Press Release

Press Release

September 01, 2026

SAHAKAR MAHARSHI SHANKARRAO MOHITE PATIL SAHAKARI SAKHAR KARKHANA 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	300.00	ACUITE BB+ \| Stable \| Reaffirmed	-	RBI
Total Outstanding	0.00	300.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has reaffirmed its long-term rating of 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 300.00 Cr. bank loan facilities of Sahakar Maharshi Shankarrao Mohite Patil Sahakari Sakhar Karkhana Limited (SMSMPSSKL). The outlook is 'Stable'.

Rationale for rating
The rating continues to reflect extensive experience of promoters in the sugar industry, long track record of integrated operations, healthy relationship with sugarcane farmers and a diversified customer base. The rating also gets comfort from improvement in profitability margins albeit decline in revenue, moderate financial risk profile and adequate liquidity. However, the ratings remain constrained by the working capital-intensive nature of industry, inherent cyclicality in the sugar industry, exposure to agro-climatic risks and intense competition in the sector.

About the Company

SMSMPSSKL set up in 1960 by the late Mr. Shankarrao Mohite-Patil. The society is engaged in manufacturing of sugar and its by-products such as molasses used for ethanol generation and bagasse used for power generation. The society has 7200 Tonnes Crushed Per Day (TCD) sugar mill at Akluj in Solapur (Maharashtra). The sugar mill is forward integrated with co-generation of 30 MW and a distillery of 60 Kilo Litres Per Day (KLPD). The society is managed by Mr. Jaysinh Mohite-Patil and Mr. Vijaysinh Mohite-Patil.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profiles of Sahakar Maharshi Shankarrao Mohite Patil Sahakari Sakhar Karkhana Limited (SMSMPSSKL) to arrive at the rating.

Key Rating Drivers

Strengths

Established track record of operations in sugar industry

SMSMPSSKL was incorporated in 1960 and manufactures sugar and by products such as molasses, bagasse, ethanol etc. The promoters are into the sugar industry since past more than 5 decades. It has developed healthy relations with sugarcane farmers as the society has low cane arrears as compared to other sugar mills in the locality. Acuité believes that the society will be benefitted over the medium term supported by established presence in the sugar industry for more than ten decades.

Improvement in profitability margins

The operating margin of the society improved to 5.75% in FY26 (Prov.) against 2.94% in FY25 due to decrease in raw material costs. The PAT margin stood at 0.55% in FY26 (Prov.) against 0.18% in FY25 due to other income. Acuite believes the profitability margins will remain monitorable due to rising prices of sugarcane.

Moderate Financial risk profile

The society’s financial risk profile is moderate marked by slight increase in net worth, high gearing and moderate debt protection metrics. The adjusted tangible net worth (net of revaluation reserve) of the society increased to Rs. 94.01 Cr as on March 31, 2026 (Prov.) from Rs. 91.39 Cr as on March 31, 2025, due to accretion to reserves along with periodic fund infusion. The Gearing of the society stood at 2.27 times as on March 31, 2026 (Prov.), as against 2.58 times as on March 31, 2025. The Total outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 3.47 times as on March 31, 2026 (Prov.), as against 3.39 times as on March 31, 2025. The debt protection metrics of the society is marked by ICR at 1.38 times and DSCR at 1.04 times as on March 31, 2026 (Prov.). Acuité believes that the financial risk profile of the society is expected to remain at similar levels over the medium term in the absence of any significant debt-funded capital expenditure plans.

Weaknesses

Decline in revenue
The society’s operations are integrated, with a presence across sugar manufacturing, bagasse-based cogeneration and distillery operations which safeguards the company to some extent from fluctuation in prices and seasonality.
The revenue from the operations of the society stood at Rs.361.92 Cr in FY26 (Prov.) as against Rs. 408.44 Cr. in FY25. In FY26, the number of crushing days increased to 103 days as compared to 89 days in FY25, leading to higher capacity utilization. However, revenue declined in FY26 due to government-imposed sugar sales quotas, which restricted sales volumes, as well as the limited availability of sugarcane. This also led to high inventory build-up for the society during year end.
Unseasonal rainfall in Maharashtra affected sugarcane crop yields and cane availability, while lower sugar realizations in the domestic market impacted the overall revenue generation. Further, the society has achieved revenue of Rs. 92.06 Cr. till 24^th August 2026. Acuite believes that the revenue of the society will improve over the medium term supported by improved realization of sugar.

