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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 13.15 | ACUITE A- | Stable | Assigned | - |
| Bank Loan Ratings | 36.85 | - | ACUITE A1 | Assigned |
| Total Outstanding | 50.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs.13.15 Cr bank facilities and the short-term rating of 'ACUITE A1' (read as ACUITE A one) on the Rs.36.85 Cr bank facilities of Choice Consultancy Services Private Limited (CCSPL). The outlook is ‘Stable’.
Rationale for rating The assigned rating takes into account the sustained growth in revenue and significant improvements in the earning profile of Choice International Limited (CIL) at the consolidated level. Further, the rating derives strength from the group’s healthy capital structure, experienced management, low leveraged profile and established position in its segments. Additionally, rating draws comfort from the sustained level of revenues of CCSPL, supported by healthy outstanding order book position of ~Rs.600 Cr as on 30th November, 2025 (3.0 times of FY25 revenue) providing revenue visibility over medium term, coupled with healthy financial risk profile and adequate liquidity position. However, this remains constrained due to CCSPL’s high level of receivables and inherent challenges in the consultancy business. Going ahead, the ability of the company to scale up its operations backed by timely execution of its order book while sustaining its profitability margins shall remain a key rating monitorable. |
| About the Company |
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Incorporated in 2010, Choice Consultancy Services Private Limited (CCSPL) is engaged in providing consultancy services majorly for the state and central government for various projects like infrastructure, highways, railways, water projects, etc. Its business involves preparing detailed project report and project monitoring reports. CCSPL is promoted by Mr. Kamal Poddar and Mr. Arun Poddar. Additionally, the company also has 2 SPVs namely ‘Choice Green Energy MH-1 Private Limited’ and ‘Choice Green Energy MH-2 Private Limited’ who are engaged in development of solar power plants.
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| About the Group |
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Incorporated in 1993, Choice International Limited (CIL or group) is an end-to-end financial services conglomerate based in Mumbai. CIL has created a FinTech ecosystem which combines various platforms under one roof for all financial services. The company through its multiple subsidiaries offers financial and consultancy services catering to retail and institutional clients, corporates and state and central governments.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered consolidated business and financial risk profile of Choice International Limited (CIL) and its subsidiaries, including but not limited to Choice Consultancy Services Private Limited (CCSPL) and Choice Equity Broking Private Limited (ACUITE A-/Stable/A1) and Choice Finserve Private Limited (ACUITE A-/Stable).
The consolidation is in view of the common management, shared brand, and strong operational and financial synergies between the group companies. |
| Key Rating Drivers |
| Strengths |
| Strong presence of CIL group with diversified business profile
CIL was incorporated in 1993 and therefore has more than two decades of market presence under the leadership of Mr. Kamal Poddar (MD). The group has diversified business operations, engaged in providing financial services and operates through the segments of NBFC services, broking & distribution, advisory services, and IT services business generating majority of the revenue from broking and distribution services followed by revenue contribution from CCSPL. CCSPL is the wholly owned subsidiary of CIL and therefore benefits from common management, shared brand, and strong operational and financial synergies between the group companies. Acuité believes, that the company’s consolidated business profile will be supported by expertise of seasoned professional managing the operations and established track record of operations. Comfortable capital structure At group level, CIL’s capitalization levels are comfortable marked by improving tangible net worth to Rs.960.87 Cr as on 31st March, 2025 against Rs.563.22 Cr as on 31st March, 2024 (excluding revaluation reserve and intangible assets). Further, the gearing (debt-equity) of the group stood at 0.70 times during FY25 as compared to 0.81 times during FY24. Furthermore, CCSPL at standalone level also has a healthy financial risk profile marked by growing net worth of Rs.140.13 Cr as on 31st March, 2025 as against Rs.102.22 Cr as on 31st March, 2024 owing to accretion of profits. Also, on account of low debt profile, the debt-equity also stood below unity over the years at 0.05 times as on 31st March, 2025 and debt protection metrics remained healthy. Growing scale of operations At a consolidated