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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 800.00 | ACUITE A | Stable | Reaffirmed | - |
| Total Outstanding | 800.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuite has reaffirmed its long-term rating of ‘ACUITE A’ (read as ACUITE A) on the Rs. 800.00 Cr. bank facilities of Hinduja Realty Ventures Limited (HRVL). The outlook is ‘Stable’.
Rationale for rating The rating factors in the strong parent support of the company and the financial flexibility it receives for being part of the Hinduja Group. HRVL is the real estate flagship company of Hinduja Group having large parcels of land development unlocking value, growing & diversified revenue base. The rating also draws comfort from company’s moderate leverage and comfortable financial risk profile with adequate liquidity profile. However, the rating is constrained by lower than expected growth in revenue from leasing operation of Ecopolis, Bangalore property on account of in progress denotificaiton of SEZ status. Acuité believes that the company's ability to timely denotify the SEZ status and lease the entire Ecopolis property at a competative rates will remain a key rating monitorable. Further the rating is constrained due to vagaries of cyclicality, regulatory changes and the company also has strong competition from several other organized and unorganised players in the industry. |
| About the Company |
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Hinduja Realty Ventures Limited (HRVL) is the flagship real estate company of Hinduja Group wherein Group’s real estate development activities are implemented by the company. The company was incorporated in 1968 and is based in Mumbai. HRVL also has investment in subsidiaries, Associates, Partnership firms, through which it has undertaken various real estate projects, investments and develops various land properties belonging to Hinduja Group in India. The current directors of the company are Mr. Ashok Parmanand Hinduja, Mr. Vishin Gurnani, Mr. Jeet Prakash Chugani, Mrs Kanchana Chitale and Ms. Vandana Deepak Jaisingh.
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| About the Group |
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Hinduja Group Limited (HGL) based in Mumbai is the holding Company of Hinduja Group incorporated in 1995. The group entities include several corporates, viz. Hinduja Realty Ventures Limited, Hinduja Global Solutions Limited, NDL Venture Limited etc. HGL is a holding company, and its income is in the form of consultancy income, dividends, interest income and share of profits from its subsidiaries. HGL borrows money from the group companies as well as advances loans to the group companies.
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| Unsupported Rating |
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ACUITE BBB/ Stable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has considered consolidated business and financial risk profile of Hinduja Realty Ventures Limited with its subsidiaries and associates to arrive at the rating. The consolidation is on account of common line of business, financial flexibility and common management. Further the rating is being notched up on account of benefit received by the company for being a part of the Hinduja Group Limited (HGL) and financial support received from HGL on account of the corporate guarantee.
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| Key Rating Drivers |
| Strengths |
| Strong financial flexibility of the Hinduja group companies
HRVL is a Hinduja group entity and is the holding company for the real estate vertical of the group. Hinduja Group is a diversified conglomerate established in 1914 by Late Mr. Parmanand Deepchand Hinduja and is currently headquartered in London, UK. It currently has footprint in 37 countries. In India, the Group has presence in various sectors viz. Automotive, Oil & Lubricants, Power, Banking & Finance, Information Technology & Business Process Outsourcing, Media, Foundry, Real Estate, Hospitals & Healthcare etc. The companies of the Hinduja group have demonstrated an ability to mobilize funds and refinance their existing debt from various banks and large non-banking finance companies at competitive rates. Acuité believes that HRVL’s credit profile will continue to be supported by strong financial flexibility of Hinduja Group of companies. High level of group support to the real estate business The promoters of Hinduja family have a long track record of providing timely financial support to HRVL and its subsidiaries as and when required. Real estate business is strategic in nature and a key focus area for the Group. The real estate assets of the group are mainly held through HRVL and GOCL Corporation Ltd. and its subsidiaries. The Group has already made a substantial investment in this business not only in the form of equity but also by providing unsecured loan from related parties (Rs 626.91 Cr. as on December 31,2024). Acuité therefore believes that promoters will continue to support HRVL in the domestic real estate business. Flagship real estate company of Hinduja Group having large parcels of land development unlocking value Hinduja Realty Ventures Limited. (HRVL) is the flagship real estate company of Hinduja Group wherein Group’s real estate development activities are implemented by the company. HRVL was incorporated in 1968 and is based in Mumbai. HRVL also has many subsidiaries, Associates, Partnership firms, through which it has undertaken various real estate projects, investments and develops various land properties belonging to Hinduja Group in India. Growing & Diversified Revenue Base and profitability HRVL has diversified revenue base with income from real estate development and investment income. The revenues from real estate development comprises of property development and management. The company has invested in various group companies including listed and unlisted, through which it earns dividend income and interest income on account of its equity investments and loans and advances. The total income of the group stood at Rs.219.01 Cr. in FY2024 as against Rs 223.34 Cr. in FY2023. Further total income of the group is improved in FY2025 reflected by 9MFY25 which stood at 370.67 Cr. Operating margin stood at 25.34 percent in FY2024 as against 87.77 percent in FY2023. The decline in the margin was on account of posting of substation expense of Rs 84.66 Cr in the statement of profit and loss (onetime expense). Company has developed a substation for supplying uninterrupted power to the entire Ecopolis project, subsequently the substation was handed over to Karnataka Power Transmission Corporation Limited (KPTCL) on November 06, 2023 which impacted profitability in FY2024. However, EBITDA margin improved to 74.76 percent and PAT margin to 76.43 percent in 9MFY2025. Acuité believes that the ability of the group to improve its scale of operations along with profitability is going to remain a key monitorable over the medium term.
