Press Release

Press Release

August 28, 2026

BHARTIA DISTRIBUTORS PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	62.00	ACUITE BBB- \| Negative \| Reaffirmed	-	RBI
Total Outstanding	0.00	62.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has reaffirmed the long-term rating to ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 62.00 Crore bank facilities of Bhartia Distributors Private Limited. The outlook is revised from "Stable" to “ Negative”.

Rationale for rating
The revision in outlook factors in the decline in BDPL’s scale of operations, with revenue moderating to Rs. 431.39 crore in FY2026 (Prov.) from Rs. 552.80 crore in FY2025. The decline was primarily driven by lower sales volumes, owing to supply disruptions from principal suppliers and delays in contract renewals. Despite the decline in revenue, BDPL’s operating profitability remained stable, with the operating margin at 1.23 percent in FY2026 (Prov.). The company maintains an efficient working capital cycle, reflected in GCA days of 68 days in FY2026 (Prov.). The rating continues to derive comfort from BDPL’s moderate financial risk profile, supported by an improving net worth position and moderate gearing of 1.02 times as on March 31, 2026 (Prov.). However, the proposed debt-funded capital expenditure is expected to moderately impact the company’s capital structure over the medium term. BDPL’s liquidity remains adequate, supported by its ability to manage repayment obligations through managing its working capital cycle. However, liquidity may remain under pressure over the medium term due to scheduled debt repayments. Further, any moderation in revenue performance amid prevailing market conditions could weaken the company’s liquidity profile and constrain its financial flexibility. BDPL’s ability to improve its scale of operations while maintaining its financial risk profile and effectively managing the impact of the proposed capex will remain a key monitorable. Additionally, supplier concentration risk arising from the company’s dependence on two key suppliers will continue to be closely monitored. However, these constraints are partly offset by BDPL’s established track record in the steel distribution business.

About the Company

Odisha Based, Bhartia Distributors Private Limited was incorporated in 2000. The company is engaged in trading in flat products as an authorised distributor For HR and CR Coils & Sheets, GP Coil & Sheets, GC Sheets, Tata Pipes, Durashine range of colour coated products ,TMT and Structural. The managing director of the company is Mr. Kishan Lal Agarwal, and the other directors are Mr. Rahul Bhartia , Mrs Srishty Bhartia and Mrs Pushpa Devi Agarwal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone financial and business risk profiles of Bhartia Distributors Private Limited to arrive at the rating

Key Rating Drivers

Strengths

Benefits derived from ?Experienced Management

The operations of the company are managed by Mr. Kishan Lal Agarwal, Mr. Rahul Bhartia, Mrs. Srishty Bhartia and Mrs. Pushpa Devi Agarwal who have prior experience in trading iron and steel products for almost two decades. The company also holds strong relationship with key supplier as distributor of their products. It also has dealer network of around 500. Acuite believes that the benefits derived from promoter's experience coupled with their relationship with key suppliers will benefit the company going forward.

Moderate financial risk profile

The financial risk profile of the company is marked by improving net worth, moderate gearing and debt protection metrics. The tangible net worth of the company stood at Rs.41.05 Cr. as on March 31, 2026(Prov.) as compared to Rs. 38.49 Cr. as on March 31, 2025 due to small accretion to reserves. The gearing of the company stood at 1.02 times as on March 31, 2026(Prov.) as compared to 1.19 times as on March 31, 2025. In FY2027 the company has taken New ELGS 5.0 Working capital Loan of Rs 7.40 Cr. and in later half of FY2027 Company proposed to take up new loan of Rs 8-10 Cr. for the capex. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.10 times as on March 31, 2026(Prov.) as compared to 1.51 times as on March 31, 2025. The debt protection metrices of the company remain moderate marked by Interest coverage ratio (ICR) of 1.99 times and debt service coverage ratio (DSCR) of 0.98 times for March 31, 2026(Prov.). The net cash accruals to total debt (NCA/TD) stood at 0.07 times as on March 31, 2026(Prov.) as compared to 0.06 times as on March 31, 2025. Acuité believes that the financial risk profile will remain moderate over the medium term, with small but steady cash accruals.

