Press Release

Press Release

May 08, 2026

GAYATRISHAKTI TISSUE PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	320.00	ACUITE A- \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	55.00	-	ACUITE A2+ \| Reaffirmed	RBI
Total Outstanding	0.00	375.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has reaffirmed its long-term rating at 'ACUITE A-’ (read as ACUITE A minus) and the short term rating of 'ACUITE A2+’ (read as ACUITE A two plus) on the Rs. 375.00 Cr. bank facilities of Gayatrishakti Tissue Private Limited (GTPL). The outlook remains 'Stable'.

Rationale for reaffirmation
The rating reaffirmation considers the improvement in the operating performance of the group in FY2026, largely driven by completion of first full year operations of Gayatrishakti Tissue Private Limited and moderate growth in volumes of other paper products. The rating also factors in the healthy net worth and established market presence of the group. The rating is however constrained on account of average financial risk profile of the group witnessed by high debt levels, any further increase in which shall remain a key rating sensitivity. Moreover, operations remain susceptibility to volatile raw material prices, global demand and supply dynamics.

About the Company

Incorporated in 2022, GTPL is a subsidiary of Gayatrishakti Paper and Boards Limited (GPBL), engaged in manufacturing of virgin and non-virgin tissue papers. Situated in Vapi, the plant has a manufacturing capacity of 36,000 MTPA. The company is promoted by Mr. Gajendra Nagin Agarwal and Ms. Meena Gajendra Agrawal. The company commenced commercial operations from September 2024.

About the Group

Gayatrishakti Paper and Boards Limited
Mumbai based, Gayatrishakti Paper and Boards Limited was founded in 1996 as a public limited company and is promoted by the G.N. Agarwal group. The company manufactures premium coated paper boards (duplex board) & kraft paper. It's duplex unit is located in Gujarat Industrial Development Corporation (GIDC) at Vapi and kraft paper unit at Sarigam. The present directors of the company are Mr. Gajendra Nagin Agarwal, Ms. Meena Gajendra Agrawal, Mr. Mahesh Narottam Jalan, Mr. Nikhar Gajendra Agarwal, Mr. Vinay Doulat Parashar, Mr. Mahesh Shyamnarayan Dwivedi and Ms. Suman Agarwal.

Kherani Paper Mills Private Limited (KPMPL)
Mumbai based Kherani Paper Mills Private Limited (KPMPL) was originally incorporated in 1988 and subsequently takenover by the present management i.e. G.N. Agarwal Group in the year 1992. It is engaged in the manufacturing of duplex board in different grammages ranging from 180 GSM to 550 GSM. Its factory is situated at Vapi, Gujarat with a manufacturing capacity of the plant is 48,000 MTPA. The present directors of the company are Mr. Gajendra Nagin Agarwal, Ms. Meena Gajendra Agrawal and Ms. Tanisha Nikhar Agarwal.

Unsupported Rating

Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

To arrive at the rating, Acuité has consolidated the business and financial risk profiles of Gayatrishakti Paper and Boards Limited (GPBL), Kherani paper Mills Private Limited (KPMPL) and Gayatrishakti Tissue Private Limited (GTPL), hereinafter referred to as G.N. Agarwal group. The consolidation is on account of common management, significant crossholdings, a similar line of business and significant financial linkages among the three entities.

Key Rating Drivers

Strengths

Established track record of operations and experienced management
GPBL is the flagship company of the G. N. Agarwal group, which is engaged in the manufacturing of premium coated paper boards (duplex boards) and kraft paper. The promoters of the group, have an experience of more than three decades in the paper industry. The extensive experience of the promoters and the management has helped the company build a strong presence in the market thereby establishing healthy relationships with its consumers and suppliers. The group has an established track record with large distribution network of dealers providing access to a wide range of packaging industries such as food products, personal care, FMCG products, oral care and hygiene products, and the e-commerce industry, among others.

