Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 48.50 ACUITE BBB+ | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 10.00 - ACUITE A2 | Reaffirmed RBI
Total Outstanding 0.00 58.50 - - -
Total Withdrawn 0.00 0.00 - - -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

­Acuite has reaffirmed 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 Rs.58.50 crore bank facilities of Oja Automobiles Private Limited. The Outlook has been revised from "Negative" to "Stable".

Rationale for Rating:

The change in outlook reflects the company's ability to maintain its profitability margins despite a moderation in operating performance during FY 24–FY 26 (Prov.), demonstrating cost efficiency and benefiting from a healthy financial risk profile. The financial risk profile is characterized by an improved net worth position and healthy debt protection metrics. Additionally, the company's working capital management remains efficient. Its liquidity position is adequate, supported by sufficient net cash accruals against minimal debt repayment obligations and low utilization of bank limits. The rating reaffirmation further factors in the company's established market position in Assam, supported by its long-track record of operations. However, the company's ability to sustain growth in its scale of operations while maintaining profitability will remain a key monitorable. Further, the rating is constrained by thin profitability margins inherent in the auto dealership business, intense competition and limited bargaining power with the OEMs, which restrict pricing flexibility.

About the Company

­Oja Automobiles Private Limited (­OAPL), established in 2005, operates from Guwahati in Assam and holds authorized dealership for OEMs Founded by Mr. Rajdeep Oja and Mr. Debaraj Oja, the company is authorized delar of OEMs. Additionally, it maintains asales outlet in Kamrup and a second-hand vehicle showroom in Guwahati. Furthermore, OAPL manages two showrooms for machines and operates 8 service stations across Assam. Moreover, the company functions as a C&F agent of spare parts covering the entire North East India region.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
­Acuité has considered the standalone business and financial risk profile of OAPL while arriving at the rating.
 
Key Rating Drivers

Strengths

Experienced management and established market position in Assam
OAPL was established in the year 2005 by Mr. Rajdeep Oja and Mr. Debaraj Oja. The directors of the company have more than 15 years of experience in the automobile dealership business. The extensive experience of the management has helped the company establish long-term relations with OEM’s. The company has an established position in Assam (with 2 showrooms and 8 service stations spread across Assam). Additionally, the company is an authorized dealer of OEM for spare parts as well. Going forward Acuite believes the company is expected draw comfort from established market presence of OAPL.

Healthy Financial Risk Profile:
The financial risk profile of the Company stood healthy supported by improved net worth, low gearing and healthy coverage indicators. The net worth has been increased to Rs. 60.49 crore in FY 26 (prov.) from Rs.58.66 crore in FY 25. Gearing stood low at 0.45 times in FY 26 (prov.). Debt protection metrics also stood healthy, with the Interest Coverage Ratio (ICR) and Debt Service Coverage Ratio (DSCR) increasing to 2.68 times and 2.25 times, respectively, in FY26 (Prov.), compared with 2.45 times and 2.09 times in FY25. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio improved to 0.58 times from 0.73 times, indicating a lower dependence on external liabilities. However, the Debt/EBITDA ratio moderated slightly to 3.91 times in FY26 (Prov.) from 3.51 times in FY25.Acuite believes that the company's financial risk profile is likely to remain healthy over the medium term, supported by absence of debt-funded capex plans.

Efficient Woking Capital Management:
The company's working capital management remained efficient, as reflected by an increase in Gross Current Assets (GCA) days to 85 days in FY26 (Prov.) from 73 days in FY25, primarily driven by a marginal increase in debtor and inventory holding periods, along with higher cash and bank balances. Inventory days increased to 52 days in FY26 (Prov.) from 48 days in FY25, broadly in line with the company's average inventory holding period of 45–50 days. The Debtor days stood at 15 days in FY26 (Prov.) compared to 12 days in FY25, remaining broadly in line with the company's average collection period of 10–15 days. Creditor days declined to 6 days in FY26 (Prov.) from 12 days in FY25, reflecting faster payments to suppliers. Further, cash and bank balances increased significantly to Rs. 8.81 crore as on March 31, 2026 (Prov.), from Rs. 3.77 crore as on March 31, 2025, which also contributed to the increase in GCA days. Acuite believes that the company's working capital management will remain efficient over the medium term, owing to the inherent nature of its operations and the inventory requirements associated with its business segments.


Weaknesses
Declining Operating Performance with Sustained Margins:

