Press Release

Press Release

July 17, 2026

SHIVASHAKTI SUGARS LIMITED
Rating Assigned

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	700.00	ACUITE BB+ \| Stable \| Assigned	-	RBI
Total Outstanding	0.00	700.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-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

Acuite has assigned its long-term rating of 'ACUITE BB+' (read as ACUITE double B plus) on Rs.700.00 Cr. bank facilities of Shivashakti Sugars Limited (SSL). The outlook is ’Stable’.

Rationale for rating
The assigned rating reflects company’s longstanding presence in the sugar industry and experienced management along with its integrated operations across the sugar–ethanol value chain, including sugar, syrup, power and by-products, supporting diversified revenue streams and operational stability. The rating also factors in improving operating performance, supported by improved realizations, increasing contribution from syrup/ethanol sales, and stable operating margins, along with approvals for enhanced capacity. However, the rating is constrained by below average financial risk profile with high leverage and moderate debt protection metrics along with highly intensive working capital operations. The rating also constrained by exposure to industry cyclicality, regulatory risks, and monsoon-dependent cane availability.

About the Company

Shivashakti Sugars Limited (SSL), based in Karnataka, is engaged in the manufacture of sugar, co-products and power, with integrated operations including syrup and ethanol-linked products. The company was established in 1995 by Dr. Prabhakar B. Kore, who obtained a license to set up the unit; however, the project could not be implemented until 2000. Thereafter, SSL was acquired by KPR Sugar Mils Pvt. Ltd. (KPR Group) in the early 2000s, before being reacquired by the promoter in April 2010, following which operations were stabilised and expanded. The company currently operates a licensed sugarcane crushing capacity of 14,000 TCD (installed capacity: 17,000 TCD), along with a 37 MW co-generation power plant and a 7,000 MT sugar syrup facility, supporting its integration into the ethanol value chain. Recently, company has received Environmental Clearance (EC) to operate capacity from 14000TCD to 25000 TCD. The operations are backed by a strong cane procurement network in North Karnataka, and the company is managed under the leadership of Dr. Prabhakar B. Kore and Mr. Amit P. Kore.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered standalone business and financial risk profile of Shivashakti Sugars Limited (SSL) to arrive at the rating.

Key Rating Drivers

Strengths

Established track record along with experienced management
Established in 1995, Shivashakti Sugars Limited (SSL) is engaged in the manufacture of sugar, co-products and power, with integrated operations across the sugar–ethanol value chain. Over the years, the company has steadily expanded its crushing capacity from 3,500 TCD to 14,000 TCD (Installed capacity: 17,000 TCD) along with setting up syrup and co-generation facilities, reflecting a strong track record of capacity expansion and operational scale-up. The current management, led by Dr. Prabhakar B. Kore and Mr. Amit P. Kore, possesses extensive experience in the sugar and allied sectors. Acuite believes that the long-standing presence of the company and the experience of the management will continue to support SSL in during industry cyclicality and improving its operational performance going forward.

Stable operating performance
The revenue of the company improved to Rs. 907.53 Cr. in FY26 (Prov.) from Rs.906.66 Cr. in FY25 and Rs.791.32 Cr. in FY24, supported by improved sugar realizations and incremental contribution from syrup/ethanol-linked sales, following recovery from a decline in FY24. The operating performance was impacted by lower crushing volumes and shorter crushing seasons due to adverse climatic conditions, which constrained scale and efficiency. The EBITDA improved to Rs.104.28 Cr. in FY26 (Prov.) from Rs.96.46 Cr. in FY25 and Rs.85.36 Cr. in FY24, with margins remaining relatively stable at 11.49% in FY26 (Prov.) as against 10.64% in FY25 and 10.79% in FY24, supported by better product mix and cost optimisation. Profitability, however, remained subdued in FY25 due to higher finance and depreciation costs, though PAT improved to Rs.15.08 Cr. (1.66%) in FY26 (Prov.) from Rs.5.82 Cr. (0.64%) in FY25 and Rs.12.68 Cr (1.60%) in FY24. Going forward, the company is expected to benefit from improving sugar realizations, recovery in cane availability, and increasing contribution from ethanol-linked operations, along with utilisation of enhanced capacity. Acuité believes that SSL’s integrated operations, strategic ethanol linkage, and improving utilisation levels will support steady growth in revenues and profitability over the medium term.

