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 assigned long term rating of 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 34 Cr. bank facilities and short-term rating of 'ACUITE A4+' (read as ACUITE A four plus) on the Rs. 62 Cr. bank facilities of Kkrishna Vaahan Private Limited. The outlook is 'Stable'.
Rationale for rating
The rating takes into cognizance experienced promoters and established relationship with Tata Motors Limited(TML). The revenues of the company have increased to Rs. 758.30 Cr. in FY 26 (Prov.) as compared to Rs. 744.66 Cr. in FY 25 on account of increase in realisation albeit decline in volume sold. The operating profitability has increased to 2.84 percent in FY 26 (Prov.) as compared 2.72 percent in FY 25 on account of better absorption of costs. The working capital cycle is efficient of the company of about 72 days in FY 26 (Prov.) as compared to 82 days in FY 25 followed by adequate liquidity. However, these strengths are partly offset by average financial risk profile and Competitive industry with limited bargaining power.
About the Company
Kkrishna Vaahan Private Limited, incorporated in 2014. The company serves as an authorized dealer in commercial vehicles of Tata Motors Limited. The company has 4 showrooms and 5 workshops in Odisha. The operations of the company are managed by Mr. Rahul Khaitan and Mrs. Puspa Devi Khaita.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has taken standalone business and financial risk profile of Kkrishna Vaahan Private Limited to arrive at the rating.
Key Rating Drivers
Strengths
Benefits derived from experienced promoters
The operations of the company are managed by Mr. Rahul Khaitan, who have more than a decade of experience in the automobile industry. Additionally, the company has established relationship with Tata Motors Limited since 2014. Acuite believes that the experience of the promoters and their contracts with Tata Motors Limited will benefit the company going forward.
Increase in Revenues and stable operating profitability
The revenues have increased to Rs. 758.30 Cr. in FY 26(Prov.) as compared to Rs. 744.66 Cr. in FY 25 on account of increase in the realisation albeit decline in volume sold. The operating profitability has increased to 2.84 percent in FY 26(Prov.) as compared to 2.72 percent in FY 25 on account of better absorption of costs. Acuite believes that scale of operations and operating profitability will increase in near to medium term.
Efficient Working Capital Cycle
The working capital cycle of the company is efficient as reflected by Gross Current Assets (GCA) of 72 days for March 31, 2026(Prov.) as compared to 87 days for March 31, 2025. The debtor period stood at 5 days as on March 31, 2026(Prov.) as compared to 17 days as on March 31, 2025. The payments from customers are received within 7-10 days. Further, the inventory days of the company stood at 65 days as on March 31, 2026(Prov.) as compared to 67 days in FY2025. The inventory holding is about 2 months of the company. The payments made to TML are on advance basis. Acuité believes that the working capital operations of the company is expected to remain in similar lines over the medium term.
Weaknesses
Average financial risk profile
The financial risk profile of the company is average marked by small yet improving net worth, high gearing and moderate debt protection metrics. The tangible net worth of the company stood at Rs. 37.09 Cr. as on March 31, 2026(Prov.) as compared to Rs. 31.75 Cr. as on March 31, 2025 due to accretion to reserves and infusion of equity. The gearing of the company though improved yet high at 3.13 times as on March 31, 2026(Prov.) and 4.71 times as on March 31, 2025 on account of large short term borrowings. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.17 times as on March 31, 2026(Prov.) as compared to 4.74 times as on March 31, 2025. The debt protection metrices of the company remain moderate marked by Interest Coverage ratio (ICR) of 1.43 times as on March 31, 2026(Prov.) and debt service coverage ratio (DSCR) of 1.27 times for March 31, 2026 (Prov). The net cash accruals to total debt (NCA/TD) stood at 0.04 times as on March 31, 2026(Prov.) as compared to 0.03 times as on March 31, 2025. Acuite believes that the company’s financial risk profile will remain average backed by small cash accruals, average capital structure and reliance on bank borrowings over the medium term.
Competitive industry with limited bargaining power
The company may face intense competition from other dealers in the nearby region. Moreover, dealers have limited bargaining power with the OEMs considering the fragmented nature of industry which ultimately impacts the profitability margins. Further, the company is exposed to inherent cyclicality in the Indian automobile industry as well as regulatory challenges.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Improvement in scale of operations and operating profitability
Improvement in the financial risk profile with gearing below 2 times
Potential triggers (individual or collective) for a downward rating action:
Elongation of working capital cycle
Any further deterioration in the financial risk profile
Decline in margins to below 2%
Liquidity Position
Adequate
The company has adequate liquidity marked by net cash accruals of Rs 4.85 Cr. as on FY2026(Prov.) as against long term debt repayment of Rs. 0.50 Cr. over the same period. The cash and bank balance stood at Rs. 4.20 Cr. as on March 31, 2026(Prov.) and Rs. 7.39 Cr. as on March 31, 2025. Further, the current ratio of the company stood at 1.29 times as on March 31, 2026(Prov.) as compared to 1.18 times as on March 31, 2024. The average bank utilization limit of the company for 8 months ended May 2026 is 85 percent. Further the company avails adhoc working capital limits as and when required. Acuité believes that the liquidity of the company is likely to remain adequate over the near to medium term on account of small but steady cash accruals and in the absence of any debt funded capex plans.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
758.30
744.66
PAT
Rs. Cr.
4.50
3.98
PAT Margin
(%)
0.59
0.53
Total Debt/Tangible Net Worth
Times
3.13
4.71
PBDIT/Interest
Times
1.43
1.39
Status of non-cooperation with previous CRA (if applicable)
OCRA, vide its press release dated December 22nd, 2025 had denoted the rating of Kkrishna Vaahan Private Limited as B/Stable; 'DOWNGRADED AND ISSUER NOT CO-OPERATING’.
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.
Contacts
List of instruments and names of regulators of the instruments
