Key Metrics of Vadilal Industries
About Vadilal Industries
Sectors
Company details
- Website
- vadilalgroup.com
- Registered office
- Vadilal House53 Shrimali Society Nr Navrangpura Police Station,, Ahmedabad, In-gj, 380009
- Listed
- NSE: VADILALIND · ₹7,431.00
Operational Areas of Vadilal Industries
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
Sign in to continue See plans & pricingFiling compliance
Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
Sign in with access to company financials to review vendor evidence.
Credit ratings
NoteLatest action: rating withdrawn (CARE, 04 Jan 2024)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 04 Jan 2024 | CARE | Withdrawn | BBB+ | A2 | Stable | — | View |
| 04 Oct 2023 | CARE | Revised (from BBB) | BBB+ | A2 | Stable | ₹105 Cr | View |
| 27 Sep 2022 | CARE | Revised (from BBB-) | BBB | A3+ | Stable | ₹209 Cr | View |
| 06 Oct 2021 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹209 Cr | View |
| 07 Jan 2021 | CARE | Reaffirmed | BBB- | A3 | Negative | ₹112 Cr | View |
| 07 Jul 2020 | CARE | Watch (from BBB-) | BBB | — | Negative | ₹129 Cr | View |
| 27 Dec 2019 | CARE | Watch | BBB | A3+ | — | ₹129 Cr | View |
| 26 Sep 2019 | CARE | Watch | BBB | A3+ | — | ₹129 Cr | View |
| 22 Aug 2019 | CARE | Watch (from BBB+) | — | A3+ | — | ₹259 Cr | View |
| 10 Jun 2019 | CARE | Watch | BBB+ | A2 | Developing | ₹148 Cr | View |
Credit strengths (CARE, Jan 2024)
+ Experienced promoters
VIL was promoted by Mr Vadilal Gandhi who started ice-cream business in 1907. Currently, the operations of VIL are managed by the third and fourth generation of the family, i.e., Mr Rajesh Gandhi, Managing Director, Mr Devanshu Gandhi, Managing Director and Mr Kalpit Gandhi, Director and CFO (son of Rajesh Gandhi). While Mr Rajesh Gandhi looks after the overall operations of the company, Mr Devanshu Gandhi looks after the domestic sales, marketing, and distribution functions. Apart
+ Long-standing track record with a century-old brand ‘Vadilal’
The brand ‘Vadilal’ has been enjoying a well-known legacy for more than a century in the domestic ice-cream and frozen dessert business. The Vadilal brand ice cream and processed food products are being served across PAN India except southern states. The product portfolio of VIL’s ice-cream and frozen dessert includes more than 150 flavours and varieties in different forms like cups, candies, cones, kulfis, tubs, large packs, etc. Apart from ice-cream and frozen dessert, VIL also ventured into
+ Significant growth in scale of operations along with improvement in profitability
VIL’s total operating income (TOI), on consolidated basis, grew significantly by 52% Y-o-Y to ₹1,066 crore in FY23 due to rise in domestic consumer demand on the back of increasing marketing efforts leading to higher sales volume coupled with increase in price realisation. VIL also experienced moderate growth in demand in USA marked by around 8% Y-o-Y growth in TOI of its US subsidiary, Vadilal Industries (USA), Inc., (VIUI) in FY23. During H1FY24 also, VIL’s scale of operations registered aroun
+ Comfortable capital structure and improvement in debt coverage indicators
VIL’s overall gearing ratio remained comfortable at 0.91x as on March 31, 2023 as against 0.84x as on March 31, 2022. Total outstanding debt was higher as of FY23-end owing to finance lease availed towards warehouse and delivery truck on lease rental basis in USA by VIUI as well as increase in working capital borrowings to support growth in scale of operations. Net worth of the company was healthy at ₹319.70 crore as on March 31, 2023. Furthermore, over the last couple of years, the
Credit challenges
− Susceptibility of profitability to volatile raw material prices and foreign exchange fluctuation
The major raw materials for manufacturing of ice-cream are SMP, milk, cream, and nuts, which VIL procures from local dairies near its manufacturing units. It also procures palm oil for manufacturing frozen dessert. The prices of key raw materials have increased gradually over the years given the rising demand and constrained supply scenario. Also, each financial year during the period from November to January, the raw material prices are normally lower due to dynamics of dairy industry which als
− Seasonality of demand as well as challenges arising from changing consumer tastes and preferences
The sales of VIL are normally concentrated over the summer months, reflecting the seasonality of the business. Hence, the working capital intensity is at its peak level in the last quarter of the financial year as it has to accumulate raw material inventory for meeting the demand for ice cream in the upcoming summer season. The business is also susceptible to changing tastes of consumers requiring investment in fixed assets leading to highly capital-intensive operations.
