Press Release August 26, 2025 HARYANA VIDYUT PRASARAN NIGAM LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	997.50	ACUITE AA- | Stable | Reaffirmed	-
Bank Loan Ratings	50.00	-	ACUITE A1+ | Reaffirmed
Total Outstanding	1047.50	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long-term rating of 'ACUITE AA-' (read as ACUITE double A minus) and short-term rating of ‘ACUITE A1+’ (read as ACUITE A one plus)  to Rs.1047.50 crore bank facilities of Haryana Vidyut Prasaran Nigam Limited (HVPNL). The outlook is ‘Stable’. Rationale for Rating Rating has been reaffirmed on account of healthy financial risk profile with healthy tangible net worth and strong liquidity position of the entity. The company has maintained healthy unencumbered cash and bank balances and has enough leverage headroom to raise funds for debt funded capex going forward. However, the company has witnessed the decline in operating performance in line with revision of charges by Haryana Electricity Regulatory Commission (HERC).

About the Company

­Haryana Vidyut Prasaran Nigam Limited (HVPNL) is a State Government of Haryana undertaking and was incorporated in1997. The company is engaged in transmission company power and is licensed by Haryana Electricity Regulatory Commission (HERC) for transmission and bulk supply of power in Haryana. HVPNL receives power from generation companies, predominantly from Haryana Power Generation Corporation Limited (HPGCL), which is further transmitted through its transmission network consisting of high-tension lines and sub-stations to the distribution companies (discoms) namely: UHBVNL and DHBVNL. The major portion of transmission is done to UHBVNL and DHBVNL; ~99% as on date. In addition to this, the company also supplies power to NTPC, CRPCL, Indian Railways etc.

Unsupported Rating

ACUITE BBB/Stable

Analytical Approach

­Acuité has adopted the standalone approach while assessing the business and financial risk profile of HVPNL and has notched up the rating on the back of benefits emanating from the ownership by Government of Haryana (GoH). GoH holds ~99% equity ownership in HVPNL besides regular managerial and financial support to HVPNL; the government has supported its bank borrowings by way of Guarantee.

Key Rating Drivers

Strengths

­Support from State Government of Haryana Haryana Vidyut Prasaran Nigam Limited (HVPNL) is a state Government undertaking with Government of Haryana having 99% stake in the company. The company is a strategically important entity and forms the backbone of the power sector infrastructure of state. The company is a sole bulk power transmission company in Haryana. The company is a licensed entity for transmission and bulk supply of power in Haryana and primarily provides transmission services to the state utilities such as Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). Apart from this, the company also transmits power to other entities such as NTPC, Indian Railways and Tata Power Trading Company Limited (TPTCL). Further, state Government of Haryana has also extended guarantee for the bank facilities of the company. Healthy Financial risk profile The tangible net worth of the company remained healthy at Rs. 5681.44 crore as on March 31, 2025 as against Rs. 5314.78 crore as on March 31, 2024 and Rs. 5035.37 crore as on March 31, 2023. The increase in networth in FY25 is on account of accretion of profit to reserve. The debt equity ratio of the company stood at 0.87 times as on March 31, 2025 as against 0.80 times as on March 31, 2024. Further, the debt components of the company are covered by irrevocable and unconditional guarantee extended by Government of Haryana. The interest coverage of the company stood at 3.41 times in FY 2025 as against 4.22 times in FY 2024. DSCR stood at 1.73 times in FY 2025 as against 2.14 times in FY 2024. Debt-EBITDA stood at 3.67 times in FY 2025 as against 2.89 times in FY 2024. Acuité believes that going forward the financial risk profile of the company is expected to remain healthy with the debt funded capex.

Weaknesses

­Susceptibility of operating performance to transmission charges set by Haryana Electricity Regulatory Commission (HERC) HVPNL’s revenue is influenced by regulatory framework governing the power sector. The HERC considers key parameters like the cost structure and expected return on capital employed to arrive at transmission tariffs, wheeling and SLDC (State Load Dispatch Centre) charges. The company reported total operating income of Rs. 2386.04 Cr. in FY 2025 as against Rs. 2609.84 Cr. in FY 2024 witnessing decline of 8.58% over FY 2024. The major portion of the revenue is derived from transmission segment (84.67% in FY2025, 86.84% in FY2024 & 87.62% in FY2023).

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)

­Acuite takes into consideration the benefit derived by Haryana Vidyut Prasaran Nigam Limited from the support of Government of Haryana. Stress Case Scenario While the rating has been derived on the standalone business and financial risk profiles of HVPNL, Acuite believes that being the 99% subsidiary of Government of Haryana, in case of any stress case scenario, the required support would come from the Government of Haryana.

ESG Factors Relevant for Rating

­The material factors from the environmental perspective are green supply chain and waste management. The governance factors that play an important role are ethical business practices, board oversight and management compensation. Further, risk management practices to minimise corruption associated with electricity and gas distribution plays a crucial role. Additionally, regulatory compliance, shareholder’s rights and audit control are other material issues in the power generation industry. On the social front, occupational and workforce health & safety management are of primary importance to this industry given the nature of operations. The policies on responsible procurement and product safety as well as quality are of utmost significance.

Rating Sensitivities

­Movement in scale of operations and profitability margins. Movement in working capital operations Timely fund tie up and capex

Liquidity Position

Strong

The net cash accruals of the company remained at Rs. 952.06 Cr. against maturing debt obligation of Rs. 381.49 Cr. in FY 2025 giving sufficient liquidity buffer. Further company maintained unencumbered cash and bank position of Rs. 626.42 Cr in FY 2025. Current ratio of the company stood at 1.78 times in FY 2025. Fund based working capital limits are utilized at ~1.36 per cent during the last eight months ended July 2025. Acuité believes that going forward the company will maintain strong liquidity position due to steady accruals.

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Actual)	FY 24 (Actual)
Operating Income	Rs. Cr.	2386.04	2609.84
PAT	Rs. Cr.	389.66	604.87
PAT Margin	(%)	16.33	23.18
Total Debt/Tangible Net Worth	Times	0.87	0.80
PBDIT/Interest	Times	3.41	4.22

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 • Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm • State Government Ratings : https://www.acuite.in/view-rating-criteria-26.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 Letter of Credit Short Term 50.00 ACUITE A1+ (Upgraded from ACUITE A1) Cash Credit Long Term 80.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Cash Credit Long Term 200.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Term Loan Long Term 400.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) Term Loan Long Term 117.50 ACUITE AA- | Stable (Assigned) Cash Credit Long Term 100.00 ACUITE AA- | Stable (Upgraded from ACUITE A+ | Stable) 28 Feb 2023 Cash Credit Long Term 80.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 100.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Cash Credit Long Term 100.00 ACUITE A+ | Stable (Reaffirmed) Proposed Long Term Bank Facility Long Term 200.00 ACUITE A+ | Stable (Reaffirmed) Letter of Credit Short Term 50.00 ACUITE A1 (Reaffirmed)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 80.00 Simple ACUITE AA- | Stable | Reaffirmed Canara Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE AA- | Stable | Reaffirmed Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 200.00 Simple ACUITE AA- | Stable | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE AA- | Stable | Reaffirmed Canara Bank Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 50.00 Simple ACUITE A1+ | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 31 Dec 2022 Not avl. / Not appl. 31 Dec 2037 517.50 Simple ACUITE AA- | Stable | Reaffirmed

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

­ Sr. No. Company Name 1 Government of Haryana 2 Haryana Vidyut Prasaran Nigam Limited

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Siddharth Garg 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. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.