Press Release

Press Release

July 21, 2025

SHREE RIDDHI SIDDHI BUILDWELL LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	29.50	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive	-
Bank Loan Ratings	95.50	-	ACUITE A3 \| Reaffirmed
Total Outstanding	125.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) and the short-term rating of ‘ACUITE A3’ (read as ACUITE A three) on the Rs. 125.00 Cr. bank facilities of Shree Riddhi Siddhi Buildwell Limited (SRSBL). The outlook is revised from 'Stable' to 'Positive'.

Rationale for Rating
The revision in outlook reflects the sustainable growth in turnover with improvement in order book, led by continued network expansion, increase in realizations, and profitable ramp-up in operations in FY2025(Provisionals)as reflected from revenues of Rs. 154.35 Cr, a growth of 31.62% on a year-on-year basis. Further, the company has already achieved Rs. 67.37 Cr. till June 2025. The operating margins have improved consistently over the past years. The rating draws comfort from company’s strong promoter background with an experience of more than two decades in the industry. The rating recommendation also factors the increased order book size of the company providing revenue visibility in the coming years, however the execution of the same will remain a key monitorable in the medium term.
The financial risk profile of the company remained moderate, with average gearing and improved debt coverage indicators led by consistent increase in the net-worth and increasing cash accruals over the years. The liquidity position of the company remains adequate. The absence of any debt funded CAPEX in the coming years is expected to keep the financial risk profile on the same lines in the medium future characterised by an adequate liquidity profile.
These strengths are however, partly offset by the working capital intensity in the operations and susceptibility of operating performance to delays in projects. Acuité believes that any movement in profitability margins would also affect the debt protection metrices making it as key rating monitorable.

About the Company

Agra-based, SRSBL was incorporated in 2010 by Dr. Pramod Kumar Jain, Mr. Ankur Jain, and Mr. Anuj Jain as a private limited company. SRSBL originally engaged in the real estate development business had also expanded into the field of civil construction and infrastructure development from FY2017. As of FY25, the company shifted its focus only on Civil and Road Construction contracts from government departments by gradually discontinuing the operations on the real estate activities.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered a standalone approach to the business and the financial profile of Shree Riddhi Siddhi Buildwell Limited (SRSBL) to arrive at the rating.

Key Rating Drivers

Strengths

Benefits derived from Experienced management
The promoters, Mr. Ankur Jain and Mr. Anuj Jain have experience of almost two decades in the real estate industry. The promoters have established a track record of successful project execution in the real estate segment. SRSBL is now transitioning from a real estate developer to an EPC contractor in the near term focusing on infrastructure construction projects. Acuité believes that the company will be benefitted over the medium term on the back of experience of management.
Improved scale of operations and increased profitability margins
The company has achieved a revenue of Rs. 154.35 Cr. in FY25(Prov.) as against Rs. 117.27 Cr. in FY24 and Rs. 103.90 Cr. in FY23. The increase of 31.62% from FY24 is attributed to the increase order book of the company from various government departments. Company is having a healthy mix of Civil and Road construction work order with various central government agencies. The EBITDA margins of the company stood at 18.15% in FY25(Prov.) as against 14.04% % in FY24 and 12.35% in FY23. The substantial increase in the EBITDA margins stems from the selective order bidding by the management which has helped them to scale up the operations and improve the margins. The company has built sufficient list of owned equipment, which has helped them to complete the work internally leading to improved operations and decreased cost of departmental work/sub-contracting. The PAT margins of the company stood at 6.40% in FY25(Prov.) as against 2.33% in FY24 and 1.55% in FY23. The company has a total outstanding order book of Rs. 748.13 Cr. as of June 2025; of which Rs. 250 Cr. to Rs. 300 Cr. will be executed by FY26. Going forward, the company is likely to improve its scale of operations on account of increased order book in medium term and timely execution of the same will remain a key rating sensitivity factor.
Moderate Financial Risk Profile
The financial risk profile of the company is moderate marked by tangible net-worth of Rs. 64.48 Cr. as on 31st March 2025(Prov.) as against Rs. 54.60 Cr. as on 31st March 2024 and Rs. 51.87 Cr. as on 31st March 2023. The improvement has been noticed on account of accretion of profits to reserves. The total debt of the company is Rs. 80.04 Cr. as on 31st March 2025(Prov.) against Rs. 39.50 Cr. as on 31st March 2024 and Rs. 49.41 Cr. as on 31st March 2023. The increase in the total debt is because of the increased unsecured loans and term loans brought in to support the procuring of new equipment. Also, the short-term debt has increased on account of requirement of higher working capital limits stemming from increased order book. The gearing stands average 1.24 times in FY25(Prov.) as against 0.72 times in FY24 and 0.95 times in FY23. Further, the interest coverage ratio of the company stood at 2.62 times in FY25(Prov.) as against 2.15 times in FY24 and 2.04 in FY23. The debt service coverage ratio stood at 1.49 times in FY25(Prov.) as against 1.14 times in FY24 and 1.04 times in FY23. The TOL/TNW stood at 2.39 times in FY25(Prov.) as against 1.51 times in FY24 and 1.55 times in FY23. Acuité believes that the financial risk profile of the company is likely to remain moderate over the medium term due to lack of any major debt funded CAPEX plan.