Intensive working capital cycle

The working capital operations of the society is intensive marked by Gross Current Assets (GCA) of 289 days as on 31st March 2026 (Prov.) as compared to 224 days as on 31st March 2025. The GCA days are high on account of inventory days which stood at 223 days in FY26 (Prov.) against 135 days in FY25, due to the quota given by the government to sell the sugar, the balance is kept as inventory by the sugar mill. And the society is not allowed to sell more than the quota assigned to them. Hence, the inventory days are always high in sugar industry. The debtor days stood at 16 days in FY26 (Prov.) as against 9 days in FY25. The creditor days stood at 32 days in FY26 (Prov.) from 24 days in FY25. Acuité believes that the working capital operations of the society will remain at same level due to nature of the business.

Presence in a Cyclical industry and agroclimatic changes

Being an agro commodity, the sugar cane crop is dependent on climatic conditions and is vulnerable to pests and diseases that may not only impact the yield per hectare but also the recovery rate. These factors can have a significant impact on the society’s profitability. In addition, the cyclicality in sugar production results in volatility in sugar prices. However, the sharp contraction in the sugar prices is curtailed after the introduction of MSP by the Central Government in June 2018. Over the long term, higher ethanol production with increased diversion towards B-heavy molasses and direct sugar juice is expected to help curtail the excess supply of sugar, resulting in lower volatility in sugar prices and in turn, cash flows from the sugar business. Further, the sugar industry is highly competitive and fragmented marked by presence of many organised and unorganised players in this industry, thus putting pressure on the profitability margins of the society.

Rating Sensitivities

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

Growth in operating income by more than 40% with stable improvement in profitability.
Improvement in working capital cycle

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

Any large debt funded capex, impacting the financial risk profile and liquidity.
Revenue falling by 20-25 percent and steep decline in profitability.

Liquidity Position

Adequate

The society has adequate liquidity marked by sufficient net cash accruals of Rs.7.81 Cr in FY26 (Prov.) against the debt obligations of Rs.6.85 Cr over the same period. The current ratio stood at 1.01 times in FY26 (Prov.). The cash and bank balances stood at Rs. 16.72 crores in FY26 Prov. The average utilization of fund-based limits stood at ~67% for the last six months ended June 2026. Acuité believes that the liquidity position of the society will remain a key monitorable in view of upcoming debt repayments; however, the same is expected to be supported by operations from the society.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	361.92	408.44
PAT	Rs. Cr.	2.01	0.74
PAT Margin	(%)	0.55	0.18
Total Debt/Tangible Net Worth	Times	2.27	2.58
PBDIT/Interest	Times	1.38	1.16

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
03 Jun 2025	Cash Credit	Long Term	150.00	ACUITE BB+ \| Stable (Assigned)
	Term Loan	Long Term	33.42	ACUITE BB+ \| Stable (Assigned)
	Term Loan	Long Term	6.58	ACUITE BB+ \| Stable (Assigned)
	Proposed Cash Credit	Long Term	110.00	ACUITE BB+ \| Stable (Assigned)

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
M. S, CO-OPERATIVE BANK LIMITED	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	150.00	Simple	ACUITE BB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	91.50	Simple	ACUITE BB+ \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	13.27	Simple	ACUITE BB+ \| Stable \| Reaffirmed
M. S, CO-OPERATIVE BANK LIMITED	Not avl. / Not appl.	Term Loan	Unlisted	RBI	01 Jan 2025	Not avl. / Not appl.	31 Jan 2030	26.73	Simple	ACUITE BB+ \| Stable \| Reaffirmed
BANK OF INDIA	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	18.50	Simple	ACUITE BB+ \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Manvi Khaitan
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.