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 the long-term rating of 'ACUITE BBB' (read as ACUITE triple B) on the Rs.50.00 Cr. bank facilities of Saroj Enterprise. The outlook is 'Stable'.
Rationale for rating
The rating reaffirmation reflects the healthy financial risk profile of the group. The rating also considers the group’s healthy profitability margins, established operational track record and experienced management. However, the rating remains constrained by the vulnerability of operating performance to budgetary allocations and tender floating by the state government, along with the working capital-intensive nature of operations.
About the Company
Established in October 2019, Saroj Enterprise is a partnership firm located in Maharashtra, wherein Mr. Aditya Jadhav and Ms. Rupal Jadhav are equal partners. The firm is into supply of GST food articles to private players, who in turn supply to the various departments of the Maharashtra State Government.
About the Group
Indo Group comprising Indo Allied Protein Foods Private Limited (IAPFPL), Saroj Enterprise and Shiva Enterprise and Kapalinee Merchants Private Limited is mainly into trading and supply of food and non-food items to the various departments of the Maharashtra State Government under the state welfare schemes. While IAPFPL supplies directly to the state government departments; Saroj Enterprise, KMPL and Shiva Enterprise (partnership firms) supply to private players, who in turn supply to the state government departments.
Unsupported Rating
Not Applicable
Analytical Approach
Extent of Consolidation
•Full Consolidation
Rationale for Consolidation or Parent / Group / Govt. Support
Acuite has consolidated the business and financial risk profile of Indo Allied Protein Foods Private Limited (IAPFPL), Saroj Enterprise, Shiva Enterprise and Kapalinee Merchants Private Limited, together referred to as the Indo group. The consolidation is on account of similar line of business, common management and significant operational & financial linkages.
Key Rating Drivers
Strengths
Experienced management and long-track record of operations
Indo Group has been present in the welfare scheme supply industry for over two decades and is supported by a well experienced and qualified management personnel. The group undertakes supply of food articles, household, essential, safety kits for the Government of Maharashtra. Further, the common management and operational synergies among the group entities provide flexibility in order execution and resource allocation. The group’s established presence in the industry and their past record of order execution is expected to support the business profile of the group.
Healthy financial risk profile
The group has a healthy financial risk profile, with a strong networth, low gearing and healthy debt coverage metrics. The tangible networth of the group stood healthy at Rs. 798.26 Cr on March 31, 2026 (Prov.) as against Rs. 797.49 Cr on March 31, 2025 despite withdrawal of excess surplus by partners. The gearing though increased marginally, continues to remain below unity at 0.39 times on March 31, 2026 (Prov.) as borrowings mainly consist of short term working capital debt and unsecured loans from promoters. Further, the TOL/TNW levels and Debt-EBITDA levels remain moderate at 0.74 times and 0.97 times respectively on March 31, 2026 (Prov.).
The financial risk profile of the group is expected to remain healthy in the absence of any debt funded capex plans over the medium term.
Healthy profitability margins
The group has maintained healthy profitability margins over the years, with a further improvement in FY2026 (Prov.) wherein operating margin increased to 25.79 percent in FY2026 (Prov.) from 16.82 percent in FY2025, primarily driven by higher margins reported by Shiva Enterprise. During FY2026, Shiva Enterprise witnessed a favourable change in its product mix, with a higher proportion of orders for utensils, which command better margins than baby kits. Further, discounts secured through bulk procurement of materials also supported the profitability margins of the group. Consequently, the group’s PAT margin improved to 25.33 percent in FY2026 (Prov.) from 15.22 percent in FY2025.
Weaknesses
Intensive working capital operations
The group has an intensive working capital operation cycle, evident from gross current assets (GCA) of 272 days in FY2026 (Prov.). These are mainly driven by debtor days, which stood increased at 172 days in FY2026 due to pending government receivables. For inventory stock, the articles are purchased only after the order is received. The creditor days stood at 124 days in FY2026 (Prov.). However, despite any intensive working capital cycle, the group's reliance on external working capital limits remains minimal. The average bank limit utilization for the group stood low at ~38 percent for the last six months ended August 2026.
Volatile scale of operations
The group’s revenue profile remains volatile due to its dependence on orders floated by the state government. Any slowdown or delay in the floating of such orders directly affects the group’s topline. A slowdown in orders during FY2025 and FY2026 resulted in a decline in operating revenue to Rs. 1,117.89 Cr. in FY2026 (Prov.) from Rs. 1,441.32 Cr. in FY2025 and Rs. 2,659.86 Cr. in FY2024. Further, given the common management, orders are allocated among the four entities based on mutual decisions, resulting in fluctuations in their individual revenues. Going forward, the continued inflow of new orders and sustained improvement in revenue will remain key monitorable.
Inherent risk of capital withdrawal by partners
The constitution of Shiva Enterprise and Saroj Enterprise is of partnership firm which leads to the inherent risk pf capital withdrawal by the partners. In FY2026, the partners withdrew significant capital of ~Rs. 250 - 285 Cr, which led to a stagnant networth. However, funds of ~Rs. 100 Cr where re-infused in the group as unsecured loans. Going forward any significant withdrawals affecting the financial risk profile of the group will remain a key monitorable.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Consistent improvement in operating revenue higher than Rs. 1700 - 1800 Cr.
Improvement in working capital cycle
Potential triggers (individual or collective) for a downward rating action:
Further elongation in the working capital cycle
Increase in Debt-EBITDA levels above 2 times
Liquidity Position
Strong
The group generated healthy net cash accruals of Rs. 299.39 Cr against minimal repayment obligation of Rs. 0.24 Cr in FY2026 (Prov.). Going forward, NCAs are expected to remain in the range of Rs. 210 – 250 Cr against maturing repayment obligations of 2 – 2.5 Cr in FY2027 and FY2028. The current ratio stood healthy at 2.19 times on March 31, 2026 (Prov.). The average bank limit utilization stood low at ~38 percent for the last six months ended August 2026. The group had free cash and bank deposits (including FD) of ~Rs. 120 - 125 Cr on March 31, 2026 (Prov.).
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
1117.89
1441.32
PAT
Rs. Cr.
283.11
219.38
PAT Margin
(%)
25.33
15.22
Total Debt/Tangible Net Worth
Times
0.39
0.18
PBDIT/Interest
Times
25.21
31.25
Status of non-cooperation with previous CRA (if applicable)
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Proposed Long Term Bank Facility
Long Term
15.00
ACUITE BB+
(Downgraded & Issuer not co-operating* from ACUITE BBB | Stable)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
Janata Sahakari Bank Ltd (Pune)
Not avl. / Not appl.
Cash Credit
Unlisted
RBI
Not avl. / Not appl.
Not avl. / Not appl.
Not avl. / Not appl.
25.00
Simple
ACUITE BBB | 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.
25.00
Simple
ACUITE BBB | Stable | Reaffirmed
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.
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)
Sr. No
Company Name
1
Indo Allied Protein Foods Private Limited
2
Shiva Enterprise
3
Saroj Enterprise
4
Kapalinee Merchants Private Limited
Contacts
List of instruments and names of regulators of the instruments