Moderate capital structure and financial risk profile The capital structure of the company remained moderate with overall gearing at 2.18 times as on March 31, 2024 with a net worth base of Rs. 962.14 Cr. On excluding related parties and borrowings within the Hinduja Group, overall gearings stood at 1.17 times as on March 31, 2024.The group’s coverage indicators have been moderated with interest coverage ratio (ICR) and Debt-service coverage ratio (DSCR) at 1.35 times and 0.79 times respectively in FY2024 as against 1.80 times and 1.43 times respectively in FY2023. Acuite believes, the financial risk profile of the group would remain moderate on account of moderation in profitability. |
| Weaknesses |
| Slow paced growth in Ecopolis project
The key project under development is “ECOPOLIS” IT/IT SEZ at Bangalore developed by HRVL. The company is in the process of developing and setting up project ECOPOLIS- IT/IT SEZ comprising of three buildings namely block 2, block 3 and multi level car parking (MLCP). The company has received occupancy certificate on May 2016 for Block 3 and MLCP. However it was not fully functional due to inadequate power supply and other incomplete infrastructure facilities. As of now the company has resolved the electricity issue as after testing and commissioning and obtaining approvals from Karnataka Power Transmission Corporation Limited (‘KPTCL’) the substation work was completed and charged on 20 July 2023 and subsequently was handed over to KPTCL on 6 November 2023. Presently it has one tenant in second floor of E3 wherein 73,465 sq. ft. is leased out of total 1.5 mn sq ft leasable area for a lease period of five years till FY2028. MLCP is not being utilised in entirety despite having tenant. The company is in the process of denotification of its SEZ status to attract tenants which is expected to complete by end of September 2025. The ability of the company to timely denotify the SEZ status of the project and find lessee for the vacant spaces remains a key rating monitorable. Susceptibility to cyclicality and regulatory risks impacting real estate industry HRVL is exposed to the risk of volatile prices on account of frequent demand supply mismatches in the industry. The Real Estate sector is currently witnessing moderation in demand on account of large amounts of unsold inventory and high borrowing costs. This is primarily attributable to the high residential property prices due to persistent rollover of bank debt, which has had a cascading effect on the overall financing costs. Given the high degree of financial leverage, the high cost of borrowing inhibits the real estate developers' ability to reduce prices. Further, the industry is exposed to regulatory risk, which is likely to impact players such as HRVL, thereby impacting its operating capabilities. |
| Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix) |
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Assessment of Adequacy of Credit Enhancement
Corporate guarantee for Term Loan facilities: Hinduja Group Limited(HGL) has extended a corporate guarantee for the term loan facilities availed by HRVL. This being the part of Hinduja Group helps to strengthening the credit profile of the HRVL. Stress case Scenario Acuite believes that, given the adequacy of the strategic and financial support by HGL in the form of corporate guarantee, HRVL will be able to service its debt on time, even in a stress scenario. |
| ESG Factors Relevant for Rating |
| Hinduja Group Limited, the holding company of Hinduja Realty Ventures Ltd, is committed to driving long-term value through sustainable, socially responsible, and ethically governed business practices. With a diversified global portfolio spanning banking & finance, IT, energy, healthcare, infrastructure, and media, the Group is progressively integrating Environmental, Social, and Governance (ESG) principles across all levels of its operations. The group has ventures and investments in clean energy, including solar and wind, under its energy verticals, and has made sustainability a priority in its power and infrastructure projects. Through the Hinduja Foundation, the group is active in healthcare, education, and rural development, serving millions of beneficiaries across India and other countries. The Group emphasizes diversity, equity, inclusion, and safety across its global workforce, and has numerous training and upskilling programs. The Group maintains robust compliance mechanisms, transparent business practices, and zero-tolerance policies toward corruption. Board-level ESG oversight is increasingly being integrated across its key businesses, reflecting modern corporate governance standards.Regular engagement with regulators, investors, and communities ensures alignment with evolving ESG expectations. |
| Rating Sensitivities |
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| Liquidity Position |
| Adequate |
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HRVL is having adequate liquidly on account of being subsidiary of Hinduja group and its commitment of the group to support the real estate segment in case of any financial distress. The repayment of borrowings of HRVL are supported by timely infusion of funds by HGL thereby ensuring timely debt repayments. The average bank limit utilization stood at 66 percent for the past trailing twelve months ended April 2025. Further, the liquidity is also supported by company’s holdings in listed entities which are quoted on the stock exchange. The market value of Investment stood at Rs 630.00 Cr. as on May 21,2025. The company has sufficient land bank at consolidated level giving the company additional comfort. Further company would have the bullet repayment by the end of FY2027 for term loan facilities. Acuité believes that continued ownership of the company by the Hinduja group and their timely support will remain critical to ensure adequate liquidity position.
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| Outlook: Stable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 24 (Actual) | FY 23 (Actual) |
| Operating Income | Rs. Cr. | 144.12 | 209.67 |
| PAT | Rs. Cr. | (33.17) | 70.87 |
| PAT Margin | (%) | (23.01) | 33.80 |
| Total Debt/Tangible Net Worth | Times | 2.18 | 1.89 |
| PBDIT/Interest | Times | 1.35 | 1.80 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not applicable
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| Any Other Information |
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None
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||
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