The Patel Retail credit rating has been upgraded by Acuité Ratings & Research on bank facilities totalling Rs 109.01 crore, the company said in a BSE filing dated October 3, 2026. The disclosure cites Acuité’s October 1, 2026 release, which attributes the upgrades to improved operating performance and a stronger financial profile following its IPO.

The revised ratings cover two categories of bank facilities:

  • Long-term facilities of Rs 20.81 crore: upgraded from ACUITE BBB to ACUITE BBB+ with a Stable outlook.
  • Short-term facilities of Rs 88.20 crore: upgraded from ACUITE A3+ to ACUITE A2.

Separately, Acuité withdrew the rating on proposed bank facilities of Rs 116.73 crore at the company’s request, without assigning a rating to those proposed facilities.

Revenue growth and stronger capital position support upgrade

According to the rating rationale, Patel Retail’s revenue increased 27.77% to Rs 1,049.43 crore in FY2026 from Rs 821.35 crore in FY2025. Acuité linked the improvement primarily to expansion of its retail network from 44 to 54 stores.

Profit after tax rose to Rs 39.05 crore from Rs 25.28 crore. EBITDA margin increased to 7.83% from 7.65%, supported by food processing operations that enable higher-margin in-house products across its supermarkets.

Net worth increased to Rs 363.64 crore as of March 31, 2026, from Rs 134.45 crore a year earlier, supported by fresh equity capital and retained profits. Gearing improved to 0.45 times from 1.36 times, while interest coverage strengthened to 6.36 times from 3.64 times.

The company reported Q1 FY2027 revenue of Rs 309.54 crore and outlined plans to expand to around 71 supermarkets by March 2028.

Working capital remains a constraint

Acuité flagged moderately intensive working capital operations and competition in a fragmented retail industry. Inventory holding increased to 98 days in FY2026 from 69 days in FY2025, while average bank limit utilisation reached 96.70% during the six months ended August 2026.

The agency assessed liquidity as adequate, with FY2026 net cash accruals of Rs 57.41 crore against debt repayment obligations of Rs 4.64 crore.

Patel Retail said it had previously sought an appeal or review from Acuité. As of the disclosure date, it had received no separate formal communication or letter on the matter and had taken note of the revised ratings from the agency’s published release.