Press Release August 14, 2026 PHOENIX OVERSEAS LIMITED Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	2.00	ACUITE BBB- | Stable | Assigned	-	RBI
Bank Loan Ratings	0.00	9.75	ACUITE BBB- | Stable | Reaffirmed	-	RBI
Bank Loan Ratings	0.00	20.00	-	ACUITE A3 | Assigned	RBI
Bank Loan Ratings	0.00	50.25	-	ACUITE A3 | Reaffirmed	RBI
Total Outstanding	0.00	82.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has reaffirmed the long-term rating at ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating at ‘ACUITE A3’ (read as ACUITE A three) on the Rs.60.00 Cr. bank facilities of Phoenix Overseas Limited (POL). The outlook remains ‘Stable’. Further Acuité has assigned the long-term rating at ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating at ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 22.00 Cr. bank facilities of Phoenix Overseas Limited (POL). The outlook is ‘Stable’. Rationale for rating  The rating reaffirmation factors in the company's stable operating performance, albeit moderation in profitability during FY26, which was primarily on account of temporary disruptions in export markets. The rating further continues to factor in the longstanding experience of the management, efficient working capital cycle and moderate financial risk profile marked by healthy net worth, low gearing and moderate debt protection metrics. However, the rating remains constrained by the inherently thin net margins in the Agri commodity trading business, susceptibility of profitability to fluctuations in commodity prices and foreign exchange rates, and geographical concentration risks.

About the Company

­Incorporated in 2002, Phoenix Overseas Limited (POL) is a Kolkata-based company promoted by Mr. Aparesh Nandi and Mr. Jayanta Kumar Ghosh. The company is predominately engaged the trading and marketing of agricultural commodities, animal feed products, and food grains. Its product portfolio comprises corn, oil cakes, spices (including dry red chillies, coriander, and cumin seeds), rice, wheat, sorghum, tea, pulses, soybean meal, and rice bran de-oiled cake. The company is also involved in the import of lentils, black urad dal, and tur dal into India. In addition to its trading operations, POL is engaged in the manufacturing and export of bags and fashion accessories made from jute, cotton, canvas, and leather. The company exports agricultural commodities and food products primarily to Bangladesh, while its bag manufacturing division caters to customers across Europe (including France, Italy, and Germany), the UAE, and Australia. Further, POL has a presence in the warehousing and cold storage segment through a multipurpose cold storage facility and a potato cold storage facility located at Malda, West Bengal, with a combined storage capacity of approximately 11,827 MT. The company also operates a warehouse with an installed capacity of 17,000 MT, supporting its commodity trading and storage activities.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of POL while arriving at the rating.

Key Rating Drivers

Strengths

Experienced Management and Diversified Business Operations Phoenix Overseas Limited (POL) benefits from the extensive experience of its promoters and directors, Mr. Aparesh Nandi, Mr. Jayanta Kumar Ghosh, and Mr. Uday Narayan Singh, who possess over two decades of experience in the trading of agricultural commodities, animal feed raw materials, and allied products. The management's long-standing presence in the industry has enabled the company to establish strong relationships with suppliers and customers, facilitating smooth procurement and repeat business opportunities. Acuite believes that the promoters' extensive industry knowledge and established track record will continue to support the company's business operations and growth prospects over the medium term. Improving revenues albeit moderation in profitability The company's operating income improved to Rs. 610.49 crore in FY2026 as against Rs. 487.95 crore in FY2025. The growth was primarily driven by the recovery in export sales following the stabilization of trade conditions in Bangladesh, which had witnessed disruptions in the previous year. Revenue growth was further supported by increased sales of soyabean extraction and DDGS products, along with higher contribution from domestic sales. The company reported revenue of ~Rs. 182.13 crore in Q1 FY2027 as against Rs. 134.09 crore in Q1 FY2026. The operating margins declined to 0.95 percent in FY2026 from 2.01 percent in FY2025 owing to pressure on trading spreads and the lingering impact of disruptions in the Bangladesh market, despite the recovery in export volumes and overall revenue growth during the year. Therefore, the PAT margin stood at 0.52 percent in FY2026 as compared to 1.13 percent in FY2025. Acuite believes that the company will steadily improve the operating scale, however consistent improvement in profitability would remain a key rating monitorable. Moderate financial risk profile The company’s financial risk profile remains moderate, supported by a moderate net worth base, comfortable capital structure and adequate debt protection metrics. The tangible net worth improved marginally to Rs. 79.88 crore as on March 31, 2026 from Rs. 77.84 crore as on March 31, 2025, supported by accrual of profits to reserves. The total debt of the company stood at Rs. 50.43 crore as on March 31, 2026, comprising predominantly short-term working capital borrowings of Rs. 48.33 crore, long-term debt of Rs. 1.29 crore, current portion of long-term debt (CPLTD) of Rs. 0.81 crore. The gearing (debt to equity) of the company remained comfortable at 0.63 times as on March 31, 2026, as against 0.54 times as on March 31, 2025. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) ratio stood at 0.83 times as on March 31, 2026, as against 0.77 times as on March 31, 2025. The debt protection metrics, although moderated during the year, continued to remain adequate. The moderation was primarily on account of lower operating profitability, resulting in the Interest Coverage Ratio (ICR) declining to 2.44 times in FY2026 from 3.04 times in FY2025 and Debt Service Coverage Ratio (DSCR) moderating to 1.62 times in FY2026 from 1.68 times in FY2025. Further, the Net Cash Accruals to Total Debt (NCA/TD) ratio stood at 0.08 times in FY2026. Acuite believes that the financial risk profile of the company will remain moderate over the medium term, supported by steady accruals, comfortable leverage levels, and the absence of any significant debt-funded capital expenditure plans. ­Efficient working capital management The company’s working capital management continues to remain efficient, as reflected by the gross current asset (GCA) days of 57 days in FY2026 from 64 days in FY2025. The improvement was primarily driven by a significant reduction in inventory holding period to 13 days in FY2026 from 28 days in FY2025. The lower inventory levels were supported by faster inventory turnover, and the trading nature of operations, which limits the requirement for maintaining large stock levels. The collection period, however, increased to 25 days in FY2026 from 11 days in FY2025, largely due to higher receivables outstanding at the year-end amid increased business volumes and the timing of collections from customers. Creditor days moderated to 8 days in FY2026 from 13 days in FY2025, indicating reduced dependence on supplier credit. Moreover, the fund-based limit utilization stood at 75.27 per cent over the ten months ended June 2026. Acuite believes that the working capital operations of the group will remain at same level as evident from efficient collection mechanism and comfortable inventory levels over the medium term.

