Press Release January 27, 2026 BOKARO SPIRITS AND ALLIED INDUSTRIES PRIVATE LIMITED Rating Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	225.00	ACUITE BB | Reaffirmed & Withdrawn	-
Total Outstanding	0.00	-	-
Total Withdrawn	225.00	-	-

Rating Rationale

­­Acuité has reaffirmed and withdrawn its long-term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs. 225.00 Cr. bank facilities of Bokaro Spirits and Allied Industries Private Limited (BSAIPL). The rating has been withdrawn on account of the request received from the company and No Objection Certificate (NOC) received from the lender. Also, the rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.  Rationale for Rating The rating reaffirmation and withdrawal takes into account the full scale commencement of the plant and commercial sale from March, 2025. Further, the rating considers the minimal offtake risk considering the supply orders received by the company from oil marketing companies (OMCs) and ample demand of ethanol in the market. Further, the rating also reflects the experience of the promoter of more than two decades in the liquor industry. However, these strengths are partly offset by the stabilisation risks pertaining to a limited operational period and moderate financial risk profile along with input price volatility and limited pricing power.

About the Company

Bokaro Spirits and Allied Industries Private Limited (BSAIPL) was incorporated on 12th May, 2021 with the object to carry the business activity related to manufacturing of absolute alcohol (Ethanol), rectified spirit & extra natural alcohol (ENA). The company has set up a 250 KLPD grain (rice) based distillery plant with 6.5 MW co-generation power plant with integrated bottling plant of capacity 3.8 million cases p.a. The manufacturing unit is located at Bokaro, Jharkhand and presently the company is managed  by Mr. Amit Kumar Jha and Mr. Prashant Arora.

Unsupported Rating

­Not applicable.

Analytical Approach

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

Key Rating Drivers

Strengths

­Experienced promoters coupled with favourable industry outlook The promoters of the company have more than two decades of experience in the industry through their existing distillery and brewery set up in Punjab and Jharkhand. Further, going forward, the long-term demand outlook of ethanol and biofuel remains favourable on the back of a significant demand-supply gap along with the Government’s focus on reducing crude oil import dependency. Moderate demand risk The company plans to sell its ethanol production mainly to OMCs, whereas bottling and ENA are expected to be sold in open market. Further, it has currently received ethanol supply orders from OMCs like Hindustan Petroleum Corporation Limited (HPCL) and Indian Oil Corporation Limited (IOCL) for a total supply of 22,000 KL for Q4FY26. Moreover, the company also has IMFL bottling capacity of ~3.8 million cases p.a. and has started its bottling operations from November 2025 and also has some bottling arrangement is in pipeline with some MNCs who are already purchasing ENA from BSAIPL. Also, being in close proximity to HPCL plant, the company is expected to have an ease of supply advantage. The company has recorded top line of ~Rs. 234 Cr. as of 30th November 2025. Favourable government measures to support cash flows With the recent announcement on Food Corporation of India (FCI) on reducing the price of rice from Rs.28.00/kg to Rs.22.50/kg for ethanol production, the input cost of the company is expected to reduce leading to improvement in margins. Further, to increase production of ethanol, the Government is taking multiple initiatives for enhancement and augmentation of the ethanol production capacity. The company is eligible for 50% interest subsidy (up to 6% p.a.) for a period of 5 years for the actual interest paid on the term loan availed, reimbursement of 25% VAT (upto 200% of capex) paid for 5 years, Rs 25 crore capital subsidy from state government and incentive on Net SGST for 7 years from date of production.

Weaknesses

­Project stabilisation risk The plant was operational from 15th January,2025; however, the first commercial sale began from March, 2025 with dispatch to the OMCs. Being the commercial sales of project has commenced recently; the track record of profitable operations is yet to be established. The company’s ability to achieve healthy capacity utilisation and generate healthy cash accruals will be important for its credit profile. Moderate financial risk profile The company’s capital structure is expected to remain moderate marked by moderate net worth base and high gearing over the medium term. The tangible net worth of the company stood at Rs.174.96 Cr. as on 31st March 2025. The gearing stood at 1.52 times as on 31st March 2025 as against 1.79 times as on 31st March 2024.  The total project cost of ~Rs.404 Cr. was funded partly through Rs.225.00 Cr. term loan from State Bank of India, Rs.60.00 Cr. through equity infusion and remaining Rs.119.67 Cr. through USL/quasi equity. The promoters are resourceful and will infuse any incremental funding requirement if the situation arises. Input price volatility with limited pricing power Bokaro uses grain (rice) as a raw material for its production. Since grains are seasonal products and its production depends on vagaries of nature, price of which may vary depending on production. On the other side, considering limited pricing flexibility for its key final product as ethanol prices are decided by the government, the company’s profitability may get affected.

Rating Sensitivities

Not applicable.

Liquidity Position

Adequate

The net cash accrual is expected to be adequate with the onset of ethanol supply orders. However, this is susceptible to timely implementation of the orders. The cash and bank balance stood at Rs.16.04 Cr. as on 31st March, 2025. Further, the promoters are expected to infuse equity and unsecured loans to support the business.

Outlook: Not Applicable

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Other Factors affecting Rating

­None.

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	9.46	0.03
PAT	Rs. Cr.	(15.98)	(4.85)
PAT Margin	(%)	(168.88)	(15519.97)
Total Debt/Tangible Net Worth	Times	1.52	1.79
PBDIT/Interest	Times	(1.65)	(2.82)

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 13 Feb 2025 Term Loan Long Term 225.00 ACUITE BB | Stable (Reaffirmed) 16 Nov 2023 Term Loan Long Term 225.00 ACUITE BB | 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 State Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. 30 Jun 2032 225.00 Simple ACUITE BB | Reaffirmed & Withdrawn

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Dhruvi Chauhan 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.