Press Release

Press Release

March 09, 2026

KAPALINEE MERCHANTS PRIVATE LIMITED
Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	80.00	ACUITE BB \| Stable \| Assigned	-
Total Outstanding	80.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long term rating of 'ACUITE BB' (read as ACUITE double B) on the Rs. 80.00 Cr. bank facilities of Kapalinee Merchants Private Limited (KMPL). The outlook is 'Stable'.

Rating Rationale

The rating assigned takes into account the established track record and experienced management of KMPL. The rating also factors in the low gearing and the absence of any long term debt of KMPL. However, the rating is constrained on account of the volatile scale of operations and moderating profitability margins. Further, there exists significant customer and geographic concentration risk.

About the Company

Mumbai based Kapalinee Merchants Private Limited was incorporated in 2010. The company is engaged in the business of trading of household kit, safety items kit & essential item kit. These are supplied to various organisations under the schemes of Government of Maharshtra (GoM). The directors of the company are Mr. Aditya Rajan Jadhav and Mrs. Rupal Vivek Jadhav.

About the Group

Indo Group comprising Indo Allied Protein Foods Private Limited (IAPFPL), Saroj Enterprise and Shiva Enterprise, is mainly into trading and supply of food and non-food items to the various departments of the Maharashtra State Government under the state welfare schemes. While IAPFPL supplies directly to the state government departments; Saroj Enterprise and Shiva Enterprise (partnership firms) supply to private players, who in turn supply to the state government departments.

Unsupported Rating

Not applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of Kapalinee Merchants Private Limited (KMPL) and notched up the rating by factoring the operational linkages, similar line of business and common management of the Indo group.

Key Rating Drivers

Strengths

Experienced management and long-track record of operations
The operations of KMPL are overseen by Mr. Aditya Rajan Jadhav and Mrs. Rupal Vivek Jadhav. The Jadhav family has been involved in this line of business since a few decades through their other entities namely Indo Allied Protein Foods Private Limited, Saroj Enterprise and Shiva Enterprise (together referred as Indo group). Indo Group has been present in the welfare scheme supply industry for over 15 years and is supported by a well experienced and qualified management personnel. These companies undertake supply of household, essential, safety kits for the Government of Maharashtra. The promoters' experience is expected to benefit the operations of KMPL over the medium term.

Above average financial risk profile
The networth of the company stood low at Rs. 10.57 Cr on March 31, 2025. The company has no long term debt and the working capital limits are utilized only during order execution period. Therefore, the utilization remained low at 64.38 percent for January 2026. The interest coverage ratio stood adequate at 3.27 times in FY2025.
Since the company has no plans for any long term debt, the financial risk profile is expected to remain on similar levels over the medium term.

Weaknesses

Volatile scale of operations
The company’s revenue profile remains inherently volatile, reflecting its dependence on tender-led execution cycles. Operating revenue rose to Rs. 133.54 Cr. in FY2025 from Rs. 76.19 Cr. in FY2024, Rs. 12.39 Cr. in FY2023, however, 9M FY2026 revenue declined stood at Rs. 27.83 Cr as against Rs. 133.47 Cr in 9M FY2025, mainly due to delayed order receipt. The flow of orders is based on receipts of orders from the private players who in turn receive them from GoM through bidding. Therefore, slowdown in floating of such tenders by the GoM affects the operations of the company. Further, the operating margin stood at 5.07 percent in FY2025 from 5.34 percent in FY2024. Therefore, improvement in the overall operation performance will be a key monitorable.

Customer concentration risk
KMPL caters to private players undertaking supply contracts for the GoM. Currently the company has an outstanding orderbook of ~Rs. 300 Cr, consisting of only two major customers, which is indirectly relied on the state government, leading to high client concentration.

Rating Sensitivities

Growing scale of operations while maintaining the profitability margins.
Continued inflow of new orders.
Elongation in working capital cycle or increase in borrowings impacting the financial risk profile.

Liquidity Position

Adequate

The liquidity position of the company is adequate, marked by adequate net cash accruals against no repayment obligations, in the absence of long term debt. The NCAs are expected to remain in the range of Rs. 3 – 4 Cr for FY2026 and FY2027 against no repayment obligations. The company also had an unencumbered cash and bank balance of Rs. 3.86 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.	133.54	76.19
PAT	Rs. Cr.	3.34	2.99
PAT Margin	(%)	2.50	3.93
Total Debt/Tangible Net Worth	Times	0.00	2.28
PBDIT/Interest	Times	3.27	74023.24

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
Janata Sahakari Bank Ltd (Pune)	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BB \| Stable \| Assigned

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

Sr. No	Company Name
1	Indo Allied Protein Foods Private Limited
2	Shiva Enterprise
3	Saroj Enterprise
4	Kapalinee Merchants 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

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.

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