Press Release

Press Release

November 26, 2025

INDIA DAIRY FEEDS PRIVATE LIMITED
Rating Reaffirmed & Withdrawn

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	14.71	ACUITE BBB \| Reaffirmed & Withdrawn	-
Bank Loan Ratings	1.35	-	ACUITE A3+ \| Reaffirmed & Withdrawn
Total Outstanding	0.00	-	-
Total Withdrawn	16.06	-	-

Rating Rationale

Acuité has reaffirmed and withdrawn the long-term rating of ‘ACUITE BBB' (read as ACUITE triple B) and the short-term rating of ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.16.06 crore bank facilities of India Dairy Feeds Private Limited (IDFPL).
The rating is being withdrawn on account of request received from the company and No Objection Certificate received from the banker. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for rating
The rating reaffirmation reflects steady business risk profile of the company in terms of stable operating income along with improvement of profitability margins during H1FY26 due to favourable raw material prices based on good monsoon season and smooth supply chain. Acuité further notes that the financial risk profile remains healthy at the back of increase in networth, comfortable capital structure, with healthy debt protection metrices. The rating also derives comfort from adequate liquidity position of the company marked by sufficient net cash accruals against long term debt repayments, moderate bank limit utilization, efficient working capital cycle and financial flexibility of the management to infuse funds. The rating continues to reflect the extensive experience of the management and the strong association with AMUL. However, these strengths are partially offset by the customer concentration risk and presence in a competitive and fragmented industry.

About the Company

Incorporated in 2006, Kolkata based India Dairy Feeds Private Limited (IDFPL) is promoted by Mr. Anirban Nath and Mrs. Sushmita Nath. The company is engaged in the manufacturing and packing of cattle feed of different varieties in high density polyethylene (HDPE) bags, or any other packing material as per the standard formulation for the Amul brand. The company has a manufacturing capacity of 60000MT located at Bankura, West Bengal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of IDFPL while arriving at the rating.

Key Rating Drivers

Strengths

Experienced management and strong association with AMUL
IDFPL is promoted by Mr. Anirban Nath and Mrs. Sushmita Nath having more than a decade of experience in dairy business through its group company which is India Dairy Products Limited (IDPL) and its established association with Amul Dairy since 2004. IDFPL had entered into an agreement with Kaira District Co-operative Milk Producers’ Union Ltd, referred to as Amul Dairy, whereby Amul Dairy (Amul) will obtain cattle feed of different types produced by IDFPL, packed in HDPE bags or in different pack sizes as decided by Amul. IDFPL has the exclusive right to manufacture cattle feed for Amul in Eastern India and places as decided by Amul. Presently, though, due to continued relationship with Amul, the company has an open ended arrangement with Amul, and no assured off-take agreement exists with them. In addition the company is also looking after the marketing of the cattle feeds in order to increase its presence outside West Bengal specially Assam, Jharkhand, Bihar etc.

Stable operating income and improvement in profitability margins
The operating income of the company stood at Rs.204.95 Cr. in FY25 as against Rs.191.38 Cr. in FY24. This has been due to increase in volumes sales backed by enhanced production capacity. Further, the company has achieved Rs.96.76 Cr. in H1FY26. The EBITDA margins have improved to 7.37% in FY25 from 6.42% in FY24. Further, this stood at 11.70% till H1FY26. The improvement was based on favourable raw materials prices due to good monsoon season and supply chain not being affected by any climatic conditions. Additionally, the pricing mechanism is favourable for IDFPL as there are price escalation clauses available in raw material monthly, which provides comfort to its revenue and profitability. The PAT margin improved to 4.34% in FY25 from 3.00% in FY24. Further, the company’s PAT margins stood at 7.73% till H1FY26. Acuite believes that the scale of operations will remain on similar levels.

Healthy Financial Risk Profile
The tangible net worth of the company stood at Rs.30.32 Cr. as on March 31, 2025, as compared to Rs.21.54 Cr. as on March 31, 2024, due to accretion to reserves. Acuite has treated unsecured loans of Rs.1.49 Cr. as quasi equity as they are subordinated to bank loans. The gearing of the company stood below unity at 0.54 times as on 31 March 2025 as against 0.63 times as on 31 March 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.89 times for FY25 as against 1.14 times as on March 31, 2024. The debt protection metrices of the company remain comfortable marked by Interest coverage ratio (ICR) of 16.65 times and debt service coverage ratio (DSCR) of 5.09 times for FY2025. Acuite believes that financial risk profile of the company will remain healthy in the absence of any major debt funded capex plans.