− High competition in the ice-cream segment from the organised as well as un-organised markets
Indian ice-cream market is largely dominated by un -organised players with innumerable small and seasonal companies doing the business in various regions. Further more, there are large number of big and medium-sized ice-cream companies in India which leads to a highly competitive env ironment. Although there is a huge opportunity for industry players since India is one of the fastest-growing markets for ice-cream consumption due t o its large popu lation and growing per capita income; however,
Could lead to an upgrade
• Volume-backed growth in the scale of operatio ns with total operating income (TOI) of over Rs.1500 crore while sustaining PBILDT margin of more than 15%. • Improvement in total debt / PBILDT to less than 1x on sustained basis. • Improving TOL/TNW to below 1 times.
Could lead to a downgrade
• Any materially negative outcome arising from the on-going independent investigation being conducted on the matters referred under qualified opinion issued by its statutory auditors in their audit report for FY23 • Decline in scale of operations with TOI falling below Rs.1000 crore and decline in PBILDT margin below 12% on sustained basis. • Any large sized debt funded capex or incremental working capital requirement resulting in deterioration in capital structure with overall gearing of more than 1.20 times.
Agency-reported financials (CARE, 04 Jan 2024)
| Metric | H1FY24 |
|---|---|
| Total operating income | ₹706 Cr |
| PBILDT | ₹169 Cr |
| PAT | ₹109 Cr |
| Overall gearing (times) | 0.43× |
| Interest coverage (times) | 17.12× |
| EBITDA margin | 24.0% |
| Implied interest cost (EBITDA ÷ coverage) | ₹9.88 Cr |
| PAT margin | 15.5% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long Term Bank Facilities | Working capital & bank lines | — | ₹97.6 Cr | — | BBB+ (Stable) | Revised | CARE |
| Short Term Bank Facilities | Working capital & bank lines | — | ₹7.18 Cr | — | A2 | Revised | CARE |
CARE ratings on record (checked 24 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| Bank Guarantee | — | Withdrawn |
| Cash Credit | — | Withdrawn |
| EPC/PSC | — | Withdrawn |
| Letter of credit | — | Withdrawn |
| Term Loan | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Withdrawal | CARE · 04 Jan 2024 · Withdrawn at company request with lender NOCs |
| Next action stable or better (model) | 69% |
| Information on file | 78% · missing: Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 61% chance the next rating action is stable or better
- Current rating BBB+ (investment grade)
- Interest coverage 19.04×
- Working-capital limits 32% utilised on average
- CARE withdrew its ratings on 04 Jan 2024 — usually after the rated bank loans were repaid or moved to another lender
What happened, step by step
- Oct 2023 — Project / plant of ₹60 cr
- Jan 2024 — Term debt tied up
“In FY23, VIL had planned a debt funded expansion project at its Pundhra and Bareily manufacturing facilities with estimated cost of Rs.60 crore, which is now at verge of completion and funded through term loan of Rs.45 crore and balance through internal accruals.Furthermore, over the last couple of years, company has r...”
Rated limits by facility
Timeline
From the report
Total outstanding debt was higher as of FY23-end owing to finance lease availed towards warehouse and delivery truck on lease rental basis in USA by VIUI as well as increase in working capital borrowings to support growth in scale of operations.
From the report
Further more, a new allegation was raised by a promoter director in FY21 in VEL, relating to matter involving o perations and management issue wherein marketing expenses of advertisement amounting to ₹38 crore paid by the company during the period FY16 to FY19 was allegedly done without following the due process.
From the report
Average utilisation of working capital facilities remained low at around 32% during last 12 months ended in June2023 due to seasonality associated with SMP procurement.
From the report
Also, unencumbered cash and bank balance with the company remained at ₹31.77 crore as on March 31, 2023 [PY: ₹45.65 crore].
From the report
As on August 31, 2023, VIL had liquid investments of around ₹88 crore on the back of profit generated in current year and release of funds from working capital.
