| Goel International Private Limited | ||||||
| Ratings reaffirmed at 'Crisil A-/Stable/Crisil A2+'; rated amount enhanced for Bank Debt | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ratings at ‘Crisil A-/Stable/Crisil A2+’ on the bank loan facilities of Goel International Private Limited (GIPL; part of Goel Group).
Crisil ratings had assigned its Crisil A-/Stable/Crisil A2+ ratings on the bank loan facilities of GIPL on February 27, 2026.
The ratings reflect the group’s healthy business risk profile, supported by strong market position in the domestic basmati rice industry, healthy brand and established distribution network. Revenue is expected to increase at a healthy compound annual growth rate (CAGR) of ~16% in the three fiscals through 2026, driven by healthy recall of the brand Galaxy in the domestic market. The group has achieved revenue of ~Rs 1,488 crore in the first nine months of fiscal 2026, as against Rs 1,282 crore in the corresponding period of the previous fiscal and is expected to achieve revenue of Rs 2,000-2,100 crore for the full fiscal (Rs 1,817 crore in fiscal 2025) driven by volume growth. Revenue is expected to grow 5-10% in fiscal 2027 amid realization and volume growth. Operating margin is expected at 8.5% in fiscal 2026 (8.4% in fiscal 2025 and 7.9% in fiscal 2024). Healthy revenue growth, supported by steady demand and strong brand, along with stable operating margin at 8.5% will be key rating sensitivity factors.
The ratings factor in the healthy financial risk profile of the group, with networth and gearing expected at Rs 480-490 crore and 1.8-1.9 times, respectively, as on March 31, 2026 (Rs 401 crore and 2 times, respectively, as on March 31, 2025), supported by healthy accretion to reserve. Interest coverage ratio is expected at 3.7-3.8 times in fiscal 2026 (3 times in fiscal 2025) driven by sustained profitability and improving scale of operations.
The ratings reflect the established presence of the Goel group in the basmati rice industry, its strong geographical diversification and a healthy financial risk profile. These strengths are partially offset by susceptibility to volatility in raw material prices and policy changes, and large working capital requirement. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of GIPL, Galaxy Food Industries Pvt Ltd (GFIPL), Galaxy Agro Industries Pvt Ltd (GAIPL) and Galaxy Rice Industries Pvt Ltd (GRIPL), collectively referred to as the Goel group. This is because these entities are in the same business, under common management and have strong operational and financial linkages.
Unsecured loan of Rs 72 crore as on March 31, 2025, has been treated as 75% equity and 25% debt as the loan is interest-free and expected to remain in the business over the medium term.
Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established presence in the basmati rice industry and geographical diversification: The promoters have experience of more than three decades in the basmati rice business. This has enabled them to strengthen the group’s market position across domestic and global markets and establish healthy relationships with customers. The domestic market contributed ~80% to revenue in the first half of fiscal 2026, with the remaining 20% coming from export market. The group has a strong brand portfolio with Galaxy being the flagship brand. The group deals in basmati rice, which accounts for 90-95% of revenue. It has over 500 dealers and distributors in the domestic market and established relationships with suppliers in Haryana and Punjab. Strong relationships with suppliers enable the procurement of rice at comfortable prices. Consequently, revenue is expected to increase at a healthy CAGR of ~16% over the three fiscals through 2026 to Rs 2,000-2100 crore in fiscal 2026. The group has achieved revenue of ~Rs 1,488 crore in the first nine months of fiscal 2026, as against Rs 1,282 crore in the corresponding period of the previous fiscal. Strong distribution and procurement networks, growing branded business and longstanding relationships with customers will continue to support the business.
Healthy financial risk profile: At the group level, networth is expected at Rs 480-490 crore as on March 31, 2026 (Rs 401 crore as on March 31, 2025), driven by healthy accretion to reserve, and gearing is expected at 1.8-1.9 times as on that date (2 times a year earlier). Debt protection metrics will be comfortable, with interest coverage and net cash accrual to adjusted debt ratios expected at 3.7-3.8 times and 0.1-0.15 time, respectively, in fiscal 2026 (3 times and 0.1 time, respectively, in fiscal 2025). |
Key Rating Drivers - Weaknesses Susceptibility to volatility in raw material prices and policy changes: The raw material (paddy) cost accounts for 80-85% of revenue, and its price directly impacts operating profitability. The group usually has an understanding with suppliers, though the same is not binding. Hence, fluctuation in paddy prices, after procurement, constrains profitability. The group is vulnerable to changes in the trade policies of its export markets. Strong brand, well-diversified geographical reach and sourcing capabilities mitigate this risk. The operating margin is expected at 8.5% for fiscal 2026.
Large working capital requirement: Operations remain working capital-intensive owing to large inventory, given the seasonality of basmati paddy and the need to store inventory for 12-24 months for ageing. Basmati is sowed during July-August and harvested in October, resulting in sizeable inventory and large debt in the second half of the year. The working capital cycle is expected to remain stretched, with gross current assets (GCAs) expected at 230-240 days as on March 31, 2026 (236 days as on March 31, 2025), driven by inventory of around 220 days and receivables of 30-35 days. The working capital cycle is adequately supported by internal accrual, working capital limit and payables of 7 days as on March 31, 2025. The GCAs are expected at 230-240 days in the near-to-medium term. |
Liquidity: Strong Expected net cash accrual of Rs 100-120 crore per fiscal will be sufficient to cover the working capital requirement and yearly debt obligation of Rs 5-7 crore over the medium term. Bank limit was utilised at 79% on average over the 12 months through December 2025. Current ratio is expected at 1.3-1.4 times as on March 31, 2026. Also, the unsecured loan of Rs 72 crore as on March 31, 2025 (interest free), is expected to remain in the business over the medium term. |
Outlook Stable Crisil Ratings believes the Goel group will continue to benefit from the extensive experience of the promoters and their established relationships with customers. |
Rating sensitivity factors Upward factors:
Downward factors:
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About the Group Incorporated in 2000, GIPL was set up by Vinod Goel and his family members. The company processes paddy at its manufacturing unit in Taraori, Haryana, with installed capacity of 32 MT/hour as on March 31, 2025.
GRIPL was set up in 2008. The company processes paddy at its manufacturing unit in Karnal, Haryana, with installed capacity of 10 MT/hour as on March 31, 2025.
Set up in 2020, GFIPL started commercial operations in 2022. The company is engaged in processing of paddy at its manufacturing unit in Karnal, having installed capacity of 16 MT/hour as on March 31, 2025.
GAIPL was set up in 2019 but commercial operations started in 2024. The company processes paddy at its manufacturing unit in Karnal, having installed capacity of 16 MT/hour as on March 31, 2025. |
Key Financial Indicators (Consolidated)
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Status of non-cooperation with previous CRA: GIPL did not cooperate with Brickwork Ratings India Pvt Ltd (Brickwork Ratings), which has classified the company as non-cooperative vide release dated March 27, 2023. The reason provided by Brickwork Ratings was non-furnishing of information for monitoring the ratings. |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||
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Criteria Details
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