| Shri Ahimsa Naturals Limited | ||||
| Rating reaffirmed at 'Crisil BBB/Stable' | ||||
| 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' rating on the long-term bank facilities of Shri Ahimsa Naturals Limited (SANL; part of the Shri Ahimsa group).
The rating continues to reflect the extensive experience of the promoters in the caffeine processing business and their funding support, sound operating efficiency and comfortable financial risk profile. These strengths are partially offset by the modest scale of operations and working capital-intensive operations. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of SANL with Shri Ahimsa Healthcare Pvt Ltd (SAHPL) to arrive at the ratings. SAHPL was incorporated in September 2023 and is now a wholly owned subsidiary of SANL and is currently non-operational. However, the capital expenditure (capex) is estimated at Rs 35 crore from fresh issue of shares and hence is expected to be operational in fiscal 2027.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers & Detailed Description Strengths: Extensive experience and funding support of the promoters: The three decade-long experience of the promoters in the caffeine processing business and healthy relationships with customers and suppliers will continue to support the business. The promoters have also developed new technologies to improve product profile and extended need-based financial aid, reflected in the healthy revenue, at compound annual growth rate (CAGR) of 35%, during the three years through fiscal 2025.
Sound operating efficiency: Return on capital employed was healthy at 28% in fiscal 2025 and is expected at 20-25% over the medium term. Operating margin has remained around 30% in fiscal 2025 owing to the group’s ability to pass on increased costs to customers, given the niche business segment with continuous improvement in technologies and improved scale of operations. The operating margin is expected to remain at 25-30% over the medium term.
Comfortable financial risk profile: Lower reliance on external funds led to low total outside liabilities to adjusted networth ratio of 0.17 time, as on March 31, 2025, and this is expected to remain at 0.08-0.10 time, respectively, as on March 31, 2026. This, with high profitability and healthy networth supports the financial risk profile. The networth was Rs 100-105 crore as on March 31, 2025, and is expected to remain at Rs 170-180 crore over the medium term. The interest coverage ratio and net cash accrual to adjusted debt (NCAAD) ratio stood at 34 times and 44.3 times, respectively, in fiscal 2025 and is expected to remain healthy due to high profitability.
Weaknesses: Modest scale of operations: Despite the healthy CAGR and addition of new products to the portfolio, turnover remained around Rs 97.7 crore for fiscal 2025 and is expected above Rs 100 crore for fiscal 2026. Moreover, sustenance of improved business performance and successful implementation of the planned capex, to set up a new plant to support the scale, will remain key rating sensitivity factors for the medium term. Furthermore, the natural caffeine segment faces intense competition from synthetic caffeine, which is a cheaper alternative and readily available.
Working capital-intensive operations: Gross current assets (GCAs) are estimated at around 251 days as on March 31, 2025, and are expected at above 300 days over the medium term due to sizeable inventory to cater to bulk orders and lengthy production cycle of 2.5-3.0 months. Inventory holding was 138 days as on March 31, 2025, and is expected at 150-155 days over the medium term. Also, because a large portion of the raw material requirement is imported, the group has to maintain adequate supplies to avoid delays in servicing orders. Commensurate with increase in the scale of operations, working capital cycle would remain working capital intensive. |
Liquidity: Adequate Cash accrual was Rs 21.95 crore in fiscal 2025 and is expected to be Rs 30-35 crore over the medium term, against which there are nil term debt obligations over the medium term. Bank limit utilisation was moderate at 41.25% on average for the 12 months through March 2025. Healthy gearing and healthy networth support financial flexibility. The current ratio was healthy at 4.72 times as on March 31, 2025. |
Outlook: Stable Crisil Ratings believes the group will continue its healthy business performance backed by the extensive experience of its promoters, recently developed technologies and established relationships with customers in the overseas market. |
Rating sensitivity factors Upward factors
Downward factors
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About the Group Incorporated on October 17, 2017, SANL is a Jaipur (Rajasthan)-based closely held public limited company promoted by Mr Nemi Chand Jain and his family. It processes natural caffeine from tea waste and crude caffeine (by-product of processing coffee).
SAHPL was incorporated in September 2023 and is now a wholly owned subsidiary of SANL. Currently, it is non-operational and is expected to start operations from fiscal 2027 onwards. |
Key Financial Indicators
*Provisional |
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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