From the report
Total outstanding debt was higher as on FY23 end owing to finance lease availed towards warehouse and delivery truck on lease rental basis in USA by VIUI as well as increase in working capital borrowings to support growth in scale of operations.
From the report
In FY23, VIL had planned a debt funded expansion project at its Pundhra and Bareily manufacturing facilities with estimated cost of Rs.60 crore, which is now at verge of completion and funded through term loan of Rs.45 crore and balance through internal accruals.Furthermore, over the last couple of years, company has relied on medium to short term unsecured finance for meeting workingcapital requirement towards inventory build-up before peak season.
From the report
Further, a new allegation was raised by a promoter director in FY21 in VEL, relating to matter involving operations and management issue wherein marketing expenses of advertisement amounting to Rs.38 crore paid by the company during the period FY16 to FY19 was allegedly done without following the due process.
From the report
Average utilization of working capital facilities remained low at ~32% during last twelve months ended in June, 2023 due to seasonality associated with SMP procurement.
From the report
Also, unencumbered cash and bank balance with the company remained at Rs.31.77 crore as on March 31, 2023 [PY: 3 CARE Ratings Ltd.
From the report
As on August 31, 2023, VIL had liquid investments of ~Rs.88 crore on the back of profit generated in current year and release of funds from working capital.
From the report
The company had only made co ntributions towards maintenance capex and it had not undertaken any major expansion in last couple of years due to adverse economic scenario due to Covid -19 disruptions, however in FY23, it is planning to undertake a debt funded expansion project at its Pu ndhra and Bareily manufacturing facilities with estimated cost of Rs.60 crore to be funded by proposed term loan of Rs.45 crore and balance through internal accruals.
From the report
Further, a new allegation raised by a promoter director in FY21, in VEL, relating to matter involving operations and management issue wherein marketing expenses of advertisement amounting to Rs.38 crore paid by the company during the period FY16 to FY19 alleged to be done without following the due process of the company and which were also handed over to same independent CA firm and law firm to investigate, the report of the same is still pending.
From the report
Average utilization of working capital facilities reduced at comfortable level of ~25% duringlast twelve months ended in July, 2022 as against ~65% utilization during trailing twelve months ended in June, 2021.
From the report
The peak utilization remained at 70% as company had taken short term ICDs to fund its WC capital requirement which stood at Rs.34.39 crore as on March 31, 2022.
From the report
In FY22, VIL’s CFO reduced on account of increased working capital requirement in tandem with growing scale of operations, though it remained moderate at Rs.21.47 crore while unencumbered cash and bank balance increased to Rs.45.65 crore as on March 31, 2022 with improved profitability.
From the report
However, VIL was able to turnaround its performance in H2FY21 and registered cash profit of Rs.19.25 crore which was better than envisaged levels due to better recovery post Covid disruption, cost control measures implemented by management a nd superior performance of its USA subsidiary named Vadilal Industries (USA) Inc.
From the report
Further, a new allegati on by a promoter director arise in FY21 in Vadilal Enterprises Limited relating to matter involving operations and management issue wherein marketing expenses of advertisement amounting to Rs.38 crore paid by the company during the period FY16 to FY19 alle ged to be done without following the due process of the Company.
From the report
Average utilization of working capital facilities redu ced to moderate level of around 65% during last twelve months ended in August, 2021 with no major adhoc availed for peak season requirement.
From the report
Average utilization of working capital facilities redu ced to moderate level of around 65% during last twelve months ended in August, 2021 with no major adhoc availed for peak season requirement.
From the report
Consequently, its unencumbered cash and bank balance increased to Rs.28.01 crore as on March 31, 2021 [Rs.12.50 crore as on March 31, 2020].
From the report
Furthermore, VIL has availed working capital term loans (WCTL) under Guaranteed Emergency Credit Line (GECL) scheme to the tune of Rs.22.19 crore (Rs.4.05 crore sanctioned in Q4FY20 and rest in Q4FY21) at concessional rate of interest with teno r of four years (including one -year of moratorium period), which is expected to provide medium term liquidit y cushion to VIL.
From the report
During FY20, on consolidated basis VIL had funded ~Rs.70 crore of its capex largely through internal accruals and accordingly, to meet its raw material sourcing requirement during Q3FY20, it had availed ad-hoc limit of ~Rs.54 crore which was envisaged to be repaid from the cash flows of its peak summer season in Q1FY21.
