Press Release

Press Release

September 04, 2026

SHAKTIGARH TEXTILE AND INDUSTRIES LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	29.60	ACUITE BBB- \| Stable \| Assigned	-	RBI
Bank Loan Ratings	0.00	135.00	ACUITE BBB- \| Stable \| Reaffirmed	-	RBI
Bank Loan Ratings	0.00	3.00	-	ACUITE A3+ \| Assigned	RBI
Bank Loan Ratings	0.00	7.00	-	ACUITE A3+ \| Reaffirmed	RBI
Total Outstanding	0.00	174.60	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuité has reaffirmed its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and its short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) to the Rs.142.00 crore of bank facilities of Shaktigarh Textile and Industries Limited (STIL). The outlook is ‘Stable’.

Acuité has assigned long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and its short-term rating of 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.32.60 Cr. bank facilities of Shaktigarh Textile and Industries Limited (STIL). The outlook is ‘Stable’.

Rationale for rating
The rating reaffirmation reflects the company's sustained growth in revenue albeit moderation in margins. The rating continues to derive strength from the company's long operational track record, experienced management and established presence in the industry. Further, the rating factors in the company's moderate financial risk profile and adequate liquidity position. However, the rating remains constrained by its moderately intensive working capital operations, susceptibility of profitability to fluctuations in raw material prices, particularly jute, owing to their seasonal and agro-climatic nature, as well as exposure to stringent regulatory requirements governing the jute industry and foreign exchange fluctuation risks.

About the Company

Incorporated in 1965, Shaktigarh Textile and Industries Limited (STIL) was taken over by the Kajaria family in 2011 to establish a jute mill at Shaktigarh, West Bengal, which became operational on September 30, 2014. The company is engaged in the manufacturing of jute products such as hessian and sacking bags. STIL operates as a composite jute mill with a total manufacturing capacity of 1,09,500 MTPA, of which 22,500 MTPA is owned and the remaining 87,000 MTPA is operated under a lease agreement dated March 30, 2019, for a tenure of 15 years. In addition, company has a 4.5 MW rooftop solar and in process of setting up of new solar plant. The company is currently managed by Mr. Srivatsa Kajaria, representing the fourth generation of the Kajaria family.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of STIL to arrive at the rating

Key Rating Drivers

Strengths

Long track record of operations and experienced management
The company has an operational track record of nearly four decades in this industry. The promoters have more than three decades of experience in the manufacturing and marketing of jute and related products. Post-acquisition by Kajaria family, the promoters established a Jute Park at Shaktigarh (Burdwan district, West Bengal) under a Public-Private Partnership (PPP) model, which became operational in September 2014. STIL is currently managed by Mr. Srivatsa Kajaria, representing the fourth generation of the Kajaria family, who brings forward the legacy and domain expertise of the group. Acuite believes that the company’s long operational track record, coupled with the extensive experience of the promoters in the jute industry, will continue to support strong relationships with key customers and suppliers.

Improvement in operating scale albeit moderation in profitability
STIL’s operating revenue improved to Rs. 1057.68 crore in FY26 (prov.) from Rs. 769.85 crore in FY25 (with overall growth of ~37 per cent), driven by improved demand and better price realisation following the pass-through of increased raw material costs to customers. In Q1FY27, the company reported revenue of Rs. 262.81 crore as against Rs. 229.61 crore in Q1FY26. For FY27, the revenue is expected to increase to the range of Rs. 1,100–1,300 crore, supported by expected increase in demand from government organizations. The company’s major customers include Telangana State Civil Supplies Corporation Limited, Rajasthan State Cooperative, Gujarat State Cooperative, among others. The operating margin though moderated and stood at 2.58 per cent in FY2026 (prov.) as against 2.87 per cent in FY2025 and 2.82 per cent in FY2024 due to higher raw-material expenses. Further, the net profit margins remained thin and stood at 0.52 per cent in FY2026 (prov.) from 0.74 per cent in FY2025. The moderation in PAT margins is on account of increase in depreciation and interest cost. Acuite believes that the company’s ability to sustain growth in revenues while improving profitability will remain a key rating monitorable.

Moderate financial risk profile
The financial risk profile of the company remained moderate, supported by a moderate net worth base, moderately high gearing and adequate debt protection metrics. The net worth stood at Rs. 81.35 crore in FY26 (prov.), from Rs. 75.89 crore in FY25 on account of accretion of profits to reserves. The gearing, however, increased to 2.23 times as on March 31, 2026 (prov.), compared to 1.52 times as on March 31, 2025, primarily due to additional long-term debt for solar capex and increase in short-term borrowings during FY26 (prov.). The company’s total debt increases and stood at Rs. 181.73 crore as of March 31, 2026 (prov.) as against Rs. 115.29 crore as of March 31, 2025, comprising Rs. 12.85 crore of long-term debt, Rs. 163.74 crore of short-term borrowings, Rs. 2.31 crore of unsecured loans from promoters, and Rs. 2.83 crore of long-term debt-repayment obligations. The debt-protection metrics remained comfortable, with the Interest Coverage Ratio (ICR) at 2.12 times in FY26 (prov.) compared to 2.19 times in FY25. The Debt Service Coverage Ratio (DSCR) stood at 1.70 times in FY26 (prov.) as against 1.34 times in the previous year. The Debt-to-EBITDA ratio increased to 6.05 times in FY26 (prov.) from 4.71 times in FY25. Further, the Net Cash Accruals to Total Debt (NCA/TD) ratio moderated to 0.07 times in FY26 (prov.) from 0.10 times in the preceding year. The company is in the process of installation of solar power plant at Gondalpara at an estimated cost of ~ Rs. 5.6 crore, which is expected to be completed by November–December FY26. Around 90 per cent of the project cost is proposed to be funded through bank borrowings and rest through own funds. Acuite believes that the, notwithstanding of benefits of the cost savings from solar capex, company's financial risk profile would remain moderate on the back of debt funded capex plans.

