Press Release

Press Release

September 22, 2026

KISANKRAFT LIMITED
Rating Reaffirmed and Withdrawn

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	67.00	ACUITE BBB+ \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	20.27	Not Applicable \| Withdrawn	-	RBI
Total Outstanding	0.00	67.00	-	-	-
Total Withdrawn	0.00	20.27	-	-	-

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 the long term rating at 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs. 67.00 Cr. bank facilities of Kisankraft Limited (KKL). The outlook remains 'stable'.

Acuite has also withdrawn its long term rating on the Rs. 20.27 Cr. bank facilities of Kisankraft Limited (KKL) without assigning any rating as the same is a proposed facility. The rating has been withdrawn on account of the request received from the issuer. The rating withdrawal is in accordance with Acuité's policy on withdrawal of rating as applicable to the respective facility / instrument.

Rationale for reaffirmation
The rating reaffirmation is on account of the healthy financial risk profile driven by low gearing and healthy coverage indicators. The rating also considers the steady growth in the topline despite moderation in the profitability margins in FY2026. Further, the rating continues to draw strength from the long track record of operations and experienced management. However, the rating remains constrained by the working capital intensive operations, forex exposure risk, volatility in profitability margins due to input price fluctuations and cyclicality in domestic agricultural demand.

About the Company

Incorporated in 2005, Kisankraft Limited (KKL) is a Bangalore based company primarily engaged in trading of imported agricultural equipments. The company also manufactures some of the agricultural equipments, constituting 20-25 percent of the total revenue. The equipments include machinery for land preparation, plantation, crop management, harvesting and post harvesting activities. The company is also engaged in trading of power tools under the brand name ‘Aryantra’. The company is promoted and managed by Mr. Ravindra K Agrawal and Mrs. Sarika Agrawal.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profile of KKL to arrive at the rating.

Key Rating Drivers

Strengths

Long track record of operations and experienced management
Kisankraft Limited has an operational track record of two decades in the farm equipment sector. The company offers more than 300 models across over 14 product segments, covering various farming activities such as soil preparation, plantation, crop management, irrigation and harvesting. KKL has a strong pan India distribution network of around 2,800 dealers and 15 regional offices. The company also participates in subsidy schemes offered by various state governments. Its long track record of operations and diversified product portfolio has helped to establish a strong market presence across the country.

Healthy financial risk profile

KKL has a healthy financial risk profile, which is marked by, low gearing, healthy networth and strong debt protection metrics. The tangible networth stood at Rs. 135.51 Cr on March 31, 2026 post profit accretion. Further the gearing continues to remain below unity at 0.11 times in FY2026 [0.06 times in PY], in the absence of any long term debt and lower reliance on working capital limits. The TOL/TNW and Debt-EBITDA levels also stood low at 0.42 times and 0.53 times respectively on March 31, 2026. The interest coverage ratio (ICR) stood strong at 15.58 times in FY2026.
The financial risk profile of the company is expected to remain healthy over the medium term as the company does not have any debt funded capex plans.

Steady operating performance
The operating revenue of the company grew by ~6.5 percent in FY2026 to Rs. 278.46 Cr in FY2026 from Rs. 261.49 Cr in FY2025. Despite increase in the revenue, the operating margin declined to 8.64 percent in FY2026 from 10.92 percent in FY2025 on account of increase in the equipment costs and other input costs. The prices of the equipments had increased during Q4 FY2026 which the company was unable to pass on to the customers, which led to decline in the operating margins. However, to protect their margins, the company has increased the equipment prices from June 2026 onwards, which is expected to support improvement in the operating profitability to some extent in FY2027. Till 5MFY2026, the company has generated a topline of ~134 Cr as against Rs. 122 Cr for the corresponding period in the previous year.

Weaknesses

Intensive working capital operations
The operations of the company are working capital intensive, with high gross current assets (GCA) of 178 days in FY2026. These GCA are mainly driven by inventory days of 153 days in FY2026. Since the company is majorly into trading segment, they are required to maintain adequate stock of goods and consumables, with an average inventory holding period ranging between 150 -160 days. The debtors receivable period stood low at 17 days in FY2026. On the other hand, the creditor period stood at 39 days in FY2026. However, the reliance on external working capital limits remains low, as the company manages the mismatch through internal accruals. The average bank limit utilization stood low at ~46 percent for the last six months ended August 2026.

Exposure to agricultural cyclicality, raw material price volatility and forex risk
The company’s performance remains susceptible to agricultural cyclicality, driven by monsoon conditions, crop prices, farmer incomes and government subsidies. Its profitability is also exposed to fluctuations in raw material prices and foreign exchange rates, given its high import dependence, limited ability to pass on cost increases and absence of a hedging policy. Although the company has commenced in-house manufacturing, its limited contribution of 20–25 percent results in continued exposure to currency and supply chain risks.

Rating Sensitivities

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

Improvement in operating performance with generation of net cash accruals higher than Rs. 30 Cr.
Improvement in working capital cycle

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

Further elongation in working capital cycle
Higher than expected increase in debt levels leading to deterioration in the financial risk profile
Decline in operating performance with generation of net cash accruals lower than 15 Cr.

Liquidity Position

Adequate

The company’s adequate liquidity position is evident from its net cash accruals (NCAs) of Rs. 20.84 Cr in FY2026 against no repayment obligations. Going forward NCAs are expected to remain in the range of Rs. 21 – 25 Cr against no repayment obligations. The current ratio stood healthy at 2.23 times on March 31, 2026. Further, the average bank limit utilization stood low at ~46 percent for the last six months ended July 2026, which provides adequate liquidity cushion in the form of un-utilized limits. The company had an unencumbered cash and bank balance 0.32 Cr on March 31, 2026.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	278.46	261.49
PAT	Rs. Cr.	13.97	15.68
PAT Margin	(%)	5.02	6.00
Total Debt/Tangible Net Worth	Times	0.11	0.06
PBDIT/Interest	Times	15.58	11.00

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
25 Jun 2025	Secured Overdraft	Long Term	3.50	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	18.50	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Cash Credit	Long Term	20.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Secured Overdraft	Long Term	25.00	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
	Proposed Long Term Bank Facility	Long Term	20.27	ACUITE BBB+ \| Stable (Upgraded from ACUITE BBB \| Stable)
27 Mar 2024	Cash Credit	Long Term	20.00	ACUITE BBB \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	20.27	ACUITE BBB \| Stable (Reaffirmed)
	Cash Credit	Long Term	18.50	ACUITE BBB \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	25.00	ACUITE BBB \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	3.50	ACUITE BBB \| Stable (Reaffirmed)

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
AXIS BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	18.50	Simple	ACUITE BBB+ \| 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.	20.00	Simple	ACUITE BBB+ \| Stable \| Reaffirmed
KOTAK MAHINDRA BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE BBB+ \| Stable \| 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.	20.27	Simple	ACUITE Not Applicable \| Withdrawn
AXIS BANK LIMITED	Not avl. / Not appl.	Secured Overdraft	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.50	Simple	ACUITE BBB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
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 ⁶	RBI
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 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
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 ⁶	RBI
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) ⁷	+
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.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

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 ⁸	Not applicable

⁸ 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.