Press Release August 14, 2026 INDOSPIRIT BEVERAGES PRIVATE LIMITED (ERSTWHILE BUBBLY WINES PRIVATE LIMITED) Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	20.00	ACUITE BBB | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	40.00	ACUITE BBB | Stable | Reaffirmed	-	RBI
Total Outstanding	0.00	60.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 reaffirmed its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs. 40.00 Cr. bank loan facilities of Indospirit Beverages Private Limited (IBPL). The outlook is 'Stable'. ­Acuite has assigned its long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs. 20.00 Cr. bank loan facilities of Indospirit Beverages Private Limited (IBPL). The outlook is 'Stable'. Rationale for Rating The rating reflects the extensive experience of the promoters in the alcoholic beverage industry and the company's improving business risk profile, as evidenced by the growth in net operating revenue by ~27.08% to Rs. 361.43 Cr. in FY26 (prov.) from Rs. 284.41 Cr. in FY25, primarily driven by higher sales volumes. The rating also derives comfort from the improvement in profitability margins, supported by better average realizations, healthy financial risk profile marked by a comfortable net worth base and debt protection metrics, and an adequate liquidity position. However, the rating remains constrained by the company's intensive working capital operations, although showing improvement, susceptibility of profitability to competitive pressures in the industry, and exposure to regulatory risks inherent in the alcoholic beverage sector. Acuité notes that the company is in the process of amalgamating Indo Bevs Private Limited with Indospirit Beverages Private Limited (IBPL). The proposed scheme of amalgamation has received approval from the National Company Law Tribunal (NCLT) on July 15, 2026. Indo Bevs Private Limited is a promoter-group entity with no active business operations, and both entities are under the ownership and management of the same promoters. Given the absence of any material operations, assets, or liabilities in Indo Bevs Private Limited, Acuité does not expect the amalgamation to have any significant impact on the business, financial, or credit risk profile of IBPL.

About the Company

­­­­Indospirit Beverages Pvt. Ltd. (IBPL) is the manufacturing arm of the Indospirit Group. Incorporated in 2014, IBPL purchased land and began setting up its manufacturing unit in 2016. The commercial production began in 2018. The company is engaged in the manufacturing of alcoholic beverages, with its hero product being ‘Bro Code’. The present directors of the company are Mr. Vikas Kumar and Mr. Sudarshan Lal Mahandru. The registered office of the company is in Delhi.

Unsupported Rating

­Not Applicable

Analytical Approach

­­­­Acuité has considered the standalone business and financial risk profiles of Indospirit Beverages Private Limited (IBPL) to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced Management The company benefits from the extensive experience of its promoters in the alcoholic beverages industry. Mr. Vikas Kumar, Co-founder and Mr. Sudarshan Lal Mahandru, Chairman, have been associated with the manufacturing and distribution of alcoholic beverages for over a decade. Over the years, the management has established strong relationships with customers, distributors, and suppliers, which has supported the company's growth and market presence. Acuité derives comfort from the promoters' industry experience and expects the company to continue benefiting from their established market relationships and execution capabilities, thereby supporting its business risk profile over the near to medium term. Improvement in scale of operations The company reported a healthy improvement in its scale of operations during FY26 (prov.), with net revenue from operations increasing by ~27.08% to Rs. 361.43 Cr. from Rs. 284.41 Cr. in FY25, primarily driven by higher sales volumes. The operating margin improved to 6.04% in FY26 (prov.) from 5.09% in FY25, mainly on account of better average realizations. Consequently, the net profit margin improved marginally to 3.32% in FY26 (prov.) from 3.16% in FY25. Further, the company achieved revenue of Rs. 118.90 Cr. (including excise duty) in Q1 FY27. Acuité notes that the company continues to strengthen its product portfolio and distribution network, supported by the ramp-up of its newly launched whisky brand, WingMan, and approval from the Canteen Stores Department (CSD). Acuité believes that the company's operating performance is expected to improve over the medium term, supported by increasing sales volumes, wider market penetration, and continued growth in its flagship brands. Heathy financial risk profile The company has a healthy financial risk profile, marked by a tangible net worth of Rs. 121.00 Cr. as on March 31, 2026 (prov.) against Rs. 108.99 Cr. as on March 31, 2025. The improvement in net worth is primarily attributable to the accretion of profits to reserves. The capital structure remained comfortable, albeit moderated, with the gearing ratio standing at 0.40 times as on March 31, 2026 (prov.) as against 0.14 times as on March 31, 2025. The moderation in gearing was primarily on account of debt-funded capex of Rs. 10 Cr. undertaken at the Nashik plant towards enhancing the efficiency of existing machinery. The debt protection metrics remained adequate, with the interest coverage ratio and debt service coverage ratio standing at 7.02 times and 5.78 times, respectively, in FY26 (prov.). Acuité believes that the company's financial risk profile is expected to remain healthy over the near to medium term, supported by a healthy net worth base, comfortable capital structure, and adequate debt coverage indicators, despite the presence of debt-funded capex plans.

Weaknesses

Intensive Working capital operations The working capital operations of the company remain intensive, although they have improved in FY26 (prov.), as reflected in GCA days of 189 days as against 205 days in FY25. The working capital intensity is primarily driven by the company's receivables, with debtor days remaining elevated at 79 days in FY26 (prov.) as against 83 days in FY25. Inventory holding increased moderately to 42 days in FY26 (prov.) from 38 days in FY25, while creditor days declined significantly to 63 days from 118 days during the same period. Despite the improvement in GCA days, the company's working capital requirements continue to remain high owing to the nature of operations and the relatively elongated receivables cycle. Acuité believes that the working capital operations of the company are likely to remain intensive over the near to medium term. ­Exposure to high regulatory risk Indian liquor industry is a highly government-regulated industry, with regulations ranging from licensing, production, distribution, inter-state exports, raw material availability, and advertisements. There have been continuous regulatory changes in terms of state government's policies towards liquor consumption. The industry is expected to remain highly regulated by the government going forward, exposing the business risk profile to adverse regulatory changes. Furthermore, players within the industry are susceptible to high excise duties. Acuité believes that any government regulation could have significant impact on the operating income and profitability of the company.

Rating Sensitivities

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

Growth in operating income by more than 30% with stable improvement in profitability. Reduction in working capital intensity resulting in improved liquidity and lower reliance on external borrowings.

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

Any large debt funded capex, impacting the financial risk profile and liquidity. Revenue falling by 20-25 percent and steep decline in profitability.

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by healthy cash accruals and comfortable liquidity indicators. The company generated net cash accruals of Rs. 15.91 Cr. in FY26 (prov.) against the absence of any debt repayment obligations during the same period. Further, the company have cash and bank balances of Rs. 6.08 Cr. as on March 31, 2026 (prov.), while the current ratio remained comfortable at 2.07 times. The average utilization of fund-based working capital limits stood at 69.50% during the nine-month period ended June 2026. Acuité believes that the company's liquidity position will remain adequate over the near to medium term, supported by steady net cash accruals against minimal debt obligations, healthy current ratio, and moderate bank limit utilization levels, notwithstanding its planned debt-funded capex.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	361.43	284.41
PAT	Rs. Cr.	12.01	9.00
PAT Margin	(%)	3.32	3.16
Total Debt/Tangible Net Worth	Times	0.40	0.14
PBDIT/Interest	Times	7.02	37.17

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 Mar 2026 Cash Credit Long Term 25.00 ACUITE BBB | Stable (Assigned) Term Loan Long Term 10.00 ACUITE BBB | Stable (Assigned) Dropline Overdraft Long Term 5.00 ACUITE BBB | Stable (Assigned)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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