Weaknesses

Below average financial risk profile
The financial risk profile of SSL remains below average, characterized by modest net worth, high leverage, and moderate debt protection metrics. The company’s net worth improved to Rs.95.81 Cr. in FY26 (Prov.) from Rs.80.74 Cr. in FY25 (Rs.74.91 Cr. in FY24), driven by profit accretion. Total debt increased to Rs.1,020.67 Cr. in FY26 (Prov), comprising of (Rs. 335.88 Cr. of long-term borrowings, Rs 197.61 Cr. USL from group affiliates and short term borrowings of Rs. 487.17 Cr.) from Rs.983.59 Cr. in FY25 and Rs.911.73 Cr. in FY24, reflecting continued reliance on working capital borrowings and unsecured loans, resulting in elevated leverage. Accordingly, gearing remained high at 10.65x in FY26 (Prov), moderately improved from 12.18x in FY25 and 12.17x in FY24, while TOL/TNW also stood high at 12.48x in FY26 (Prov), indicating a highly leveraged capital structure. Debt protection metrics remained moderate, with interest coverage ratio (ICR) at 1.63x in FY26 (Prov.) compared to 1.48x in FY25 (1.65x in FY24), and debt service coverage ratio (DSCR) below unity at 0.92x in FY26 (Prov) against 0.88x in FY25 and 1.06x in FY24, reflecting tight debt servicing ability. Further, Debt/EBITDA remained elevated at 9.57x in FY26 (Prov), indicating continued dependence on debt despite improving operating earnings. Acuite believes that the financial risk profile is expected to remain below average, given the company’s high leverage and working capital intensity, albeit partially supported by promoter backing and improving operating performance.

Intensive working capital operations
The working capital operations of the company remain intensive, as reflected by elevated gross current asset (GCA) of 285 days in FY26 (Prov.) as against 285 days in FY25 and 335 days in FY24. The high working capital requirement is primarily driven by high inventory requirements, with inventory days at ~210 days in FY26 (Prov.) compared to 188 days in FY25 and 217 days in FY24, owing to the seasonal nature of sugar production and quota-based sales. Debtor days remained moderate at 69 days in FY26 (Prov.) as against 73 days in FY25 and 101 days in FY24, reflecting improved collection efficiency, while creditor days stood at 53 days in FY26 (Prov.) compared to 43 days in FY25 and 81 days in FY24. Consequently, the working capital cycle remained elongated, leading to continued reliance on short-term borrowings. Acuite believes that the working capital operations of the company are expected to remain highly intensive, given the inventory driven nature of the sugar industry and regulated sales mechanism, though supported by gradual inventory liquidation and improving realizations.

Agroclimatic risks and susceptibility of profitability margins to government regulations
Being an agro-based industry, SSL’s operations are highly dependent on climatic conditions, as sugarcane yield and quality are susceptible to factors such as monsoon variability, heat stress, and water availability. Any adverse weather conditions can impact both cane availability and recovery rates, thereby affecting production volumes and profitability. Further, the cyclicality in sugar production leads to volatility in sugar prices, which directly influences the company’s earnings. In addition, the sugar industry remains highly regulated, with government interventions such as FRP (Fair and Remunerative Price) for cane, release quotas, and export restrictions, which may impact realizations and margins. While ethanol blending policies and diversion towards syrup/molasses provide some stability to revenues, any adverse regulatory changes or restrictions on ethanol production/diversion could affect the company’s business profile. Acuite believes that SSL’s profitability will remain susceptible to agro-climatic risks and regulatory interventions, though partially mitigated by its integrated operations and increasing focus on ethanol-linked revenues, which provide some cushion against cyclicality in sugar prices.

