Nova Agritech Limited - Capital/Financing Update 2026

Registered Office: Sy.No.251/A/1., Singannaguda Village Mulugu Mandal, Medak, Siddipet - 502279, Telangana, India

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CIN : L01119TG2007PLC053901

23[rd] February, 2026

BSE Limited , Listing Department, P J Towers, Dalal Street, Mumbai – 400 001

Scrip Code: 544100

National Stock Exchange of India Limited , Listing Department, Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051 Trading Symbol: NOVAAGRI

SUB: Intimation of Revision in Credit Rating

Ref.: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Dear Sir/Madam,

With reference to the above-cited subject, please find enclosed Credit Rating issued by CARE Ratings Limited (“CARE”) vide letter dated 23[rd] February, 2026 w.r.t. credit facilities obtained by Nova Agritech Limited (‘the Company”) and Nova Agri Sciences Private Limited (“Material Subsidiary”).

CARE Ratings Limited has reaffirmed the rating of long-term credit facilities at CARE BBB and revised the outlook from ‘Stable’ to ‘Negative’ for both Nova Agritech Limited and its Material Subsidiary. Press Release issued by "CARE" is annexed herewith.

Reason
for
Downgrade
of
ratings

As per “CARE”, Revision in outlook of bank facilities of Nova Agritech Limited & its
material subsidiary is primarily on account of lower-than expected performance in
Q3FY26, as the government-imposed stay on bio-stimulants in July 2025; which formed
~30% segment’s revenue share leading to lower revenue and profitability margins.
Further the company’s liquidity remained tight due to higher receivables leading to
increased reliance on working capital borrowings and impacted the operating cycle.
However, Company has requested the agency to revisit the aforesaid ratings.
(any revision in the ratings shall be adequately reported to the exchanges)

Please take the same on record and suitably disseminate it to all concerned.

Thanking you!

For Nova Agritech Limited

NEHA Digitally signed by NEHA SONI SONI Date: 2026.02.23 18:15:47 +05'30'

Neha Soni

Company Secretary & Compliance Officer

Encls as above

Press Release

Press Release Nova Agritech Limited

February 23, 2026

Facilities/Instruments	Amount (₹ crore)	Rating1	Rating Action
Long Term Bank Facilities	30.99	CARE BBB; Negative	Reaffirmed; Outlook revised from Stable

Details of instruments/facilities in Annexure-1.

Rationale and key rating drivers

Revision in outlook of bank facilities of Nova Agritech Limited (NAL) is primarily on account of lower-than expected performance

in Q3FY26, as the government-imposed stay on bio-stimulants in July 2025; which formed ~30% segment’s revenue share leading to lower revenue and profitability margins. Further the company’s liquidity remained tight due to higher receivables leading to increased reliance on working capital borrowings and impacted the operating cycle.

Ratings continue to derive strength from strong parentage of Nova Agritech Limited, the company’s established track record supported by efficient management team, diversified product portfolio, established distribution network across geographies, comfortable capital structure and debt coverage indicators and stable industry outlook.

Ratings continue to factor in profitability margins susceptible to raw material price volatility, exposure to competition and susceptibility to changes in regulations and high dependency on vagaries of monsoon and climatic conditions.

Rating sensitivities: Factors likely to lead to rating actions

Positive factors

Total operating income (TOI) improving above ₹300 crore with a sustainable profitability margin of over 18%.
Operating cycle improving below 150 days.

Negative factors

Decline in TOI and profit before interest, lease rentals, depreciation, and taxation (PBILDT) levels by over 20% for the
projected period.
Any further deterioration in the operating cycle and stretch in liquidity position

Analytical approach: Consolidated

Consolidated financials of NAL and its subsidiary Nova Agri Sciences Private Limited (NASPL) have been considered to arrive at the rating. NASPL is a wholly owned subsidiary of NAL. Refer Annexure-6

Outlook: Negative

Outlook is revised from stable to negative considering significant deterioration in working capital cycle due to built-up of receivables despite moderation in the sales during 9MFY26 and rise in level of inventory from that of March 31, 2025. This has led to tight liquidity position with almost full utilisation of working capital limits for both the entities. CARE Ratings shall monitor the outcome of efforts made by the management to ease the stretched liquidity situation and revise the outlook to stable in case of significant improvement in the liquidity position, conversely any further worsening of liquidity shall lead to revision in the ratings.

