Press Release March 09, 2026 INDOSPIRIT BEVERAGES PRIVATE LIMITED (ERSTWHILE BUBBLY WINES PRIVATE LIMITED) Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	40.00	ACUITE BBB | Stable | Assigned	-
Total Outstanding	40.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­­­Acuite has assigned 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'. Rationale for Rating The assigned rating reflects the extensive experience of the promoters in the same line of industry for about a decade and improvement in business risk profile marked by net operating revenue primarily due to sales volume, which grew by ~16.64% stood at Rs. 284.41 Cr. in FY25 against Rs. 243.83 Cr. in FY24. The rating drives additional comfort by improvement in margins primarily due to the increase in average price realisation, adequate liquidity position and healthy financial risk profile. However, the rating remains constrained on account of intensive working capital operations, susceptibility of profitability to competitive industry and exposure to regulatory risk.

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 co-founder, Mr. Vikas Kumar and chairman, Mr. Sudarshan Lal Mahandru, who are also directors of Indospirit Beverages Pvt. Ltd. (IBPL), have been in the manufacturing of alcoholic beverages for around a decade. Over the years, the management has been able to build healthy customer and supplier relationships. Acuite notes that the company had introduced Big Bro (canned version of Bro Code in 500 ml) in FY 24-25, which is expected to improve their net revenue going forward. Acuité derives comfort from the experience of the promoters and expects the benefits of the same to be leveraged in the business risk profile in near to medium term.  Steady Scale of operations The company has witnessed the growth in the revenue from operations by ~16.64% which stood at Rs. 284.41 Cr. in FY25 against Rs. 243.83 Cr. in FY24 primally due to sales volume. Operating margin of the company stood at 5.09% in FY25 against 3.71% in FY24. The Net margin stood at 3.16% in FY25 against 1.82% in FY24. The company has achieved the revenue of Rs. 377.28 Cr. till December 2025. Acuité believes that going forward the performance of the company is expected to improve over the medium term on account of better volumes. Healthy Financial Risk Profile The company has healthy financial risk profile marked by tangible net worth stood at Rs. 108.99 Cr. as on 31st March 2025 against Rs. 95.99 Cr. as on 31st March 2024. The improvement in net worth on account of accretion of profits into reserves and infusion of funds through right issue. The gearing ratio stood comfortable at 0.14 times in FY25. Interest coverage ratio stood at 37.17 times for FY25 as against 44.04 times in FY24. Debt Service coverage ratio stood at 31.52 times for FY25 as against 34.01 times in FY24. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.13 times as on March 31, 2025 as against 0.98 times as on March 31, 2024. The company is currently undertaking capex of Rs. ~50 Cr. to increase the capacity of the Nashik plant and setting up a new malt plant in Uttar Pradesh, which will be funded through a mix of external debt and internal accruals. Acuite believes that financial risk profile of the company is expected to remain healthy in the near to medium term despite the presence of debt-funded capex.

Weaknesses

­­Intensive Working capital operations The working capital operations of the company is intensive marked by GCA days of 205 days in FY25 against 205 days in FY24. The inventory days of the company stood at 38 day in FY25 against 37 days in FY24, debtors days of the company stood at 83 days in FY25 against 64 days in FY24. The creditor days stood at 118 days in FY25 against 116 days in FY24. Acuite believes that working capital operations of the company expected to remain in the same range due to the nature of the business. 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

­Movement in the operating scale and profitability. Exposure to regulatory risk Timely completion of the capex

Liquidity Position

Adequate

­­The liquidity profile of the company is adequate marked by the net cash accruals of company stood at Rs. 12.37 Cr. in FY 25 against the absence of debt obligation for the same period. The company has cash & bank position of Rs. 5.38 Cr. and current ratio stood at 2.20 times for FY25. The average fund based bank limit utilization is at 72.32% for the last 9 months’ period ending January 2026. Acuité believes that the liquidity position of the company will remain adequate on account of steady net cash accruals against minimal matured debt obligations, healthy current ratio albeit debt funded capex plans over the medium term.

Outlook: Stable

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Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	284.41	243.83
PAT	Rs. Cr.	9.00	4.45
PAT Margin	(%)	3.16	1.82
Total Debt/Tangible Net Worth	Times	0.14	0.00
PBDIT/Interest	Times	37.17	44.04

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 Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Cash Credit 19 May 2025 Not avl. / Not appl. Not avl. / Not appl. 25.00 Simple ACUITE BBB | Stable | Assigned KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Dropline Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE BBB | Stable | Assigned KOTAK MAHINDRA BANK LIMITED Not avl. / Not appl. Term Loan 19 May 2025 Not avl. / Not appl. 20 May 2029 10.00 Simple 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

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.