Press Release

Press Release

September 23, 2026

CARGO MOTORS KUTCH PRIVATE LIMITED
Rating Assigned and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	6.39	ACUITE B- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	100.00	ACUITE B- \| Stable \| Upgraded	-	RBI
Total Outstanding	0.00	106.39	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded the long-term rating to ‘ACUITE B-’ (read as ACUITE B minus) from 'ACUITE C' (read ACUITE C) on the Rs.100.00 Cr. bank facilities of Cargo Motors Kutch Private Limited (CMKPL). The outlook is 'Stable’.
Further, Acuite has assigned the long-term rating of ‘ACUITE B-’ (read as ACUITE B minus) on the Rs.6.39 Cr. bank facilities of Cargo Motors Kutch Private Limited (CMKPL). The outlook is 'Stable’.

Acuite has received latest information from the issuer along with latest No Default Statement, leading to transition from Issuer Not Co-operating to Co-operative issuer.

Rationale for Rating
The upgrade rating factors the timeliness in payment of debt obligations since February 2026 as reflected by CIC report as well as satisfactory feedback from lenders. The rating reflects the company’s established presence in the dealership business, which continues to support business stability and long-standing customer relationships. CMKPL reported improved revenue in FY26(Prov.) and FY25, driven by higher sales volumes of the MG Windsor/Windsor EV. Furthermore, the company has recorded a turnover of Rs. 136.75 crore till Q1FY27. The rating considers the company remains weak financial risk profile, marked by a low net worth, high gearing, and weak debt protection metrics. Liquidity is stretched, marked by insufficient net cash accruals against high debt repayment obligations. The shortfall was met by promoters infusion of unsecured loans.

About the Company

Gurgaon based Cargo Motors Kutch Private Limited was incorporated in the year 2005. The company is engaged in dealership business for JSW MG Motor India Private Limited in Punjab and Haryana for passenger vehicles of JSW MG Motor India in Punjab and Haryana. Present directors of the company are Mr. Jayant Nanda, Ms. Devki Nanda, Ms. Anita Nanda and Mr. Vimal Gujral.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has taken standalone business and financial risk profile of Cargo Motors Kutch Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Experienced management and established track record of operations
The company is promoted by the late Mr. Yash Pal Nanda and is currently managed by Mr. Jayant Nanda, Ms. Devki Nanda, Ms. Anita Nanda and Mr. Vimal Gujral. The promoters and management team possess extensive experience in the automobile dealership business, which has enabled the company to develop long-standing relationships with OEMs, customers, and financiers. Their experience has supported the company's expansion across multiple locations and strengthened its operational capabilities in vehicle sales, servicing, and spare parts distribution. Acuite believes that the experience of the promoters and their dealership with JSW MG Motor India Private Limited will benefit the company going forward.

Increase in scale of operations with modest operating margins
CMKPL witnessed an increase in its operating income to Rs. 491.76 Cr. in FY26 (Prov.) from Rs. 458.62 Cr. in FY25. The growth was primarily driven by higher sales volumes of the MG Windsor/Windsor EV, which witnessed strong market acceptance during the year. Moreover, the company has registered revenue of Rs. 136.00 Cr. till Q1FY27. Further, the EBITDA margin improved to 1.87% in FY26 (Prov.) from 0.46% in FY25, primarily due to lower selling expenses, including advertisement and promotional costs, during the year.

Efficient Working Capital Management
The working capital management remained efficient with marginal improvement in GCA days improving to 68 days as on March 31, 2026 (Prov.) from 80 days as on March 31, 2025. The improvement primarily driven by the lower inventory level with the inventory days of 39 days in FY26 against 56 days in FY25. The reduction in inventory holding was supported by improved inventory management. The debtor days weakened to 23 days in FY2026 (Prov.) from 12 days in FY25, indicating relatively higher receivables outstanding at year-end. Creditor days remained stable at 12 days in FY26 (Prov.) as against 10 days in FY25. Acuite believes the working capital management is expected to remain efficient over the medium term.

Weaknesses

Continued PAT Losses Despite Improvement in Operating Performance
Despite the improvement in operating profitability, the company continued to report net losses of Rs. (2.49) crore in FY26(Prov.) as against Rs. (10.08) crore in FY25, due to the higher interest cost. Nevertheless, the extent of losses reduced in FY26(Prov.) as compared to FY25, with PAT margins reduced at (0.51) percent in FY26(Prov.) as against (2.20) percent in FY25, due to increase in scale of operations in FY26.