Weaknesses

Intensive Working Capital Operations
The working capital operations of the company remained intensive marked by GCA days which stood at 350 days as on as on 31st March 2025 (Prov.) against 294 days as on 31st March 2024 and 325 days as on 31st March 2023. The inventory days of the company stood at 221 days as on 31st March 2025(Prov.) against 120 days as on 31st March 2024 and 47 days as on 31st March 2023. The increase in the inventory is on account of increased WIP of Rs. 61.55 Cr. in FY25(Provisionals). The debtor days of the company stood at 88 days as on 31st March 2025(Prov.) against 80 days as on 31st March 2024 and 42 days as on 31st March 2023. The average debtor collection period ranges between 20 to 30 days for the company after the bill is raised. On the other hand, the creditor days of the company stood at 148 days as on 31st March 2025(Prov.) against 76 days as on 31st March 2024 and 61 days as on 31st March 2023. Acuité believes that the company is likely to remain in the same level with as there are no changes in the managements policy.

Rating Sensitivities

Movement in the operating income by sustaining the profitability margins.
Timely execution of orders.
Movement in the working capital cycle.
Movement in the coverage indicators.

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The company generated a net cash accrual of Rs. 15.20 Cr. as on as on 31st March 2025 (Prov.) as against the debt repayment obligations of Rs. 6.50 Cr. in the same period. With the addition of new orders and high mobilization cost initially involved in new contract, there is an increase in borrowing in the form of Working Capital and Equipment Loans. Company is generating sufficient cash profit for repayment of these commitments. The current ratio of the company declined to 1.20 times as on 31st March 2025(Prov.) as against 1.51 times as on 31st March 2024 and 1.82 times as on 31st March 2023 because of the increase in the payables. The NCA/TD stood at 0.19 times in FY25(Prov.) as against 0.22 times in FY24 and 0.12 times in FY23. Further, the average bank limit utilization at the month end balance stood high at 86.01% for 6 months ending June 2025. Acuité believes that the liquidity of the company is likely to remain adequate over the medium term on account of steady cash accruals and absence of any major debt funded capex plans.

Outlook : Positive

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	154.35	117.27
PAT	Rs. Cr.	9.88	2.74
PAT Margin	(%)	6.40	2.33
Total Debt/Tangible Net Worth	Times	1.24	0.72
PBDIT/Interest	Times	2.62	2.15

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
28 May 2024	Bank Guarantee/Letter of Guarantee	Short Term	41.50	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	39.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	15.00	ACUITE A3 (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	4.52	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	3.00	ACUITE BBB- \| Stable (Reaffirmed)
	Covid Emergency Line.	Long Term	1.50	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	1.48	ACUITE BBB- \| Stable (Reaffirmed)
	Term Loan	Long Term	6.00	ACUITE BBB- \| Stable (Reaffirmed)
28 Feb 2023	Bank Guarantee/Letter of Guarantee	Short Term	13.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee/Letter of Guarantee	Short Term	28.50	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	11.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	16.00	ACUITE A3 (Assigned)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	7.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	3.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	21.00	ACUITE BBB- \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1.00	ACUITE BBB- \| Stable (Assigned)
	Secured Overdraft	Long Term	1.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Assigned)
	Secured Overdraft	Long Term	2.00	ACUITE BBB- \| Stable (Reaffirmed)
	Secured Overdraft	Long Term	1.00	ACUITE BBB- \| Stable (Assigned)
	Covid Emergency Line.	Long Term	1.50	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	2.00	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	39.00	Simple	ACUITE A3 \| Reaffirmed
Kotak Mahindra Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE A3 \| Reaffirmed
Axis Bank	Not avl. / Not appl.	Bank Guarantee/Letter of Guarantee	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	41.50	Simple	ACUITE A3 \| Reaffirmed
Axis Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
Axis Bank	Not avl. / Not appl.	Covid Emergency Line.	Not avl. / Not appl.	Not avl. / Not appl.	28 Feb 2027	1.50	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	4.52	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
HDFC Bank Ltd	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
Kotak Mahindra Bank	Not avl. / Not appl.	Secured Overdraft	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	3.00	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
Kotak Mahindra Bank	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	15 Feb 2026	1.48	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive
HDFC Bank Ltd	Not avl. / Not appl.	Term Loan	Not avl. / Not appl.	Not avl. / Not appl.	19 Nov 2030	6.00	Simple	ACUITE BBB- \| Positive \| Reaffirmed \| Stable to Positive

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Shubham Jain
Associate Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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