Improving operating performance
The operating revenue of the group improved by ~26 percent and stood at Rs. 1424.61 Cr. in FY2026 (Est.) from Rs. 1125.60 Cr. in FY2025, supported by stable growth in GPBL and KPMPL along with the completion of first full year commercial operations of GTPL. There has also been improvement in the operating margin of the group, mainly on account of increase in the tissue business, which has a higher margin as compared to kraft aper and duplex boards along with reduction in power cost. The operating margin stood at 11.89 percent in FY2026 (Est) as compared to 10.58 percent in FY2025. Further, with further scaling up of operations in GTPL, the revenues are expected to grow further. Additionally, with the introduction of two new high margin products by GPBL and spends on renewable capacity development, the overall operating performance of the group is expected to improve going forward.

Moderately intensive working capital operations
The operations of the group are working capital intensive. The gross current assets (GCA) stood at 134 days in FY2025, marginally increased from 114 days in FY2024. The GCA days are driven by the inventory days (64), debtor days (61) and other current assets in FY2025. The creditor days on the other hand stood at 68 days in FY2025.

Weaknesses

Average financial risk profile
While the tangible networth of the group stood healthy at Rs. 301.95 Cr. on March 31, 2025 (Rs. 257.95 Cr. on March 31, 2024), the gearing remained high at 2.22 times on March 31, 2025 on account of increase in the debt levels of the group. The TOL/TNW and DebtEBITDA levels remain high at 3.29 times and 5.55 times respectively on March 31, 2025. The interest coverage ratio (ICR) stood moderate at 1.98 times, however, the debt service coverage ratio (DSCR) stood below unity at 0.80 times in FY2025. Moreover, in April 2025, GPBL refinanced its long term debt with NCDs of Rs. 315 Cr NCDs at a high cost. Further, in March 2026, GPBL again refinanced its NCDs worth Rs. 215 Cr. and raised additional debt for capex, with a bank loan of Rs. 271 Cr. at lower cost. Following the refinancing, the DSCR of the group is expected to remain above unity from FY2027 onwards, and the growth in operating performance and accruals will support the improvement of the financial risk profile, which shall be key rating monitorable.

Susceptibility of margins to fluctuations in raw material prices and competition from global markets
The packaging paper sector continues to expand due to consistent demand from FMCG, pharmaceutical, food and beverage companies, and the growing e-commerce industry. This growth is also supported by the increasing preference for paper-based packaging over plastic. However, profitability remains uneven as players are exposed to fluctuations in input prices such as wastepaper, energy, and freight, since India depends significantly on imported fibre and global logistics. At present, companies are facing pressure from rising input costs and possible disruptions to exports caused by the ongoing conflict in West Asia. In addition, paper-producing countries like China and Indonesia, which have strong export exposure to West Asian markets, may divert their unsold output to India. Such diversion could result in higher imports at aggressively low prices, creating greater competitive stress for domestic manufacturers.

ESG Factors Relevant for Rating

On the environment front, group has restored to clean sources of energy like solar power for running its plants to save power emissions. In its new tissue manufacturing facility, the group has installed a waste to energy boiler, which uses plastic waste to generate steam. Further, the group has an effluent treatment plant system for treatment of water. On the social front, the group has developed healthy employment practices such as insurance benefits, health and safety policies, corporate social responsibility programs for upskilling, vocational training, gender equality and rural development. It also promotes gender diversity and inclusivity.
On the governance front, the group has adopted requirement of corporate governance from provision of Companies Act 2013. The board of directors comprises of professionals having expertise and experience in the industry with one executive director, two non-executive directors and two of independent directors. Further, the group has constituted an audit committee and developed whistleblower policy to ensure a healthy governance mechanism.