From the report
However, upon Covid-19 induced lockdown, VIL incurred cash loss during Q4FY20 and also lost large part of its peak season sales during Q1FY21 resulting into moderation in TOI by ~50% on y -o-y basis in H1FY21 and cash loss of Rs.7.67 crore during H1FY21.
From the report
This has also impacted its liquidity and company had availed moratorium on servicing of its term loan & working capital limits (including ad -hoc limits) during March 2020 to August 2020, in line with the moratorium available under RBI’s Covid-relief package.
From the report
The company had availed ~Rs.54 crore of ad -hoc working capital limits to fund its raw material sourcing requirement in Q3FY20 which were originally scheduled to be squared up during Q1FY21; however , due to Covid-19 induced lockdown, VIL could not retire the same and availed moratorium on their repayment till August 2020 which was allowed by its lenders.
From the report
During FY20, VIL had funded ~Rs.51 crore of its capex through internal accruals and accordingly, to meet its raw material sourcing requirement during Q3FY20, it had availed ad-hoc limit of ~Rs.54 crore which was envisaged to be repaid from the cash flows of its peak summer season in Q1FY21.
From the report
The ad-hoc limits were originally scheduled to be squared up during Q1FY21; however due to Covid-19 induced lockdown, VIL could not retire the same and has availed moratorium on their repayment till August 2020 which has been allowed by its lenders.
From the report
Term loan of Rs.16 crore is already sanctioned by a bank; albeit its disbursement is pending.
From the report
Liquidity: Adequate VIL’s liquidity continued to remain adequate as indicated from the modest average working capital utilisation of around 44% during the twelve month period ended June 2019.
From the report
As articulated by the company’s management, the company has made prepayment of debt amounting to around Rs.9.28 crore pertaining to FY20 during April 2019 to July 2019 out of its operating cash accruals during this period.
From the report
Liquidity Analysis Liquidity position of the group continued to remain moderate as indicated from the modest average working capital utilisation of around 44% and 27% for VIL and VEL respectively during the past twelve months ended June 2019.
From the report
As articulated by the company’s management, on combined basis, the group has made prepayment of debt pertaining to FY20 to the extent of Rs.12.44 crore during April 2019 to July 2019 out of its operating cash accruals during this period.
From the report
Liquidity Analysis Liquidity position of VIL continued to remain moderate as indicated from modest average working capital utilisation of around 44% and 27% for VIL and Vadilal Enterprises Ltd (VEL) respectively for past twelve months ended June 2019.
From the report
As articulated by the company’s management, on combined basis, the group has made prepayment of debt pertaining to FY20 to the extent of Rs.12.44 crore during April 2019 to July 2019 out of its operating cash accruals during this period.
From the report
Liquidity Analysis Liquidity position of VIL continued to remain moderate as indicated from modest average working capital utilisation of around 47% and 27% for VIL and Vadilal Enterprises Ltd (VEL) respectively for past twelve months ended June 2018.
From the report
As articulated by the company’s management, on combined basis, the group has made prepayment of debt of Rs.10.17 crore during April 2019 - May 2019 out of its healthy cash accruals.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Vadilal Industries
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Kwality Wall's (India) |
Ice Cream & Frozen Desserts · Food & Beverages | hul.co.in | — | Mumbai, India |
 Ideal Ice Cream |
Ice Cream & Frozen Desserts · Food & Beverages | idealicecream.in | — | India |
 Havmor Ice Cream (Lotte) |
Ice Cream & Frozen Desserts · Food & Beverages | havmor.com | — | India |
 Naturals |
Outlets operated by Kamaths Naturals Pvt. Ltd. | naturalicecreams.in | — | India |
| Havmor Ice Cream |
Ice Cream & Frozen Desserts · Food & Beverages | havmor.com | — | India |
| Part of General Mills. | icecream.com/us/en/brands/haagen-dazs | — | India | |
| Outlets operated by Corner House. | cornerhouse.in | — | India | |
| Ice Cream & Frozen Desserts · Food & Beverages | polarbear.co.in | — | India | |
| Discovered Companies · Other Industries | marbleslab.ca | — | India | |
| S S Enterprises | Ice Cream & Frozen Desserts · Food & Beverages | — | — | Haryana, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Ice cream and frozen foods
Filings
No filings on record yet.