Press Release

Press Release

April 09, 2026

LANDSMILL AGRO PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	50.00	ACUITE BBB+ \| Reaffirmed \| Rating Watch with Developing Implications	-
Bank Loan Ratings	100.00	-	ACUITE A2 \| Reaffirmed \| Rating Watch with Developing Implications
Total Outstanding	150.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed its long term rating of 'ACUITE BBB+' (read as ACUITE triple B Plus) and short term rating of 'ACUITE A2' (read as ACUITE A two) on the Rs.150.00 Crore bank loan facilities of Landsmill Agro Private Limited. The rating continues to be placed under 'Rating Watch with Developing Implications’.

Rationale for Rating
The ‘Rating Watch with Developing Implications’ is continued on account of the proposed acquisition of Landsmill Agro Private Limited by Elitecon International Limited, which was initiated in September 2025. As a part of the arrangement, Elitecon International Limited had acquired a 55% stake in Landsmill Agro Private Limited as on 30th September 2025 and the balance transaction was expected to be completed by 31st March 2026. However, as on date, the acquisition is currently under consideration for a proposed reversal, and the matter remains subject to ongoing discussions between the entities, legal opinions, and execution of definitive documentation, if any. Acuite will continue to closely monitor and keep watch on the developments. The stability in operations, business, and financial performance of Landsmill Agro Private Limited will remain a key rating sensitivity. The ‘Rating Watch with Developing Implications’ will be reviewed if there are any developments related to the acquisition or reversal process.

Furthermore, the reaffirmation in rating factors the healthy business risk profile of the company, marked by the increase in operating income to Rs.1392.64 Cr. in FY2025 as against Rs.790.76 Cr. in FY2024 along with EBITDA and PAT margins of 3.71% and 1.83%, respectively, in FY2025. Moreover, the company has registered revenue of Rs.1576.99 Cr. till January 2026. Moreover, the financial risk profile is marked by moderate net worth, gearing below unity, and comfortable debt protection metrics, and the liquidity position is adequate as reflected by sufficient accruals against debt repayment obligations, a moderate current ratio, and the absence of any major debt-funded capex plans in the near to medium term. However, the rating remains constrained by moderately intensive working capital operations, high reliance on working capital limits, and the highly competitive nature of the industry.

About the Company

Delhi based, Landsmill Agro Private Limited is engaged in the processing and manufacturing of edible oils, including blended edible vegetable oil, interesterified vanaspati oil, refined soybean oil, margarine, etc., which are household consumable products for Indian consumers who use oil regularly as a cooking medium. The directors are Mr. Praveen Kumar Agrawal and Mr. Garvit Agarwal. The company is now a subsidiary of Elitecon International Limited, which is engaged in the business of manufacturing and trading various kinds of tobacco, cigarettes, and other related products.

Unsupported Rating

Not applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profiles of Landsmill Agro Private Limited to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations
LAPL was incorporated in the year 2019. The product portfolio of the company includes blended edible vegetable oil, margarine, refined soybean oil, refined palm oil, kachi ghani mustard oil, refined rice bran oil, etc. The established track record of operations has helped the company to have long-standing relationships with customers and suppliers over the years. The company also has a wide sales and distribution network all over India, which supports enhancing customer outreach and bagging new orders. Acuite believes that the company will continue to derive benefit from the established track record of operations as well as healthy relationships with its clientele, which is expected to support the company's business risk profile over the medium term.

Augmentation in Business Risk Profile
The company achieved an operating income of Rs.1392.64 Cr. in FY2025 as against Rs.790.76 Cr. in FY2024, driven by healthy growth across trading and manufacturing segments coupled with steady demand for edible oils in the market. The stability in revenue is further backed by the execution of orders, wherein the company has an unexecuted order book of Rs.175.71 Cr. as on 31st January, 2026, and the same is maintained on a two-month forward basis. Further, the EBITDA margin of the company stood at 3.71% in FY2025 against 2.97% in FY2024, contributed by the sales volume growth along with a significant increase in price realizations. Likewise, the PAT margin stood at 1.83% in FY2025 against 1.23% in FY2024. Moreover, the company has registered revenue of Rs.1576.99 Cr. till 31st January, 2026, and going forward, the company is expecting to maintain a healthy business risk profile in the near to medium term on the back of the execution of its order book. However, stability in the operations of the company post the change in the ownership will be a key rating sensitivity.