level, CIL's total operating income (adjusted for inter segment revenue) increased to Rs.910.38 Cr in FY25 as compared to Rs.750.68 Cr in FY24. The growth is primarily attributable to the broking business which contributed Rs.551.18 Cr to the topline in FY25, increasing from Rs.454.60 Cr in FY24. Further, the growth is also driven by advisory services, NBFC services (Rs.114.80 Cr against Rs.86.85 Cr in FY24) and others (Rs.33.10 Cr. against Rs.16.66 Cr in FY24). Further, the overall profitability increased from Rs.130.86 Cr in FY24 to Rs.162.71 Cr in FY25. Moreover, the operating income stood at Rs.522.06 Cr during H1FY26 owing to improved AUM for wealth products under the broking services segment, established presence across sectors such as housing, agriculture, MSME and urban planning through the advisory division, and YoY 2% improvement in insurance premium from the business. Furthermore, CCSPL at standalone level; the operating income improved from Rs.96.02 Cr in FY23 to Rs.205.36 Cr in FY24 owing to healthy growth in order book. However, the revenue moderated to Rs.201.42 Cr in FY25 on account of slowdown/delay in order execution due to central and state government elections, resulting into lower billing done during the year. Nonetheless, the current O/s order book stands at Rs.604.73 Cr as on 30th November, 2025 which provides moderate revenue visibility over the medium term. The EBITDA margin though reduced due to lower absorption of fixed costs stood healthy at 26.03% in FY25 (40.86% in FY24). Acuité believes that despite an improvement in the group's earning profile, the business operations of CCSPL would remain susceptible to intensive competition & tender based nature of business along with timely execution of its order book. |
| Weaknesses |
| High level of receivables
The debtors days for CCSPL stands high at 166 days in FY25 (150 days in FY24) primarily due to delay in receipts from govt authorities. Therefore, timely receipt of these remains a key rating monitorable. Risks involving general economic and market conditions The group's operating performance is primarily linked to the capital markets, which are inherently volatile as they are driven by economic and political factors as well as investor sentiments. Also, revenues generated from businesses like broking, wealth management, private client broking and investment advisory business, are directly related to the volume and value of the transactions. Any adverse market movement (downturn) would result in decline in transaction volumes leading to a decline in the group’s revenues received from commissions earned from such businesses. While the group continues to benefit from its business model the level of activity in the equity, commodities and F&O markets will be key determinant of its revenue profile and future growth trajectory. Given the competition from larger brokerages and technology-focused new entrants, the ability of the group to grow its brokerage revenues on a sustainable basis will be a key monitorable. Furthermore, the management and project consultancy sector faces structural challenges with client acquisition and retention being highly competitive. Additionally, rapid technological disruption and evolving client demands for digital, ESG, and hybrid solutions require continuous investment and adaptation. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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The business growth of CIL has been supported by the group’s internal accruals. The group’s dependence on debt is low as reflected in low gearing of 0.70 times as on 31st March 2025. Hence, the group has no significant term debt obligations over the near term. Further, the group had cash and bank balance of Rs.138.79 Cr as on 31st March, 2025.
Further, CCSPL has adequate liquidity marked by sufficient net cash accruals in FY25 at Rs.38.60 Cr against debt repayment obligation of Rs.1.76 Cr in FY25. Going forward, the net cash accruals of the company are expected to be in the range of Rs.30.00-35.00 Cr through FY26-27 against repayment obligations of Rs.1.50-2.00 Cr. Further, the reliance on working capital limits stood moderate at average 66% utilisation levels for last 7 months ending October 2025. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None. |
| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 201.42 | 205.36 |
| PAT | Rs. Cr. | 37.24 | 61.06 |
| PAT Margin | (%) | 18.49 | 29.73 |
| Total Debt/Tangible Net Worth | Times | 0.05 | 0.10 |
| PBDIT/Interest | Times | 21.19 | 32.40 |
| Key financials (consolidated) | ||||||||||||||||||||||||
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| Status of non-cooperation with previous CRA (if applicable) |
| None |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on complexity levels of the rated instrument |
Rating History : |
| Not Applicable. |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||||||||
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