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 assigning long term rating of 'ACUITE BB+' (read as ACUITE double B plus) on the Rs. 61.00 Cr. bank facilities of Shakambhari Snacks Private Limited. The outlook is 'Stable'.
Rationale for rating
The rating takes into account the benefits derived from the management, long term agreement with reputed FMCG brands like Haldirams Snacks Private Limited and Aakash Global Foods Private Limited (subsidiary of Haldiram Group), moderate working capital cycle, adequate liquidity albeit high bank limit utilisation. However, these strengths are partly offset by average financial risk profile with improving yet low networth,moderate gearing and debt protection metrices and decline in revenues albeit increase in operating profitability in FY 26(Prov.).
About the Company
Incorporated in 2022, Shakambhari Snacks Private Limited (SSPL) was formed pursuant to a composite scheme of arrangement involving the amalgamation of the Gaya unit of Saa Vishnu Bakers Private Limited. The company operates as a contract manufacturer for Haldiram Snacks Food Private Limited (96% of the revenue generation as of FY 26(Prov.)) and Aakash Global Foods Private Limited (subsidiary of Haldirams) of potato chips and extruded savoury snacks. The company has an installed capacity of 25,500 MTPA in Gaya, Bihar. The operations of the company are handled by Mr Anirudh Poddar and Mrs Rohini Poddar.
Unsupported Rating
Not Applicable
Analytical Approach
Acuite has taken standalone approach of business and financial risk profile of Shakambhari Snacks Private Limited to arrive at the rating.
Key Rating Drivers
Strengths
Long track record of operations coupled with long-term association with reputed clientele
The operations of the company are managed by Mr Anirudh Poddar and Mrs Rohini Poddar, who have experience in the industry. It also has established healthy relationships with the reputed clientele like Haldirams Snacks Food Private Limited and Aakash Global Foods Private Limited. The company is associated these reputed FMCG brands for job work based manufacturing of potato chips and snacks. Acuité derives comfort from the lower off-take risk owing to agreements with the reputed clientele.
Moderate Working Capital Cycle
The working capital cycle of the company is moderate as reflected by Gross Current Assets (GCA) of 123 days for March 31, 2026(Prov.) as compared to 79 days for March 31, 2025. The debtor period stood at 3 days as on March 31, 2026(Prov.) as compared to 9 days as on March 31, 2025. The payments are received from Haldirams within 7 days. Further, the inventory days of the company stood at 68 days as on March 31, 2026(Prov.) as compared to 28 days in FY2025. The inventory holding of the company is about 2-3 months depending on the variety of the products. The other current assets amounts to Rs. 29.58 Cr in FY 26(Prov.) and Rs. 31.79 Cr. in FY 25. comprises majorly of interest and subsidy receivable from Bihar Government. The creditors stood at 34 days as on March 31, 2026(Prov.) as compared to 39 days as on March 31, 2025. The suppliers are paid within 2 months. Acuité believes that the working capital operations of the company is expected to remain in the similar lines over the medium term.
Weaknesses
Decline in revenues albeit increase in operating profitability in FY 26(Prov.)
The revenues have declined to Rs. 197.36 Cr. in FY 26(Prov) as compared to Rs. 282.14 Cr. in FY 25 due to decline in quantity sold for a few products under the savoury portfolio. Up till FY 25, company’s supply were restricted to UP and Bihar. With the change in procurement policy and recalibration of distribution network of Haldirams, the company is now selling only in the state of Bihar. there had been a change in the distribution area and the Company was restricted to sales for Bihar only.From FY27, the company has entered into contract with Haldiram to supply its products in Odisha and Jharkhand which is expected to augment their topline. The operating profitability increased to 7.28 percent in FY 26 (Prov) as compared to 4.14 percent in FY 25 due to shift in product mix which has better margin albeit lower realization values. Acuite expected the operating performance to improve due to change in product mix and increase in the geographical scope of business over the medium term.
Average Financial Risk Profile
The financial risk profile of the company is average marked by improving yet low net worth, moderate gearing and debt protection metrices. The tangible net worth of the company stood at Rs. 23.48 Cr. as on March 31, 2026(Prov.) as compared to Rs. 4.81 Cr. as on March 31, 2025 due to accretion to reserves and quasi equity. Acuite has considered unsecured loans of Rs. 15.90 Cr. as quasi equity as the same is subordinated to bank loans. Due to the quasi equity, it has led to an improvement in the gearing and capital structure of the company. The gearing of the company stood at 2.81 times as on March 31, 2026(Prov) and 15.10 times as on March 31, 2025. The unsecured loans amount to Rs. 5.69 Cr. in FY 26(Prov.) as compared to Rs. 35.16 Cr. in FY 25. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) though improved yet high stood at 3.56 times as on March 31, 2026(Prov.) as compared to 21.73 times as on March 31, 2025. The debt protection metrices of the company marked by Interest Coverage ratio (ICR) of 3.48 times as on March 31, 2026(Prov.) as compared to 3.00 times as on FY 25 and debt service coverage ratio (DSCR) of 1.11 times for March 31, 2026(Prov.) as compared to 0.82 times as on FY 25. The shortfall was met by infusion of unsecured loans. The net cash accruals to total debt (NCA/TD) stood at 0.18 times as on March 31, 2026(Prov.) as compared to 0.11 times as on March 31, 2025. Acuité believes that the financial risk profile is expected to improve over the medium term, with steady cash accruals and in the absence of debt funded capex.
Rating Sensitivities
Potential triggers (individual or collective) for an upward rating action:
Increase in revenues by 15-20% in the near to medium term
Sustained operating profitability in the medium term
Net cash accruals to remain in the range of 13-15 Cr in medium term
Potential triggers (individual or collective) for a downward rating action:
Decline in revenues and operating profitability in near term
DSCR to fall below unity in near term
Increase in exposure to subsidiaries.
Liquidity Position
Adequate
The company has adequate liquidity marked by net cash accruals of Rs 11.70 Cr. as on FY2026(Prov.) as against long term debt repayment of Rs. 10.06 Cr. over the same period. In FY 25, the shortfall was met by the infusion of unsecured loans. The management has financial flexibility to infuse funds as and when required to support the business. The cash and bank balance stood at Rs. 1.17 Cr. as on March 31, 2026(Prov.) and Rs. 1.25 Cr March 31, 2025. Further, the current ratio of the company stood at 1.28 times as on March 31, 2026(Prov.) as compared to 1.13 times as on March 31, 2025. The average bank utilization limit of the company for 6 months ended April 2026 is 93.20 percent. The exposure to group entities in the form of loans and advances would be a key monitorable. Acuité believes that the liquidity of the company is likely to remain adequate over the near to medium term on account of steady cash accruals, albeit high bank limit utilisation.
Outlook: Stable
Other Factors affecting Rating
None
Particulars
Unit
FY 26 (Provisional)
FY 25 (Actual)
Operating Income
Rs. Cr.
197.36
282.14
PAT
Rs. Cr.
2.77
(0.67)
PAT Margin
(%)
1.40
(0.24)
Total Debt/Tangible Net Worth
Times
2.81
15.10
PBDIT/Interest
Times
3.48
3.00
Status of non-cooperation with previous CRA (if applicable)
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.
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