Product Quantum (Rs. Cr) (SEBI) Quantum (Rs. Cr) (Other FSR) Long Term Rating Short Term Rating Regulated By
Bank Loan Ratings 0.00 26.95 ACUITE BBB- | Stable | Reaffirmed - RBI
Bank Loan Ratings 0.00 35.50 - ACUITE A3 | Reaffirmed RBI
Total Outstanding 0.00 62.45 - - -
Total Withdrawn 0.00 0.00 - - -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 reaffirmed long term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) on the Rs. 26.95 Cr. bank facilities and short term rating of 'ACUITE A3' (read as ACUITE A three) on the Rs. 35.50 Cr. bank facilities of The Phosphate Company Limited. The outlook is 'Stable'.
 

Rationale for rating
The rating reflects the company’s established presence in the fertilizer industry and the extensive experience of its management, supporting operational stability and continuity. It also factors in the steady scale-up in operations, with a growing revenue profile driven by healthy demand, though operating margins remain moderate. The financial risk profile is moderate, supported by a healthy net worth base, low gearing, and healthy debt protection metrics. Liquidity remains adequate, backed by sufficient cash accruals against relatively low repayment obligations. However, the rating is constrained by the working capital intensive nature of operations, as reflected in elevated inventory and receivables, dependence on imported raw materials (~50%) exposing the company to global price and forex risks, and regulatory uncertainties in the fertilizer sector, including potential delays or changes in government subsidy support impacting profitability.


About the Company
­West Bengal – Based, The Phosphate Company Limited was incorporated in 1949. The company is engaged in manufacturing of  Single Super Phosphate (SSP) fertilizers (96% of revenue in FY 2026). Additionally, they are also involved in the trading of fertilizers. (4% of revenue in FY 2026). The company has an installed capacity of 1,12,800 MT for manufacturing fertilizers at Rishra, West Bengal.
The company was founded by two families- Bangur and Khaitan families. The directors of the company are Mr. Hemant Bangur, Mr. Binod Kumar Khaitan, Mrs. Sonali Sen, Mr. Ajay Bangur and Mr. Gautam Bhattacharya. Lakshmi is the brand name of the company's manufactured product.
 
Unsupported Rating
­Not Applicable
 
Analytical Approach
­Acuite has considered the standalone business and financial risk profile of The Phosphate Company Limited to arrive at its rating.
 
Key Rating Drivers

Strengths

Benefits derived from Experienced promoters

The operations of the company is ably managed by Mr. Ajay Bangur, Executive Director under the supervision of two Non-Executive Directors namely, Mr. Hemant Bangur and Mr. Binod Kumar Khaitan and two Independent Directors namely, Mrs. Sonali Sen and Mr. Gautam Bhattacharya. All the directors have experiences in different industries like jute, timber, plantation, tea fertilizer among others. Collectively, their business acumen has driven the business to develop longstanding ties with its customers and suppliers. The company has also horizontally diversified into trading of Crop Protection Chemicals, Plant Growth promoters and high yielding variety seeds under Samadhan Brand. Acuite believes that the experience of promoters over decades in manufacturing fertilizers and relationship with customers and suppliers will benefit the company going forward.

Increase in revenues and stable operating profitability
The revenues have been increased to Rs. 145.63 Cr. as on March 31, 2026 as compared to Rs. 127.36 Cr. as on March 31, 2025 prior to that the revenue in FY24 Rs 114.97 Cr, primarily revenue increased in FY26 was because of  improved subsidy rates provided by the government. Additionally, demand witnessed an uptick supported by a favorable sowing season in the West Bengal region. The enhancement in the Single Super Phosphate (SSP) subsidy has made it a more attractive and cost-effective domestic alternative to DiAmmonium Phosphate (DAP), thereby reducing India’s reliance on expensive DAP imports and, in turn, supporting higher sales of SSP fertilizers. Operating profitability stood at 6.60% as of March 31, 2026, compared to 6.64% as of March 31, 2025 versus 6.38 % in FY2024. The PAT margin improved to 3.10% in FY26, as against 2.72% in FY25. Acuite believes that the scale of operations and operating profitability will improve over the near to medium term.

 
Moderate Financial risk profile
The financial risk profile is moderate marked by an increase in the net worth to Rs. 92.18 Cr. as on March 31,2026 as compared to Rs. 87.87 Cr. as on March 31,2025 due to accretion of reserves. Gearing stood at 0.26 times as on March 31, 2026 as against 0.23 times as on March 31,2025. The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 0.63 times as on March 31, 2026 as compared to 0.42 times as on March 31,2025. The debt protection metrics is marked by Interest Coverage Ratio at 2.98 times as on March 31, 2026 as compared to 2.95 times as on March 31,2025 and Debt Service Coverage Ratio at 1.59 times as on March 31, 2026 as compared to 1.53 times as on March 31,2025. Net Cash Accruals/Total Debt (NCA/TD) stood at 0.22 times as on March 31, 2026 as compared to 0.22 times as on March 31,2025. Acuité believes that going forward the financial risk profile will remain moderate over the medium term with steady cash accruals in the absence of any major debt funded capex plans.