ESG Factors Relevant for Rating

Shivashakti Sugars Limited (SSL), operating in the sugar manufacturing and co-generation segment, is inherently exposed to environmental concerns such as high water consumption, effluent discharge and air emissions. However, the company’s integrated operations, including bagasse-based co-generation and increasing diversion towards ethanol production through syrup and molasses, support environmental sustainability by promoting renewable energy usage and reducing waste through circular utilisation of by products such as bagasse and pressmud. On the social front, SSL maintains strong engagement with sugarcane farmers across its command area (~25,000 hectares), supporting rural livelihoods through stable procurement practices and timely payments. The company also contributes to employment generation in the Belagavi region, while its operational linkages with farmers and contractors enhance supply chain stability and local economic development. Further, while the company benefits from an experienced promoter group and established operational practices, there remains an ongoing risk arising from government policy changes, particularly related to sugar and ethanol sectors. Although current policies support ethanol production and cane diversion, any adverse changes such as restrictions on ethanol production, pricing controls, or regulatory interventions in sugar sales could impact the company’s business profile and profitability.

Rating Sensitivities

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

Significant improvement in revenues and profitability
Improvement in financial risk profile with gearing below 3 times and DSCR above 2 times on a sustained basis.
Improvement in working capital management with GCA below 200 days consistently

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

Significant decline in revenues and profitability
Deterioration in financial risk profile with debt to EBITDA above 12 times consistently.
Further elongation in working capital cycle exerting pressure on liquidity

Liquidity Position:

Stretched

The liquidity position of SSL remains stretched, marked by inadequate cash accruals of Rs.38.58 Cr. as on 31st March 2026 (Prov), as against Rs.47.89 Cr. maturing debt obligation for the same period. SSL is expected to generate net cash accrual of ~Rs. 50-60 Cr. in FY26-27 as against the debt obligations of Rs. 53.2 Cr. for the same period. The shortfall if any, is expected to be supported by infusion of funds from promoters. The GCAs remained high at 285 days in FY2026(Prov.). However, the average utilisation for the fund-based limits stood low at 47.14% for past twelve months ended April 2026, thus supporting liquidity to an extent. The company maintained unencumbered cash and bank balance of Rs. 15.04 crore provides additional liquidity comfort. The current ratio stood at 1.08 times as on March 31, 2026 (Prov). Overall, liquidity remains tight with reliance on external funding, though improving operational performance and better sugar realizations are expected to provide some support going forward.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	907.53	906.66
PAT	Rs. Cr.	15.08	5.82
PAT Margin	(%)	1.66	0.64
Total Debt/Tangible Net Worth	Times	10.65	12.18
PBDIT/Interest	Times	1.63	1.48

Status of non-cooperation with previous CRA (if applicable)

Other Credit Rating Agency, vide its press release dated February 04, 2026 had denoted the rating of Shivashakti Sugars Limited as B+/ Stable, Reaffirmed and Issuer not co-operating’.

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 :

Not applicable

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
State Bank of India	Not avl. / Not appl.	Pledge Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	150.00	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Pledge Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	200.00	Simple	ACUITE BB+ \| Stable \| Assigned
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.	25.73	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 May 2032	150.00	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	28 Feb 2035	27.58	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2036	40.95	Simple	ACUITE BB+ \| Stable \| Assigned
Canara Bank	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	05 Feb 2028	17.50	Simple	ACUITE BB+ \| Stable \| Assigned
Karnataka Bank Ltd	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	30 Sep 2033	88.24	Simple	ACUITE BB+ \| Stable \| Assigned

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Dharmavarapu Sai Kiran
Senior 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	SEBI
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	Fixed Deposits raised by NBFCs, Banks, HFCs, FIs	RBI
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	SEBI
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)	RBI
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.

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 ⁶	Not applicable

⁶ 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.

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