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
Acuité has upgraded its the long-term rating to ‘ACUITE BB+’ (read as ACUITE double B plus) from ‘ACUITE BB’ (read as ACUITE double B) on the Rs.25.00 Cr. bank facilities of Cargomen Logistics India Private Limited (CLIPL). The outlook is 'Stable'.
Rationale for rating upgrade The rating upgrade factors the improvement in company's operating performance in FY2026 (Prov.). The rating also draws comfort from its above average financial risk profile, adequate liquidity position, experienced management team, and established track record of operations. However, the rating remains constrained by the moderately intensive working capital nature of operations, modest scale of operations, exposure to volatility in raw material prices, susceptibility to economic slowdowns and foreign exchange fluctuations, and the highly competitive and fragmented nature of the industry.
About the Company
Incorporated in 2008, Cargomen Logistics India Private Limited (CLIPL) is engaged in providing logistics services such as custom clearance, freight forwarding, management consultancy, and warehousing & transportation rental services. The registered office is located at Hyderabad and having presence in India at ten locations and having global presence in Singapore. The company is currently focusing on the air freight segment .The directors of the company are Mr. Harihar Natha and Mr. Kamal Jain.
Unsupported Rating
Not applicable
Analytical Approach
Acuite has considered the standalone financial and business risk profiles of Cargomen Logistics India Private Limited (CLIPL) to arrive at the rating as wholly owned subsidiary operates as separate legal and financial independent unit.
Key Rating Drivers
Strengths
Established track record and experienced management CLIPL has an established track record of operations for two decades in the field of logistics. It is affiliated with 5700+ global agents and 765 ports through world cargo alliance global network. Promoters of the company are having twenty-six years of experience in this field. Acuité believes that the company is expected to benefit from the promoter’s extensive experience and established track record of operations.
Above average financial risk profile The company has an above average financial risk profile, marked by a moderate net worth, comfortable capital structure and adequate debt protection metrics. The tangible net worth improved to Rs.31.80 Cr. as on March 31, 2026 (Prov.) from Rs.28.66 Cr. as on March 31, 2025, primarily on account of accretion to reserves. The gearing increased remains healthy at 0.85 times as on March 31, 2026 (Prov.) despite higher utilization of short-term borrowings to support the increased scale of operations and elongated receivables cycle. The debt protection metrics improved during FY2026 (Prov.), supported by higher profitability and lower long-term debt obligations. Accordingly, the interest coverage ratio (ICR) improved to 2.76 times in FY2026 (Prov.) from 2.23 times in FY2025, while the debt service coverage ratio (DSCR) improved to 2.23 times from 1.58 times over the same period.
Weaknesses
Improving but modest operating performance The company reported a modest yet improving operating performance, with revenue from operations increasing by 10.87 percent to Rs. 164.55 Cr. in FY2026 (Prov.) from Rs. 148.41 Cr. in FY2025, primarily driven by higher freight and forwarding income. Further, the company achieved operating revenue of Rs. 69.59 Cr. till August 2026. The company's profitability improved with EBITDA margin increasing to 3.37 percent in FY2026 (Prov.) from 2.89 percent in FY2025, mainly due to better control over overhead expenses. Acuité believes that the company's ability to further scale up its operations while sustaining and improving profitability levels will remain a key rating monitorable over the medium term.
Moderately intensive working capital operations
The working capital operations of the company remains moderately intensive, as reflected by the gross current asset (GCA) days of 123 days in FY2026 (Prov.) (106 days in FY2025). The elongation in the working capital cycle is primarily on account of higher debtor levels and an increase in other current assets, largely comprising balances with government authorities. Debtor days increased to 92 days in FY2026 (Prov.) (86 days in FY2025). Acuité expects that the working capital intensity to remain moderately intensive over the medium term owing to the extended credit period offered to customers.
Profit margins are susceptible to volatile input cost, economic scenario and forex risk The logistics business is directly to linked to global trade and economic scenario. Thus, dip in global trade and economic slowdown may down freight volume. Further the performance of CLIPL will remain linked to the industries in which it caters and transactions are subject to foreign exchange risks. Also volatile in fuel cost is challenging factor in this business. However, the forex risk is naturally hedged to some extent as company also engaged into import services.
Intense competitive and fragmented industry CLIPL operates in an industry which is exposed to intense competition from organized and unorganized players due to fragmented nature of the industry and low entry barriers. Though, the risk is mitigated to some extent, benefiting from the established relationships with its clientele.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Sustained growth scale of operations and profitability with net cash accruals above Rs 7-8 Cr
Improvement in financial risk profile
Potential triggers (individual or collective) for a downward rating action:
Sustained dip in scale of operations or profitability margins with net cash accruals falling below Rs 3 Cr
Increase in debt levels impacting the financial risk profile
Elongation of working capital cycle
Liquidity Position
Adequate
The liquidity position of the company remains adequate, supported by healthy net cash accruals of Rs. 3.75 Cr. in FY2026 (Prov.) against relatively low long-term debt repayments of Rs. 0.56 Cr. during the same period.Over the medium term, the company is expected to generate annual cash accruals in the range of Rs. 4.00 Cr. to 4.50 Cr. for FY27-28 which are expected to remain sufficient to meet its modest debt repayment obligations of Rs. 0.02 Cr. annually. Further, the company-maintained cash and bank balances of Rs. 0.50 Cr. and free fixed deposits of Rs. 0.52 Cr. as on March 31, 2026 (Prov.), The current ratio stood at 1.14 times as on March 31, 2026 (Prov). However, the company's working capital limits remain highly utilized, with average fund-based bank limit utilization of 92.79% during the six-month period ended August 2026.
Outlook-Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
164.55
148.41
PAT
Rs. Cr.
3.15
2.14
PAT Margin
(%)
1.91
1.44
Total Debt/Tangible Net Worth
Times
0.85
0.71
PBDIT/Interest
Times
2.76
2.23
Status of non-cooperation with previous CRA (if applicable)
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.
Contacts
List of instruments and names of regulators of the instruments
