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 reaffirmed the long term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) and short term rating of ‘ACUITE A2+’ (read as ACUITE A two plus) on the Rs. 363.00 Cr. bank loan facilities of Gandhar Coals and Mines Private Limited (GCMPL). The outlook is 'Stable'.
Rationale for rating
The rating takes into account the company’s financial risk profile, marked by healthy net worth, gearing below unity, and healthy debt protection metrics. The liquidity position remains strong, supported by healthy net accruals against nil debt repayment obligations, comfortable current ratio, and the absence of any debt-funded capex plans in the near to medium term. The rating further draws comfort from the experienced management and established relationships with customers and suppliers. However, the above-mentioned factors are offset by the moderation in the company's operating performance, with a decrease in revenue to Rs. 1045.72 Cr. in FY2026 (Prov.) as against Rs. 1529.13 Cr. in FY2025 and the EBITDA margin moderating to 8.94% in FY2026 (Prov.) as against 15.59% in FY2025. The decline in revenue and profitability is primarily attributable to lower coal price realizations following the correction in coal prices, coupled with a marginal decline in sales volumes. The rating further remains constrained by the intensive working capital operations, exposure to customer concentration risk, and susceptibility of margins to fluctuations in coal prices. Nevertheless, the company has registered around Rs. 750 Cr. till 31st July 2026 and expects to sustain its business risk profile in the near to medium term. Acuite notes that the ability of the company to scale up its operations while improving its profitability margins in the near to medium term will remain a key rating sensitivity.
About the Company
Incorporated in 2018, Mumbai based, Gandhar Coals and Mines Private Limited imports non-coking coal from countries including Indonesia, Australia, Russia, South Africa, etc., and receives bulk orders through ports across Maharashtra, Gujarat, Andhra Pradesh, West Bengal, etc., and distributes to its customers all over India. Besides coal trading activities, the company is also engaged in providing cargo handling services. The current directors are Mr. Saurabh Ramesh Parekh and Mr. Kunal Kailash Parekh.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has considered the standalone business and financial risk profile of Gandhar Coals and Mines Private Limited (GCMPL) while arriving at the rating.
Key Rating Drivers
Strengths
Experienced promoters and Established track record of operations
GCMPL is engaged in importing and distributes non-coking coal to its customers all over India. Additionally, the company also provides cargo handling services. The company supplies non-coking coal to customers across diverse industries, including power generation, cement, iron and steel, metal, chemical, sugar industries, etc. The current promoters of the company are Mr. Saurabh Ramesh Parekh and Mr. Kunal Kailash Parekh, who have over a decade of experience in the industry. The experience of the promoters has helped the company to achieve a relatively large scale of operations as well as maintain healthy relationships with its customers and suppliers. Acuite expects the company to continue deriving benefit from the established track record of operations and experienced management’s strong understanding of market dynamics.
Healthy Financial Risk Profile
The financial risk profile of the company is marked by healthy net worth, gearing below unity, and healthy debt protection metrics. The tangible net worth of the company stood at Rs. 535.95 Cr. as on 31st March 2026 (Prov.) as against Rs. 463.39 Cr. as on 31st March 2025 on account of accretion profits into reserves. The capital structure is healthy, marked by gearing ratio at 0.05 times as on 31st March 2026 (Prov.) as against 0.03 times as on 31st March 2025. Moreover, the coverage indicators as reflected by the interest coverage ratio and debt service coverage ratio stood at 10.95 times and 8.55 times, respectively, as on 31st March 2026 (Prov.) as against 7.05 times and 5.31 times as on 31st March 2025. Further, Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.33 times as on 31st March 2026 (Prov.) as against 0.69 times as on 31st March 2025. Acuite expects the financial risk profile of the company to remain in a similar range with no debt-funded capex plans in the near to medium term.
Weaknesses
Decrease in revenue and profitability metrics
The revenue of the company stood at Rs. 1045.72 Cr. in FY2026 (Prov.) as against Rs. 1529.13 Cr. in FY2025. The decline is largely attributable to a normalization in coal prices from the elevated levels witnessed in the preceding years, which adversely impacted the price realizations. Additionally, a marginal decrease in sales volume further added to the dipping revenue. The company’s operating profitability also witnessed moderation with the EBITDA margin at 8.94% in FY2026 (Prov.) as against 15.59% in FY2025. The pressure on margins is driven by increased procurement costs and the inability to completely pass on cost escalations to customers in a highly competitive and volatile pricing environment. Consequently, the PAT margin also stood at 7.25% in FY2026 (Prov.) against 11.39% in FY2025. Nevertheless, the company has registered around Rs. 750 Cr. till 31st July 2026 and expects to sustain its business risk profile in the near to medium term, supported by the execution of coal trading orders coupled with cargo handling service income. Acuite notes that the ability of the company to scale up its operations while improving its profitability margins in the near to medium term will remain a key rating sensitivity.
