Emami Agrotech ↗

October 05, 2026 Emami Agrotech Limited: Long-term rating reaffirmed; short-term rating assigned; rated amount enhanced Summary of rating action Previous rated amount Current rated amount Financial sector Instrument* Rating action # (Rs. crore) (Rs. crore) regulator Long-term – Fund-based – [ICRA]A- (Stable); reaffirmed and 34.00 324.00 RBI Term loans assigned for enhanced amount Short-term – Fund-based - 0.00 400.00 [ICRA]A2+; assigned RBI Others Total 34.00 724.00 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechan

While no major project capex is envisaged in the current fiscal, the company intends to set up a compressed biogas (CBG) plant in Madurai at an estimated cost of around Rs. 200 crore.

For EAL, this manifested in an equity infusion of Rs. 938 crore in the form of zero-coupon optionally convertible debentures in FY2022.

Liquidity position: Adequate EAL’s liquidity is Adequate, supported by free cash and bank balance of Rs. 380 crore as on March 31, 2026.

It also frequently utilises additional limits at a 100% margin money requirement, leading to a high encumbered cash balance of around Rs. 2,300 crore as on March 31, 2026.

In November 2022, the company raised equity of ₹30 crore from an investor.

Liquidity: Adequate EAL had total cash and bank balance of ₹214 crore as on March 31, 2025.

The company earned adjusted gross cash accruals of ₹279 crore in FY25.

Scheduled term debt repayment obligation of ~₹185 crore in FY26 is being met from cash accruals and available cash balance.

EAL has set up a 400 TPD solvent extraction plant and 50 TPD refinery unit at Jaipur, Rajasthan, commissioned in April 2024 within the budgeted cost of ₹60 crore, to manufacture de-oiled cake and solvent mustard oil by way of forward integration to enable the company to process the oil cake, which is produced by the existing Jaipur unit operations.

EAL has also set up a bio- diesel plant at Krishnapatnam unit, commissioned in April 2024 within the budgeted cost of ₹50 crore, as maintained by the management.

EAL is increasing the capacity of its Bio-diesel plant at Haldia, West Bengal, by 300 TPD, at an estimated cost of ₹70 crore, which is proposed to be funded by promoter contribution of ₹20 crore and term loan of ₹50 crore, which has been tied up.

EAL is increasing the capacity of its Bio-diesel plant at Haldia, West Bengal, by 300 TPD, at an estimated cost of ₹70 crore, which is proposed to be funded by promoter contribution of ₹20 crore and term loan of ₹50 crore, which has been tied up.

Liquidity: Adequate EAL had total cash and bank balance of ₹179 crore as on December 31, 2024.

The company earned adjusted gross cash accruals (GCA) of ₹349 crore in 9MFY25 (standalone).

The company has scheduled term debt repayment obligation of ~₹213 crore in FY25 which is being met out of cash accruals and available cash balance.

With subdued operating performance and higher finance cost (₹397 crore in FY24), the company incurred cash loss of ~₹504 crore in FY24, which was funded out of liquidation of inventory and increased borrowings.

In November 2022, the company raised equity of ₹30 crore from an investor.

The project was commissioned in April 2024 within the budgeted cost of ₹60 crore, as maintained by the management.

Liquidity: Adequate EAL had total cash and bank balance of ₹1,600 crore (including margin money of ₹1,408 crore) as on March 31, 2024.

The company incurred cash loss of ₹504 crore (adjusted) in FY24, which was funded out of liquidation of inventory and increase in borrowings.

The company had scheduled term debt repayment obligation of around ₹205 crore in FY24 which was paid out of cashflow from operations.

Further, in November 2022, the company raised equity of ₹30 crore from an investor.

The project is in the process of commissioning in April 2024 within the budgeted cost of ₹60 crore, as maintained by the management.

Liquidity: Adequate EAL had total cash and bank balance of ₹1,950 crore (including margin money of ₹1,845 crore) as on December 31, 2023.

The company incurred cash loss of ₹514 crore in 9MFY24, which was funded out of liquidation of inventoryand increase in borrowings.

The company had scheduled term debt repayment obligation of around ₹205 crore in FY24 which was paid out of cashflow from operations.

Further, in November 2022, the company raised equity of ₹30 crore from an investor.

In November 2022, the company had raised equity of ₹30 crore from an investor.

The project is in the process of commissioning in July 2023 within the budgeted cost of ₹60 crore, as maintained by the management.

Liquidity: Adequate EAL had total cash and bank balance of ₹1,892 crore (including margin money of ₹1,693 crore) as on March 31, 2023.

Press Release company incurred cash loss of ₹370 crore in FY23 (Provisional) which was funded out of liquidation of inventory, collection of debtors and out of available cash balance.

The company has scheduled term debt repayment obligation of around ₹200 crore in FY24 against which the company is expected to generate adequate cash accruals .

It availed short term loan of ₹467 crore in Q1FY24 to support its liquidity.

Furthermore, ₹150 crore was infused as equity in FY21 to fund EAL’s onward investment in its overseas subsidiary.

In November 2022, the company raised equity of ₹30 crore from an investor.

In view of the increasing sales and better margins, the company has set up a 60 TPD spice grinding and packaging unit at Jaipur, Rajasthan which started operations in June 2022 at a project cost of ₹72.84 crore.