Weaknesses

­Exposure to geographical concentration risks The company remains exposed to geographical concentration risk as around 90 per cent of the total operating income from sale of products are derived from exports to customers based out of Bangladesh in FY2025. Acuite believes that diversification of the customer base will remain a key rating sensitivity. Any changes in the trade policy of Bangladesh can impact the operations of POL. Susceptibility of profitability volatility in raw material prices and forex risk POL’s profitability remains exposed to fluctuations in agri-commodity prices and foreign exchange rates, given its trading-based operations and growing dependence. Variations in global prices or INR/USD movements can significantly impact procurement costs and trading margins, making overall profitability vulnerable to external market dynamics. The company’s business remains exposed to fluctuations in foreign exchange rate, thereby affecting its revenues and margins. Although, there is no instance of losses in the recent past, and natural hedge is available to an extent, the company remains susceptible to foreign exchange rate fluctuations over the medium term in the absence of hedging mechanism.

Rating Sensitivities

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

Sustain growth in revenues and improvement in profitability margins with EBITDA above 2.50 per cent on a sustained basis Improvement in financial risk profile

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

Significant decline in revenue and EBITDA margins with net cash accruals falling below Rs. 6.00 Cr Weakening the financial risk profile and liquidity position Elongation in working capital cycle

Liquidity Position

Adequate

­The liquidity position of the company is adequate marked by steady net cash accruals of Rs. 3.84 Cr. in FY2026 as against long term debt repayment of Rs. 1.04 Cr. over the same period. Going forward, the company is expected to generate net cash accruals of ~Rs. 6.00-8.00 Cr. in FY 2027-28 against of ~Rs. 1.00-2.00 Cr. its maturing repayment obligations. The unencumbered cash and bank balance stood at Rs. 11.31 Cr. as on March 31, 2026. Moreover, the fund-based limit utilization stood at 75.27 per cent over the ten months ended June 2026. The current ratio stood comfortable at 1.75 times as on March 31, 2026 as compared to 1.76 times as on March 31, 2025. Further, the efficient working capital management is marked by moderate Gross Current Asset (GCA) days of 57 days in FY2026 as against 64 days over the previous year. Acuite believes that liquidity of the company will remain adequate backed by steady cash accruals.

Outlook

­Stable

Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 26 (Actual)	FY 25 (Actual)
Operating Income	Rs. Cr.	610.49	487.95
PAT	Rs. Cr.	3.20	5.49
PAT Margin	(%)	0.52	1.13
Total Debt/Tangible Net Worth	Times	0.63	0.54
PBDIT/Interest	Times	2.44	3.04

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

­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 24 Feb 2026 Letter of Credit Short Term 5.00 ACUITE A3 (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 0.75 ACUITE A3 (Reaffirmed) PC/PCFC Short Term 37.00 ACUITE A3 (Reaffirmed) Term Loan Long Term 0.92 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 9.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 7.33 ACUITE BBB- | Stable (Reaffirmed) 26 Nov 2024 Bank Guarantee/Letter of Guarantee Short Term 0.75 ACUITE A3 (Reaffirmed) PC/PCFC Short Term 37.00 ACUITE A3 (Reaffirmed) Letter of Credit Short Term 5.00 ACUITE A3 (Reaffirmed) Term Loan Long Term 6.80 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 9.00 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 1.45 ACUITE BBB- | Stable (Reaffirmed) 15 Dec 2023 Letter of Credit Short Term 5.00 ACUITE A3 (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 0.75 ACUITE A3 (Reaffirmed) PC/PCFC Short Term 37.00 ACUITE A3 (Reaffirmed) Term Loan Long Term 6.80 ACUITE BBB- | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 1.45 ACUITE BBB- | Stable (Reaffirmed) Cash Credit Long Term 9.00 ACUITE BBB- | Stable (Reaffirmed)

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Ritika Lalwani Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

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