Detailed description of key rating drivers:

Key strengths

Established track record of the company supported by efficient management team

NAL was established as a private limited company on May 09, 2007, in Hyderabad, Telangana. NAL is led by a management team with extensive experience in the agricultural sector. Kiran Kumar Atukuri, the company’s Managing Director and promoter, has an experience of over 18 years in Agri-chemical companies, seed companies and fertiliser companies. He takes all corporate decisions and manages the company’s entire business operations specifically manufacturing and sales operations.

1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications.

CARE Ratings Ltd.

Press Release

Diversified product portfolio

The company has a diversified branded product portfolio, offering a wide range of products to meet agricultural needs, including soil health management, crop nutrition, and crop protection. Their product categories encompass soil health management items such as organic fertilisers, bio fertilisers, and soil conditioners; crop nutrition products such as micronutrient fertilisers, beneficial element fertilisers, straight nitrogen fertilisers, straight potash fertilisers, and 100% water-soluble NPK fertiliser; and crop protection solutions including insecticides, fungicides, herbicides, and plant growth regulators.

Established distribution network across geographies

The company markets, sells, and distributes its extensive range of products to farmers across India through a robust distribution network of dealers across states. Their dealer network includes 6000+ active dealers, who purchased and distributed the company’s products in the last financial year. NAL’s dealer network spans 18 Indian states. NAL has established marketing, distribution, and supply agreements with third parties in Bangladesh, Sri Lanka, and Vietnam, and is currently awaiting necessary permissions to commence business operations in these regions.

Comfortable capital structure

The capital structure of the company consists of term debt and working capital borrowings. The overall gearing ratio of the company has improved to 0.25x as on March 31, 2025, as compared to 0.32x as on March 31, 2024, on account of decrease in term loan and increase in net worth. The outstanding term loan as on March 31, 2025, remained at Rs. 2.98 crores and the consolidated net worth of the group remained at Rs 218.52 crore as on March 31, 2025. The interest coverage ratio of the company has further improved significantly to 8.60x in FY25 on account of decrease in total finance cost to Rs. 5.25 crores in FY25 as compared to Rs. 9.03 crores in FY24. The debt equity ratio of the company remains low at 0.01x as on March 31, 2025. Other debt coverage indicator such as Term debt/GCA remains low at 0.10x as on March 31, 2025.

Geographical diversification

The company has a well-established presence across 18 states in India, with Telangana being the major market contributing ~55% of consolidated sales in FY25, followed by Andhra Pradesh (23%) and Karnataka (6%). Other states such as Tamil Nadu, Maharashtra, Chhattisgarh, Gujarat, and Madhya Pradesh also contribute meaningfully to the revenue base. This diversified geographical footprint highlights the company’s growing penetration beyond its key markets, reducing reliance on a single state and positioning it well for sustainable growth going forward.

Stable industry outlook

India’s agriculture sector in FY26 is expected to remain a key driver of rural livelihoods and food security, contributing ~18–20% to the country’s GDP. With continued government focus on improving farm productivity, crop diversification, and adoption of digital and climate-smart farming practices, the sector is likely to witness steady growth. Investments in irrigation, agri infrastructure, and rural supply chains are expected to improve efficiency, while policy support through MSPs, subsidies, and credit access will aid farmers’ income stability. However, the sector’s performance in FY26 will remain contingent on monsoon patterns, global commodity prices, and effective implementation of reforms aimed at boosting value-added activities such as food processing and agri-exports.

Key weaknesses

Decline in the TOI and profitability

The company has reported the TOI of Rs. 206 crore for 9MFY26 as compared to Rs.214 crore in 9MFY25, while PBILDT of Rs.23.92 crore in 9MFY26 as compared to Rs.34.34 crore in 9MFY25.

In Q3FY26 results, reported a 25% decline in income compared with Q2FY26 and a 28% decline compared with Q3FY25. The sharp drop in sales was primarily driven by the disruption in the biostimulants segment. Biostimulant sales fell industry-wide because the Government of India cancelled over 8,000 provisional registrations, leaving only 146 approved products permitted for sale under the Fertilizer Control Order (FCO).