Weaknesses

Moderately intensive working capital operations
The working capital operations of the company remained moderately intensive, reflected in Gross Current Asset (GCA) of 173 days in FY26 as against 174 in FY25. The debtor collection period increased to 37 days in FY26 (prov.) from 27 days in FY25. The average collection cycle continues to remain in the range of 30–35 days. The inventory days stood at 106 days in FY26 (prov.) compared to 87 days in FY25. Creditor days stood at 62 days in FY26 (prov.) from 88 days in the previous year, consistent with the company’s average credit period of 60–90 days. Furthermore, the average utilisation of fund-based limits stood high at around 86.17 per cent (consolidated basis) over the six-month period ending June 2026 and non-fund-based limits stood at 44.33 per cent during the same period. Acuite believes that the company’s working capital management will remain moderately intensive over the medium term, driven by its inventory-holding requirements and the nature of its operations.

Susceptible of profitability to volatility in raw material prices amidst seasonal nature of business and exposure to forex risk
The company remains exposed to raw material price volatility, as raw jute fibre constitutes around 70 per cent of its total sales. Jute prices are inherently volatile due to the seasonal availability of raw jute, and production levels are highly dependent on agro-climatic conditions. Any fluctuations arising from adverse weather patterns, lower crop output or supply disruptions can lead to sharp movements in raw jute prices, which in turn exert pressure on the company’s operating profitability. The company derives around 12 per cent of its revenue from exports to markets including the US, Africa and Tanzania, exposing it to foreign exchange fluctuation risk. However, the risk is partly mitigated as exports are generally backed by letters of credit or advances, and around 80 per cent of export receivables against confirmed orders are hedged through forward contracts in line with the receivable schedule.

Exposure to stringent regulations in the jute industry
The company remains exposed to regulatory risks due to the highly controlled nature of the domestic jute sector. The Government of India regulates key aspects such as raw jute pricing through the Minimum Support Price (MSP), which directly influences the cost structure for jute manufacturers. In addition, the industry is governed by the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987 (JPMA), which mandates the use of jute bags for packaging essential commodities. The current norms require 100 per cent jute packaging for food grains, making the regulation a major demand driver for the industry. However, any revision, relaxation or policy change under the JPMA framework could impact industry offtake and expose the company to variability in order flows.

Rating Sensitivities

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

-Significant improvement in revenues and profitability margins with net cash accruals exceeding 20 Cr. on a sustained basis
-Improvement in the working capital management
-Improvement in financial risk profile

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

-Decline in scale of operations and profitability
-Deterioration in financial risk profile with debt to equity above 2.5 times and DSCR below 1.20 times consistently
-Adverse regulatory changes affecting mandatory jute packaging requirements
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Liquidity Position

Adequate

The company’s liquidity position is adequate, supported by net cash accruals of Rs. 12.88 crore in FY26 (prov.) against maturing debt obligations of Rs. 1.70 crore for the same period. The company is expected to generate cash accruals in the range of Rs. 12.54–15.57 crore over the medium term, comfortably covering repayment obligations of Rs. 2.83–3.36 crore during FY27-FY28. Working capital management remains moderately intensive, reflected in GCA days of 173 in FY2026 (prov.) compared to 174 days in FY2025. Furthermore, the average utilisation of fund-based limits stood moderate at around 86.17 per cent (consolidated basis) over the six-month period ending June 2026 and non-fund-based limits stood at 44.33 per cent during the same period. The current ratio stood at 1.59 times as on March 31, 2026 (prov.), while unencumbered cash and bank balances stood at Rs. 2.01 crore as of March 31, 2026 (prov.). Acuite believes that the company’s liquidity position will remain adequate over the near to medium term, supported by steady accrual generation.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	1057.08	769.85
PAT	Rs. Cr.	5.55	5.70
PAT Margin	(%)	0.52	0.74
Total Debt/Tangible Net Worth	Times	2.23	1.52
PBDIT/Interest	Times	2.12	2.19

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
06 Mar 2026	Forward Contracts	Short Term	2.00	ACUITE A3+ (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3+ (Reaffirmed)
	Cash Credit	Long Term	50.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	85.00	ACUITE BBB- \| Stable (Reaffirmed)
27 Feb 2025	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3+ (Assigned)
	Cash Credit	Long Term	30.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	55.00	ACUITE BBB- \| Stable (Reaffirmed)
19 Jan 2024	Cash Credit	Long Term	26.00	ACUITE BBB- \| Stable (Assigned)
	Secured Overdraft	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Secured Overdraft	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Term Loan	Long Term	9.40	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	4.74	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.86	ACUITE BBB- \| 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
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE A3+ \| Assigned
H D F C Bank Limited	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	50.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	85.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Union Bank of India	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 \| Assigned
Union Bank of India	Not avl. / Not appl.	Forward Contracts	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.00	Simple	ACUITE A3+ \| 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.	4.60	Simple	ACUITE BBB- \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Anuja Bele
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.