Press Release November 26, 2025 ECOLINE EXIM LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	8.50	-	ACUITE A3 | Assigned
Total Outstanding	58.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­Acuite assigned the long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 58.50 Cr. bank facility of Ecoline Exim Limited. The outlook is 'Stable'. Rationale for rating The rating has taken into cognizance long track record of operations, experienced management, moderate financial risk profile, adequate liquidity; However, these strengths are partly offset by slight decline in revenues albeit increase in operating profitability and intensive working capital cycle.

About the Company

­­Incorporated in 2008, West Bengal based, Ecoline Exim Limited is engaged in manufacturing and exports of jute bags (contributes about 20% in the revenue generation) and manufacturing and export of cotton bags (contributes about 80% in the revenue generation). The company has its units at West Bengal and Gujarat. The directors of the company are Mr Saurabh Saraogi and Mr Sudarshan Saraogi. The company got listed at NSE on 30th September 2025.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuite has taken standalone business and financial risk profile of Ecoline Exim Limited to arrive at its rating.

Key Rating Drivers

Strengths

­Benefits derived from Experienced promoters The operations of the company are managed by Mr. Saurabh Saraogi and Mr Sudarshan Saraogi. They hold experience in this industry for more than 15 years. The company has a geographical presence outside India in more than 27 countries majorly Netherland, Germany, Spain among others. Acuite believes that the benefits derived from the promoters and their presence outside India will benefit the company going forward. ­Moderate financial risk profile The financial risk profile of the company is moderate marked by improving net worth, low gearing and moderate debt protection metrices. The tangible net worth of the company stood at Rs. 88.45 Cr. as on March 31, 2025 as compared to Rs. 69.61 Cr. as on March 31, 2024 due to accretion to reserves. The company had also issued bonus shares in FY 25. The gearing of the company stood at 0.45 times as on March 31, 2025 as compared to 0.64 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.65 times as on March 31, 2025 as compared to 0.81 times as on March 31, 2024. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio (ICR) of 12.31 times as on March 31, 2025 and debt service coverage ratio (DSCR) of 5.23 times for March 31, 2025. The net cash accruals to total debt (NCA/TD) stood at 0.54 times as on March 31, 2025 as compared to 0.56 times as on March 31, 2024. Acuité believes that the financial risk profile will remain moderate over the medium term, with steady cash accruals in the absence of any major debt funded capex plans.

Weaknesses

­Slight decline in revenues albeit increase in operating profitability The revenues have slightly declined to Rs. 269.29 Cr. in FY 25 as compared to Rs. 272.19 Cr. in FY 24 and Rs. 303.66 Cr. in FY 23 on account of decline in realisation. The operating profitability margins have increased to 10.87 percent in FY 25 as compared to 10.70 percent in FY 24. The company has achieved revenues of Rs. 139.22 Cr. as of September 2025. The company has an unexecuted orderbook position of about Rs. 93 Cr. as of September 2025 to be executed within 2-3 months providing revenue visibility in the near to medium term. The company has plans to incur capital expenditure towards construction of building, electrical, mechanical works along with procurement of plant and machinery for setting up a new unit at Ahmedabad. The start date would be November 2025 and the end date would be March 2027. The project cost for the same is Rs. 65.08 Cr. to be funded in a mix of by IPO proceeds and internal accruals. Acuite believes that the scale of operations will improve with the execution of orders over the near to medium term.  ­Intensive Working Capital Cycle The working capital cycle of the company is intensive as reflected by Gross Current Assets (GCA) of 139 days for March 31, 2025 as compared to 114 days for March 31, 2024. The debtor period stood at 63 days as on March 31, 2025 as compared to 43 days as on March 31, 2024. The increase in debtor days is because there has been change in shipment route on account of the Israel war. Hence the increase in shipment time has led to the increase in receivable days. Further, the inventory days of the company stood at 71 days as on March 31, 2025 as compared to 49 days in FY2024. The inventory is held for about 2-3 months by the company on the basis of order execution. The creditors stood at 32 days as on March 31, 2025 as compared to 19 days as on March 31, 2024. The suppliers are paid within 30-40 days. Acuité believes that the working capital operations of the company will remain in similar lines in the near to medium term.

Rating Sensitivities

­­Movement in revenues and operating profitability Working capital cycle

Liquidity Position

Adequate

­The company has adequate liquidity marked by net cash accruals of Rs 21.69 Cr. as on FY2025 as against long term debt repayment of Rs. 2.14 Cr. over the same period. The cash and bank balance stood at Rs. 0.43 Cr. as on March 31, 2025 and Rs. 14.05 Cr. as on March 31, 2024. Further, the current ratio of the company stood at 1.78 times as on March 31, 2025 as compared to 1.57 times as on March 31, 2024. The average bank utilization limit of the company for 8 months ended August 2025 is 77.62 percent. Acuité believes that the liquidity of the company is to remain adequate over the near to medium term on account of steady cash accruals in the absence of any major debt funded capex plans.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	269.29	272.19
PAT	Rs. Cr.	18.83	21.83
PAT Margin	(%)	6.99	8.02
Total Debt/Tangible Net Worth	Times	0.45	0.64
PBDIT/Interest	Times	12.31	16.84

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

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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. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.50 Simple ACUITE A3 | Assigned State Bank of India Not avl. / Not appl. Forward Contracts Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 6.00 Simple ACUITE A3 | Assigned State Bank of India Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE BBB- | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Vedika Lahoti 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.