Press Release

Press Release

August 20, 2025

E TO E TRANSPORTATION INFRASTRUCTURE LIMITED (ERSTWHILE E TO E TRANSPORTATION INFRASTRUCTURE PRIVATE LIMITED)
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	45.00	ACUITE BBB \| Stable \| Assigned	-
Bank Loan Ratings	73.80	ACUITE BBB \| Stable \| Reaffirmed	-
Bank Loan Ratings	35.00	-	ACUITE A3+ \| Assigned
Bank Loan Ratings	46.20	-	ACUITE A3+ \| Reaffirmed
Total Outstanding	200.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has reaffirmed its long-term rating at 'ACUITE BBB' (read as ACUITE triple B) and short-term rating at 'ACUITE A3+' (read as ACUITE A three plus) on the Rs.120.00 crore and assigned its long-term rating at 'ACUITE BBB' (read as ACUITE triple B) and short-term rating at 'ACUITE A3+' (read as ACUITE A three plus) on the Rs. 80.00 crore bank facilities of E To E Transportation Infrastructure Limited (ETIL). The outlook is 'Stable'.

Rationale for Rating
The rating reaffirmation considers the long operational track record of the company of more than a decade in the railway infrastructure segment, which has in turn supported ETIL in establishing strong relationships with reputed clients in the domestic market, leading to recurring orders, coupled with government’s thrust in the railway infrastructure segment. The rating also favourably factors in the steady business risk profile of the company marked by improved scale of operations in FY2025 and the opening order book position of Rs. 482 crore in FY2025 which shall be executed in the next 12-24 months, thus providing revenue visibility in the short term. Additionally, the company has a moderate financial risk profile and adequate liquidity marked by adequate net cash accruals and moderate utilization of the fund-based and non-fund-based limits. However, these strengths are partly offset by the working capital-intensive nature of operations of the company, competitive and fragmented nature of industry with tender based business, cyclicality in the domestic capex cycle and any economic slowdown.

About the Company

Incorporated in 2010, Karnataka based E To E Transportation Infrastructure Limited (ETIL), is engaged in the procurement and supply of track lining, signalling and electrification equipment related to rail transport. The company also provides services which includes design, installation, testing, commissioning and system integration relating to signalling and telecommunication, track, overhead electrification, etc for railways. Its major business segments include turnkey EPC projects, manpower deployment and training and project maintenance services. The board of directors include Mr. Mukul Gulati, Mr. Sourajit Mukherjee, Mr. Vijay Ramvallabh Khetan, Mr. Manju Gupta, Mr. Ashwini Agarwal, Mr. Anshul Gupta and Mr. Vinay Kunjuri Panduranga Rao.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of ETIL to arrive at the rating.

Key Rating Drivers

Strengths

Established relationship with reputed clientele supported by the long operational track record
The company has a long operational track record of more than a decade in delivering railway projects and services. ETIL has built a track record of delivering solutions in Designing & Engineering, Installation, Testing & Commissioning, O&M services for Signalling & Telecom, Over Head Electrification and Track. The company’s clientele includes Indian Railways and reputed players in the railway infrastructure sector such as RITES Limited and prominent players in private sector like Alstom, Siemens, among others, thereby mitigating the counterparty risk to some extent. Acuite believes that the long operational track record and reputed client base shall support the business risk profile of the company to an extent.

Diversification in verticals through subsidiary and MOU for partnerships and collaborations
ETIL is entering the Kavach segment as part of its vertical integration strategy. The company is also developing other signalling and safety technologies. To support product development, ETIL has established a new wholly owned subsidiary, and entered into a 50:50 co-development agreement with a reputed listed company. The subsidiary will be listed as the OEM upon Research Designs and Standards Organization (RDSO) approval.
Further, ETIL has entered a MOU with one of the approved Kavanch Technology provider for partnerships and collaborations as would be decided on case-to-case basis in railway and metro projects across India. The duration of the MOU is 3 years. Acuite believes that the diversification and MOU signed will further improve the order book position, along with operating income and profitability of the company.

Steady business risk profile marked by healthy order book position and higher bidding capabilities
The company reported healthy growth in revenues to Rs. 250.71 crore in FY2025 (Prov.) as against Rs. 165.30 crore in FY2024, thereby registering a Y-O-Y growth of 51.67 percent. The company has registered a revenue of Rs. 45.05 crore in Apr’25-June’25, the company’s majority of the revenue is skewed towards the last quarter. The operating margin of the company stood at 11.44 percent in FY2025 (Prov.) as compared to 11.61 percent in FY2024. The PAT margin stood at 5.70 percent in FY2025 (Prov.) as compared to 6.40 percent in FY2024. ETIL has an opening order book of Rs. 482 crore for FY2026 which shall be executed in next 12-24 months, thus providing comfortable revenue visibility in the short term. Acuité derives comfort from the healthy revenue visibility in the near term and believes that the company will continue to sustain its order book position and maintain its business risk profile in the near term. Nonetheless, the smooth execution of the orders in hand without any delays will be a key monitorable.

Moderate financial risk profile
The moderate financial risk profile of the company is marked by moderate net worth base, below unity gearing and comfortable debt protection metrics. The tangible net worth of the company increased to Rs. 113.46 Cr. as on March 31, 2025 (Prov.) from Rs. 65.59 Cr. as on March 31, 2024 due to accretion of profits to reserves and equity infusion of Rs. 34.64 Cr. during FY2024-25. The gearing stood low at 0.58 times as on March 31, 2025 (Prov.), as against 0.93 times as on March 31, 2024. Further, the comfortable debt protection metrics are marked by Interest Coverage Ratio of 2.61 times as on March 31, 2025 (Prov.), as against 3.06 times as on March 31, 2024; and Debt Service Coverage Ratio at 1.82 times as on March 31, 2025 (Prov.) as against 1.85 times as on March 31, 2024.

