Press Release November 06, 2025 RUSTAM FOODS PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	215.00	ACUITE BBB | Stable | Reaffirmed	-
Bank Loan Ratings	21.00	-	ACUITE A3+ | Reaffirmed
Total Outstanding	236.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long-term rating of 'ACUITE BBB’ (read as ACUITE triple B) and its short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs. 236.00 Cr. bank facilities of Rustam Foods Private Limited (RFPL). The outlook is ‘Stable’. Rationale for rating The rating takes into account the long track record of operations of the company of more than 15 years along with extensive experience of the promoters. Further, the rating also factors in the strategic location of the plant and on the improvement in the company's revenue, which grew by approximately 29.17% which stood at Rs. 1117.87 Cr. in FY25 against Rs. 865.45 Cr. in FY24. The rise in operating income is primarily due to increased volume sales. The rating also draws comfort from moderate financial risk profile. These strengths are however, partly offset by thin profitability margins, inherent risk associated with the meat industry being a highly competitive and fragmented industry. Acuite notes that the company hedges against the foreign exchange risk by entering into forward contracts.

About the Company

­Incorporated in 2006, Rustam Foods Private Limited (RFPL) is an Unnao, Uttar Pradesh based company, promoted by Mr. Mohammad Saleem and Mrs. Shahin Mohammed Salim Qureshi. The company is a DGFT certified three-star export house and is engaged in processing of frozen boneless buffalo meat. The company has an APEDA registered Modern Integrated Abattoir cum Meat Processing Plant in Uttar Pradesh.

Unsupported Rating

­Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

­Long track record of operations and experienced management RFPL has a long operational track record of more than 15 years in the meat processing industry. Further, the promoter, Mr. Mohammad Saleem has extensive experience spanning over three decades in the meat industry. The company is a DGFT-certified three-star export house and is engaged in the processing of frozen boneless buffalo meat. Acuite believes that the company’s long track record of operations and the promoter’s extensive understanding and expertise will benefit the company going forward, resulting in steady growth in the scale of operations. Improvement in scale of operations albeit slight moderation in profitability The company has witnessed the growth in the revenue from operations by ~29.17% which stood at Rs. 1117.87 Cr. in FY25 against Rs. 865.45 Cr. in FY24. The rise in operating income is primarily due to increased volume sales, driven by higher international demand. Specifically, demand, which was lower in FY24 due to the financial crisis in Egypt, has now resolved leading to such increase in FY25. Operating margin of the company stood at 3.54% in FY25 against 3.91% in FY24. This decline is mainly attributable to the fluctuation in raw material prices. The Net margin stood at 1.51% in FY25 against 1.47% in FY24. Company has achieved the revenue of Rs. 447.94 Cr. in 5MFY26. Additionally, company has unexecuted order book of ~Rs. 154 Cr. as on 31st August 2025. Acuité believes that going forward the performance of the company is expected to improve over the medium term. Moderate Financial Risk Profile The company has moderate financial risk profile marked by Total Tangible net worth stood at Rs. 171.16 Cr. as on 31st March 2025 against Rs. 154.25 Cr. as on 31st March 2024, increase in net worth is on account of profit accretion. The total debt outstanding of the company is Rs. 174.08 Cr. as on 31st March, 2025 against Rs. 171.04 Cr. as on 31st Match 2024. Debt to Equity ratio stood at 1.02 times in FY25 against 1.11 times in FY24. Interest coverage ratio stood at 3.00 times for FY25 as against 2.63 times in FY24. Debt Service coverage ratio stood at 1.91 times for FY25 as against 1.42 times in FY24. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 1.33 times as on March 31, 2025 as against 1.43 times as on March 31, 2024. Acuité believes that going forward the financial risk profile of the company will be sustained backed by steady accruals and no major debt funded capex plans.

