Press Release

Press Release

October 16, 2026

SHIVAM MOTORS PRIVATE LIMITED
Rating Reaffirmed and Upgraded

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	50.66	ACUITE B- \| Stable \| Upgraded	-	RBI
Bank Loan Ratings	0.00	6.50	-	ACUITE A4 \| Reaffirmed	RBI
Total Outstanding	0.00	57.16	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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 upgraded its long-term rating to 'ACUITE B-' (read as ACUITE B minus) from 'ACUITE D' (read as ACUITE D) on Rs.12.75 Cr. bank facilities of Shivam Motors Private Limited (SMPL). The outlook is 'Stable'.

Acuité has upgraded its long-term rating to 'ACUITE B-' (read as ACUITE B minus) from 'ACUITE C' (read as ACUITE C) on Rs.37.91 Cr. bank facilities of Shivam Motors Private Limited (SMPL). The outlook is 'Stable'.

Additionally, Acuité has reaffirmed its short-term rating at 'ACUITE A4' (read as ACUITE A four) on Rs.6.50 Cr. bank facilities of Shivam Motors Private Limited (SMPL).

Rationale for Rating
The rating upgrade considers curing of defaults in bank facilities and timely repayment of debt since May 2026 as confirmed by the banker and validated through the review of bank statements and CIC report. Further, the rating factors in the moderation in the operating performance along with weak financial risk profile and stretched liquidity. The rating is also constrained due to company’s presence in a highly competitive auto dealership business. However, the rating favourably factors in the extensive experience of the promoters along with long track record of operations and moderate working capital operations.

About the Company

Shivam Motors Private Limited (SMPL) was incorporated in 1983 and located in Bilaspur. The company is an authorized dealer of Tata Motors commercial vehicles. It is engaged in the sale, servicing, and distribution of SCVs, LCVs, and HCVs. The company also manufactures customized truck bodies and trailers through its fabrication unit, catering to the transportation, logistics, and mining sectors. The company’s current directors are Mr. Kailash Gupta, Ms. Rekha Gupta & Mr. Shubham Gupta.

Unsupported Rating

Not Applicable

Analytical Approach

Acuité has considered the standalone business and financial risk profile of SMPL while arriving at the rating.

Key Rating Drivers

Strengths

Experienced management and long operational record
SMPL has over three decades of operational track record in auto dealership industry. Further, the promoter, Mr. Kailash Chand Gupta has over five decades of experience in automobiles and manufacturing of truck and bus bodies. The extensive experience of the management has helped the company to establish long term relations with the Tata Motors. Their strong relationship with Tata Motors has also helped the company to build strong reputation in the market. Acuité believes that the long operational track record of SMPL, promoters’ extensive understanding and expertise and established relationship with Tata Motors is expected to benefit the company going forward.

Moderate working capital operations
The company has a moderate working capital management marked by gross current asset (GCA) days of 125 days in FY26 (Prov.) as against 109 days in FY25, the increase in GCA days is marked by increased debtor days which stood at 72 days in FY26 (Prov.) as against 59 days in FY25. The increase in debtor days is primarily due to year end phenomenon since 92.77 per cent debtors are under 0-90 days bracket. The inventory days stood at 44 days in FY26(Prov.) and FY25 and creditor days stood at 21 days for both FY26 (Prov.) and FY25. Additionally, the company has a high dependence on the bank limits which stood at 90.41 per cent for last 12 months ended March 26. Acuite believes that the working capital operations of the company are going to remain moderate over near to medium terms.

Curing of default
The earlier delays and overdrawing’s observed in the banking facilities have been cured, with no delays reflected in the bank facilities since May 2026 as per the CIC report, banker feedback, and review of bank statements. The repayment track record has remained regular during the observation period, indicating compliance with the stipulated debt servicing obligations and completion of the prescribed curing period.

Weaknesses

Moderation in operating performance and low profitability
The company’s operating performance remains subdued, marked by a consistent decline in revenue over the last three years, with turnover declining to Rs.244.88 crore in FY26 (Prov.) from Rs.278.29 crore in FY25 and Rs.326.86 crore in FY24. The decline is attributable to lower sales across both manufactured and traded segments due to stiff competition. Revenue from manufactured goods reduced significantly to Rs.51.02 crore in FY26 from Rs.77.86 crore in FY25, primarily on account of lower sales of built bodies, while traded goods revenue moderated to Rs.181.42 crore from Rs.184.78 crore during the same period. Further, the company has achieved sales of Rs.97.87 crore in 5MFY27, and management expects FY27 revenue to remain in the range of Rs.230-250 crore, indicating continued moderation in scale of operations.
Additionally, profitability remains constrained despite marginal improvement in operating margins. The company reported an EBITDA margin of 4.56 per cent in FY26 (Prov.) as against 4.10 per cent in FY25, while the PAT margin remained thin at 0.57 per cent in FY26 (Prov.) as against 0.58 per cent in FY25. The low profitability limits internal accrual generation and financial flexibility, thereby exposing the company to risks arising from volatility in demand and input costs.

Weak financial risk profile
The company has a weak financial risk profile marked by average net worth, moderate gearings and weak debt coverage indicators. The net worth of the company improved and stood at Rs.36.40 Cr. in FY26 (Prov.) as against Rs.34.97 Cr. in FY25, the improvement in the net worth is marked by accretion of profits into reserves. The gearing of the company stood at 1.67 times in FY26 (Prov.) as against 1.65 times in FY25. Further interest coverage ratio (ICR) stood at 1.38 times in FY26 (Prov.) as against 1.41 times in FY25, while the debt service coverage ratio (DSCR) stood at 0.90 times and 0.93 times during the same period. Debt/EBITDA stood high at 5.35 times while TOL/TNW stood at 2.16 times in FY26 (Prov.). Acuite believes that the financial risk profile of the company is going to remain weak in near to medium term marked by low net cash accruals.

