| Teesta Agro Industries 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 Teesta Agro Industries Ltd (Teesta).
The ratings continue to reflect the strong market position and comfortable financial risk profile of Teesta. These strengths are partially offset by its modest operating efficiency and susceptibility to regulatory changes. |
Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of Teesta |
Key Rating Drivers - Strengths Strong market position: Teesta is one of the largest manufacturers of single super phosphate (SSP) fertiliser in West Bengal and the north-eastern states. The company has 10 marketing offices across West Bengal, Assam, Delhi and Punjab, and has set up a unit in Rajasthan. Teesta markets its products under its established brand, Kanchan, which has strong brand recall, reflected in strong growth in sales volume to over 1.47 lakh tonne in fiscal 2025 from over 1.15 lakh tonne in the previous fiscal. The sales volume has been strong in the first half of fiscal 2026, reflected in off-season sales of over 0.70 lakh tonne, with on-year growth expected over 10% for the full fiscal.
Comfortable financial risk profile: The capital structure has been healthy, with gearing and total outside liabilities to tangible networth (TOLTNW) ratio below 0.25 time and 1 time, respectively, over the past three fiscals and at 0.18 time and 0.64 time, respectively, as on March 31, 2025, with networth over Rs 117 crore. Debt protection metrics were healthy, too, with interest coverage and net cash accrual to adjusted debt ratio at 13.96 times and 0.46 time, respectively, for fiscal 2025. The financial risk profile is expected to remain comfortable over the medium term in the absence of any large, debt-funded capital expenditure (capex). |
Key Rating Drivers - Weaknesses Modest operating efficiency: As fertiliser is a seasonal commodity in the geography the company operates in, operating efficiency remains below average for the plant at Jalpaiguri in West Bengal. Ebitda (earnings before interest, taxes, depreciation and amortisation) margin was subdued at 6.8% for fiscal 2025, though up from around 4.4% in the previous fiscal due to higher capacity utilisation owing to growth in sales volume. Operating profitability is lower in the first half of the fiscal owing to significant pre-season discounts offered during September and increases in the second half owing to finalisation of subsidies. The operating margin for the first half of fiscal 2026 is estimated to be around 3.9%, against 3.2% in the corresponding period of the previous fiscal. Sustained improvement in the margin will remain a key rating sensitivity factor.
Susceptibility to government regulations: As the fertiliser industry is strategically important, it will continue to be extensively regulated by the government. Government intervention in deciding output prices as well as changing subsidy rates will continue to impact scale. This has resulted in moderate revenue of around Rs 187 crore for Teesta in fiscal 2025. Revenue for the first half of fiscal 2026 is estimated to be over Rs 103 crore and is expected to cross Rs 210 crore for the full fiscal, driven by growth in both volume and realisations. Sustained increase in scale of operations will be monitorable. |
Liquidity Adequate Bank utilisation was low, below 20% over the 12 months through October 2025. Cash accrual is expected over Rs 10 crore against term debt obligation of Rs 1.5-2.0 crore over the medium term, and the surplus will cushion liquidity. The current ratio was healthy at 1.85 times on March 31, 2025. |
Outlook Stable Crisil Ratings believes Teesta will continue to benefit from its strong market position in the fertiliser business. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company Incorporated in September 1986, Teesta is promoted by Mr Hardev Singh and manufactures fertilisers such as SSP, mixture fertilisers in various grades, granulated SSP, nitrogen phosphorus potassium fertiliser and sulphuric acid. It has facilities at Jalpaiguri in West Bengal and Chittorgarh in Rajasthan, with installed capacity of 185,000 tonne per annum (TPA) and 132,000 TPA, respectively, to manufacture SSP in powder and granular forms.
Products are sold under the Kanchan brand, which has strong recall in eastern and north-eastern states. The Rajasthan unit, which was set up to expand operations in that state as well as Uttar Pradesh and Haryana, commenced operations in September 2016. |
Key Financial Indicators
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Status of non cooperation with previous CRA: Teesta has not cooperated with CARE Ratings Limited, which has classified the firm as non-cooperative vide release dated March 16, 2018. The reason provided by CARE Ratings Limited is non-furnishing of information for monitoring the rating and non-payment of surveillance fees for the rating exercise. |
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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