Moderate Financial Risk Profile
The financial risk profile of the company is marked by moderate tangible net worth, which stood at Rs. 91.99 crore as on 31st March 2025 as against Rs. 56.44 crore as on 31st March 2024. The increase in the net worth is on account of the accretion of profits into reserves. The capital structure of the company is marked by gearing ratio, which stood at 0.57 times as on 31st March 2025 against 0.88 times as on 31st March 2024. Further, the coverage indicators are reflected by the interest coverage ratio and debt service coverage ratio, which stood at 2.73 times and 2.17 times, respectively, as on 31st March 2025 against 2.05 times and 1.87 times as on 31st March 2024. The TOL/TNW ratio of the company stood at 3.38 times as on 31st March 2025 as against 4.13 times as on 31st March 2024 and DEBT-EBITDA stood at 0.98 times as on 31st March 2025 as against 2.04 times as on 31st March 2024. Acuité expects the financial risk profile of the company to remain moderate with no major debt-funded capex plans in the near to medium term.

Weaknesses

Moderately Intensive Working capital operations
The working capital operations of the company improved yet remained moderately intensive, marked by GCA days, which stood at 90 days as on 31st March, 2025 as against 108 days as on 31st March, 2024. The high GCA days are on account of debtor days of the company, which stood at 56 days as on 31st March, 2025 as against 67 days as on 31st March, 2024. Additionally, the other current assets increased and stood at Rs.24.00 Cr. in FY2025 as against Rs.11.71 Cr. which majorly includes advances to suppliers along with prepaid expenses, balance with tax authorities, etc. Further, inventory days stood at 30 days as on 31st March, 2025 against 37 days as on 31st March, 2024 as the company needs to maintain adequate inventory as and when required for order execution, and the creditor days stood at 32 days as on 31st March, 2025 as against 55 days as on 31st March, 2024. Acuite expects the working capital operations of the company to remain in a similar range in the near to medium term owing to the nature of operations.

Highly fragmented and competitive nature of industry
The industry is marked by the presence of a large number of organized and unorganized players in the industry. The industry is intensely competitive and fragmented because of low entry barriers, easy availability of raw materials, and moderate capital requirements. The highly competitive industry further limits the pricing flexibility and exerts pressures on the margins of all participants, thereby reducing bargaining power with customers for players. Acuité believes that the ability of the company to pass on such an adverse impact to its customers remains a key monitorable factor.

Rating Sensitivities

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

Significant growth in the scale of business with further improvement in profitability metrics.
Improvement in the capital structure with further improvement in TOL/ TNW to be maintained below 3.5x on a sustained basis.

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

Decline in revenue y-o-y and/or operating profitability margins below 1.5%.
Stretch in the working capital cycle.
Any material increases in debt resulting in deterioration of debt protection metrics.

Liquidity Position

Adequate

The liquidity profile of the company is adequate, marked by net cash accruals of Rs.28.30 crore as on 31st March, 2025 as against the debt repayment obligations of Rs.2.56 crore in the same period. Moreover, the company is expected to generate sufficient net cash accruals against the debt repayment obligation in the near to medium term. The current ratio of the company stood at 1.38 times as on 31st March, 2025 as against 1.34 times as on 31st March, 2024. Further, the fund based and non-fund based working capital limits stood utilized at 90.60% and 54.92%, respectively, in the last six months ending December 2025. Acuite expects the liquidity profile of the company to remain adequate with sufficient accruals against debt repayment obligations, a moderate current ratio, and the absence of any major debt-funded capex plans in the near to medium term.

Outlook: Not Applicable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1392.64	790.76
PAT	Rs. Cr.	25.43	9.70
PAT Margin	(%)	1.83	1.23
Total Debt/Tangible Net Worth	Times	0.57	0.88
PBDIT/Interest	Times	2.73	2.05

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 Feb 2026	Letter of Credit	Short Term	100.00	ACUITE A2 (Reaffirmed)
	Term Loan	Long Term	7.90	ACUITE BBB+ (Reaffirmed)
	Term Loan	Long Term	9.30	ACUITE BBB+ (Reaffirmed)
	Cash Credit	Long Term	25.00	ACUITE BBB+ (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	7.80	ACUITE BBB+ (Reaffirmed)
28 Jan 2025	Letter of Credit	Short Term	100.00	ACUITE A2 (Assigned)
	Term Loan	Long Term	8.20	ACUITE BBB+ \| Stable (Assigned)
	Term Loan	Long Term	11.96	ACUITE BBB+ \| Stable (Assigned)
	Cash Credit	Long Term	25.00	ACUITE BBB+ \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	4.84	ACUITE BBB+ \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE BBB+ \| Reaffirmed \| Rating Watch with Developing Implications
State Bank of India	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	100.00	Simple	ACUITE A2 \| Reaffirmed \| Rating Watch with Developing Implications
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.80	Simple	ACUITE BBB+ \| Reaffirmed \| Rating Watch with Developing Implications
H D F C Bank Limited	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 May 2038	7.90	Simple	ACUITE BBB+ \| Reaffirmed \| Rating Watch with Developing Implications
UCO BANK	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	01 Feb 2030	9.30	Simple	ACUITE BBB+ \| Reaffirmed \| Rating Watch with Developing Implications

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Archita Sharma
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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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.