Liquidity: Adequate EAL had total cash and bank balance of ₹2,039 crore (including margin money of ₹1,742 crore) as on March 31, 2022.

The company has scheduled repayment obligation of ₹196.53 crore in FY23.

Though the cash accruals in FY23 are not likely to be sufficient to meet its term debt repayment obligations, it had free cash and cash equivalents of ₹296.66 crore as on March 31, 2022.

It has already tied up the debt component for funding the ongoing solvent extraction project and the commitment from internal accruals for capex stands limited at around ₹20 crore in FY23 and ₹5 crore in FY24.

The promoters have demonstrated continuous support towards fund requirement of EAL and have funded around Rs.938 crore in the form of unsecured loans as on March 31, 2021, out of which Rs.57 crore was infused in FY21.

Furthermore, Rs.150 crore was infused as equity in FY21 to fund its onward investment in its overseas subsidiary. 1 Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications. 1 CARE Ratings Limited Press Release The promoters of the group, Mr R S Agarwal and Mr R S Goenka are professionals with an extensive business experience.

In view of the increasing sales and better margins, the company is proposing to set up 60 TPD spice grinding and packaging unit in Jaipur, Rajasthan at a cost of around Rs.73 crore which is expected to start operations by April 2022.

The promoters have also infused significant amount of unsecured loans out of which Rs.881 crore is subordinated to bank debt.

Liquidity: Adequate EAL is expected to earn adequate cash accruals to meet its term debt repayment obligation of about Rs.181 crore in FY22.

The company had free cash balance of Rs.210 crore as on March 31, 2021.

In FY20, the promoters infused Rs.121 crore as unsecured loans.

Project Implementation Risk EAL is in the process of setting up a greenfield project of 3,000 TPD edible oil refinery in Kandala, Gujarat at an estimated cost of Rs.545 crores, to be funded through promoters’ contribution of Rs.160 crores and a term loan of Rs.385 crores.

In view of diversify its product profile and improve its profitability, EAL is setting up a 60 TPD Spice grinding and packaging unit in Jaipur at an estimated cost of Rs.73 crores, to be funded through promoters’ contribution of Rs.23 crores and a term loan of Rs 50 crores.

The free cash and bank balance (excluding Margin money) stood at Rs.722 crores as on Mar’20.

Average utilisation levels for the past 12 months ending Nov ’20 stands at ~84% for non-fund based limits.

The company has a scheduled repayment obligation of around Rs.122 crores in FY21 and cash flows are expected to be sufficient to meet the same.

Decline in free cash & liquid investment below Rs.280cr on a sustained basis. 3.

In FY19, the promoters infused Rs. 281.00 crores as unsecured loans.

Project Implementation risk The Company is in the process of expanding its existing facility at Haldia by way of setting up 2,000 TPD refining plant at Haldia at capital cost of Rs. 300 crore to produce refined edible oil.

EAL is also setting up a Greenfield project of 3,000 TPD edible oil refinery in Kandala, Gujarat at an estimated cost of Rs. 545 crores, to be funded through promoters’ contribution of Rs. 160 crores and a term loan of Rs. 385 crores.

Liquidity: Adequate EAL has cash and bank balance (including margin money) amounting to Rs. 2,871 crores as on March 31, 2019.

The cash and bank balance (excluding margin money) stood at Rs.383.93 crores as on March 31, 2019.

In FY20, EAL has repayment obligation of Rs. 297.00 crs and it has paid around Rs 198 crs till September’19.

In FY18, the promoters infused Rs.68.5 crore as unsecured loans.

EAL has significant cash and bank balance (including margin money) amounting to Rs.2,840 crore as on March 31, 2018.

The cash and bank balance (excluding margin money) stood at Rs.313 crore as on March 31, 2018.

Moderate capital structure and debt coverage indicators The increase in term loan for the new projects along with the issue of new debentures amounting to Rs.150 crore led to increase in the overall debt level.

Project stabilisation risk The company has expanded its existing facility at Haldia by way of setting up 1000 TPD pretreatment & 750 TPD fractionation plant at Haldia at capital cost of Rs.125 crore to produce RPO and also setting up a captive co-generation power plant (7.5 MW) at an estimated cost of Rs.63 crore.

The company is setting up 400 TPD preparatory Section, 300 TPD Solvent Extraction Unit and 25 TPD Edible oil Refinery in Rajasthan to produce Refined Mustard Oil at an estimated cost of Rs.90 crore, to be funded through promoters’ contribution /internal accruals of Rs.27 crore and term loan of Rs.63 crore.

In FY17, the promoters infused Rs.73.1 crore as unsecured loans.

However, EAL has significant cash and bank balance (including margin money) of Rs.3,070.69 crore as on March 31, 2017 vis-à-vis Rs.1,584.3 crore as on March 31, 2016.

The company is setting up 400 TPD preparatory Section, 300 TPD Solvent Extraction Unit and 25 TPD Edible oil Refinery in Rajasthan to produce Refined Mustard Oil at an estimated cost of Rs.90 crore, to be funded through promoters’ contribution /internal accruals of Rs.27 crore and term loan of Rs.63 crore.