Weak Financial Risk Profile
The financial risk profile of the company remains weak, marked by a low net worth, high gearing, and weak debt protection metrics. The tangible net worth improved to Rs. 5.42 crore as on March 31, 2026 (Prov.) from Rs. 1.66 crore as on March 31, 2025, primarily supported by equity infusion during the year of Rs. 4.54 crore. Total debt moderated to Rs. 89.79 crore as on March 31, 2026 (Prov.) (included USL of Rs. 7.22 Cr.) from Rs. 99.22 crore as on March 31, 2025. Consequently, the gearing improved, remained high, with the debt-equity ratio at 16.56 times as on March 31, 2026 (Prov.) as against 59.92 times as on March 31, 2025. The debt profile primarily comprises working capital borrowings and dealer finance facilities. Debt protection metrics stood weak in FY26 (Prov.), with the interest coverage ratio (ICR) to 1.07 times from 0.31 times in FY25 and the DSCR stood to 0.82 times from 0.21 times over the same period. TOL/TNW at 20.46 times and Debt/EBITDA at 9.12 times as on March 31, 2026 (Prov.) as against 72.52 times and 35.68 times as on March 31, 2025. Acuite believes that the financial risk profile of the company is to remain weak over the medium term, in term of coverage indicators.

Exposure to Intense Competition in the Automobile Dealership
CMKPL operates in a highly competitive automobile dealership industry, facing significant pressure across various segments including mini, compact, mid-sized, executive, premium, and luxury passenger vehicles. The company competes not only with dealers of other established automobile manufacturers but also with the unorganized used car market, which further intensifies competition and impacts market share and pricing power.

Rating Sensitivities

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

Improvement in sales with PAT margins to at least 1%.
Improvement in debt equity to 3 times

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

Any delays or irregularities in debt servicing
Elongation of working capital cycle to more than100 days

Liquidity Position

Stretched

The liquidity position of the company remains stretched marked by net cash accruals of Rs. 0.67 Cr. in FY26(Prov.) as against Rs. 2.89 Cr. of long-term debt repayment obligation, however the shortfall has managed by the company through promoter contribution through USL. The promoters has contributed of Rs. 4.00 Cr. in FY26 (Prov.). The company has cash and bank balance of Rs.0.45 Cr. as on March 31, 2026(Prov.) as compared to Rs. 5.11 Cr. as on March 31, 2025. The liquidity profile is further supported by promoter support in the form of unsecured loans of Rs. 7.22 crore as on March 31, 2026 (Prov.), compared to Rs. 3.22 crore in the previous year. The company's current ratio remained low and stood at 0.95 times as on March 31, 2026 (Prov.) from 0.89 times as on March 31, 2025. Further, the average bank utilization limit of the company for 06 months ended June 2026 is ~87 percent. Acuite believes that the company's liquidity position is to remain stretched over the medium term, supported by lower accruals against the long-term debt repayment.

Outlook

Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	491.76	458.62
PAT	Rs. Cr.	(2.49)	(10.08)
PAT Margin	(%)	(0.51)	(2.20)
Total Debt/Tangible Net Worth	Times	16.56	59.92
PBDIT/Interest	Times	1.07	0.31

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 2026	Inventory Funding	Long Term	22.50	ACUITE C (Reaffirmed & Issuer not co-operating*)
	Cash Credit	Long Term	34.00	ACUITE C (Reaffirmed & Issuer not co-operating*)
	Inventory Funding	Long Term	29.00	ACUITE C (Reaffirmed & Issuer not co-operating*)
	Proposed Long Term Bank Facility	Long Term	8.50	ACUITE C (Reaffirmed & Issuer not co-operating*)
	Proposed Long Term Bank Facility	Long Term	6.00	ACUITE C (Reaffirmed & Issuer not co-operating*)
13 Mar 2025	Cash Credit	Long Term	34.00	ACUITE C (Downgraded from ACUITE B+)
	Proposed Long Term Bank Facility	Long Term	8.50	ACUITE C (Downgraded from ACUITE B+)
	Proposed Long Term Bank Facility	Long Term	6.00	ACUITE C (Assigned)
	Inventory Funding	Long Term	22.50	ACUITE C (Assigned)
	Inventory Funding	Long Term	29.00	ACUITE C (Assigned)
12 Jul 2024	Cash Credit	Long Term	34.00	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
12 Jul 2024	Proposed Long Term Bank Facility	Long Term	8.50	ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB- \| Stable)
08 May 2023	Cash Credit	Long Term	34.00	ACUITE BB- \| Stable (Downgraded from ACUITE BB \| Stable)
08 May 2023	Proposed Long Term Bank Facility	Long Term	8.50	ACUITE BB- \| Stable (Downgraded from ACUITE BB \| Stable)

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.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	34.00	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
IDFC First Bank Limited	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	8.50	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
ICICI BANK LIMITED	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	22.50	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
Kotak Mahindra Prime Limited	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	29.00	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
Kotak Mahindra Prime Limited	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.30	Simple	ACUITE B- \| Stable \| Assigned
ICICI BANK LIMITED	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.80	Simple	ACUITE B- \| Stable \| Assigned
IDFC First Bank Limited	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.50	Simple	ACUITE B- \| Stable \| Assigned
State Bank of India	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	27 May 2026	Not avl. / Not appl.	26 May 2031	6.00	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
State Bank of India	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	27 May 2026	Not avl. / Not appl.	26 May 2031	0.79	Simple	ACUITE B- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Ujjwal Srivastva
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.