Press Release

Press Release

August 24, 2026

ESE ENERGY PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	85.00	ACUITE BBB- \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	85.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 its long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the bank facilities of Rs. 85.00 Crore of ESE Energy Private Limited (EEPL). The outlook is 'Stable'.

Rationale for Rating
The assigned rating factors in the promoters’ extensive experience of over two decades across diverse sectors, including manufacturing, energy, and infrastructure which led to successful implementation of a 60 Killo Litres Per Day (KLPD) grain-based distillery project in Kaimur district, Bihar, with commercial operations commencing within the lender-approved DCCO timeline. The rating also considers the favourable industry outlook for the ethanol sector, supported by Government of India initiatives such as the Ethanol Blending Programme (EBP), which provides a degree of demand visibility.

The rating further draws strength from the company’s healthy operating performance during its first year of commercial operations, reflected in comfortable operating margins and an adequate liquidity position, supported by net cash accruals against scheduled debt repayment obligations. Additionally, the strategic location of the plant ensures adequate availability of feedstock, thereby supporting operational efficiency.

The above strengths are, however, partly offset by the company's moderate capital structure, owing to the largely debt-funded capital expenditure undertaken for setting up the distillery project. The rating is also constrained by intensive working capital operations marked by high GCA days and susceptibility of profitability to volatility in raw material prices, which could impact margins.

About the Company

ESE Energy Private Limited (ESE), incorporated in 2020 and headquartered in New Delhi, is engaged in the manufacture of grain-based ethanol. The company operates a 60 KLPD ethanol production facility located at Kudra, Kaimur district, Bihar, established under the Government of India’s Ethanol Blending Programme (EBP). The company is promoted by Mr. Anil Kumar Chaurasia, Mr. Sunil Kumar Mittal, Mr. Anshul Jain, and Mr. Vikas Kumar, who collectively oversee its strategic and operational management.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of ESE Energy Private Limited (EEPL) to arrive at this rating.

Key Rating Drivers

Strengths

Experienced Management
The company is promoted and managed by experienced professionals with diverse expertise across multiple industrial sectors. The promoter group comprises Mr. Anil Kumar Chaurasia, with over 25 years of experience in power co-generation and energy solutions; Mr. Sunil Kumar Mittal, with nearly three decades of experience across manufacturing, energy, and infrastructure sectors; Mr. Anshul Jain, a Chartered Accountant with over 15 years of experience in corporate finance and project financing; and Mr. Vikas Kumar, a Marine Engineer with over 18 years of technical and operational experience. Acuite believes that the promoters' established industry track record and execution capabilities will continue to support the company's operational performance and growth prospects going forward.

Scale of Operations & Profitability
The company reported a net revenue of Rs. 76.17 crore achieved in first year of operations i.e. FY 26 (prov.) with an EBITDA of Rs. 20.38 crore, translating into a healthy EBITDA margin of 26.75%, while PAT stood at Rs. 2.58 crore, resulting in a PAT margin of 3.38%. As of June 30, 2026, the company had recorded net revenue of Rs. 34.05 crore and had a confirmed order book of Rs. 22.39 crore, which is scheduled to be executed by September 2026. Acuite believes that the company is well positioned to benefit from the increasing demand for ethanol, supported by the Government of India's ethanol blending programme and favourable industry outlook.

Locational Advantage
The plant is located at Kudra in Kaimur district, Bihar, which benefits from its presence in an agriculturally rich region with ample availability of grain-based feedstocks such as maize and paddy sourced from Bihar and adjoining states. The location provides access to a large agricultural hinterland, ensuring steady raw material procurement at competitive logistics costs. Further, the region offers adequate availability of water resources and a sizeable semi-skilled and unskilled labour pool, supporting efficient plant operations. Its proximity to key road and rail networks facilitates smooth inward movement of feedstock and outward dispatch of ethanol and by-products, while also enabling access to major oil marketing company (OMC) depots. Acuite believes that overall, the strategic location strengthens supply chain efficiencies, reduces transportation costs, and supports sustainable operations.

