Press Release September 24, 2025 MAHAAVIR BUILDCON LLP Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	125.00	ACUITE BB- | Stable | Assigned	-
Total Outstanding	125.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has assigned the long-term rating to ‘ACUITE BB-’ (read as ACUITE double B minus) on the Rs.125.00 Cr. bank facilities of Mahaavir Buildcon LLP (MBL). The outlook is ‘Stable’. Rationale for rating assigned The rating assigned takes into account the long-standing experience and established track record of Mahaavir group for more than three decades in real estate business. The group has developed more than 3.1 million sq. ft. of area in residential, commercial and retail spaces in Navi Mumbai.  The rating also factors the debt tie up for Phase 1 of the Mahavir Labdhi project, however, remains constrained by risks associated towards funding tie up for Phase 2 of the project and completion of the construction cost as the projects are still at a nascent stage. Further, the rating also factors the susceptibility of firm’s operations towards inherent cyclicality in the real estate industry.

About the Company

Incorporated in 2012, Mahaavir Buildcon LLP (MBL) is a part of the Mahaavir Group which is real estate developer based in Navi Mumbai. The group is engaged in development and building of residential & commercial properties. MBL is currently developing 2 projects in Mumbai - Mahaavir Pride in Dombivali, Thane with a total saleable of 0.27 million sq ft. and Mahaavir Labdhi in Mhatvali region of Uran, Navi Mumbai with a total saleable of 0.72 million sq ft. The current partners of the MBL are Mr. Sanjay B Dhariwal, Mr. Vijaykumar Sohanlal Ranka and Mr. Bhanwarlal Virdhichand Chhajer

Unsupported Rating

­Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of MBL to arrive at the rating. Further, the team has considered the cashflows of Mahavir Labdhi project

Key Rating Drivers

Strengths

Established track record with experienced management Mahaavir Group is a Mumbai based commercial and residential real estate developer promoted by Mr. Bhanwarlal Virdhichand Chhajer. The group has a more than three decades of experience as a real estate developer of various projects in Navi Mumbai. The group holds a history of delivering more than 3.1 million sq. ft. consisting majorly of residential area. Currently, the firm is engaged in development of two residential buildings namely Mahaavir Pride in Dombivali, Thane with a total saleable of 0.27 million sq ft. and Mahaavir Labdhi in Mhatvali region of Uran, Navi Mumbai with a total saleable of 0.72 million sq ft. Acuité believes the promoters' industry experience is expected to support in a successful sale of the units in the on-going project going ahead.

Weaknesses

High project risk The risk associated with the Mahavir Labdhi project stands high due to significant funding and implementation risk along with moderate demand side risk. The funding risk for the project is high, as the majority of the project cost will be financed through customer advances and bank loan (tie up pending for Phase 2). The project is being constructed at a project cost of Rs.645.50 crore, of which currently only Rs.111.95 crore has been incurred through promoter funds which includes land cost of Rs.99.48 crore. Further, the project is expected to be completed by December 2030 for Phase 1 as per the RERA timelines. Additionally, the firm is yet to obtain RERA approval for Phase 2 of the project. According to the management, the project will be launched once RERA approval for Phase 2 is obtained, after which sales of the project's inventory will commence. Acuité believes that timely tie up of bank loan for  Phase 2 and completion of the project without cost overruns coupled with receipt of adequate customer advances will be a key rating sensitivity Susceptibility to real estate cyclicality, regulatory risks and intense competition in the industry The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with real estate industry are cyclical in nature and directly linked to drop in property prices and interest rate risks, which could affect the operations. Given the high level of financial leverage, the high cost of borrowing prevents the real estate's developers' from significantly reducing prices to boost sales growth. Moreover, the industry is also exposed to certain regulatory risks linked to stamp duty and registration tax directly impacting the demand and thus the operating growth of real estate players. Furthermore, the group would continue to remain exposed to intense competition from larger players in region

Rating Sensitivities

Ontime completion of project without cost overruns Timely receipt of the necessary approvals leading to securing term debt for Phase 2 of the project Adequate realisation of its customer advances to support the debt servicing.

Liquidity Position

Stretched

The liquidity profile of the Mahavir Labdhi project is stretched marked by pending bank debt tie up for Phase 2 of the project and nominal sales proceeds of only Rs.0.6 crore till date. The company in the month of March 2025 was able to secured debt funding of amount Rs.95 crore (disbursed Rs.7.00 Cr. till June 2025) which is to be incurred for the construction of Phase 1 of the project. Further, the project is expected to have a debt service coverage ratio of more than unity over the debt tenor. Moreover, the liquidity will also be supported by the financial flexibility the firm receives from its promotors.

Outlook - Stable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	65.24	31.89
PAT	Rs. Cr.	4.40	0.63
PAT Margin	(%)	6.74	1.98
Total Debt/Tangible Net Worth	Times	6.20	7.52
PBDIT/Interest	Times	1.95	1.50

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

­None

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Real Estate Entities: https://www.acuite.in/view-rating-criteria-63.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 :

­Not Applicable

Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 30.00 Simple ACUITE BB- | Stable | Assigned State Bank of India Not avl. / Not appl. Term Loan 01 Apr 2025 Not avl. / Not appl. 30 Sep 2030 95.00 Simple ACUITE BB- | Stable | Assigned

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Parth Patel Senior 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.