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. 21 Cr. bank facilities of Nutrilite Agro Products Private Limited. The outlook is 'Stable'.
Rationale for rating
The rating considers long track record of operations, benefits derived from the experienced promoters, established relationship with customers and suppliers, improving revenues in FY 26(Prov.) to Rs. 697.67 Cr. as compared to Rs. 500.54 Cr. in FY25 on account of increase in quantity sold and realization. The financial risk profile of the company is moderate albeit small yet improving networth, low gearing and comfortable debt protection metrics. It has an efficient working capital cycle and adequate liquidity albeit high bank limit utilisation. However, these strengths are partly offset by thin operating profitability margins and vulnerability of margins to volatility in raw material price and competitive nature of industry.
About the Company
Incorporated in 2011, Delhi based, Nutrilite Agro Products Private Limited is engaged in trading of wheat and maize. The domestic sales contribute to about 98 percent of the revenue contribution for FY 26 and exports to Bangladesh and Nepal contributes about 2% of the revenue contribution for FY 26. The directors of the company are Mr. Deepak Kumar and Mr. Jiwach Prasad Jain.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has taken standalone business and financial risk profile of Nutrilite Agro Products Private Limited to arrive at the rating.
Key Rating Drivers
Strengths
Experienced promoters and Established customers
The operations of the company are managed by Mr Deepak Kumar, who has an experience in the industry for more than a decade. The company has long standing relationships with the customers and suppliers. The company has largely domestic sales but is spread across Bihar, West Bengal among others. Acuite believes that the benefits derived from the promoters will help the company going forward.
Improvement in revenues albeit slight decline in operating profitability for FY 26(Prov)
The revenues have increased to Rs. 679.67 Cr. in FY 26(Prov.) as compared to Rs. 500.54 Cr. in FY 25 on account of increase in volume sold and realisation of the products. The company has booked revenues of about Rs. 200 Cr. in Q1FY 27. Acuite expects the scale of operations to improve over the medium term with the expected increase in volume sold and diversified geographical presence in the medium term.
Moderate Financial risk profile albeit small net worth
The financial risk profile is moderate marked by an increase in the net worth to Rs. 17.39 Cr. as on March 31,2026(Prov.) as compared to Rs. 12.83 Cr. as on March 31,2025 due to accretion of reserves. The company had availed working capital term loan of Rs. 3.99 Cr. in FY 27 with a moratorium of 1 year. Gearing stood at 1.15 times as on March 31, 2026(Prov.) as against 0.60 times as on March 31,2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.65 times as on March 31, 2026(Prov.) as compared to 1.80 times as on March 31,2025. The debt protection metrics are marked by Interest Coverage Ratio at 4.86 times as on March 31, 2026 and Debt Service Coverage Ratio at 5.02 times as on March 31, 2026 (Prov.). Net Cash Accruals/Total Debt (NCA/TD) stood at 0.24 times as on March 31, 2026(Prov.) as compared to 0.32 times as on March 31,2025. Acuité believes that going forward the financial risk profile is expected to remain moderate over the medium term with steady cash accruals in the absence of any major debt funded capex plans.
Efficient working capital cycle
The working capital cycle is efficient marked by Gross Current Assets (GCA) of 20 days as on March 31, 2026(Prov) as compared to 19 days as on March 31, 2025. The inventory days were nil for FY 26(Prov.) as compared to 1 day in FY 25, because as a trading concern, the company maintains inventory on need based and it is typically below 4-5 days. The debtor days stood at 19 days as on March 31,2026(Prov.) as compared to 18 days as on March 31, 2025. The payments are received within 20-30 days. The creditor days stood at 4 days as on March 31, 2026(Prov.) as compared to 11 days as on March 31,2025. The suppliers are paid within a week. The company funds its working capital requirements by bank lines. Acuité believes that going forward the working capital operations of the company are expected to remain efficient over the medium term.
Weaknesses
Thin profitability margins
The operating profitability has declined to 0.73 percent in FY 26(Prov.) as compared to Rs. 0.91 percent in FY 25 due to increase in raw material costs. This is also due to the trading nature of business which typically has lean margins due to limited value addition. Acuite expects expects that the operating profitability is expected to remain low on account of the trading nature of operations over the medium term.
Vulnerability of margins to volatile in raw material price and competitive nature of industry
Profit margins are highly susceptible to fluctuations in raw material prices, which are influenced by seasonal factors such as monsoon variations, leading to unpredictable cost structures. Additionally, the competitive landscape is intense due to low entry barriers and a fragmented industry structure, which results in significant pricing pressures from peers. This combination of volatile raw material costs and aggressive competition poses a continuous challenge to maintaining stable profit margins for companies engaged in trading.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Increase in revenues by 15 percent in medium term
Increase in operating profitability to above 1.75 percent
Potential triggers (individual or collective) for a downward rating action:
Deterioration in revenues and operating profitability
Decline in the gearing of the company to above 2.5 times
Liquidity Position
Adequate
The liquidity position is adequate marked by net cash accruals of Rs.4.64 Cr. as on March 31, 2026 (Prov.) as against nil long-term debt repayment. The expected net cash accruals going forward is about Rs. 4-5 Cr. with repayment of about Rs. 0.26 Cr-Rs. 1.05 Cr. in the next two financial years. The cash and bank balances stood at Rs. 0.01 Cr. as on March 31, 2026(Prov.) as compared to Rs. 0.02 Cr. as on March 31,2025. The current ratio was modest and stood at 1.38 times as on March 31, 2026 (Prov.) as compared to 1.19 times as on March 31,2025. The average bank limit utilization stood at 91.62 percent over the last seven months ended, July 2026. Acuité believes that going forward the liquidity position of the company is expected to remain adequate in the medium term in the absence of capex plans, small but steady accruals albeit high dependence on bank limit to fund the working capital requirements .
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
679.67
500.54
PAT
Rs. Cr.
4.50
2.32
PAT Margin
(%)
0.66
0.46
Total Debt/Tangible Net Worth
Times
1.15
0.60
PBDIT/Interest
Times
4.86
3.30
Status of non-cooperation with previous CRA (if applicable)
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.
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