Press Release

Press Release

February 24, 2026

PHOENIX OVERSEAS LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	17.25	ACUITE BBB- \| Stable \| Reaffirmed	-
Bank Loan Ratings	42.75	-	ACUITE A3 \| Reaffirmed
Total Outstanding	60.00	-	-
Total Withdrawn	0.00	-	-

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’.

Rationale for rating reaffirmation
The rating reaffirmation factors in the moderation in the operating performance. 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. These strengths are, however, offset by susceptibility of profitability to volatility in raw material prices and foreign exchange rate fluctuation coupled with geographical concentration risks.

About the Company

Incorporated in 2002, Phoenix Overseas Limited (POL) is based in Kolkata and promoted by Mr. Aparesh Nandi and Mr. Jayanta Kumar Ghosh. The company is engaged in the trading of food products namely mustard/rapeseed oil cake which is mainly sold to the poultry feed manufacturers. Additionally, the company trades in maize, wheat, soyabean extraction, wheat bran, among others. Alongside the trading activities, POL is engaged in the manufacturing of jute, leather and cotton bags. It also provides cold-storage facilities. The company’s warehouse has an installed capacity of 17000 MT and the cold storage facility is located at Malda, West Bengal. POL exports the food products to Bangladesh, while the bags are primarily exported to Europe.

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
Phoenix Overseas Limited (POL) is promoted by Mr. Aparesh Nandi, Mr. Jayanta Kumar Ghosh and Mr. Uday Narayan Singh, having an expertise of over a decade in the trading of raw materials for poultry feed manufacturing industry. The experienced management along with the company’s long-standing operations of over two decades has aided in achieving business divergence. POL has geographic exposure across countries, Bangladesh, France, UAE, U.S.A., to name a few. Out of which, it primarily exports the products to Bangladesh. The company has also achieved segmental bifurcation and trades through various commodities out of which it acquires major share of revenues from Maize, Rapeseed Oil Cake and Soyabean Extraction.

Subdued scale of operations and profitability margins

The company has witnessed the moderation in the revenue by ~11.02% which stood at Rs. 487.95 Cr. in FY25 against Rs. 548.37 Cr. in FY24. The decline is primarily driven by the decrease in the exports of traded goods. The operating margins declined to 2.01% in FY2025 from 2.23% in FY2024. The decline in revenue and operating margins is mainly due to protests and political turmoil in Bangladesh which led to overall slowdown in the business. Therefore, PAT margin stood at 1.13% in FY2025 as against 0.98% in FY 2024. The company has achieved the revenue of Rs. ~460.00 Cr. till January 2026 and it is expected to close FY2026 with revenues in the range of ~Rs. 500.00–Rs. 530.00 crore. The PAT margins stood at 1.13% in FY25 as against 0.98% in FY24. The operating margin stood at 1.44% in 09MFY2026.
Acuite believes that going forward the company’s ability to ramp up operations, along with improvement in profitability, will remain a key monitorable.

Moderate financial risk profile
The financial risk profile of the company is marked by the moderate net worth and debt protection metrics along with the low gearing. The tangible net worth of the company increased to Rs. 77.84 Cr. as on March 31, 2025 from Rs. 48.13 Cr. as on March 31, 2024 due to accretion of profits to reserves and the issuance of bonus shares along with additional contributions to the Securities Premium Account during the year. Gearing (debt to equity) of POL stood comfortable at 0.54 times as on March 31, 2025 as against 0.61 times as on March 31, 2024. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) also declined to 0.77 times as on March 31 2025 as against 1.69 times as on March 31,2024. The improvement in debt protection metrics is marked by improvement in Interest Coverage Ratio (ICR) which stood at 3.04 times as on March 31, 2025 as against 2.54 times as on March 31 2024 and Debt Service Coverage Ratio at 1.68 times as on March 31 2025 as against 1.61 times as on March 31, 2024. The Net Cash Accruals/Total Debt (NCA/TD) stood at 0.15 times as on March 31, 2025.
Acuite believes that the financial risk profile of company will improve over the medium term backed by steady accruals and absence of any major debt funded capex plans.

Efficient working capital management
The working capital management of the company is efficient in nature marked by moderate Gross Current Asset (GCA) days of 81 days in FY2025 as against 65 days in FY2024. The inventory period stood at 28 days in FY2025 as against 20 days in FY2024. However, the debtor days improved to 11 days in FY2025 as against 32 days in FY2024.
Acuite believes that, going forward, the working capital cycle of the company will remain around similar levels due to its nature of business.

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, but the company remains susceptible to foreign exchange rate fluctuations over the medium term in the absence of hedging mechanism.

Rating Sensitivities

Improvement in revenues and profitability
Changes in financial risk profile
Elongation in working capital cycle

Liquidity Position

Adequate

The liquidity position of the company is adequate marked by steady net cash accruals of Rs. 6.23 Cr. in FY2025 as against long term debt repayment of Rs. 2.08 Cr. over the same period. The unencumbered cash and bank balance stood rose to Rs. 13.10 Cr. as on March 31, 2025 from Rs. 8.59 Cr. as on March 31, 2024. Moreover, the fund-based limit utilization stood low at 68.10 per cent over the seven months ended December 2025. The current ratio stood comfortable at 1.75 times as on March 31, 2025. Further, the efficient working capital management is marked by moderate Gross Current Asset (GCA) days of 81 days in FY2025 as against 65 days over the previous year.

Outlook

Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	487.95	548.37
PAT	Rs. Cr.	5.49	5.39
PAT Margin	(%)	1.13	0.98
Total Debt/Tangible Net Worth	Times	0.54	0.61
PBDIT/Interest	Times	3.04	2.54

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
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)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
BANK OF INDIA (BOI)	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.75	Simple	ACUITE A3 \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Letter of Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3 \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	PC/PCFC	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	37.00	Simple	ACUITE A3 \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	7.33	Simple	ACUITE BBB- \| Stable \| Reaffirmed
BANK OF INDIA (BOI)	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	30 Oct 2026	0.92	Simple	ACUITE BBB- \| Stable \| Reaffirmed

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

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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