From June 17, 2025, companies were no longer allowed to manufacture or sell unapproved biostimulants, creating an immediate supply shortage as many players awaited new approvals. As stimulants constituted around 30% of NAL’s revenue in FY25, the regulatory gap significantly led to decline in sales in Q3 FY26; however, NAL received 43 product approvals on January 21, 2026 (till Sept 29, 2029), which is expected to support future recovery of sales.

NAL operates in product categories such as soil health, crop nutrition and plant protection, which were also impacted by extended rainfall in South and West India, where prolonged monsoon conditions reduced crop activity and demand for agri-inputs during Q3 FY26 (as similarly evidenced in peer-sector performance). Profitability margins weakened due to higher employee expenses following the operationalization of its new plant in July 2025 and increased transportation and marketing costs associated with new product rollouts for NASPL.

Elongated operating cycle

CARE Ratings Ltd.

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of multiple intermediaries as each intermediary delay payments further increasing the collection period. The company’s receivables remained high at Rs. 214 crore as on December 31, 2025, with 55% outstanding for more than six months, while inventory continued to remain elevated at Rs. 95 crore. This led to a stretched working capital cycle and tight liquidity, reflected in high cash credit (CC) utilisation of around 96% over the 12 months ended January 2026.

Liquidity : Stretched

Liquidity is marked stretched with lower GCA of ₹3 crore against repayment obligations of ₹0.69 crore against repayment obligations of Rs. 0.69 crore for Q4FY26. The company also utilised liquid investments of Rs. 29.36 crore as on March 31, 2025, which were primarily from IPO proceeds, resulting in a lower cash and bank balance of Rs. 1.49 crore as of December 31, 2025. The stretched working capital cycle and tight liquidity, led to higher cash credit (CC) utilisation of around 96% over the 12 months ended January 2026.

Assumptions/Covenants: Not applicable

Environment, social, and governance (ESG) risks :

Parameters	Risk factors
Environmental	The company has installed solar panels at manufacturing facility with a capacity of ~130 KW. These solar panels allow the company to generate electricity that is required for manufacturing process and minimising electricity costs and also contributes towards reducing carbon footprint. It has also built rainwater harvesting pits for conserving rainwater and most of their water needs for manufacturing is met from such rainwater harvesting mechanism. The company generate minimal amounts of effluents from their manufacturing process, which are segregated separately to keep water resources safe, clean and hygienic.
Social	NAL ensures safe working condition in manufacturing facility and handling chemicals. It also offers training programs to improve employee skills. As part of the CSR initiative policy, in FY22, to support families affected by COVID19 pandemic, NAL distributed food grains in Prakasham and Krishna districts in Andhra Pradesh and Khammam District in Telangana. In FY23, NAL organised free eye- camps in collaboration with Shankar Netralaya in Prakasham and Guntur, Andhra Pradesh. Beneficiaries of eye-camps were provided with a check-up and facilitated with surgeries, through Shankar Netralaya.
Governance	NAL is led by a management team with extensive experience in the agricultural sector. The management team consists of a mix of individuals with professional, technical, and commercial experience in the agricultural industry. The team is well-qualified and experienced in industry and has been responsible for growth of our operations. The team comprises personnel having technical, operational, and business development experience. NAL has also employed suitable technical and support staff to manage keyareas of activities allied to operations.

Applicable criteria

Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch Manufacturing Companies Financial Ratios – Non financial Sector Pesticides & Agrochemicals Consolidation

About the company and industry

Industry classification

Macroeconomic indicator	Sector	Industry	Basic industry
Commodities	Chemicals	Fertilizers & Agrochemicals	Pesticides & Agrochemicals

CARE Ratings Ltd.

Press Release

pest management (IPM) products, and crop protection products. NAL operates through an extensive dealer network across Andhra Pradesh, Telangana, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Odisha, West Bengal, Bihar, Gujarat, Jharkhand, Uttarakhand, and Jammu & Kashmir, and Nepal. The company has established marketing, distribution, and supply agreements with third parties in Bangladesh, Sri Lanka, and Vietnam, pending regulatory approvals to commence operations in these regions. Crop protection products are manufactured by their subsidiary, NASPL. The company’s shares were listed on Bombay Stock Exchange (BSE), and National Stock Exchange (NSE) on January 31, 2024.

