Experienced management and established track record of operations
PRL has an established track of operations of more than a decade. The company is promoted by Mr. Bechar Patel and Mr. Dhanji Patel, having an experience of over two decades in retail industry. The promoters are being supported by its team of experienced professionals in managing day to day operations of PRL. The extensive experience of the promoters has enabled PRL to establish a healthy relationship with its customers and suppliers in the exports market and expansion of its store network in the central line of Mumbai over the years. At present, PRL has 44 supermarket stores under its own brand ‘Patel R. Mart’ in proximity to residential areas and railway stations in Mumbai.

Improvement in margins albeit moderations in revenue
The company has achieved revenue of Rs.821.04 crore in FY2025 (Prov.) as against Rs.813.75 crore in FY2024. The improvement in the turnover is contributed by increase in the retail stores from 32 to 44. The EBITDA margin is improving YoY and stood at 7.62 percent as on FY2025 (Prov.) as against 6.91 percent as on FY2024 and 4.23 percent as on FY2023. The improvement in the margins is due to backward integration by setting up of food processing units and exit from low margin traded goods to an extent. The PAT margins improved and stood at 3.08 per cent in FY2025 (Prov.) as against 2.77 per cent in FY2024 and 1.60 per cent in FY2023. In 2MFY2026, PRL has reported Rs.160 crores of the revenue. Acuité believes that PRL will continue to have steady operating performance in near to medium term.

Moderately intensive working capital operations
The working capital operations of PRL are intensive in nature marked by its moderate Gross Current Assets (GCA) of 127 days for FY2025 (Prov.) as against 110 days for FY2024 on account of slight increase in receivables days. The receivables days stood at 56 days for FY2025 (Prov.) against 44 days for FY2024. The inventory days stood low at 69 days as on March 31, 2025 (Prov.) as against 61 days as on March 31, 2024. Further, the creditors stood at 33 days in FY2025 (Prov.) as against 26 days in FY2024. The company purchases Agro products from the farmers and local mandis (during off season) of various states like Gujarat, Kerala, Tamil Nadu and Madhya Pradesh among others. Credit term with the farmers is upfront and around 10 to 30 day’s credit to wholesalers. The credit term offered to customer is up to 30 days. Average bank limit utilization for last 8 months period ended March 2025 stood high at ~95.04 percent. Acuite believes, the operations of PRL would remain moderately efficient on the back of comfortable credit terms with customers and suppliers.

­Agro climatic and government regulation risk
PRL is transforming from marketing and selling of products to processing of products by its own through its new agro processing facility at Dhudai, Gujarat. The products include agro commodities, and its availability is totally dependent on monsoon and climatic conditions. This exposes PRL to the risk of raw material availability at the implementation time and may have impact on operations. PRL like any other agro exporting business, is susceptible to government regulations such as ban on sugar, rice etc exports and removal of export incentives. However, Acuité believes that promoters’ experience and established presence of the company in the industry would reduce such risk to some extent.

Highly fragmented and competitive industry
The Indian retail industry is fragmented with presence of large number of organised players, E-retailers and funding from foreign players has boosted entry of new players. PRL would face high competition from the existing retailers and new entrants, both organised and unorganized, thereby impacting pricing power. Further, slowdown in footfall amid competitive factors will hurt the overall financial risk profile and liquidity of the company.