Infusion of Capital
During the year, ETIL received an equity infusion through issue of fresh equity through preferential allotment of shares worth Rs. 34.64 crore in two tranches Rs. 15 crore in October 2024 and Rs. 19.64 crore in March 2025 with the majority of the infusion coming from reputed investors in the market. The proceeds from the equity infusion were utilised towards the company’s working capital requirements. Going forward, the company expects an equity infusion of Rs. 25 crore from existing equity shareholders in October 2025, followed by a further infusion through an SME IPO. Acuite believes that the above-mentioned infusion of capital will further improve the overall the financial risk profile of the company.

Weaknesses

Working capital intensive nature of operations
The working capital management of the company has deteriorated in FY2025 (Prov.), although marked by high Gross Current Assets (GCA) of 329 days as on 31st March 2025 (Prov.) as compared to 314 days on 31st March 2024. High GCA days are on the account of high debtors’ days and increased unbilled revenue (FY2025- Rs. 92.81 crore; FY2024- Rs. 56.98 crore). The debtor days stood at 137 days in FY2025 (Prov.) as against 138 days in FY2024. Besides, most of the orders are usually concentrated towards the end of every fiscal, with ~60 percent of the sales in Q4FY2025, resulting in elevated working capital indicators as on year ending dates.The inventory days stood efficient at 1 days in FY2025 (Prov.) and FY2024. Further, the company has substantial dependence on its suppliers and creditors to support the working capital; creditor days increased to 223 days as on March 31, 2025 (Prov.), as against 200 days as on March 31, 2024. Acuite believes sustained improvement in creditors will remain a key monitorable.

Competitive and fragmented nature of industry coupled with tender based business
The company is engaged as a civil contractor, and the sector is marked by the presence of several mid to big size players. The company faces intense competition from the other players in the sectors. Risk becomes more pronounced as tendering is based on a minimum amount of bidding of contracts and hence the company must make bid for such tenders on competitive prices, which may affect the profitability of the company. However, this risk is mitigated to an extent as the company is operating in this environment for the last twelve years.

Rating Sensitivities

Consistent growth in revenues and profitability
Further elongation in the working capital cycle
Change in financial risk profile
Timely execution of existing orders and augmentation of new orders

Liquidity Position

Adequate

The company has an adequate liquidity position marked by Net Cash Accruals of Rs. 15.24 crore as on March 31, 2025 (Prov.), as against long term debt repayments of Rs. 2.81 crore over the same period. The fund-based bank limit remained moderately utilised at 59.1 percent per cent and the non-fund-based facility remained moderately utilised at 62.04 percent for last 15 months ended May 2025. The current ratio stood moderate at 1.32 times as on March 31, 2025 (Prov.). Further, the outstanding BG as of June 2025 stood at Rs. 41.03 crore. The cash and bank balance stood at Rs. 12.60 Cr. as on 31st March 2025 (Prov.) Acuité believes that the liquidity position of the company is likely to remain adequate backed by the steady accruals.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	250.71	165.30
PAT	Rs. Cr.	14.29	10.57
PAT Margin	(%)	5.70	6.40
Total Debt/Tangible Net Worth	Times	0.58	0.93
PBDIT/Interest	Times	2.61	3.06

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
19 Aug 2024	Bank Guarantee (BLR)	Short Term	11.20	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3+ (Upgraded from ACUITE A3)
	Working Capital Demand Loan (WCDL)	Long Term	8.80	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Proposed Long Term Bank Facility	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	5.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	10.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	15.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
	Cash Credit	Long Term	30.00	ACUITE BBB \| Stable (Upgraded from ACUITE BBB- \| Stable)
01 Aug 2024	Bank Guarantee (BLR)	Short Term	11.20	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	10.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	20.00	ACUITE A3 (Reaffirmed)
	Bank Guarantee (BLR)	Short Term	5.00	ACUITE A3 (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	5.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	5.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	8.80	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	10.00	ACUITE BBB- \| Stable (Reaffirmed)
	Cash Credit	Long Term	15.00	ACUITE BBB- \| Stable (Assigned)
	Cash Credit	Long Term	30.00	ACUITE BBB- \| Stable (Assigned)
02 Nov 2023	Bank Guarantee/Letter of Guarantee	Short Term	22.00	ACUITE A3 (Assigned)
	Cash Credit	Long Term	25.00	ACUITE BBB- \| Stable (Assigned)
	Working Capital Demand Loan (WCDL)	Long Term	10.00	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	10.41	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	2.59	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
ICICI Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	11.20	Simple	ACUITE A3+ \| Reaffirmed
RBL Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3+ \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE A3+ \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	20.00	Simple	ACUITE A3+ \| Reaffirmed
RBL Bank	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE A3+ \| Assigned
ICICI Bank Ltd	Not avl. / Not appl.	Bank Guarantee (BLR)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	25.00	Simple	ACUITE A3+ \| Assigned
RBL Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	10.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
Indusind Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
Federal Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	5.00	Simple	ACUITE BBB \| Stable \| Reaffirmed
Federal Bank	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	15.00	Simple	ACUITE BBB \| Stable \| Assigned
HDFC Bank Ltd	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	30.00	Simple	ACUITE BBB \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.88	Simple	ACUITE BBB \| Stable \| Reaffirmed
ICICI Bank Ltd	Not avl. / Not appl.	Working Capital Demand Loan (WCDL)	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	6.92	Simple	ACUITE BBB \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Sayali Parab
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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