Weaknesses

Moderate Financial Risk Profile
The financial risk profile of the company is moderate owing to the significant debt-funded capital expenditure incurred for setting up the 60 KLPD ethanol manufacturing facility. As on March 31, 2026 (Prov.), the company’s tangible net worth improved significantly to Rs. 25.17 crore as on March 31, 2026 (Prov.) from Rs. 3.96 crore as on March 31, 2025. The substantial improvement was driven by the accretion of profits to reserves, conversion of a portion of unsecured loans into equity and share premium, and the consideration of the remaining unsecured loans as quasi-equity. The gearing ratio & TOL/TNW remain moderate at 3.22 & 3.81 times for FY 26 (Prov.). The debt coverage indicators marked by ISCR & DSCR stood comfortable at 3.09 & 1.49 times for Fy 26 (Prov.) respectively. Acuite believes that, going forward, the financial risk profile of the company will improve in near to medium term on the account of steady accruals and no major debt funded capex plans.

Intensive Working Capital Operations
The company’s working capital operations are intensive, as reflected by Gross Current Asset (GCA) days of 221 for FY 26 (Prov.). The intensiveness is mainly due to high inventory holding period of 170 days as company needs to maintain adequate feedstock stockpiles, particularly maize and other grains, to ensure uninterrupted operations and mitigate raw material price volatility. The debtor realization days are efficient as 47 days for FY 26 (Prov.) since OMC’s realize bills within 21 days post the receipt & acceptance of the material. Acuite believes that timely realization of receivables from OMCs will support the company in managing its working capital requirements more efficiently over the medium to long term. However, inventory levels are expected to remain relatively high due to the inherent nature of ethanol manufacturing operations.

Susceptibility to Raw Material Price Volatility
The company remains exposed to fluctuations in the availability and prices of key raw materials, namely rice and maize, which are seasonal and dependent on agricultural output. Adverse climatic conditions may impact crop yields, thereby affecting input costs and leading to volatility in EBITDA margins in the ethanol segment. The impact is partly mitigated by supportive government policies, including periodic revisions in ethanol prices, differential pricing for maize-based ethanol, and various incentives for distillery projects. However, any adverse change in regulatory support or pricing framework remains a key monitorable.

Rating Sensitivities

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

Improvement in scale of operations by around 40-45%, while maintaining current operating margins
Improvement in the financial risk profile of the company.

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

Lower-than-expected ethanol allocation leading to slowdown in revenue growth
Unexpected undertaking of debt funded capex which may lead to deterioration of financial risk profile of gearing ratio above 4 times.

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by generating net cash accruals of Rs. 13.29 crore in F26(Prov.) against debt obligation of Rs. 6.78 crore for same year. The current ratio stood moderate at 1.23 times for FY 26 (Prov.). The cash & bank balance stood at Rs. 0.24 crores for FY 26 (Prov.). The average fund-based utilization for last seven months ended July 2026 is 91.61%. Acuite believes the going forward the company will be able to generate steady accruals against scheduled debt obligations in near to medium term.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	76.17	0.85
PAT	Rs. Cr.	2.58	0.01
PAT Margin	(%)	3.38	1.61
Total Debt/Tangible Net Worth	Times	3.22	22.04
PBDIT/Interest	Times	3.09	7.83

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
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	24.00	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Term Loan	Unlisted	RBI	31 Dec 2024	Not avl. / Not appl.	01 Jul 2030	54.20	Simple	ACUITE BBB- \| Stable \| Assigned
INDIAN OVERSEAS BANK	Not avl. / Not appl.	Working Capital Term Loan	Unlisted	RBI	09 Jul 2026	Not avl. / Not appl.	09 Jul 2031	4.80	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kartik Arora
Senior 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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