Brief Financials Consolidated(₹ crore)	March 31, 2024 (A)	March 31, 2025 (A)	9MFY26(UA)
Total operatingincome	252.50	296.60	66.59
PBILDT*	44.34	45.15	6.45
Profit after tax(PAT)	28.31	27.42	2.61
Overallgearing (x)	0.32	0.25	N.A.
Interest coverage(x)	4.91	8.60	4.39

A: Audited UA: Unaudited; Note: these are latest available financial results, N.A: Not available

*PBILDT: Profit before interest, lease rentals, depreciation and tax

Nova Agritech Limited – Standalone

Brief Financials Standalone(₹ crore)	March 31, 2024 (A)	March 31, 2025 (A)	9MFY26(UA)
Total operatingincome	179.84	165.86	24.46
PBILDT*	27.65	22.05	3.12
Profit after tax(PAT)	18.60	16.52	1.48
Overallgearing (x)	0.25	0.18	N.A.
Interest coverage(x)	4.55	6.92	3.63

A: Audited UA: Unaudited; Note: these are latest available financial results, N.A.: Not available

*PBILDT: Profit before interest, lease rentals, depreciation and tax

Status of non-cooperation with previous CRA: Not applicable

Any other information: Not applicable

Rating history for last three years: Annexure-2

Detailed explanation of covenants of rated instrument / facility: Annexure-3

Complexity level of instruments rated : Annexure-4

Lender details : Annexure-5

Annexure-1: Details of instruments/facilities

Name of the Instrument	ISIN	Date of Issuance (DD-MM- YYYY)	Coupon Rate (%)	Maturity Date (DD- MM-YYYY)	Size of the Issue (₹ crore)	Rating Assigned and Rating Outlook
Fund-based - LT-Cash Credit		-	-	-	30.00	CARE BBB; Negative
Fund-based - LT-Term Loan		-	-	November 2026	0.99	CARE BBB; Negative

Annexure-2: Rating history for last three years

Sr. No. Current Ratings Rating History

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	Name of the Instrument/Bank Facilities	Type	Amount Outstanding (₹ crore)	Rating	Date(s) and Rating(s) assigned in 2025- 2026	Date(s) and Rating(s) assigned in 2024- 2025	Date(s) and Rating(s) assigned in 2023- 2024	Date(s) and Rating(s) assigned in 2022- 2023
1	Fund-based - LT- Cash Credit	LT	30.00	CARE BBB; Negative	1)CARE BBB; Stable (17-Sep- 25)	1)CARE BBB; Positive (08-Nov- 24)	-	-
2	Fund-based - LT- Term Loan	LT	0.99	CARE BBB; Negative	1)CARE BBB; Stable (17-Sep- 25)	1)CARE BBB; Positive (08-Nov- 24)	-	-

LT: Long term; ST: Short term; LT/ST: Long term/Short term

Annexure-3: Detailed explanation of covenants of rated instruments/facilities: Not applicable

Annexure-4: Complexity level of instruments rated

Sr. No.	Sr. No.	Name of the Instrument	Name of the Instrument	Complexity Level
1		Fund-based - LT-Cash Credit		Simple
2		Fund-based - LT-Term Loan		Simple
Annexure-5: Lender details
To view lender-wise details of bank facilities pleaseclick here
Annexure-6: List of entities consolidated
Sr No	Name of the entity		Extent of consolidation	Rationale for consolidation
1	Nova Agri Sciences Private Limited		Full, proportionate or moderate	NAL owns 100% stake in NASPL

Note on complexity levels of rated instruments: CareEdge Ratings has classified instruments rated by it based on complexity. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for clarifications.

Contact us

Media Contact Analytical Contacts Mradul Mishra Karthik Raj K Director Director CARE Ratings Limited CARE Ratings Limited Phone: +91-22-6754 3596 Phone: 918046625555 E-mail: [email protected] E-mail: [email protected] Relationship Contact Niraj Thorat Assistant Director Saikat Roy CARE Ratings Limited Senior Director Phone: 914040102030 CARE Ratings Limited E-mail: [email protected] Phone: 912267543404 E-mail: [email protected] Purva Budhbhatti Lead Analyst CARE Ratings Limited E-mail: [email protected]

