| Rishi Techtex Limited | ||||||
| Ratings reaffirmed at 'Crisil BBB- / Stable / Crisil A3 ' | ||||||
| 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 ‘Crisil BBB-/Stable/Crisil A3’ ratings on the bank facilities of Rishi Techtex Ltd (RTL).
The ratings continue to reflect the extensive experience of the promoter in the technical textile industry along with longstanding presence, established market position and comfortable financial risk profile of the company. These strengths are partially offset by modest scale of operations amid intense competition and large working capital requirement. |
Analytical approach Crisil Ratings has evaluated the standalone business and financial risk profiles of RTL. |
Key rating drivers - Strengths Longstanding presence and established position in the technical textile industry RTL caters to a large customer base across various end-user industries such as agriculture, infrastructure, paints and packaging. It also operates in the export market, which contributes 11-12% to revenue. The top five customers contributed 46-47% to revenue in fiscal 2025. Product basket is diverse, comprising shade nets, mulch mats, crop covers, windbreakers, shade sails and fire protection nets.
Extensive experience of the promoter The four-decade-long experience of the promoter in the technical textile manufacturing industry; his strong understanding of the market dynamics and healthy relations with customers and suppliers helped successfully navigate several business cycles and should continue to support the business. Revenue improved to Rs 125.6 crore in fiscal 2025 from Rs 106.8 crore in fiscal 2023 and stood around Rs 70 crore in the first six months of fiscal 2026 and should touch Rs 140-145 crore for the full fiscal.
Comfortable financial risk profile Networth was moderate at Rs 34 crore as on March 31, 2025. Gearing is estimated at 0.7 time and total outside liabilities to adjusted networth ratio at 1.2 times as on March 31, 2025, owing to lower reliance on external debt. Despite the ongoing debt-funded capital expenditure (capex), the capital structure should remain healthy due to steady accretion to reserve; gearing is likely to be less than 0.8 time over the medium term. Debt protection metrics have been comfortable, with interest coverage ratio of 3.39 times and net cash accrual to adjusted debt ratio of 0.22 time for fiscal 2025, and are expected to improve further over the medium term. |
Key rating drivers - Weaknesses Modest scale of operations Despite being in the business for over four decades, scale remains small, though is on an improving trend. The technical textile industry is highly fragmented, with several unorganised players catering to regional demand. The consequent intense competition may continue to constrain scalability, pricing power and profitability.
Large working capital requirement Gross current assets have been 149-154 days over the past three fiscals and stood at 149 days as on March 31, 2025, driven by receivables of 63 days and inventory of 77 days. Inventory is expected at similar levels as the company produces several products in diverse sizes and colours and maintains stock for future quarter sales. The working capital is partially funded by creditors of 38-44 days. The working capital cycle is likely to remain in similar range and will be closely monitored. |
Liquidity Adequate Liquidity should remain supported by the adequate surplus available in cash accrual and bank lines. Net cash accrual is projected at Rs 6.4-7.3 crore per annum, against yearly debt obligation of Rs 0.90-1.75 crore over the medium term. Bank limit utilisation was around 85% for the 12 months through November 2025. Current ratio was healthy at 1.41 times as on March 31, 2025, while cash and balances stood at around Rs 1.31 crore as on September 30, 2025. Moderate gearing and networth will aid financial flexibility. |
Outlook Stable RTL will continue to benefit from the extensive experience of its promoter and his healthy relationship with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the company Incorporated in 1984 and promoted by Mr Harshad Patel, RTL (formerly, Rishi Packers Ltd) manufactures woven sacks and technical textile products such as shade nets at its facility in Daman. The company is listed on the Bombay Stock Exchange. |
Key financials – Crisil Ratings Adjusted Numbers
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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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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