CareEdge reaffirms CARE B-; Stable rating on subsidiary CMJ Breweries' Rs. 56.50 crore bank facilities

Asgard Alcobev has shared a CareEdge Ratings press release on its subsidiary, CMJ Breweries Private Limited.

Fri 9 Oct 2026

Credit Rating

CARE B-; Stable

Rated Long-Term Bank Facilities

Rs. 56.50 crore (reduced from Rs. 98.80 crore)

Total Operating Income

Rs. 216.59 crore in FY26 compared with Rs. 252.00 crore in FY25

What the disclosure is

Asgard Alcobev Limited has enclosed a press release from CareEdge Ratings on the credit rating of its subsidiary, CMJ Breweries Private Limited. CareEdge has reaffirmed the rating on CMJ Breweries' long-term bank facilities at CARE B-; Stable. The regulator named for these facilities is the RBI.

The rated amount

• The long-term bank facilities rated are Rs. 56.50 crore, marked as reduced from Rs. 98.80 crore.
• Annexure-1 lists fund-based long-term cash credit of 10.00 and fund-based long-term loans of 9.00 and 37.50 (amounts in Rs. crore), all rated CARE B-; Stable.
• Rating history shows these same facilities carried CARE B-; Stable in the 2025-2026 rating history.

Why the rating sits at this level

CareEdge says the rating remains constrained by debt restructuring in the past, weak profitability and a leveraged capital structure with a low net worth base on the back of losses in the distillery unit, ongoing debt-funded capex, a stretched liquidity position, changes in government regulations affecting the spirit industry, volatility in raw material prices with limited pricing power, and the highly regulated nature of the alcohol industry.

On the positive side, the release notes a modest track record of operations, association with leading brands, improvement in capacity utilisation at the brewery division after modernisation of existing infrastructure, and high entry barriers in the liquor industry.

Financial and operating trend

• Total operating income was Rs. 216.59 crore in FY26 compared with Rs. 252.00 crore in FY25.
• PBILDT margin improved to 6.27% in FY26 from 3.47% in FY25.
• Net worth was negative at Rs. 10.36 crore as on March 31, 2026, an improvement from negative Rs. 14.80 crore as on March 31, 2025.
• Total debt rose to Rs. 93.26 crore as on March 31, 2026 from Rs. 66.14 crore as on March 31, 2025.
• Overall gearing was negative 5.98x as on March 31, 2026 against negative 4.47x a year earlier.
• PBILDT interest coverage improved to 4.37x in FY26 from 0.77x in FY25.
• Capacity utilisation rose to 60.47% in FY26 from 45.41% in FY25, and further to 73.07% in 5MFY27.
• Q1FY27 total operating income was 53.04 crore, PBILDT 5.42 crore and PAT 2.42 crore (unaudited).

Ownership change behind the structure

The release notes that on December 17, 2025, Mr. Ronak Jain acquired promoter control of Asgard Alcobev Limited. Asgard Alcobev then took over about 78% shareholding in CMJ Breweries Private Limited through a share-swap completed on February 17, 2026, followed by a mandatory open offer that concluded in May 2026 and a preferential allotment of equity shares and warrants to the Jain family and other investors. CMJ Breweries Private Limited became a subsidiary of Asgard Alcobev Limited.

Liquidity and repayment

Liquidity is described as stretched, indicated by a low current ratio, a moderate quick ratio and moderate cash accruals against high debt repayments. FY27 carries a debt repayment obligation of about Rs. 52.37 crore, of which about Rs. 42.85 crore had already been paid, funded through a Rs. 25.00 crore term loan from Kotak Mahindra Bank, a Rs. 5.00 crore unsecured loan from promoters and Rs. 1.00 crore through an inter-corporate deposit by Asgard Alcobev Limited, with the balance from internal cash accruals.

Other points in the release

• The company operates a brewery in Byrnihat, Meghalaya, with an installed capacity of 84,00,000 cases per annum.
• It manufactures beer under bottling agreement/job work and own brands such as Asia 72, Heman 9000, Kingfisher Strong & lager, Magpie, Savage, Red Indian, Shimla and Simba, and has a bottling agreement with Carlsberg India.
• A promoter-funded unsecured loan of Rs. 20.00 crore is proposed to be converted into equity, with implementation expected by October 2026.
• The company's OTS with MIDCL of ₹61.94 crore was approved on December 11, 2024, with the deadline extended to June 15, 2026 and a further extension approved on June 3, 2026 with retrospective effect from August 10, 2026; under the revised terms, ₹29.00 crore was to be repaid by August 31, 2026 and the balance ₹9.00 crore by February 2027.
• CRISIL has continued the rating on CBPL's bank facilities in the Issuer Not Cooperating category.

What this is, in simple terms

A credit rating is a lender-side view of how likely timely payment is. Here the rating has been reaffirmed, not changed, and the rated bank facilities are shown as reduced from Rs. 98.80 crore to Rs. 56.50 crore. The release records a high-credit-risk rating level alongside weak capital structure and stretched liquidity, even as operating profitability and capacity utilisation improved.

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