Intensive working capital operations
The working capital operations of the company are intensive, marked by GCA days of 201 days as on 31st March 2026 (Prov.) as against 142 days as on 31st March 2025. The elongation was primarily on account of higher inventory holding and outstanding receivables levels. The inventory days stood at 39 days as on 31st March 2026 (Prov.) as against 20 days as on 31st March 2025 owing to the maintenance of adequate coal inventory for timely execution of orders. Further, the debtor days stood at 121 days as on 31st March 2026 (Prov.) as against 86 days as on 31st March 2025, largely due to higher sales recorded in March 2026. In addition, other current assets remained sizeable at Rs. 110.94 Cr. as on 31st March 2026 (Prov.), comprising statutory deposits, advances to suppliers, and loans to employees and others, among others. Nonetheless, the creditor days stood at 56 days as on 31st March 2026 (Prov.) as against 79 days as on 31st March 2025. Acuite expects working capital operations of the company to remain on similar levels in the near to medium term owing to the nature of operations.
High customer concentration risk and Susceptibility of margins to fluctuations in coal prices
The company remains exposed to customer concentration risk, with the top five customers collectively accounting for around 50%-60% of its total operating revenue. The revenue profile is further characterized by significant dependence on a single customer, which constitutes the largest share of the company's turnover. Thus, the company's business profile remains susceptible to any change in the customer's procurement policies or vendor selection, and its ability to secure repeat orders and diversify the customer base remains a key monitorable. Furthermore, the company’s profitability is also susceptible to volatility in the prices of coal. Acuite notes that in case of any sharp fluctuations in the coal prices, the ability of the company to pass on such adverse impact to its customers and sustain its operating profitability will be a key rating monitorable factor.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent growth in operating income by more than 30%.
Significant improvement in the operating profitability position.
Improvement in working capital cycle to below 150 days.
Potential triggers (individual or collective) for a downward rating action:
Any y-o-y substantial decline in revenue from operations.
Further deterioration in the earnings profile with operating profitability margins below 5%.
Stretch in working capital cycle.
Liquidity Position
Strong
The liquidity position of the company is strong, as reflected by net cash accruals of Rs. 79.50 Cr in FY2026 (Prov.) as against nil debt repayment obligations during the same period. Additionally, the cash and bank balance of the company stood at Rs. 14.75 Cr. in FY2026 (Prov.) as against Rs. 8.23 Cr. in FY2025. The current ratio stood at 3.81 times in FY2026 (Prov.) as against 1.98 times in FY2025. Moreover, the non-fund based working capital limits stood utilized at 41.80% for the last six months ended July 2026. Acuite expects the company to maintain its liquidity position supported by healthy net accruals against nil debt repayment obligations, a comfortable current ratio, and the absence of any debt-funded capex plans in the near to medium term.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
1045.72
1529.13
PAT
Rs. Cr.
75.78
174.15
PAT Margin
(%)
7.25
11.39
Total Debt/Tangible Net Worth
Times
0.05
0.03
PBDIT/Interest
Times
10.95
7.05
Status of non-cooperation with previous CRA (if applicable)
ACUITE BBB+ | Stable
(Upgraded from ACUITE BBB | Stable)
Cash Credit
Long Term
5.00
ACUITE BBB+ | Stable
(Assigned)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
CSB Bank Limited
Not avl. / Not appl.
Bank Guarantee (BLR)
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
45.00
Simple
ACUITE A2+ | Reaffirmed
H D F C Bank Limited
Not avl. / Not appl.
Bills Discounting
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE A2+ | Reaffirmed
INDUSIND BANK LIMITED
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
5.00
Simple
ACUITE BBB+ | Stable | Reaffirmed
H D F C Bank Limited
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
10.00
Simple
ACUITE BBB+ | Stable | Reaffirmed
CSB Bank Limited
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
5.00
Simple
ACUITE BBB+ | Stable | Reaffirmed
IDFC First Bank Limited
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
5.00
Simple
ACUITE BBB+ | Stable | Reaffirmed
H D F C Bank Limited
Not avl. / Not appl.
Letter of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
145.00
Simple
ACUITE A2+ | Reaffirmed
INDUSIND BANK LIMITED
Not avl. / Not appl.
Letter of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
95.00
Simple
ACUITE A2+ | Reaffirmed
IDFC First Bank Limited
Not avl. / Not appl.
Letter of Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
43.00
Simple
ACUITE A2+ | Reaffirmed
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.
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