Efficient working capital cycle
The working capital cycle stood efficient marked by Gross Current Assets (GCA) of 56 days for FY2025 as compared to 46 days for FY2024. The inventory days of the company stood at 26 days in FY2025 as compared to 19 days in FY2024 due to variation in raw material prices for their product as major raw materials are agricultural products. The debtor days stood at 16 days in FY2025 against 7 days in FY2024 due to higher volumes being sold. The creditor days stood at 21 days in FY25 against 23 days in FY2024. Acuite believe that the working capital requirement of the Company would remain at similar levels over the medium term.

Weaknesses

Customer Concentration Risk
IDFPL is exposed to customer concentration risk as the company is dependent on Amul Dairy to drive its revenue profile. Acuite believes that any customer concentration risk exposes the entity to risks related to changes in the requirements and policies of the customers. However, this is mitigated from the open agreements entered with their customer which provides adequate revenue visibility over the medium term.

Seasonal availability and volatility in prices of raw materials
Raw materials for animal feeds, including maize, soymeal, bajra, DORB, vitamins, and supplements, make up majority cost of sales. As key agro commodities, maize and soymeal are seasonal, with availability affected by weather, sowing patterns, and rainfall. Prices are highly volatile due to global demand and diversion for human use, causing shortages in the feed industry. Additionally, low-quality grains like bajra, rice, and wheat are increasingly used for ethanol production, driving scarcity and price increases. Any adverse price movements impact profitability, though the company mitigates this risk by maintaining raw material inventory.

Fragmented and competitive nature of industry
The animal feed industry is highly fragmented and competitive, with both organized and unorganized players due to low entry barriers and the commoditized nature of the business. This industry is influenced by regional supply and demand, transportation challenges, and the perishability of products. Additionally, disease outbreaks can reduce feed demand and negatively impact industry players.

Rating Sensitivities

Not Applicable

Liquidity Position

Adequate

The company has adequate liquidity marked by healthy net cash accruals of Rs.11.93 crore as against Rs.1.57 crore long term debt obligation during FY2025. The current ratio of the company stood moderate at 1.32 times in FY2025. The bank limit utilization of the company has been ~80 per cent for fund-based limits and ~42% for non-fund-based limits during the last six months ended September 2025. Acuite believes that the liquidity of the company is likely to remain adequate on account of healthy cash accruals against minimum long debt repayments, moderate bank limit utilization, moderate current ratio and absence of capex plans over the medium term. The cash and bank balances of the company stood at Rs.2.09 Cr. in FY25 as against Rs.6.66 Cr. in FY24.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	204.95	191.38
PAT	Rs. Cr.	8.89	5.74
PAT Margin	(%)	4.34	3.00
Total Debt/Tangible Net Worth	Times	0.54	0.63
PBDIT/Interest	Times	16.65	9.09

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

Not Applicable

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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
09 Jul 2025	Bank Guarantee (BLR)	Short Term	1.35	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	7.96	ACUITE BBB \| Stable (Reaffirmed)
	Stand By Line of Credit	Long Term	0.63	ACUITE BBB \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.10	ACUITE BBB \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	0.02	ACUITE BBB \| Stable (Reaffirmed)
12 Apr 2024	Bank Guarantee (BLR)	Short Term	0.49	ACUITE A3+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	0.86	ACUITE A3+ (Assigned)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	3.82	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	4.14	ACUITE BBB \| Stable (Assigned)
	Stand By Line of Credit	Long Term	0.63	ACUITE BBB \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.10	ACUITE BBB \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	0.02	ACUITE BBB \| Stable (Reaffirmed)
13 Jan 2023	Bank Guarantee (BLR)	Short Term	0.49	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	5.63	ACUITE BBB \| Stable (Reaffirmed)
	Term Loan	Long Term	4.64	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Term Loan	Long Term	0.30	ACUITE BBB \| Stable (Reaffirmed)

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.	1.35	Simple	ACUITE A3+ \| Reaffirmed & Withdrawn
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Reaffirmed & Withdrawn
State Bank of India	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2027	1.10	Simple	ACUITE BBB \| Reaffirmed & Withdrawn
State Bank of India	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2024	0.02	Simple	ACUITE BBB \| Reaffirmed & Withdrawn
State Bank of India	Not avl. / Not appl.	Stand By Line of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.63	Simple	ACUITE BBB \| Reaffirmed & Withdrawn
State Bank of India	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2029	7.96	Simple	ACUITE BBB \| Reaffirmed & Withdrawn

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.

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