| Established track record and experienced management
The Yentop group benefits from its long and established presence in the edible oil industry, with its flagship entities operating since the late 1980s and early 2000s. The group was established by Mr. Manickavel and is currently managed by his sons, Mr. Nagalingam and Mr. Mathavan, who collectively possess over four decades of experience in the same industry. The promoters’ extensive experience in edible oil importing, refining, and trading continues to support stable business operations. The continuity in leadership across group entities, along with a strong understanding of market dynamics and supply chains, has enabled the group to maintain longstanding relationships with suppliers and customers while supporting steady operational performance. Acuite believes the group’s established presence in the edible oil industry, coupled with experienced promoter leadership, supports continuity and stability in its operations.
Strong year-on-year improvement in revenues, albeit thin profitability:
Yentop group’s revenue improved to Rs.2,713.53 Cr. in FY2025, reflecting a year-on-year growth of ~22.50 percent from Rs.2,215.77 Cr. in FY2024 and is further estimated at Rs.3,015.91 Cr. in FY2026, indicating a growth of ~11 percent over FY2025. The growth has been driven by enhanced value addition through in-house refining operations, an improved product mix, and better realizations in palmolein and palm oil, supported by steady demand in the edible oil segment.
Acuite expects the group’s revenues to remain on an improving trajectory, supported by higher trading volumes and increased processing activity.
Healthy financial risk profile:
The Yentop group’s financial risk profile is marked by a healthy net worth, comfortable capital structure, and adequate debt protection metrics. The group’s net worth is estimated at around Rs. 370.00–375.00 Cr. as on March 31, 2026, as compared to Rs. 364.71 Cr. as on March 31, 2025, improving significantly from Rs. 110.17 Cr. as on March 31, 2024, primarily on account of the reclassification of unsecured loans amounting to Rs. 246.68 Cr. as quasi-equity. The total debt levels are estimated to remain low at around Rs. 35 Cr. as on March 31, 2026 (primarily comprising Rs. 3.12 Cr. of long-term debt, Rs. 19.45 Cr. of short-term debt, Rs. 10 Cr. of unsecured loans, and Rs. 1.74 Cr. of current maturities of long-term debt). Consequently, the gearing remains low at around 0.09 times as on March 31, 2026(Est.), consistent with FY2025 levels and significantly improved from 2.18 times as on March 31, 2024. The total outside liabilities to tangible net worth (TOL/TNW) is estimated at around 2.25 times as on March 31, 2026, compared to 2.18 times as on March 31, 2025 and 9.41 times as on March 31, 2024.
The debt protection metrics remain comfortable, with an interest coverage ratio (ICR) of 3.10 times and a debt service coverage ratio (DSCR) of 1.54 times as on March 31, 2025, compared to 3.29 times and 1.42 times, respectively, in the previous year. For FY2026 (Est.), the ICR and DSCR are expected to moderate to 2.72 times and 1.25 times, respectively due to increased interest expense. Debt to EBITDA stood at 1.45 times as on March 31, 2025, improving significantly from 11.97 times in the previous year, and is estimated at around 1.51 times in FY2026.
Acuite believes that the financial risk profile is likely to remain healthy over the medium term, supported by the group’s strong net worth position, low leverage, and absence of any significant debt-funded capital expenditure plans.
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| Inherent thin profitability margins:
Operating margins remained thin, with EBITDA margins at 0.79 percent in FY2025 compared to 0.88 percent in FY2024 and are expected to remain in the range of 0.75–0.80 percent in FY2026. The modest margins continue to reflect the inherently competitive and trading-oriented nature of the edible oil industry especially low value additive palm oil processing. Nevertheless, the group has witnessed a gradual improvement in absolute EBITDA, which increased to Rs.21.36 Cr. in FY2025 from Rs.19.45 Cr. in FY2024, and is further expected to improve to Rs.22.50–23.00 Cr. in FY2026, supported by higher scale of operations. Profitability at the PAT level remained thin as well, with PAT margins at 0.29 percent in FY2025 as against 0.31 percent in FY2024 and is expected to sustain in the range of 0.25–0.30 percent in FY2026. Acuite believes, the profitability margins of the group would remain thin in the medium to long term due to its nature of business.
Moderately intensive working capital operations:
The group’s working capital operations are moderately intensive as reflected through the gross current asset (GCA) of around 120-125 days in FY2026 (Est.) improved from 130 days in FY2025 and 158 days in FY2024. The improvement in GCA is primarily due to improved inventory holding and receivable days. The inventory holding period estimated to be around 65-70 days in FY2026 (Est.), against 70 days in FY2025 and 79 days in FY2024. The debtor days are estimated to be around 45-50 days in FY2026 (Est.) from 52 days in FY2025 and 74 days in FY2024, reflecting a quick collection of bills from customers. The creditor days are estimated to be around 95-100 in FY2026 (Est.) against 100 days in FY2025 and 134 days in FY2024, (The improvement in creditor days is majorly due to improved payment terms with suppliers). The fund based working capital limits were utilized at an average of ~51 percent during past 12 months ending March 2026, while non-fund based limits were utilized at an average of ~99 percent, reflecting reliance on trade finance instruments for procurement.
Acuite believes that the group’s working capital operations are likely to remain moderately intensive over the medium term on account of the inherently high working capital requirements of the edible oil industry.
Exposure to agro climatic and Forex risks:
The group remains exposed to agro-climatic risks as the availability and pricing of key raw materials, particularly crude edible oils, are influenced by crop yields and weather conditions in major producing regions, with adverse developments potentially leading to volatility in input costs. Additionally, the group is exposed to foreign exchange risk due to its reliance on imports for procurement, wherein fluctuations in currency rates can impact the landed cost of raw materials and profitability. However, the impact of forex risk is mitigated to an extent through the use of forward contracts, which help in locking in exchange rates and reducing the effect of adverse currency movements on operations.
Highly competitive industry:
The group operates in a highly competitive and fragmented industry with the presence of numerous organized and unorganized players. The commoditized nature of products limits pricing flexibility, resulting in pressure on margins and competition largely based on pricing and credit terms.
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