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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
|---|---|---|---|---|---|
| Bank Loan Ratings | 0.00 | 1.00 | ACUITE BBB | Stable | Assigned | - | RBI |
| Bank Loan Ratings | 0.00 | 57.50 | ACUITE BBB | Stable | Reaffirmed | - | RBI |
| Bank Loan Ratings | 0.00 | 76.50 | - | ACUITE A3+ | Reaffirmed | RBI |
| Total Outstanding | 0.00 | 135.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| 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 |
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Acuité has reaffirmed the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) and short term rating at ‘ACUITE A3+’ (read as ACUITE A three plus) on the Rs.134.00 crore bank facilities of Lila Polymers Private Limited (LPPPL). The outlook is ‘Stable’.
Acuité has assigned the long-term rating of ‘ACUITE BBB’ (read as ACUITE triple B) on the Rs.1.00 crore bank facilities of Lila Polymers Private Limited (LPPPL). The outlook is ‘Stable’. Rationale for ratingThe rating factors in the stable operating and financial performance of the group, supported by steady operating revenue and moderated profitability margins over the past two years. It also derives comfort from the experienced management team and the group’s long-standing relationships with reputed suppliers. Further, the rating is supported by the group’s moderate financial risk profile, efficient working capital management, and adequate liquidity position. However, the rating remains constrained by the susceptibility of margins to volatility in raw material prices, fluctuations in foreign exchange rates, and intense competition in a fragmented industry. |
About the Company |
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Incorporated in 2002, Lila Polymers Private Limited (LPPL) is a Mumbai-based company engaged in international trading and domestic distribution of polymers and petrochemical products. The company has an extensive warehousing network comprising 15 rented warehouses located across key logistics hubs, including Bhiwandi (5), Daman (1), Mundra (2), Baroda (1), Chennai (1), Gurugram (1), Hazira (1), Ahmedabad (1), and Nhava Sheva (2). Its operational presence spans across Mumbai (head office), Baroda (Gujarat office), Daman (branch), and Delhi (stock point). Mr. Jagdish Ranjit Tanna & Mr. Deveshkumar Kanubhai Magia are the current directors of the company.
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| About the Group |
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Lila Polymers Global Pte. Limited (LPGPL), incorporated in Singapore in February 2023, is a wholly owned subsidiary of Lila Polymers Private Limited (LPPL). The entity has been established to strengthen the group’s international presence and facilitate global trading operations in polymers and petrochemical products.
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Unsupported Rating |
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Not applicable
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Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has revised its analytical approach from a standalone assessment to a consolidated evaluation of the financial and business risk profile of Lila Polymers Private Limited (LIPL) and its wholly owned subsidiary Lila Polymers Global Pte. Limited, together referred as ‘Lila Polymer group’ or ‘group”. This approach is driven by the wholly owned nature of the subsidiary, similar line of business, and financial linkages between the entities.
