Press Release

Press Release

April 10, 2026

SAI SMARAN FOODS PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	96.75	ACUITE BB \| Stable \| Reaffirmed	-
Total Outstanding	96.75	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long term rating of "ACUITE BB" (read as ACUITE Double B) on Rs.96.75 crore bank facilities of Sai Smaran Foods Private Limited (SSFPL). The Outlook is "Stable".

Rationale for Rating:

The rating continues to derive comfort from the promoters’ extensive industry experience and the company’s increased focus on the trading business, which has supported an improvement in operating performance during the FY 26 compared to FY25. However, the company had incurred losses in FY25, although a recovery is evident with the company reporting profits during 11MFY26. The financial risk profile remains characterised by an average net worth, improving gearing, and weak coverage indicators in FY25. However, financial risk profile is expected to improve over the medium term, supported by stable operating performance in FY 26. Although the company’s gross current assets (GCA) days remained stretched in FY25 due to high inventory levels, collection efficiency has shown marginal improvement. Liquidity remained stretched in FY25; however, it is expected to improve going forward, supported by improved year-to-date performance and the absence of any significant long-term debt repayments. Acuite believes that the sustainability of operating performance, particularly exposure to price volatility, will remain a key monitorable. The rating continues to be constrained by the fragmented nature of the industry and its inherently thin profitability margins.

About the Company

Sai Smaran Foods Private Limited was originally incorporated in May 1993 in the name of Sai Smaran Oil Refinery Private Limited. The company is engaged in extraction of refined oil, de-oiled cake, extruded meal and lecithin from soyabean and has three divisions, i.e. solvent plant, refinery plant and extruded plant. The company sells its product under the brand name under “Anmol”. Directors of the Company are Mr Naresh Dulichand Goenka and Mr. Rishabh Naresh Goenka. During the Year 2019-2020 the company has converted from public limited to private limited company. Company is also doing exports. Company is also having branches in Rajasthan, Madhya Pradesh and Gujarat.

Unsupported Rating

Not Applicable

Analytical Approach

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

Key Rating Drivers

Strengths

Extensive experience of promoters in the industry along with established track record of operations
SSFPL was incorporated in 1993 and has been in operations since 1995. The company is promoted by Mr. Naresh Goenka, who takes care of the day-to-day operations. Mr. Goenka is supported by his son and daughter in law, who are also directors in the company. The promoters have over two decades of experience in the industry. The company has a long-track record of operations and established presence in the industry. SSFPL, under the leadership of its promoter, has maintained long-standing relations with some of its customers and suppliers. Going ahead, extensive experience of the promoters is expected to help the company improve its overall operating performance over the medium term.

Weaknesses

Scale of Operation:
SSFPL reported a sharp decline in total operating income to Rs.382.93 crore in FY25 from Rs.601.42 crore in FY24, mainly due to lower volumes and realisations from soya de-oiled cake and refined soya oil, along with inventory stocking undertaken in anticipation of a price increase, which adversely impacted revenues. Consequently, operating margins declined to (0.67%) in FY25 from 1.45% in FY24, leading to an operating loss, while the PAT margin deteriorated to (2.83%) in FY 25 from 0.01% in FY 24, driven by the EBITDA loss and high finance costs. However, performance improved in FY26, supported by higher trading activity in soya raw oil. During 11MFY26, the company reported operating income of Rs.385.74 crore compared to Rs.336.14 crore in 11MFY25, and achieved an EBITDA of Rs.12.28 crore with a margin of 3.18%, indicating a recovery in operating performance. Acuite believes that while the improvement is encouraging, the sustainability of profitability will remain a key monitorable going forward.