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Established in 1993, CareEdge Ratings is one of the leading credit rating agencies in India. Registered under the Securities and Exchange Board of India, it has been acknowledged as an External Credit Assessment Institution by the Reserve Bank of India. With an equitable position in the Indian capital market, CareEdge Ratings provides a wide array of credit rating services that help corporates raise capital and enable investors to make informed decisions. With an established track record of rating companies over almost three decades, CareEdge Ratings follows a robust and transparent rating process that leverages its domain and analytical expertise, backed by the methodologies congruent with the international best practices. CareEdge Ratings has played a pivotal role in developing bank debt and capital market instruments, including commercial papers, corporate bonds and debentures, and structured credit. For more information: www.careratings.com

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This disclaimer pertains to the ratings issued and content published by CARE Ratings Limited (“CareEdge Ratings”). Ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse, or recall the concerned bank facilities or to buy, sell, or hold any security. Any opinions expressed herein are in good faith and are subject to change without notice. The rating reflects the opinions as on the date of the rating. A rating does not convey suitability or price for the investor. The rating agency does not conduct an audit on the rated entity or an independent verification of any information it receives and/or relies on for the rating exercise. CareEdge Ratings has based its ratings/outlook on the information obtained from reliable and credible sources. CareEdge Ratings does not, however, guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions and the results obtained from the use of such information. The users of the rating should rely on their own judgment and may take professional advice while using the rating in any way. CareEdge Ratings shall not be liable for any losses that user may incur or any financial liability whatsoever to the user of the rating. The use or access of the rating does not create a client relationship between CareEdge Ratings and the user.

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Nova Agri Sciences Private Limited

February 23,2026

Facilities/Instruments	Amount (₹ crore)	Rating1	Rating Action
Long-term Bank Facilities	20.22	CARE BBB; Negative	Reaffirmed; Outlook revised from Stable

Details of instruments/facilities in Annexure-1.

Rationale and key rating drivers

Revision in the outlook of bank facilities of Nova Agri Sciences Private Limited (NASPL) factors in the lower-than-expected

performance arising from its parent, Nova Agritech Limited, following the government-imposed stay on bio-stimulants in July 2025. This segment contributed ~30% of the company’s revenue, and the restriction has led to lower revenue and profitability margins. Further the company’s liquidity has also remained tight due to higher receivables, resulting in increased reliance on working capital borrowings and a stretched operating cycle.

The rating continues to derive strength from the strong parentage of NAL, it’s established track record supported by an efficient management team, its diversified product portfolio, a wide distribution network across geographies, comfortable capital structure and debt coverage indicators, and a stable industry outlook.

The rating continues to factor in the company’s profitability margins that remain susceptible to raw material price volatility, exposure to competition, regulatory changes, and high dependency on monsoon variability and climatic conditions.

Rating sensitivities: Factors likely to lead to rating actions

Positive factors

Total operating income (TOI) improving above ₹300 crore with a sustainable profitability margin of over 18%.
• Operating cycle improving below 150 days.

Negative factors

Deterioration in credit profile of the parent company.
Decline in TOI and profit before interest, lease rentals, depreciation, and taxation (PBILDT) levels by over 20% for the
projected period.
Any further deterioration in the operating cycle and stretch in liquidity position

Analytical approach: Standalone

Standalone approach factoring in linkages with the parent, Nova Agritech Limited (NAL). NASPL is a wholly-owned subsidiary of NAL, which operates in same business having common management and operations team with strong financial linkages.

Outlook: Negative

Outlook is revised from stable to negative considering significant deterioration in working capital cycle due to built-up of receivables despite moderation in the sales in 9MFY26 and rise in level of inventory from that of March 31, 2025. This has led to tight liquidity position with almost full utilisation of working capital limits for both the entities. CareEdge Ratings shall monitor the outcome of efforts made by the management to ease the stretched liquidity situation and revise the outlook to stable in case of significant improvement in the liquidity position, conversely any further worsening of liquidity shall lead to revision in the ratings.

Detailed description of key rating drivers:

Key strengths

Established track record of the company supported by efficient management team

NAL was established as a private limited company on May 09, 2007, in Hyderabad, Telangana. NAL is led by a management team with extensive experience in the agricultural sector. Kiran Kumar Atukuri, the company’s Managing Director and promoter, has over 18 years of experience in agri-chemical companies, seed companies, and fertiliser companies. He is responsible for all corporate decisions and manages the company’s entire business operations, specifically manufacturing and sales operations.