Exposure to intense competition and cyclicality in automotive dealership segment
The company's operations are exposed to stiff competition from CV dealers in the vicinity in fragmented automotive sector. SMPL is an exclusive dealer of Tata Motor’s Limited's entire range of commercial vehicles (CVs) in Bilaspur division of Chhattisgarh. Moreover, manufacturers face competition in their respective segments and tend to squeeze margins of dealers to reduce cost. Also, bargaining power against TML is low, which constraints operating profitability. Furthermore, the sale of commercial vehicles is closely linked to the level of economic activity in the country.

Rating Sensitivities

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

Improvement in revenues and profitability with NCA's above Rs.5.00 crores
Improvement in the financial risk profile with DSCR above 1.20 times consistently
Improvement in working capital operations

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

Significant decline in revenue and profitability with NCA's falling below Rs.1.50 crores.
Delays in debt servicing

Liquidity Position

Stretched

The company has a stretched liquidity position marked by inadequate cash accruals as against debt repayment obligation. The cash accruals stood at Rs.2.70 crores as against repayment debt obligation of Rs.3.96 crores as on 31, March 2026. Further the cash accruals are expected to be at ~Rs.2.5 crores as against repayment obligation of ~Rs.2.55 crores in FY2027 and further in FY2028 the NCA are expected to be at ~Rs.3.14 crores as against debt obligation of ~Rs.1.45 crores. The current ratio of the company stood at 1.31 times in FY26 (Prov.), while cash and bank balances stood at Rs.3.95 crores during the same period. Additionally, the company has a high dependence on the bank limits which utilised at ~90.41 per cent for last 12 months ended March 26.
Acuite believes that the liquidity of the company is stretched marked by higher dependencies on the working capital limits and tightly matched accruals against its maturing debt obligations.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	244.88	278.29
PAT	Rs. Cr.	1.40	1.62
PAT Margin	(%)	0.57	0.58
Total Debt/Tangible Net Worth	Times	1.67	1.65
PBDIT/Interest	Times	1.38	1.41

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
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Trading Entities: https://www.acuite.in/view-rating-criteria-61.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
18 Jul 2025	Channel/Dealer/Vendor Financing	Short Term	6.50	ACUITE A4 (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	5.25	ACUITE C (Upgraded from ACUITE D)
	Cash Credit	Long Term	5.00	ACUITE C (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE C (Reaffirmed)
	Term Loan	Long Term	3.35	ACUITE C (Reaffirmed)
	Term Loan	Long Term	5.15	ACUITE C (Reaffirmed)
	Covid Emergency Line.	Long Term	2.83	ACUITE C (Reaffirmed)
	Covid Emergency Line.	Long Term	1.33	ACUITE C (Reaffirmed)
	Cash Credit	Long Term	12.75	ACUITE D (Downgraded from ACUITE C)
25 Jun 2025	Channel/Dealer/Vendor Financing	Short Term	6.50	ACUITE A4 (Downgraded from ACUITE A4+)
	Cash Credit	Long Term	5.00	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Cash Credit	Long Term	15.00	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	3.35	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Term Loan	Long Term	5.15	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Covid Emergency Line.	Long Term	2.83	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Covid Emergency Line.	Long Term	1.33	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Cash Credit	Long Term	12.75	ACUITE C (Downgraded from ACUITE BB \| Stable)
	Working Capital Demand Loan (WCDL)	Long Term	5.25	ACUITE D (Downgraded from ACUITE BB \| Stable)
25 Nov 2024	Channel/Dealer/Vendor Financing	Short Term	6.50	ACUITE A4+ (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BB \| Stable (Assigned)
	Cash Credit	Long Term	12.75	ACUITE BB \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	3.35	ACUITE BB \| Stable (Reaffirmed)
	Term Loan	Long Term	5.15	ACUITE BB \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	2.25	ACUITE BB \| Stable (Reaffirmed)
	Working Capital Demand Loan (WCDL)	Long Term	3.00	ACUITE BB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	2.83	ACUITE BB \| Stable (Assigned)
	Covid Emergency Line.	Long Term	1.33	ACUITE BB \| Stable (Assigned)
06 Oct 2023	Channel/Dealer/Vendor Financing	Short Term	5.50	ACUITE A4+ (Assigned)
	Cash Credit	Long Term	12.75	ACUITE BB \| Stable (Assigned)
	Cash Credit	Long Term	13.88	ACUITE BB \| Stable (Assigned)
	Term Loan	Long Term	11.72	ACUITE BB \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	1.15	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
BANK OF MAHARASHTRA	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.75	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE D )
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
State Bank of India	Not avl. / Not appl.	Channel/Dealer/Vendor Financing	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.50	Simple	ACUITE A4 \| Reaffirmed
H D F C Bank Limited	Not avl. / Not appl.	Inventory Funding	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
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.	4.47	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
IDBI Bank Ltd.	Not avl. / Not appl.	Term Loan	Unlisted	RBI	26 Nov 2025	Not avl. / Not appl.	26 Nov 2040	4.85	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	30 Mar 2023	Not avl. / Not appl.	31 Mar 2029	3.59	Simple	ACUITE B- \| Stable \| Upgraded ( from ACUITE C )

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Akshat Shah
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.