Press Release

Press Release

August 17, 2026

Ballarpur Industries Limited
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Non Convertible Debentures (NCD)	100.00	0.00	ACUITE B \| Stable \| Assigned	-	SEBI
Total Outstanding	100.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 assigned the long-term rating to 'ACUITE B' (read as ACUITE B) on the Proposed Non Convertible Debentures (NCDs) of Rs. 100 Cr, of Ballarpur Industries Limited. The outlook is 'Stable'.

Rationale for Rating
The rating reflects Ballarpur Industries Limited's below-average financial risk profile, marked by high leverage, weak debt protection metrics, and continued losses, as indicated by a gearing of 2.40 times and interest coverage of (1.19) times as on March 31, 2026. The rating is constrained by the company's intensive working capital cycle, with gross current asset days remaining elevated at 493 days as on the same date. The company's stretched liquidity position is reflected in negative cash accruals against debt repayment obligations. However, with ongoing promoter funding through USL, has assisted in meeting operational and debt servicing requirements. Susceptibility to fluctuations in paper prices and risks associated with the rampup and stabilization of operations post revival remain key rating sensitivities. However, the rating derives support from the recommencement of operations at the Yamuna Nagar plant has supported an improvement in the scale of operations, with revenue increasing to Rs. 84.47 crore in Q1FY27 from Rs. 76.97 crore for entire FY2026. The rating also derives comfort from the extensive experience of the promoter group and its demonstrated track record of successfully reviving distressed businesses, which remains critical to the ongoing turnaround and stabilization of the company's operations.

About the Company

Based in Mumbai, Maharashtra , Ballarpur Industries Limited (‘BIL") is manufacturers of writing and printing paper in India and has been in business since 1945. This business focuses on specialized product categories , its product portfolio includes writing and printing paper, copier paper, bond paper, and specialty packaging paper products.. The CEO of the company is Mr. Alok Prakash, and the directors are Mr. Hardik Bharat Patel, Mr. Parashiva Murthy B S, Mr. Alok Prakash, Mr. Panchapakesan Swaminathan, Mr. Kulandaipaian Thangaraju and Ms. Shweta Jain.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of the Ballarpur Industries Limited (BILT) to arrive at the rating.

Key Rating Drivers

Strengths

Experienced Promoters and Management Team
BIL is led by Mr. Hardik Bharat Patel, Chairman and Whole-Time Director, also the promoter of the holding Company, which acquired the company through the insolvency resolution process and has since been actively involved in its operations and strategic direction. The company is overseen by an experienced board of directors and management team with exposure to manufacturing, finance, and business operations. The promoters have extended financial support to the company through unsecured loans, reflecting their commitment towards operational continuity and business revival. Acuité believes that the experience of the promoters and management, along with their continued support, will aid BIL's operational stability and growth prospects over the medium term.

Improving Operating Income albeit poor Margins
BIL reported operating income of Rs. 76.97 crore in FY2026 as against Rs. 18.61 crore in FY2025, supported by the recommencement of commercial operations at its Yamunanagar plant from December 1, 2025, following the implementation of the resolution plan. During the year, the company undertook refurbishment, infrastructure upgrades, and debottlenecking initiatives to revive operations. Revenue was primarily generated from the sale of writing, printing, and specialty paper products. The company's operating profitability remained negative, with EBITDA margin at (113.73)% in FY2026 against (61.17)% in FY2025, owing to the low scale of operations and under-absorption of fixed costs during the initial ramp-up phase. Consequently, the PAT margin remained negative at (174.96)% in FY2026, albeit improving from (358.69)% in FY2025. The company reported revenue of Rs. 84.47 crore in Q1 FY2027. Operating performance improved, with EBITDA loss at Rs. 14.51 crore and EBITDA margin at (-17.18)%. in Q1 FY2027. The PAT loss stood at Rs. 30.63 crore in Q1 FY2027, reflecting gradual stabilisation of operations and ramp-up at the Yamunanagar facilities. Acuité believes BILT's operating performance is expected to improve over the medium term, supported by the stabilisation and ramp-up of production at its Yamunanagar facility.