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Key Rating Drivers |
Strengths |
| Established track record of operations and experienced management
The group benefits from over two decades of experience in trading of polymers and petrochemical products. The group has established relationships with reputed principals, acting as an exclusive distributor of leading global petrochemicals and polymer manufacturers. It also operates as a Del Credere Agent (DCA) and Consignment Stockist Agent (CSA) for polymer manufacturers. The business is led by its promoter, Mr. Jagdish Tanna, who possesses over three decades of experience in the polymer and petrochemical industry. Acuité believes that group’s established market presence, strong principal relationships, and the promoter’s extensive industry experience will continue to support its business stability. Stable scale of operations albeit moderation in profitability The group reported revenue of Rs 523.94 Cr. in FY2026 (Prov.), registering a growth of 10.74% over Rs 473.14 Cr. in FY2025, primarily driven by an increase in sales volumes which rose from 39,158.29 MT in FY2025 to 45,238.13 MT in FY2026 (Prov.) at the standalone level. For FY2027 (till May 2026), the group has achieved revenue of Rs. 116.45 Cr. The group’s operating margin moderated to 1.73% in FY2026 (Prov.) from 2.08% in FY2025, primarily due to fluctuations in input prices. PAT margins remained largely stable at 1.07% in FY2026 (Prov.) as compared to 1.02% in FY2025 owing to lower finance costs. Acuité believes that the company’s ability to sustain its scale of operations and demonstrate improvement in profitability will remain a key rating monitorable over the medium term. Moderate financial risk profileThe financial risk profile of the group remains moderate supported by a moderate net worth, comfortable gearing and debt protection metrics. Tangible net worth of the group stood at Rs 62.64 Cr. as on March 31,2026(Prov.) from Rs 57.07 Cr. as on March 31,2025, driven by accretion of profits to reserves. The total debt of the group remains at the same level i.e. Rs 44.66 Cr. as on March 31,2026(Prov.) (Rs 45.21 Cr. as on March 31,2025) which consist of short-term borrowings . Consequently, gearing of the group remains comfortable at 0.71 times as on March 31,2026 (prov.) (0.79 times as on March 31,2025). Debt protection indicators continued to remain adequate, with interest coverage at 3.01 times in FY2026(prov.) (2.58 times in FY2025). Efficient working capital management The group’s working capital management remains efficient, as reflected in gross current assets (GCA) of 69 days in FY2026 (Prov.), broadly in line with 79 days in FY2025, driven by stable receivables and inventory levels. Inventory days reduced to 22 days in FY2026 (Prov.) from 30 days in FY2025 and debtor days improved to 36 days in FY2026 (Prov.) from 40 days over the last period. |
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| Profit margins are susceptible to raw material price fluctuations and volatility in foreign exchange fluctuations
The group’s operating margins remain sensitive to raw material price fluctuations, with raw materials accounting for ~95–96% of total cost and exhibiting volatility due to their linkage with global crude prices. While pricing is generally aligned with prevailing input costs, sharp and sudden movements may impact margins in the interim. The risk is further elevated given the company’s high import dependence (~88%) for polyethylene granules, exposing it to foreign exchange fluctuations. This impact is partially mitigated through forward hedging of forex exposure and the group’s ability to pass on cost variations to customers. Intense competition due to fragmented industry LPPL operates in an industry which is exposed to intense competition from organized and unorganized players due to fragmented nature of the industry and low entry barriers. Though, the risk is mitigated to some extent by way entering into long term agreements with suppliers (i.e. petrochemical companies) coupled with wide product stock keeping units(SKU's) resulting into efficient bargaining power ensuring stability in margins and constant adequate supply of products. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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Liquidity Position |
| Adequate |
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The group’s liquidity position remains adequate, supported by adequate cash accruals of Rs 5.81 Cr in FY2026 (Prov.) as against nil debt obligations. Over the medium term, accruals are expected in the range of Rs. 7.00 Cr–8.50 Cr, against nil debt repayment obligation. The group’s liquidity profile remains comfortable, with cash and bank balances of Rs 9.84 Cr , unencumbered liquid investment of Rs 6.34 Cr along with a current ratio at 1.22 times as on March 31, 2026 (Prov.). The average bank limit utilisation of fund-based facilities stood at 17.46% and non-fund based stood at 83.65% during the last twelve months ended in April26.
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| Outlook-Stable |
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Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 26 (Provisional) | FY 25 (Actual) |
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| Operating Income | Rs. Cr. | 523.94 | 473.14 |
| PAT | Rs. Cr. | 5.58 | 4.85 |
| PAT Margin | (%) | 1.07 | 1.02 |
| Total Debt/Tangible Net Worth | Times | 0.71 | 0.79 |
| PBDIT/Interest | Times | 3.01 | 2.58 |
Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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Any Other Information |
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None
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Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Trading Entities: https://www.acuite.in/view-rating-criteria-61.htm |
Note on complexity levels of the rated instrument |
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| 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. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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