Rating Sensitivities

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

Improvement in operating performance leading to generation of net cash accruals higher than Rs. 130-150 Cr
Improvement in overall financial risk profile

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

Further increase in debt levels leading to increase in Debt/ EBITDA above 4.5 times or DSCR levels remaining below unity
Decline in operating performance
Significant elongation in working capital cycle

Liquidity Position

Adequate

The repayment of Rs. 64.03 Cr, in FY2025 was managed partially through net cash accruals of Rs. 38.45 Cr. and balance through the infusion of funds through equity and compulsory convertible debentures of nearly Rs. 26.11 Cr. Further, term loans were refinanced through high cost NCDs of Rs. 315 Cr. in April 2025. Subsequently, with the partial refinancing of these NCDs through debt of Rs. 271 Cr. in March 2026 at GPBL, the group's liquidity is expected to remain adequate over the medium term. Going forward, the NCAs are expected to remain in the range of Rs. 100 – 120 Cr. with maturing obligations of Rs. 50 – 65 Cr. for FY2027 and FY2028. The current ratio stood low at 0.95 times on March 31, 2025. The average bank limit utilization of the group stood at ~84 percent for the last six months ended March 2026. Further, the group had an unencumbered cash and bank balance of Rs. 0.03 Cr. on March 31, 2025.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1125.60	1049.57
PAT	Rs. Cr.	5.19	25.66
PAT Margin	(%)	0.45	2.45
Total Debt/Tangible Net Worth	Times	2.22	1.99
PBDIT/Interest	Times	1.98	2.45

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any Other Information

None

Applicable Criteria

• 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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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
12 Sep 2025	Term Loan	Long Term	100.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	32.50	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Term Loan	Long Term	110.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	32.50	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Term Loan	Long Term	45.00	ACUITE A- \| Stable (Upgraded from ACUITE BB+)
	Letter of Credit	Short Term	27.50	ACUITE A2+ (Upgraded from ACUITE A4+)
	Letter of Credit	Short Term	27.50	ACUITE A2+ (Upgraded from ACUITE A4+)
04 Sep 2025	Letter of Credit	Short Term	27.50	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Letter of Credit	Short Term	27.50	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A2+)
	Term Loan	Long Term	100.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Cash Credit	Long Term	32.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Term Loan	Long Term	110.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Cash Credit	Long Term	32.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
	Term Loan	Long Term	45.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE A- \| Stable)
05 Jun 2025	Term Loan	Long Term	45.00	ACUITE A- \| Stable (Assigned)
	Cash Credit	Long Term	32.50	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	100.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Cash Credit	Long Term	32.50	ACUITE A- \| Stable (Assigned)
	Term Loan	Long Term	110.00	ACUITE A- \| Stable (Upgraded from ACUITE BBB+ \| Stable)
	Letter of Credit	Short Term	27.50	ACUITE A2+ (Assigned)
	Letter of Credit	Short Term	27.50	ACUITE A2+ (Assigned)
05 Jul 2024	Term Loan	Long Term	110.00	ACUITE BBB+ \| Stable (Reaffirmed)
05 Jul 2024	Term Loan	Long Term	100.00	ACUITE BBB+ \| Stable (Reaffirmed)
07 Jun 2023	Term Loan	Long Term	110.00	ACUITE BBB+ \| Stable (Assigned)
07 Jun 2023	Term Loan	Long Term	100.00	ACUITE BBB+ \| Stable (Assigned)

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
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.	32.50	Simple	ACUITE A- \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	32.50	Simple	ACUITE A- \| 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.	27.50	Simple	ACUITE A2+ \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Letter of Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	27.50	Simple	ACUITE A2+ \| Reaffirmed
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.	12.75	Simple	ACUITE A- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2032	104.51	Simple	ACUITE A- \| Stable \| Reaffirmed
AXIS BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2032	94.99	Simple	ACUITE A- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2032	42.75	Simple	ACUITE A- \| Stable \| Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company Name
1	Gayatrishakti Paper and Boards Limited
2	Kherani Paper Mills Private Limited
3	Gayatrishakti Tissue Private Limited

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Associate 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	SEBI
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	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
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	SEBI
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)	RBI
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.

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 ⁶	Not applicable

⁶ 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.