1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications.

CARE Ratings Ltd.

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Diversified product portfolio

The company has a diversified branded product portfolio, offering a wide range of products to meet agricultural needs, including soil health management, crop nutrition, and crop protection. Their product categories encompass soil health management items, such as organic fertilisers, bio fertilisers, and soil conditioners; crop nutrition products, such as micronutrient fertilisers, beneficial element fertilisers, straight nitrogen fertilisers, straight potash fertilisers, and 100% water-soluble nitrogen-phosphorus-potassium (NPK) fertiliser; and crop protection solutions, including insecticides, fungicides, herbicides, and plant growth regulators.

Established distribution network across geographies

Comfortable capital structure

The company’s capital structure consists of term debt and working capital borrowings. Its overall gearing ratio improved to 0.25x as on March 31, 2025, compared to 0.32x as on March 31, 2024, considering decrease in term loan and increase in net worth. The outstanding term loan as on March 31, 2025, remained at ₹2.98 crore and the consolidated net worth of the group remained at ₹218.52 crore as on March 31, 2025. The interest coverage ratio of the company has further improved significantly to 8.60x in FY25 considering decrease in total finance cost to ₹5.25 crore in FY25 compared to ₹9.03 crore in FY24. The debt to equity ratio of the company remains low at 0.01x as on March 31, 2025. Other debt coverage indicator such as term debt/gross cash accruals (GCA) remains low at 0.10x as on March 31, 2025.

Geographical diversification

Stable industry outlook

India’s agriculture sector in FY26 is expected to remain a key driver of rural livelihoods and food security, contributing ~18–20% to the country’s gross domestic product (GDP). With continued government focus on improving farm productivity, crop diversification, and adoption of digital and climate-smart farming practices, the sector is likely to witness steady growth. Investments in irrigation, agri infrastructure, and rural supply chains are expected to improve efficiency, while policy support through MSPs, subsidies, and credit access will aid farmers’ income stability. However, the sector’s performance in FY26 will remain contingent on monsoon patterns, global commodity prices, and effective implementation of reforms aimed at boosting value-added activities such as food processing and agri-exports.

Key weaknesses

Decline in the TOI and profitability

The company has reported the TOI of ₹206 crore for 9MFY26 compared to ₹214 crore in 9MFY25, while PBILDT of ₹23.92 crore in 9MFY26 compared to ₹34.34 crore in 9MFY25.

Q3FY26 results reported a 25% decline in income compared to Q2FY26 and a 28% decline compared to Q3FY25. The sharp drop in sales was primarily driven by the disruption in the biostimulant segment. Biostimulant sales fell industry-wide because the Government of India cancelled over 8,000 provisional registrations, leaving only 146 approved products permitted for sale under the Fertilizer Control Order (FCO).

From June 17, 2025, companies were no longer allowed to manufacture or sell unapproved biostimulants, creating an immediate supply shortage as many players awaited new approvals. As stimulants constituted ~30% of NAL’s revenue in FY25, the regulatory gap significantly led to decline in sales in Q3 FY26; however, NAL received 43 product approvals on January 21, 2026 (till September 29, 2029), which is expected to support future recovery of sales.

NAL operates in product categories such as soil health, crop nutrition and plant protection, which were also impacted by extended rainfall in South and West India, where prolonged monsoon conditions reduced crop activity and demand for agri-inputs in Q3 FY26 (as similarly evidenced in peer-sector performance). Profitability margins weakened due to higher employee expenses following the operationalisation of its new plant in July 2025 and increased transportation and marketing costs associated with new product rollouts for NASPL.

Elongated operating cycle

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The company’s operating cycle remained elongated over the last five years. In FY25, operating cycle stood at 217 days against 203 days in FY24. The company offers a credit period of ~4-5 months to its customers (dealers) and hence the elongated collection period. The collection period remains high as the agriculture sector is highly seasonal. The cash flow peaks in the harvest period and is significantly lower in off-season. Farmers typically make payments after the harvesting season. NAL also extends better credit terms to farmers due to the financial constraints faced by them. The collection period is also high because of the presence of multiple intermediaries, as each intermediary delays payments further increasing the collection period. The company’s receivables remained high at ₹214 crore as on December 31, 2025, with 55% outstanding for over six months, while inventory continued to remain elevated at ₹95 crore. This led to a stretched working capital cycle and tight liquidity, reflected in high cash credit (CC) utilisation of ~96% over the 12 months ended January 2026.