The company's operating revenue declined to Rs. 339.01 crore in FY 26 (Prov.) from Rs. 419.39 crore in FY 25. In FY 26(Prov.), revenue from the sale of JCB machines contributed around 40% of the total operating income, followed by spares and accessories (31%), passenger vehicles (23%), while the remaining revenue was derived from commission income and reimbursements received from OEMs. The decline in revenue was primarily driven by lower sales of JCB machines and Hyundai passenger vehicles. The reduction in JCB machine sales was mainly attributable to delays in construction activities in Assam due to the state elections, which resulted in delays in fund disbursements by government entities, coupled with an extended monsoon season that adversely impacted project execution leading to lower sales of machines. Revenue from passenger vehicle sales also witnessed a decline during FY2026 owing to the absence of any significant new model launches by the OEM, resulting in relatively muted customer demand. Nevertheless, the company has exhibited signs of recovery, reporting revenue of approximately Rs. 76 crore in Q1FY2027 as compared to Rs.69.63 crore in Q1FY2026. Despite the decline in operating revenue, the company's EBITDA margin improved marginally to 2.00% in FY 26 (Prov.) from 1.76% in FY2025. The improvement was primarily driven by lower employee expenses and a reduction in directors' sitting fees. Employee costs declined due to lower incentive payouts and the absence of salary increment during the year. Consequently, the PAT margin also improved to 0.54% in FY 26 (Prov.) from 0.38% in FY2025, mainly on account of lower finance costs. Going forward, Acuité believes that the company's ability to scale up its operations while sustaining its profitability margins amid a competitive operating environment will remain a key monitorable.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
­
  1. If revenue increased by 50-60% with improvement in margins
  2. Improvement in net worth
Potential triggers (individual or collective) for a downward rating action:
­
  1. If revenue further declined by 10% along with decline in margin
  2. Deterioration in financial risk profile
  3. Any further elongation in working capital management
Liquidity Position
Adequate

Liquidity of the Company marked adequate by net cash accrual (NCA) of Rs. 3.68 crore against the debt repayment of Rs. 0.20 crore for the same period in FY26 (prov). The NCA is expected to be in the rage of Rs. 4-5 crore against repayment of Rs. 0.30-0.40 crore for the medium term. The Current ratio stood at 2.41 times in FY 26 (prov). Avg bank utilization for six month ended stood at 40% as on June 26. The Company has maintained cash and bank balance of Rs.8.81 crore as on FY 26 (prov). Acuite believes liquidity is expected to remain adequate over the medium term supported by steady accruals and absence of debt funded capex plan.
 
Outlook: Stable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 26 (Provisional) FY 25 (Actual)
Operating Income Rs. Cr. 339.01 419.39
PAT Rs. Cr. 1.83 1.58
PAT Margin (%) 0.54 0.38
Total Debt/Tangible Net Worth Times 0.45 0.45
PBDIT/Interest Times 2.68 2.45
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
30 Apr 2025 Inventory Funding Short Term 10.00 ACUITE A2 (Reaffirmed)
Inventory Funding Short Term 1.00 ACUITE A2 (Reaffirmed)
Inventory Funding Long Term 28.00 ACUITE BBB+ | Negative (Reaffirmed)
Inventory Funding Long Term 5.00 ACUITE BBB+ | Negative (Assigned)
Stand By Line of Credit Long Term 1.65 ACUITE BBB+ | Negative (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.85 ACUITE BBB+ | Negative (Reaffirmed)
Cash Credit Long Term 11.00 ACUITE BBB+ | Negative (Reaffirmed)
25 Mar 2025 Inventory Funding Short Term 10.00 ACUITE A2 (Reaffirmed)
Inventory Funding Short Term 1.00 ACUITE A2 (Reaffirmed)
Cash Credit Long Term 11.00 ACUITE BBB+ | Negative (Reaffirmed)
Cash Credit Long Term 28.00 ACUITE BBB+ | Negative (Reaffirmed)
Stand By Line of Credit Long Term 1.65 ACUITE BBB+ | Negative (Reaffirmed)
Proposed Long Term Bank Facility Long Term 1.85 ACUITE BBB+ | Negative (Reaffirmed)
29 Dec 2023 Inventory Funding Short Term 10.00 ACUITE A2 (Reaffirmed)
Inventory Funding Short Term 1.00 ACUITE A2 (Reaffirmed)
Cash Credit Long Term 11.00 ACUITE BBB+ | Stable (Reaffirmed)
Cash Credit Long Term 28.00 ACUITE BBB+ | Stable (Reaffirmed)
Stand By Line of Credit Long Term 1.65 ACUITE BBB+ | Stable (Reaffirmed)
Proposed Long Term Bank Facility Long Term 0.75 ACUITE BBB+ | Stable (Reaffirmed)
Working Capital Term Loan Long Term 1.10 ACUITE BBB+ | Stable (Reaffirmed)
­

Lender’s Name ISIN Facilities Listing Status Regulated By Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
State Bank of India Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE BBB+ | Stable | Reaffirmed | Negative to Stable
State Bank of India Not avl. / Not appl. Inventory Funding Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 33.00 Simple ACUITE BBB+ | Stable | Reaffirmed | Negative to Stable
AXIS BANK LIMITED Not avl. / Not appl. Inventory Funding Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 10.00 Simple ACUITE A2 | 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. 0.70 Simple ACUITE BBB+ | Stable | Reaffirmed | Negative to Stable
State Bank of India Not avl. / Not appl. Stand By Line of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.65 Simple ACUITE BBB+ | Stable | Reaffirmed | Negative to Stable
ICICI BANK LIMITED Not avl. / Not appl. Term Loan Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. 10 Nov 2028 2.15 Simple ACUITE BBB+ | Stable | Reaffirmed | Negative to Stable
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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