Weaknesses

Intensive working capital management

The working capital cycle is intensive marked by Gross Current Assets (GCA) of 139 days as on March 31, 2026 as compared to 126 days as on March 31, 2025. The debtor days stood at 28 days as on March 31,2026 as compared to 21 days as on March 31, 2025. For off season, the days range from 100-120 days when the payments are received whereas for peak season, the payments are received immediately. Furthermore, the inventory days stood at 85 days as on March 31, 2026 as compared to 83 days as on March 31, 2025. The inventory days remain volatile on account of import of raw materials to avail price benefits. Around 50% of the raw materials are imported from Middle East countries like Egypt, Jordan, Israel, Morocco, among others. Additionally, due to the current geopolitical issues in the region, the company is maintaining higher inventory levels to mitigate supply chain disruptions and ensure continuity of operations. The other current assets amount to Rs. 12.69 Cr. as on March 31, 2026 as compared to Rs. 9.61 Cr. as on March 31, 2025 majorly comprises of Input Tax Receivable. Creditor days stood at 92 days as of March 31, 2026, compared to 42 days as of March 31, 2025. The increase in creditor days was primarily attributable to delays in the clearance of imported goods, which remained held at the port for inspection for more than 45 days. This led to a temporary build-up in creditor levels as of March 2026. However, the inspection process is expected to normalize in the medium term, which should subsequently reduce creditor days. Import purchases are backed by Letters of Credit (LCs) with a credit period of up to 180 days. For domestic suppliers, credit terms typically range between 21 to 45 days, with no advance payments made. Acuité believes that going forward the working capital operations of the company will remain moderate over the medium term.

Exposure to regulatory risks in the fertilizer industry

The fertilizer industry remains strategically important yet highly regulated, with subsidies forming a key component of profitability. Under the Nutrient-Based Subsidy (NBS) regime, subsidy rates are fixed by the Government, while retail prices are market-linked, exposing manufacturers to volatility in input costs, especially given their reliance on imported raw materials like rock phosphate and phosphoric acid. This, along with currency fluctuations, impacts margins. Additionally, delays in subsidy disbursements often stretch working capital and increase dependence on short-term borrowings. Any changes in subsidy policies or regulatory framework thus remain key rating sensitivities.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:
  • Revenues increasing above 200 Cr, along with improvement in profitability margins
  • Improvement in working capital cycle, leading to reduced reliance on bank borrowings
Potential triggers (individual or collective) for a downward rating action:
  • Deterioration in operating margins due to volatility in raw material prices or adverse forex movements

  • Any elongation in working capital cycle above 200 days .

  • Weakening of det protection metrices

  • Adverse regulatory changes, including reduction or delay in government subsidy support, impacting cashflows and liquidity

Liquidity Position
Adequate
The liquidity position is adequate marked by net cash accruals of Rs.5.26 Cr. as on March 31, 2026 as against long term debt repayment of Rs. 2 Cr. over the same period. The cash and bank balances stood at Rs. 0.05 Cr. as on March 31, 2026 as compared to Rs. 0.07 Cr. as on March 31,2025. The current ratio stood at 1.32 times as on March 31, 2026 as compared to 1.65 times as on March 31,2025. Further the promoters have demonstrated flexibility infuse unsecured loan in the past as and when needed to support the growth in the business. The average bank limit utilization stood at 54.21 percent over the last six months ended March2026,. Acuité believes that going forward the liquidity position of the company will remain adequate in the near to medium term in the absence of capex plans, small but steady accruals.
 
Outlook
­Stable
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 26 (Actual) FY 25 (Actual)
Operating Income Rs. Cr. 145.63 127.36
PAT Rs. Cr. 4.52 3.46
PAT Margin (%) 3.10 2.72
Total Debt/Tangible Net Worth Times 0.26 0.23
PBDIT/Interest Times 2.98 2.95
*
­­FY2026 financials are based on abridged financial statements
 
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

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
02 Apr 2025 Letter of Credit Short Term 15.00 ACUITE A3 (Assigned)
Letter of Credit Short Term 20.00 ACUITE A3 (Assigned)
Forward Contracts Short Term 0.50 ACUITE A3 (Assigned)
Cash Credit Long Term 11.00 ACUITE BBB- | Stable (Assigned)
Working Capital Term Loan Long Term 0.81 ACUITE BBB- | Stable (Assigned)
Cash Credit Long Term 14.00 ACUITE BBB- | Stable (Assigned)
Working Capital Term Loan Long Term 1.14 ACUITE BBB- | Stable (Assigned)
­

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. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 14.00 Simple ACUITE BBB- | Stable | Reaffirmed
Canara Bank Not avl. / Not appl. Cash Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 11.00 Simple ACUITE BBB- | Stable | Reaffirmed
State Bank of India Not avl. / Not appl. Forward Contracts Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.50 Simple ACUITE A3 | Reaffirmed
Canara Bank Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A3 | Reaffirmed
State Bank of India Not avl. / Not appl. Letter of Credit Unlisted RBI Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 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. 1.08 Simple ACUITE BBB- | Stable | Reaffirmed
State Bank of India Not avl. / Not appl. Working Capital Term Loan Unlisted RBI 15 Jan 2022 Not avl. / Not appl. 01 Feb 2027 0.53 Simple ACUITE BBB- | Stable | Reaffirmed
Canara Bank Not avl. / Not appl. Working Capital Term Loan Unlisted RBI 15 Nov 2021 Not avl. / Not appl. 24 Nov 2026 0.34 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.
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