­Extensive experience of the promoters
BA is a partnership firm established in 2017 by Mr. Valjibhai Chandulal Bhanushali and his sons. The day-to-day operations are managed by Mr. Kishor Bhanushali and Mr. Vasant Bhanushali, who possess over two decades of experience in the trading of edible and non-edible oil business. This has enabled the firm to establish its market position and build healthy relationships with their customers and suppliers.

Growing scale of operations
The firm’s operating revenue increased by ~42 percent to Rs. 514.76 Cr. in FY2025 (Prov.) from Rs. 361.05 Cr. in FY2024, primarily driven by higher price realizations. Despite this revenue growth, profitability remained constrained, with operating margins moderating to 1.69 percent in FY2025 (Prov.) from 1.83 percent in FY2024 due to elevated procurement costs. Further, the firm has reported revenue of Rs. 187.12 Cr. in H1 FY2026.
Going forward, improvement in profitability margins while sustaining revenue growth will be a key rating sensitivity.

Efficient working capital operations
The operations of the firm are working capital efficient as evident from gross current asset days of 30 days on March 31, 2025 (Prov.) with minimal inventory days and efficient recovery period. However, the supplier period is also low and procurement is majorly on advance basis. Therefore, the average bank limit utilisation stood moderate at ~83 percent for the last six months ended September 2025. Further, the firm has enhanced its working capital limits from Rs. 22 to 35 Cr. in FY2026 which is expected to support the growth in scale of operations.

Moderate financial risk profile
The financial risk profile is moderate with improving but low networth, moderate gearing and debt protection indicators. The networth stood improved to Rs. 22.41 Cr. on March 31, 2025 (Prov.) as against Rs. 12.10 Cr. as on March 31, 2024 on account of profit accretion and infusion of capital by partners. This also led to improved gearing, however, it remains moderate at 1.22 times in FY2025 (Prov.) as against 2.32 times in FY2024. The Debt-EBITDA and TOL/TNW levels also improved but remain moderate at 3.05 times (4.17 times in PY) and 1.62  times (2.91 times in PY) respectively in FY2025 (Prov.).
Going forward, the financial risk profile of the firm is expected to improve on the back of growth in accruals and absence of any debt funded capex plans in the near term.

Susceptible to volatility in oil prices and macro-economic factors
The firm deals in refining of edible oils and the prices of such commodities are linked to agricultural production, which, in turn, is susceptible to monsoon, acreage, and yield. The overall demand scenario from international as well as domestic markets for the agro products and the pricing potential continue also remains a key watch out from the business perspective. Also, agricultural commodities are highly regulated by the government on the basis of domestic demand and inflationary conditions. Thus, these factors directly affect the revenue and profitability.

Inherent risk of withdrawal of partner's capital
In FY2024, the partners withdrew ~Rs. 1.51 Cr. out of the business. Any significant withdrawal by the partners which significantly reduces the networth of the firm, thereby affecting the financial risk profile remains a key rating sensitivity.