Press Release March 23, 2026 BALKRISHNA TEXTILE PRIVATE LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.00	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	3.00	-	ACUITE A3 | Assigned
Bank Loan Ratings	33.00	-	ACUITE A3 | Reaffirmed
Total Outstanding	61.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long-term rating of ‘ACUITÉ BBB-' (read as ACUITE Triple B minus)  on the Rs. 25.00 Cr. bank facilities and short-term rating of ‘ACUITÉ A3' (read as ACUITE A three) on the Rs. 33.00 Cr. bank facilities of Balkrishna Textile Private Limited (BTPL). The outlook is ‘Stable'. ­Acuité has assigned its short-term rating of ‘ACUITÉ A3' (read as ACUITE A three) on the Rs. 3.00 Cr. bank facilities of Balkrishna Textile Private Limited (BTPL).  Rationale for reaffirmation  The rating reaffirmation factors in the steady scale of operations albeit moderation in the profitability margins of the company. The rating also factors in the experienced management and long track record of operations of the company in the textile industry. However, the rating is constrained due to average financial risk profile which is expected to moderate with debt funded capex plan, intensive working capital nature of the operations, vulnerability of profitability to volatility in raw material prices and susceptibility to cyclicality and competitive nature of the industry.

About the Company

Incorporated in 1979, Gujrat based Balkrishna Textile Private Limited (BTPL) is engaged in processing of Textile fabrics. BTPL undertakes grey fabric processing, which includes designing, bleaching, dyeing, printing and finishing, both for own manufacturing and on job work basis. BTPL operates across two units: Unit I focuses on synthetic fabrics, mainly for women's garments, while Unit II handles cotton fabric processing for men’s and kids’ wear. Both the units together, are having the capacity of processing (approx.) 600 lacs Mtrs Per Annum as on date. The directors of the company are Mr. Nitin Chandulal Thakkar, Mr. Ketan Chandulal Thakkar, Mr. Rohan K Thakkar, Mr. Adit Nitinkumar Thakkar.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of Balkrishna Textile Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and long track record of operations The company is having a long operational track record, thus the promoters, i.e. Thakkar family are having an experience of over four decades in the textile industry, which helped building strong and lasting relationships with both suppliers and customers. This long-standing experience has enabled them to ensure a steady and reliable supply of raw materials, while also earning the trust of their clients. As a result, BTPL enjoys a consistent flow of repeat orders, reflecting the company's reputation in the market. Acuité believes that BTPL will continue to benefit from its experienced management and long track record of operations. Steady scale of operations albeit moderation in profitability margins The company’s revenue improved to Rs. 291.97 Cr. in FY25 from Rs. 254.81 Cr. in FY24, supported by steady demand across both domestic and export markets. The company further reported revenue of ~Rs. 213 Cr. in 9MFY26 and is expected to close the year in line with the previous fiscal. The EBITDA margin marginally declined to 6.26% in FY25 from 6.72% in FY24, primarily due to an increase in raw material costs. In 9MFY26, the EBITDA margin stood at ~5.51%, impacted by elevated fuel prices and higher cost of dyes and chemicals. The Profit After Tax (PAT) margin improved to 1.45% in FY25 compared to 1.22% in FY24. Going forward, the company’s ability to scale up operations on the back of enhanced capacities, along with a sustained improvement in profitability margins, will remain a key monitorable.