Weaknesses

Intensive working capital operations The working capital operations of the company is intensive marked by GCA days of 116 days in FY25 against 140 days in FY24. There is an improvement in the GCA days due to the inventory days of the company which stood at 85 day in FY25 against 104 days in FY24 with debtor days of the company stood at 4 days in FY25 against 8 days in FY24 and creditor days stood at 4 days in FY25 against 6 days in FY24. Going forward, the working capital operations of the company is expected to remain at similar level over the medium term. ­Highly competitive nature of the industry The Indian meat processing industry is highly competitive, with the presence of a large number of players leading to a highly competitive industry and thus, putting pressure on the profitability margins of the companies. There are a number of abattoirs and meat processing plants registered with the Agricultural and Processed Food Products Export Development Authority (APEDA). Further, most of the meat processing and export-oriented units in the country are situated in U.P., Punjab, Maharashtra, and Andhra Pradesh. Inherent business risks and regulatory risks The business is exposed to significant challenges, such as disease outbreaks in the cattle population. Also, the industry is socially and politically sensitive in the country. Factors such as these can impact the availability and processing of buffalo meat. Moreover, as the company earns a major share of its revenue from the export market, its profitability remains exposed to the risk of any adverse regulatory development in the importing country.

Rating Sensitivities

Movement in scale of operations and profitability margins Movement in working capital operations.

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The net cash accruals of company stood at Rs. 20.38 Cr. in FY25 against the debt obligation of Rs. 4.40 Cr. for the same period. Current ratio stood at 1.60 times for FY25 against 1.56 times in FY24. The company has cash & bank position of Rs. 12.77 Cr. The average fund based bank limit utilization is at 87.82% for the 6 months’ period ending September 2025. Acuité believes that going forward the company will maintain adequate liquidity position due to steady accruals.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	1,117.87	865.45
PAT	Rs. Cr.	16.91	12.75
PAT Margin	(%)	1.51	1.47
Total Debt/Tangible Net Worth	Times	1.02	1.11
PBDIT/Interest	Times	3.00	2.63

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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.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 08 Aug 2024 Derivative Exposure Short Term 8.00 ACUITE A3+ (Reaffirmed) Derivative Exposure Short Term 5.00 ACUITE A3+ (Reaffirmed) Derivative Exposure Short Term 8.00 ACUITE A3+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 6.12 ACUITE A3+ (Reaffirmed) Packing Credit Long Term 50.00 ACUITE BBB | Stable (Reaffirmed) Packing Credit Long Term 18.50 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 9.39 ACUITE BBB | Stable (Reaffirmed) Packing Credit Long Term 116.50 ACUITE BBB | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 14.49 ACUITE BBB | Stable (Reaffirmed) 08 Jun 2023 Short-term Loan Short Term 8.00 ACUITE A3+ (Reaffirmed) Short-term Loan Short Term 5.00 ACUITE A3+ (Reaffirmed) Proposed Short Term Bank Facility Short Term 6.12 ACUITE A3+ (Reaffirmed) Short-term Loan Short Term 5.00 ACUITE A3+ (Reaffirmed) Packing Credit Long Term 116.50 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 16.88 ACUITE BBB | Stable (Reaffirmed) Packing Credit Long Term 18.50 ACUITE BBB | Stable (Reaffirmed) Packing Credit Long Term 50.00 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 5.00 ACUITE BBB | Stable (Reaffirmed) Term Loan Long Term 5.00 ACUITE BBB | Stable (Reaffirmed) 31 May 2023 Packing Credit Short Term 116.50 ACUITE A3+ (Assigned) Packing Credit Short Term 18.50 ACUITE A3+ (Assigned) Packing Credit Short Term 50.00 ACUITE A3+ (Assigned) Proposed Short Term Bank Facility Short Term 18.00 ACUITE A3+ (Assigned) Term Loan Long Term 16.86 ACUITE BBB | Stable (Assigned) Term Loan Long Term 5.00 ACUITE BBB | Stable (Assigned) Proposed Working Capital Demand Loan Long Term 11.14 ACUITE BBB | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. Derivative Exposure Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A3+ | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Derivative Exposure Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A3+ | Reaffirmed YES BANK LIMITED Not avl. / Not appl. Derivative Exposure Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A3+ | Reaffirmed State Bank of India Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 116.50 Simple ACUITE BBB | Stable | Reaffirmed H D F C Bank Limited Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 18.50 Simple ACUITE BBB | Stable | Reaffirmed YES BANK LIMITED Not avl. / Not appl. Packing Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 75.00 Simple ACUITE BBB | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.34 Simple ACUITE BBB | Stable | Reaffirmed State Bank of India Not avl. / Not appl. Term Loan 24 Feb 2021 Not avl. / Not appl. 31 Jan 2026 1.66 Simple ACUITE BBB | Stable | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg Associate 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. 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.