, rising to Rs. 340.97 crore as on March 31, 2025 from Rs. 273.19 crore as on March 31, 2024, supported by profit accretions. However, the debt availed in FY26 towards ongoing capex is expected to moderate the capital structure, with gearing projected to increase to 3.21 times as on March 31, 2026 from 1.45 times as on March 31, 2025. Consequently, the total debt of the group is expected to rise to ~Rs. 1,200 crore as on March 31, 2026 compared to Rs. 495.27 crore in FY25.
While debt protection metrics remained comfortable in FY25, with an interest coverage ratio of 5.75 times and a debt service coverage ratio of 1.89 times, a moderate decline is anticipated in FY26 owing to the higher debt burden. Nevertheless, these indicators are expected to improve over the medium term, supported by incremental cash accruals from the enhanced sugar capacity, ethanol operations, and solar projects. The ability of the group to achieve the projected accruals and maintain adequate coverage metrics will remain a key rating monitorable.
Intensive working capital operations
The working capital operations of group remain intensive, as indicated by gross current asset days (GCA) of 295 days in FY25 compared to 233 days in FY24. These are primarily impacted by increase in inventory days which rose to 278 days in FY25 from 233 days in FY24. Further, the group’s debtor days remained stable at 28 days in FY25, in line with FY24. The group receives advance payment from its dealers for the sale of sugar, whereas for EPC and wind turbine it receives payment in ~30-45 days. The creditors days for the group reduced and stood at 110 days in FY25 as compared to 173 days in FY24.
Acuite believes that working capital operations of the group may continue to remain intensive considering the nature of business.
Susceptibility to regulatory, price volatility and agro-climatic risks
The group’s operations remain inherently exposed to regulatory interventions, volatility in sugar prices, and agro-climatic risks associated with sugarcane production. While the government’s Fair and Remunerative Price (FRP) policy provides some stability in input costs, the open market sugar prices continue to be driven by demand-supply dynamics, resulting in fluctuations in profitability. In addition, government controls on imports, exports, release orders, and buffer stock requirements significantly influence industry performance and remain a key rating sensitivity factor. Further, as sugarcane is an agricultural crop, production levels are vulnerable to monsoon patterns, weather conditions, and risks of pests and diseases, which can adversely impact yields and recovery rates. These combined factors underscore the cyclical nature of the industry and continue to pose challenges to the group’s revenue visibility and profitability sustainability.
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