Liquidity : Stretched

Liquidity is marked stretched with lower GCA of ₹3 crore against repayment obligations of ₹0.69 crore against repayment obligations of ₹0.69 crore for Q4FY26. The company also utilised liquid investments of ₹29.36 crore as on March 31, 2025, which were primarily from IPO proceeds, resulting in a lower cash and bank balance of ₹1.49 crore as on December 31, 2025. The stretched working capital cycle and tight liquidity, led to higher cash credit (CC) utilisation of ~96% over the 12 months ended January 2026.

Assumptions/Covenants: Not applicable

Environment, social, and governance (ESG) risks: Not applicable

Applicable criteria

Factoring Linkages Parent Sub JV Group Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch Manufacturing Companies Financial Ratios – Non financial Sector Pesticides & Agrochemicals

About the company and industry

Industry classification

Macroeconomic indicator	Sector	Industry	Basic industry
Commodities	Chemicals	Fertilizers and Agrochemicals	Pesticides and Agrochemicals

NAL was established as a private limited company on May 09, 2007, in Hyderabad, Telangana. NAL specialises in manufacturing agricultural inputs, offering a diverse range of products for soil health management, crop nutrition, and crop protection. Their product portfolio includes soil health management products, crop nutrition products, bio stimulants, bio pesticides, integrated pest management (IPM) products, and crop protection products. NAL operates through an extensive dealer network across multiple states in India such as Andhra Pradesh, Telangana, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Odisha, West Bengal, Bihar, Gujarat, Jharkhand, Uttarakhand, and Jammu and Kashmir, and Nepal. The company has established marketing, distribution, and supply agreements with third parties in Bangladesh, Sri Lanka, and Vietnam, pending regulatory approvals to commence operations in these regions. Crop protection products are manufactured by their subsidiary, NASPL. The company’s shares were listed on Bombay Stock Exchange (BSE), and National Stock Exchange (NSE) on January 31, 2024

Brief Financials Consolidated(₹ crore)	March 31, 2024 (A)	March 31, 2025 (A)	9MFY26(UA)
Total operatingincome	252.50	296.60	66.59
PBILDT*	44.34	45.15	6.45
Profit after tax(PAT)	28.31	27.42	2.61
Overallgearing (x)	0.32	0.25	N.A.
Interest coverage(x)	4.91	8.60	4.39

A: Audited UA: Unaudited; Note: these are latest available financial results, N.A: Not available

*PBILDT: Profit before interest, lease rentals, depreciation and tax

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About the company: NASPL

Industry classification

Macroeconomic indicator	Sector	Industry	Basic industry
Commodities	Chemicals	Fertilizers and Agrochemicals	Pesticides and Agrochemicals

NASPL of Nova Agri Group was incorporated on May 12, 2010. NASPL is engaged in manufacturing and marketing wider range of plant protection products for agriculture, horticulture, and home gardens. It deals with different categories such as herbicides, insecticides, fungicides and plant growth promoter and regulators. NASPL is also in developing new molecules which helps farmers to increase their yields. NASPL is wholly owned subsidiary of NAL, which was established as a private limited company on May 09, 2007, in Hyderabad, Telangana. NAL’s shares got listed on BSE, and NSE on January 31, 2024.

Brief Financials Consolidated(₹ crore)	March 31, 2024 (A)	March 31, 2025 (A)	9MFY26(UA)
Total operatingincome	111.69	140.49	N.A.
PBILDT*	16.78	20.88	N.A.
Profit after tax(PAT)	9.75	11.07	N.A.
Overallgearing (x)	0.65	1.05	N.A.
Interest coverage(x)	5.32	5.30	N.A.