Weaknesses

Average financial risk profile The financial risk profile of the company stood average, marked by moderate net worth, gearing and average debt protection metrics. The net worth of the company remained modest and stood at Rs. 48.05 Cr. in FY25 as compared to Rs 44.45 Cr. in FY24 due to accretion of reserves. The company's total debt stood at Rs. 69.54 Cr. consisting of long-term debt of Rs. 30.49 Cr., short-term debt of Rs. 29.03 Cr., unsecured loans from promoters and directors of Rs. 0.59 Cr. and CPLTD of Rs. 9.43 Cr. of as of March 31, 2025. The gearing (Debt to Equity) of the company improved and stood at 1.45 times as of March 31, 2025, as compared to 2.22 times as of March 31, 2024. The TOL/TNW of the company stood at 3.10 times as of March 31, 2025, as against 3.61 times as of March 31, 2024. Further, debt protection metrics stood moderate with Interest coverage ratio (ICR) stood at 2.87 times as of March 31, 2025, as against 2.33 times as of March 31, 2024. The debt service coverage ratio (DSCR) of the company stood at 1.23 times as of March 31, 2025, as compared to 1.15 times in the previous year. The Debt-EBITDA of the company stood at 3.52 times as of March 31, 2025, as against 5.59 times as of March 31, 2024.  The company is undertaking a capacity expansion at Unit 2, adding 75–100 lakhs MT per annum. The project began in July 2025 and is scheduled for completion by end of December 2026, with commercial production expected from April 2027. The total project cost is Rs. 30 Cr, of which Rs. 13.28 Cr has been incurred as of December 2025. The capex is financed through a bank term loan of Rs. 22.5 Cr. and a promoter contribution of Rs. 7.5 Cr. Timely completion and adherence to the planned cost structure will remain key monitorable. Acuité believes,   the financial risk profile of the company would further moderate due to the term loan availed for the Capex. Working Capital intensive nature of operations The operations of the company are working capital intensive in nature however improving marked by high gross current assets (GCA) of 163 days in FY25 compared to 192 days in FY24. The GCA days are high, majorly on account of high other current assets (I.E claims receivable, statutory deposits and advance on materials). Receivable days stood at 67 days for FY25 compared to 69 days for FY24. The inventory levels of the company stood at 49 days in FY25 compared against 57 days in FY24. The creditor days of the company stood at 88 days in FY25 compared against 76 days in FY24. Furthermore, the average fund-based utilisation of the company remained moderate at 71.23 % for the twelve months ended December 2025. Acuite believes that working capital operations of the company will continue to remain in similar range over medium term considering the nature of business. Susceptibility of profitability to volatility in raw material prices and presence in fragmented industry Cotton prices have exhibited considerable volatility in the recent past due to various reasons, such as government policies, effects of monsoon, demand supply scenario, etc. The synthetic fibre industry is also highly susceptible to fluctuations in raw material prices, as it depends heavily on petrochemicals like crude oil for the production of polyester and nylon. Profitability margins of textile manufacturers are exposed to adverse movement in cotton prices and synthetic fibre thus any unprecedented increase in the raw material going forward, may impact the profitability margins of the company.

Rating Sensitivities

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

•Scaling up of operations consistently along with improved profitability margins thereby improving the liquidity further. •Debt Service Coverage Ratio (DSCR) above 2.0 times.

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

•Deterioration of financial risk profile on the back of higher-than-expected debt funded capex or time overrun. •Elongation in working capital cycle exerting pressure on liquidity •Decline in EBITDA margins below 5%, indicating weakening of operating performance exerting pressure on liquidity, which could impair the company’s debt-servicing ability.

Liquidity Position

Adequate

The company’s liquidity position remained adequate as on March 31, 2025, supported by sufficient net cash accruals against its maturing debt obligations. It reported net cash accruals of Rs. 11.47 Cr. in FY25 against repayments of Rs. 7.99 Cr. during the same period. For FY26, the company is expected to generate net cash accruals of Rs. 9–9.5 Cr., closely matching its repayment obligations of Rs. 9.43 Cr., with any shortfall expected to be met by promoter support. The average fund-based working capital utilization stood at 71.23% for the twelve months ended December 2025. The company reported a current ratio of 1.14 times in FY25, while the cash and bank balance stood at Rs. 0.20 Cr. as on March 31, 2025.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	291.97	254.81
PAT	Rs. Cr.	4.23	3.11
PAT Margin	(%)	1.45	1.22
Total Debt/Tangible Net Worth	Times	1.45	2.22
PBDIT/Interest	Times	2.87	2.33

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 • 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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 06 Feb 2025 Cash Credit Short Term 30.00 ACUITE A3 (Assigned) Bills Discounting Short Term 3.00 ACUITE A3 (Assigned) Term Loan Long Term 25.00 ACUITE BBB- | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating BANK OF MAHARASHTRA Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE A3 | Reaffirmed BANK OF MAHARASHTRA Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE A3 | Assigned H D F C Bank Limited Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE A3 | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Sep 2027 25.00 Simple ACUITE BBB- | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nidhi Gala 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.