Press Release March 02, 2026 BHAGWAT CHATTELS PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	130.72	ACUITE BBB | Stable | Reaffirmed	-
Total Outstanding	130.72	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed its long-term rating of ‘ACUITE BBB’ (read as ACUITE Triple B) on the Rs 130.72 Cr. bank facilities of Bhagwat Chattels Private Limited (BCPL). The outlook is ''Stable''. Rationale for reaffirmation: The rating reaffirmation continues to be supported by a steady revenue stream under lease arrangements from reputed clients, and an adequate liquidity position marked by adequate cash accruals against repayment obligations. The rating also draws comfort from the experienced management and establish operational track record of the company, The rating is, albeit, constrained by susceptibility to lessee's performance along with occupancy and renewal risk.

About the Company

Bhagwat Chattels Private Limited (BCPL) is a Hyderabad-based entity, incorporated in the year 2013 by Mr. Pramod Kumar Gupta and family. The company is a special purpose vehicle (SPV) formed for construction and lease of a warehouse facility at Vapi, Gujarat. The company has leased out a warehouse to Hindustan Unilever Limited (HUL) for a period of 9 years, from May 2017 to April 2026. The warehouse built-up area is 480,968 sq. ft. and leased out for a monthly rental of about Rs. 79 lakhs with an escalation at 15 percent every three years. It is a part of the Scalar Group and is a subsidiary of Egwood Industries Private Limited.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of BCPL to arrive at this rating.

Key Rating Drivers

Strengths

­Experienced management and establish track record of operations BCPL is a part of the Scalar Group promoted by Mr. Pramod Kumar Gupta and family. The promoters of the group have been engaged in the warehouse construction and leasing business for more than a decade through various entities, including Musaddilal Projects Private Limited, Egwood Industries Private Limited, and Musaddilal Properties Private Limited, among others. The group owns contracted warehouse space of ~2.7 million sq. ft. in 7 locations all over India and entered long-term lease agreements of 9–10 years with reputed clients, namely Hindustan Unilever Limited, ITC Limited, and UTI Worldwide (India) Private Limited, under various SPVs. Apart from the leasing business, the Scalar Group has been in the plywood manufacturing business since 1964 under 'Egwood Boards and Panels Private Limited'. Acuité believes that the company will continue to benefit from the experience of the management over the medium term. Steady revenue stream under lease arrangement from reputed client BCPL derives its revenues by lease rentals from HUL through its warehouse facility based in Vapi, Gujarat. HUL is among India's largest FMCG companies with a diverse product portfolio including soaps and detergents, personal care products, and food and beverages. The total built-up area is 4.81 lakh sq. ft. The facility was rented at a monthly lease rental of about Rs. 79 lakhs with an escalation of 15 percent every three years from May 2017 to April 2026. It is expected that lease agreement for next 7 years to be renewed from HUL after the end of lease period in April 2026. The operating income stood at Rs. 13.98 Cr. in FY2025 as against Rs. 13.50 Cr. in FY2024. BCPL receives advance payment every month. Apart from that, all the revenue inflows are routed through the ESCROW account, and the company is maintaining a debt service reserve account (DSRA) of three months EMI. HUL is among India's largest FMCG companies with a diverse product portfolio including soaps and detergents, personal care products, and food and beverages. The company has 28 owned factories and many outsourced production facilities across the country. The company has around 18,000 employees, and more than 1,000 suppliers work with the company’s supply chain, spanning its own factories and several others that manufacture on the company’s behalf. The products are stocked in warehouses dotted across the country and delivered to over 3,500 distributors. The company also creates employment opportunities for several thousand more across its value chain, from smallholder farmers who provide raw materials to the distribution partners who take the company's products to customers and consumers.

Weaknesses

Customer concentration risk in revenue receipts To serve the LRD loan, the company's revenues are entirely dependent on a single customer, i.e., HUL. Acuité believes that any unprecedented stretch in receiving rental lease from HUL is likely to impact BCPL's debt-servicing ability. However, the risk is partially mitigated by the long-term agreement of 9 years and lock-in period for entire years, along with a clause levying a penal interest of 18 percent on delayed rentals as per the lease agreement.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

­BCPL maintains a Debt Service Reserve Account (DSRA) for three-months repayment along with the ESCROW mechanism. Stress case Scenario Acuite believes that, given the presence of ESCROW mechanism and maintenance of DSRA, BCPL will be able to service its debt on time, even in a stress scenario.

Rating Sensitivities

??????Timely renewal of lease agreement at similar or better terms than the existing agreement Cash flow mismatched affecting the liquidity Changes in financial risk profile

Liquidity Position

Adequate

During FY2024, the company generated insufficient cash accruals against its debt repayment obligation. However, the servicing of debt obligations was in timely manner on account of support extended by the holding company, Musaddilal Projects Private Limited (MPPL). Going ahead, the company is expected to generate sufficient cash accruals against its maturing debt repayment obligations over the medium term. Additionally, BCPL benefits from monthly advance payments, while all revenue inflows are routed through an ESCROW account. The company also maintains a Debt Service Reserve Account (DSRA) equivalent to three months’ EMI. Acuité believes that the liquidity of the company will remain adequate with expected steady cash inflows.

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.	13.98	13.50
PAT	Rs. Cr.	(1.15)	0.80
PAT Margin	(%)	(8.21)	5.96
Total Debt/Tangible Net Worth	Times	(8.63)	(9.59)
PBDIT/Interest	Times	1.16	1.18

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 • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm • Lease Rental Discounting : https://www.acuite.in/view-rating-criteria-106.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 03 Dec 2024 Lease Rental Discounting Long Term 130.72 ACUITE BBB | Stable (Reaffirmed) 16 Oct 2023 Lease Rental Discounting Long Term 130.72 ACUITE BBB | Stable (Reaffirmed)

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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 Indian Bank Not avl. / Not appl. Lease Rental Discounting Not avl. / Not appl. Not avl. / Not appl. 31 May 2037 130.72 Simple ACUITE BBB | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Moparthi Anuradha Devi Senior 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.