A: Audited UA: Unaudited; Note: these are latest available financial results, N.A.: Not available

*PBILDT: Profit before interest, lease rentals, depreciation and tax

Status of non-cooperation with previous CRA: Not applicable

Any other information: Not applicable

Rating history for last three years: Annexure-2

Detailed explanation of covenants of rated instrument / facility: Annexure-3

Complexity level of instruments rated : Annexure-4

Lender details : Annexure-5

Annexure-1: Details of instruments/facilities

Name of the Instrument	ISIN	Date of Issuance (DD-MM- YYYY)	Coupon Rate (%)	Maturity Date (DD- MM-YYYY)	Size of the Issue (₹ crore)	Rating Assigned and Rating Outlook
Fund-based - LT-Cash Credit		-	-	-	20.00	CARE BBB; Negative
Fund-based - LT-Term Loan		-	-	October 2026	0.22	CARE BBB; Negative

Annexure-2: Rating history for last three years

Name of the	Current Ratings	Current Ratings	Current Ratings
					Rating	History

		Amount		Date(s) and Rating(s) assigned	Date(s) and Rating(s) assigned	Date(s) and Rating(s) assigned	Date(s) and Rating(s) assigned
Instrument/Bank
Facilities	Type	Outstanding	Rating
		(₹ crore)

CARE Ratings Ltd.

Press Release

					in 2025- 2026	in 2024- 2025	in 2023- 2024	in 2022- 2023
1	Fund-based - LT- Term Loan	LT	0.22	CARE BBB; Negative	1)CARE BBB; Stable (17-Sep- 25)	1)CARE BBB; Positive (08-Nov- 24)	-	-
2	Fund-based - LT- Cash Credit	LT	20.00	CARE BBB; Negative	1)CARE BBB; Stable (17-Sep- 25)	1)CARE BBB; Positive (08-Nov- 24)	-	-

LT: Long term; ST: Short term; LT/ST: Long term/Short term

Annexure-3: Detailed explanation of covenants of rated instruments/facilities: Not applicable

Annexure-4: Complexity level of instruments rated

Sr. No.	Name of the Instrument	Complexity Level
1	Fund-based - LT-Cash Credit	Simple
2	Fund-based - LT-Term Loan	Simple

AI assistant

Nova Agritech Limited — Capital/Financing Update 2026

59150_rns_2026-02-23_b253db9c-92bc-4923-9616-1ce1a0dcd58c.pdf

Scrip Code: 544100

SUB: Intimation of Revision in Credit Rating

Ref.: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Thanking you!

For Nova Agritech Limited

Neha Soni

Press Release Nova Agritech Limited

Rationale and key rating drivers

Rating sensitivities: Factors likely to lead to rating actions

Positive factors

Negative factors

Analytical approach: Consolidated

Outlook: Negative

Detailed description of key rating drivers:

Key strengths

Established track record of the company supported by efficient management team

Diversified product portfolio

Established distribution network across geographies

Comfortable capital structure

Geographical diversification

Stable industry outlook

Key weaknesses

Decline in the TOI and profitability

Elongated operating cycle

Liquidity : Stretched

Assumptions/Covenants: Not applicable

Environment, social, and governance (ESG) risks :

Applicable criteria

About the company and industry

Industry classification

Nova Agritech Limited – Standalone

Status of non-cooperation with previous CRA: Not applicable

Annexure-1: Details of instruments/facilities

Annexure-2: Rating history for last three years

Annexure-3: Detailed explanation of covenants of rated instruments/facilities: Not applicable

Annexure-4: Complexity level of instruments rated

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For detailed Rating Report and subscription information, please visit www.careratings.com

Press Release

Nova Agri Sciences Private Limited

Rationale and key rating drivers

Rating sensitivities: Factors likely to lead to rating actions

Positive factors

Negative factors

Analytical approach: Standalone

Outlook: Negative

Detailed description of key rating drivers:

Key strengths

Established track record of the company supported by efficient management team

Diversified product portfolio

Established distribution network across geographies

Comfortable capital structure

Geographical diversification

Stable industry outlook

Key weaknesses

Decline in the TOI and profitability

Elongated operating cycle

Liquidity : Stretched

Assumptions/Covenants: Not applicable

Environment, social, and governance (ESG) risks: Not applicable

Applicable criteria

About the company and industry

Industry classification

About the company: NASPL

Industry classification

Status of non-cooperation with previous CRA: Not applicable

Annexure-1: Details of instruments/facilities

Annexure-2: Rating history for last three years

Annexure-3: Detailed explanation of covenants of rated instruments/facilities: Not applicable

Annexure-4: Complexity level of instruments rated

Annexure-5: Lender details

Contact us

About us:

Disclaimer:

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Nova Agritech Limited Capital/Financing Update 2026