Weaknesses

Below average financial risk profile
The company’s financial risk profile is below average, marked by a deterioration in net worth, high leverage and weak debt protection metrics. The tangible net worth declined to Rs. 326.59 crore as on March 31, 2026, from Rs. 460.90 crore as on March 31, 2025, primarily on account of losses incurred during the year. Total debt increased to Rs. 782.64 crore as on March 31, 2026, from Rs. 687.80 crore as on March 31, 2025, as on 31st March 2026 the Debt Consist of USL from director of Rs 144.33 Cr , NCDs of Rs 519.30 Cr., NCRPS of Rs 108.00 Cr. and short term borrowing from financial institution of Rs. 13.55 Cr. Consequently, gearing deteriorated to 2.40 times as on March 31, 2026, from 1.49 times in the previous year. Further, the TOL/TNW ratio stood at 2.99 times as on March 31, 2026, compared with 1.71 times as on March 31, 2025. The company’s debt protection metrics remained weak, with the Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) standing negative at (1.19) times and (0.91) times in FY2026. Further, the Net Cash Accruals to Total Debt (NCA/TD) ratio remained negative at (0.16) times in FY2026, reflecting inadequate cash generation and continued pressure on the company’s financial risk profile Acuite believes that the financial risk profile is likely to remain constrained in the near term, though gradual improvement may be witnessed with the scaling up of operations and improvement in cash accruals.

Intensive Working capital cycle
BIL’s operations are working capital intensive as the Gross Current Assets (GCA) days stood 493 days in FY2026 as against 1,359 days in FY2025. The high GCA levels are primarily on account of significant other current assets. Current assets mainly comprise statutory dues receivable and balances recoverable from government authorities. The inventory holding period improved to 90 days in FY2026 from 134 days in FY2025. The company generally maintains raw material inventory of around 7 days and finished goods inventory of 10-15 days. Debtor days increased to 30 days in FY2026 from 1 day in FY2025, in line with the average credit period of around 20 days extended to customers. The company's supplier credit remains elevated, as reflected in creditor days of 519 days as on FY2026, although the average credit period agreed with suppliers is around two months. Acuite believes that the working capital management of the company is likely to improve gradually with the stabilisation and scale-up of operations.

ESG Factors Relevant for Rating

Ballarpur Industries Limited’s ESG approach is centred on operational revival, energy efficiency, employee welfare, and strengthening governance practices. The Company focuses on energy conservation through continuous monitoring and efficient operating practices. On the social front, it provides employee welfare benefits and maintains policies on whistleblowing and prevention of workplace harassment. Governance is supported by the Key Managerial Personnel (KMPs) and a Board of Directors comprising technical experts, finance professionals, and independent directors, supported by Board committees and a framework focused on transparency, accountability, and risk management. The Board of Directors consists of six members, including one female independent director.

Rating Sensitivities

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

Revenue above Rs. 250 Cr. on a sustained basis.
Sustained positive EBITDA and cash accruals.
Debt reduction and improvement in leverage metrics.

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

Continued operating losses and negative cash accruals.
Deterioration in leverage, liquidity or debt protection metrics.
Elongation in working capital cycle above 550 Days.
Adverse movement in paper prices or raw material costs.

Liquidity Position

Stretched

The company’s liquidity position is stretched, as reflected in its inadequate cash accruals to meet debt obligations over the medium term. BILT reported negative net cash accruals of Rs. 126.96 crore in FY2026, as against scheduled long-term debt repayments of Rs. 17.62 crore during the same period. The company’s operational cash flows remain insufficient to meet its repayment obligations, and debt servicing is presently being supported through promoter funding in the form of unsecured loans (USLs) and non-convertible debentures (NCDs). Going forward, the company plans to repay these promoter-funded borrowings through monetisation of non-core assets. Further, although at a nascent stage, the company intends to undertake capital expenditure at its Yamuna nagar plant to remove existing bottlenecks and improve operational efficiency. The company’s current ratio stood weak at 0.30 times as on March 31, 2026, while its unencumbered cash and bank balance remained modest at Rs. 1.31 crore. Acuite believes that the liquidity position of the company will remain stretched over the medium term due to negative cash accruals and weak liquidity indicators. However, continued promoter support and planned asset monetisation are expected to provide liquidity support going forward.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials :

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	76.97	18.61
PAT	Rs. Cr.	(134.67)	(66.76)
PAT Margin	%	(174.96)	(358.69)
Total Debt/Tangible Net Worth	Times	2.40	1.49
PBDIT/Interest	Times	(1.19)	(0.31)

FY2026 financials are based on abridged financial statements

Status of non-cooperation with previous CRA (if applicable)

None

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: Not Applicable

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
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	100.00	Simple	ACUITE B \| Stable \| Assigned

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.

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