Average Financial risk profile:
The financial risk profile of the company is characterised by an average net worth, improving gearing, and weak coverage indicators. The total tangible net worth declined to Rs. 50.17 crore in FY25 from Rs. 61.02 crore in FY24, mainly due to losses incurred during the year. Total borrowings reduced to Rs. 79.77 crore in FY25 from Rs. 113.61 crore in FY24, resulting in an improvement in gearing to 1.59 times in FY25 from 1.86 times in FY24. However, debt protection metrics remained weak, with interest coverage ratio (ICR) and debt service coverage ratio (DSCR) at 0.13 times and 0.11 times, respectively, in FY25. The TOL/TNW improved marginally to 1.95 times in FY25 from 2.05 times in FY24. Acuite believes that the company’s financial risk profile is likely to improve over the medium term, supported by improvement in net worth amid stable operating performance in the current year.

Moderate Working Capital management:
The company’s working capital management remained moderate in FY25, as reflected by an increase in gross current assets (GCA) days to 116 days from 97 days in FY24, primarily driven by higher inventory levels. Inventory days increased to 77 days in FY25 from 62 days in FY24 due to a build-up of finished goods and raw materials, as the company stocked products in anticipation of a price hike. Debtor days improved to 17 days in FY25 from 20 days in FY24, in line with the company’s average collection period of 10–15 days. Creditor days increased to 9 days in FY 25 from 5 days in FY 24, with most payments made within 10–15 days. Other current assets stood at Rs. 23.29 crore in FY25, mainly comprising advances to group companies and suppliers, which also contributed to higher GCA days. Acuite believes that the company’s working capital management is expected to improve going forward, supported by constant monitoring of inventory levels and efficient collection cycle.

Rating Sensitivities

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

Increase in scale of operation and EBITDA margin increasing to 3% or more

Improvement in debt protection metrices

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

Any elongation in working capital management
Scale of operation falls below Rs.300 crore or more and any further deterioration in the profitability.

Liquidity Position

Stretched

The liquidity profile of the company remained stretched in FY25, marked by a negative net cash accrual (NCA) of Rs. (9.40) crore against total debt repayments of Rs. 0.52 crore during the year. Though the debt obligation is not so significant, still this shortfall of repayment were met through effective working capital management. However, NCA is expected to remain in the range of Rs. 5–7 crore going forward, supported by the YTD performance and absence of any significant long-term debt repayments. The current ratio stood at 1.30 times in FY25, though cash and bank balances remained low at Rs. 0.05 crore as on FY 25. The company’s fund-based working capital utilization stood at around 83% for the six months ended February 2026. Acuite believes that SSFPL’s liquidity position is expected to improve, supported by steady accruals and absence of debt funded capex plan.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	382.93	601.42
PAT	Rs. Cr.	(10.85)	0.05
PAT Margin	(%)	(2.83)	0.01
Total Debt/Tangible Net Worth	Times	1.59	1.86
PBDIT/Interest	Times	0.13	1.14

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
16 Jan 2025	Cash Credit	Long Term	60.00	ACUITE BB \| Stable (Downgraded from ACUITE BB+)
	Proposed Long Term Bank Facility	Long Term	4.75	ACUITE BB \| Stable (Downgraded from ACUITE BB+)
	Cash Credit	Long Term	15.00	ACUITE BB \| Stable (Assigned)
	Cash Credit	Long Term	15.00	ACUITE BB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	2.00	ACUITE BB \| Stable (Assigned)
	Bank Guarantee (BLR)	Short Term	0.25	ACUITE Not Applicable (Withdrawn)
19 Mar 2024	Bank Guarantee (BLR)	Short Term	0.25	ACUITE A4+ (Downgraded & Issuer not co-operating* from ACUITE A3)
	Cash Credit	Long Term	60.00	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Negative)
	Proposed Long Term Bank Facility	Long Term	4.75	ACUITE BB+ (Downgraded & Issuer not co-operating* from ACUITE BBB- \| Negative)

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.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	75.00	Simple	ACUITE BB \| Stable \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BB \| 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.	6.75	Simple	ACUITE BB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shreya Banerjee
Analyst-Analytical 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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