Press Release

Press Release

August 24, 2026

RELIABLE AUTOMOTIVE PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	100.00	ACUITE BBB- \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	100.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 its long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.100.00 crore bank facilities of Reliable Automotive Private Limited(RAPL). The outlook is ‘Stable’.

Rationale for rating
The rating continues to derive strength from the company's healthy growth in scale of operations, supported by higher vehicle volumes and expanding presence in the commercial and passenger vehicle dealership business. The business profile is further supported by stable operating profitability, adequate liquidity and an established relationship with leading automobile manufacturers. The company also benefits from the extensive experience of its promoters, who have a long track record in the automobile dealership industry. However, the rating remains constrained by the inherently working capital intensive nature of dealership operations, moderate financial risk profile and stiff competition from other dealers of Tata Motors Limited and other brands.

About the Company

Incorporated in 1997 and based in Mumbai, Reliable Automotive Private Limited (RAPL) is an authorized dealer of commercial vehicles of Tata Motors Limited and Maruti Suzuki India Limited. The directors of the company are Mr. Bhagatsingh Ajitsingh Ailsinghani, Mr. Sony Tejpal Ailsinghani, Mr. Tejpalsingh Bhagatsingh Ailsinghani and Mrs. Asha Bhagatsingh Ailsinghani.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of RAPL to arrive at this rating.

Key Rating Drivers

Strengths

Experienced management, long association with Tata Motors Limited and long track record of operations
The promoters have over two decades of experience in the industry. The management is supported by a well-qualified and experienced team of professionals. RAPL has been an authorised dealer for the commercial vehicle segment of Tata Motors Limited for more than two decades. The company has also started the dealership of Maruti Suzuki Arena from FY2023 and started the dealership of Maruti Suzuki Nexa from October 2024. Acuité expects that RAPL will continue to benefit from their experienced management and the dealership with Tata Motors Limited and Maruti Suzuki.

Growth in scale of operations amid thin profitability
RAPL has demonstrated consistent improvement in its scale of operations, with operating income increasing to Rs. 1,756.28 Cr. in FY2026 (Prov.) from Rs. 1,437.23 Cr. in FY2025. The growth was driven by higher sales volumes, price revisions by OEMs, increased contribution from higher-value HCV and M&HCV segments and incremental revenue from the Maruti Suzuki dealership business, including the recently added Nexa dealership. The profitability, however, remains thin as reflected by an EBITDA margin of 1.24 percent in FY2026 (Prov.) as against 1.18 percent in FY2025, while the PAT margin stood at 0.21 percent in FY2026 (Prov.) against 0.24 percent in FY2025.

Acuité believes that the company's established presence across commercial and passenger vehicle dealership segments, coupled with its planned network expansion, will continue to support growth in the scale of operations over the medium term.

Weaknesses

Moderate financial risk profile
The financial risk profile of the company remained moderate, marked by a moderate net worth base, leveraged capital structure and modest debt protection metrics. The tangible net worth improved to Rs.76.38 Cr. as on 31st March 2026 (Prov.) as compared to Rs.72.68 Cr. as on 31st March 2025. The improvement is attributable to accretion of profits into reserves.

The gearing level moderated to 2.97 times as on March 31, 2026 (Prov.) as compared to 2.00 times as on March 31, 2025, while TOL/TNW increased to 3.37 times from 2.48 times during the same period. Despite the increase in leverage levels, the debt protection indicators remained broadly stable with the interest coverage ratio and debt service coverage ratio of 1.73 times and 1.63 times in FY2026 (Prov.) (Both at 1.75 times in previous year). The Debt/EBITDA ratio stood at 9.83 times in FY2026 (Prov.) as compared to 7.80 times in FY2025.

Further, the company has envisaged debt-funded capital expenditure of around Rs. 10 Cr. towards expansion of its dealership and workshop infrastructure, which may exert some pressure on the capital structure over the near term. Nevertheless, the financial risk profile continues to be supported by the company's stable profitability and gradual accretion to net worth.

Stiff competition from other dealers of Tata Motors Limited and other automobile manufacturers
The company operates in a highly competitive automobile dealership industry and faces stiff competition from other dealers of Tata Motors Limited in its operating territories due to limited product differentiation and OEM-driven pricing structures. Further, the company competes with dealers of other commercial vehicle manufacturers such as Mahindra & Mahindra Ltd., Ashok Leyland Ltd. and Volvo Eicher Commercial Vehicles Ltd.

Acuité believes that intense competition may constrain the company's market share expansion and profitability, particularly in the inherently low-margin dealership business.

Rating Sensitivities

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

Increase in operating performance with revenues reaching above ~Rs.2500 Crs along with improvement in the profitability margins.
Improvement in the capital structure.

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

Deterioration in operating performance with revenues falling below ~Rs.1500 Cr. or decline in profitability margins.
Elongation in working capital cycle or increased reliance on working capital borrowings, leading to further increase in the gearing levels.

Liquidity Position

Adequate

RAPL’s liquidity position is adequate, marked by net cash accruals of Rs.8.46 Cr in FY2026 (Prov.) against nil repayment obligation during the same period. Going forward, the cash accruals are expected to be in the range of ~Rs.7-8 Cr in FY27 & FY28 against very minimal repayment obligation of ~Rs.3 Cr during the same period.

Nevertheless, liquidity is constrained by the company's high reliance on working capital borrowings, as reflected in the continuous renewal of ad hoc limits every quarter and high average fund-based limit utilization of ~83.13% during the six months ended July 2026. The current ratio stood moderate at 1.11 times as on March 31, 2026 (Prov.), against 1.17 times as on March 31, 2025. The cash and bank balances stood at Rs.19.70 Cr as on 31st March 2026 (Prov.).

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	1756.28	1437.23
PAT	Rs. Cr.	3.71	3.39
PAT Margin	(%)	0.21	0.24
Total Debt/Tangible Net Worth	Times	2.97	2.00
PBDIT/Interest	Times	1.73	1.75

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 May 2025	Channel/Dealer/Vendor Financing	Long Term	20.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Cash Credit	Long Term	4.05	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	0.95	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	20.50	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	19.50	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
	Channel/Dealer/Vendor Financing	Long Term	15.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+)
10 Feb 2025	Channel/Dealer/Vendor Financing	Long Term	20.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	4.05	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	0.95	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	15.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	19.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
	Channel/Dealer/Vendor Financing	Long Term	20.50	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Stable)
20 Nov 2023	Channel/Dealer/Vendor Financing	Long Term	20.50	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	20.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	4.05	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	0.95	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	15.00	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	10.00	ACUITE BBB- \| Stable (Reaffirmed)
	Channel/Dealer/Vendor Financing	Long Term	19.50	ACUITE BBB- \| Stable (Reaffirmed)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.05	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Cholamandalam Investment Finance Company Ltd.	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.95	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Bank Of Baroda	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
ICICI BANK LIMITED	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Standard Chartered Bank	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	19.50	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Tata Motors Finance Limited	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.50	Simple	ACUITE BBB- \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sanidhya Jain
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

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.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.