Efficient Working Capital Cycle

The working capital cycle of the company is efficient as reflected by Gross Current Assets (GCA) of 68 days for March 31, 2026(Prov.) as compared to 61 days for March 31, 2025. The debtor period stood at 20 days as on March 31, 2026(Prov.) as compared to 19 days as on March 31, 2025. The payments received within a range of 5-40 days depending on the products. For flat products, it takes about 15-30 days and for TMT, structural it takes 5-7 days. Further, the inventory days of the company stood at 33 days as on March 31, 2026(Prov.) as compared to 29 days in FY2025. The creditors stood at 1 days as on March 31, 2026(Prov.) as compared to 4 days as on March 31, 2025. Acuité believes that the working capital operations of the company will remain at the similar levels over the medium term.

Weaknesses

Supplier Concentration risk

The company is exposed to supplier concentration risk since 100% procurement by company are from 2 key suppliers. Any breach in MoU terms might impact the company, since it has limited bargaining power. Any change in the availability of products or pricing might directly impact BDPL’s earning profile. However, the company has not witnessed any such un-toward risk in the past years track record. Acuite believes the company will be exposed to the supplier concentration risk over the medium term.

Declined revenue albeit the stable Margins

BDPL’s revenue declined to Rs. 431.39 crore in FY2026 (Prov.) from Rs. 552.80 crore in FY2025, primarily due to significant volume contraction across its key product segments, along with a decline in steel prices, which impacted topline billing. Despite the decline in revenue, BDPL’s operating profitability remained stable, with the operating margin at 1.23 percent in FY2026 (Prov.), in line with FY2025. The PAT margin improved to 0.59 percent in FY2026 (Prov.) from 0.48 percent in FY2025. However, BDPL’s margins remain exposed to steel price volatility, sector cyclicality, and intense competition in the Indian steel industry, which may continue to impact raw material costs and price realisation. Acuité believes that BDPL’s ability to recover its revenue trajectory while sustaining stable margins will remain a key monitorable over the medium term.

Rating Sensitivities

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

Improvement in revenue above Rs 600 Cr and better profitability margins.
Improvement in DSCR above 1.5 times.

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

Further decline in revenue or operating profitability below 1%.
Deterioration in leverage, debt protection metrics or liquidity.
Elongation in working capital cycle.
Any adverse changes in supply arrangements with key supplier.

Liquidity Position

Adequate

The company's liquidity remains adequate, notwithstanding scheduled debt repayments of Rs. 3.01 crore in FY2026 (Prov.) vis-à-vis net cash accruals of Rs. 2.86 crore during the same period, as the repayment obligations are supported through efficient working capital management . Going forward the Net cash accrual will lie between Rs 2.80 Cr. to Rs 3.00 Cr. against debt repayment obligation between Rs 1.8 Cr to Rs 2.00 Cr. The cash and bank balance stood at Rs. 1.21 Cr. as on March 31, 2026(Prov.) and Rs.2.86 Cr. as on March 31, 2025. Further, the current ratio of the company stood at 1.78 times as on March 31, 2026(Prov.) as compared to 1.66 times as on March 31, 2025. The average fund-based bank limit utilization of the company has been 100 percent utilized for the last six months ended in July 2026. The company has planned capex of around Rs. 13 Cr. towards CTL machinery and warehouse development, proposed to be funded through promoter contribution and term loan; timely financial closure and project execution will remain monitorable. The promoters also have financial flexibility to bring in funds as and when required. While liquidity remains adequate at present, the company's ability to achieve timely financial closure for the proposed capex and manage its working capital requirements efficiently shall remain key monitorable.

Outlook: Negative

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	431.39	552.80
PAT	Rs. Cr.	2.56	2.65
PAT Margin	(%)	0.59	0.48
Total Debt/Tangible Net Worth	Times	1.02	1.19
PBDIT/Interest	Times	1.99	2.11

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
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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 Jun 2025	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Inventory Funding	Long Term	13.00	ACUITE BBB- \| Stable (Assigned)
	Inventory Funding	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)
	Inventory Funding	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	5.98	ACUITE BBB- \| Stable (Assigned)
	Inventory Funding	Long Term	4.00	ACUITE BBB- \| Stable (Assigned)
	Inventory Funding	Long Term	1.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	13.02	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Covid Emergency Line.	Unlisted	RBI	20 Dec 2021	Not avl. / Not appl.	20 Nov 2026	0.96	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.64	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative
State Bank of India	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	25 Jun 2026	Not avl. / Not appl.	25 May 2031	7.40	Simple	ACUITE BBB- \| Negative \| Reaffirmed \| Stable to Negative

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Prashant Dey
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.