Press Release

Press Release

September 18, 2025

NAAGAAMII INFRATECH PRIVATE LIMITED
Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	10.00	ACUITE BBB- \| Stable \| Reaffirmed	-
Total Outstanding	10.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs.10.00 Cr. bank facilities of Naagaamii Infratech Private Limited (NIPL). The outlook is ‘Stable’

Rationale for Reaffirmation
The reaffirmation of rating reflects NIPL’s comfortable business risk profile aided by experienced management and established relationship with reputed clientele. The scale of operation had witnessed a slight decline in FY25(Prov.) with revenues at Rs. 181.16 Cr. against revenues of Rs. 265.40 Cr. in FY24 due to work executed towards year end and balance to be collected for the government authorities for the bills due to be raised. The Company has sizeable order book of Rs. 1546.49 Cr. as on July 2025 which provides it revenue visibility over the near to medium term. The rating also factors in the improving operating margin of the company which are at 12.80% in FY25 (Prov.) as compared to 8.27% in FY2024 on account of decreased operational lease costs. Also, an improvement in capital structure has been noticed in terms of the company’s financial risk profile marked by improving net worth, low gearing and comfortable debt protection metrics. Also, the adequate liquidity of the company is reflected in the net cash accruals at Rs.16.98 Cr. in FY25(Prov.) as against Rs. 5 Cr. debt repayment over the same period. However, the working capital cycle stood intensive because of the nature of the business. The rating is further constrained on account of presence in a competitive and fragmented construction industry.

About the Company

Incorporated in February 2016, Naagaamii Infratech Private Limited (NIPL) is engaged in construction of roads, bridges and other infraprojects for the state government of Nagaland, Central Government and NHAI. Currently, the company is headed by Mr. Rokolhou Angami, Mrs. Neisanuo Angami who all are promoter directors. NIPL is a registered class I Government contractor with various Public Works Department (PWD) departments in Nagaland and, National Highway Authority of India, Civil Administration Works Division – Nagaland and Border Roads Organisation (BRO). Current directors of Naagaamii Infratech Private Limited (NIPL) are Mr. Rokolhou Angami and Mrs. Neisanuo Angami.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone business and financial risk profile of NIPL.

Key Rating Drivers

Strengths

Steady Business Risk Profile albeit decline in revenue in FY25
The company has achieved a revenue of Rs. 181.16 Cr. in FY25(Prov.) as against Rs. 265.40 Cr. in FY24. The decrease of 31.74% is attributed to year end billing related issues. According to the company, the final month of March 2025 experienced a series of holidays, which contributed to delays in the billed amounts. However, these amounts are reflected in the realization within Q1 FY26. The unbilled amount was recorded in the WIP inventory, standing at Rs. 78.18 Cr. for FY25(Prov.). The EBITDA margins of the company stood at 12.80 % in FY25(Prov.) as compared to 8.27% in FY24. The improvement in EBITDA margins is attributable to increased operational efficiency achieved through the utilization of owned assets, as well as cost savings realized from avoiding leasing expenses. The PAT margins of the company stood at 4.25% in FY25(Prov.) as compared to 2.76% in FY24. The increase in PAT was noticed because of the increased operational margins and a slight decrease in cost of borrowing. The company has achieved a topline of Rs. 130 Cr. till August 2025 and aims to achieve another Rs. 170 Cr. to Rs. 180 Cr. in the rest of the year. Going forward, the company is likely to improve slightly in medium term on account of increased order book.
Above average Financial Risk Profile
The financial risk profile of the company is above average marked by moderate net-worth of Rs. 142.94 Cr. as on 31st March 2025(Prov.) against Rs. 135.23 Cr. as on 31st March 2024. The increase has been noticed on account of accretion of the profits to the reserves. The total debt of the company is Rs. 34.33 Cr. as on 31st March 2025(Prov.) against Rs. 37.17 Cr. as on 31st March 2024. The company intends to secure an additional term loan of Rs. 50 Cr., which will be allocated towards the acquisition of new machinery and vehicles. This strategic investment is expected to further enhance the company's operational efficiency in the coming years. The gearing stands low at 0.24 times in FY25(Prov.) against 0.27 times in FY24. The low gearing is characterised by low debt of the company, however the same is expected to slightly increase in the coming years on account of increased debt from equipment loans. Further, the interest coverage ratio of the company stood comfortable at 6.25 times in FY25 (Prov.) as against 6.01 times in FY24. The debt service coverage ratio stood at 5.53 times in FY25(Prov.) against 4.78 times in FY24. Acute believes that the financial risk profile of the company is likely to stay on the same lines, however, a slight increase in gearing and moderation of debt service coverage ratio is expected in the medium term on account of the debt funded CAPEX that will be done by the company.
Sizeable order book Position
The current order book of the company stands for which the bills have not yet been realized is standing at Rs. 1546.59 Cr. The OB/OI stands at 8.54 times which provides revenue visibility to the company over the medium term. However, the delay in the projects have been noticed because of the terrain that the company operates in. Further, scope of work has increased in almost all the projects assigned to the company. This provides the company with revenue visibility over the medium term. Acuite believes that the timely execution of the order book would remain a key monitorable.

Weaknesses

Intensive Working Capital Profile
The working capital operations of the company remained intensive marked by GCA days which stood at 319 days as on 31st March 2025(Prov.) as against 230 days as on 31st March 2024. The inventory days of the company stood at 181 days as on 31st March 2025(Prov.) as against 57 days as on 31st March 2024. The increase in inventory is due to a series of holidays observed in the year end, which contributed to delays in the disbursement of amounts from the government. The unbilled amount was recorded in the WIP inventory, standing at Rs. 78.18 Cr. for FY25(Prov.) The debtor days of the company stood nil days as on 31st March 2025(Prov.) as against nil days as on 31st March 2024. The debtor days stood nil as they payments are made as and when due. Also, the Company has provided loans and advances to its directors of Rs. 9.93 Cr. in FY25(Prov.) (reduced from Rs. 46.33 Cr. in FY24) included in the other current assets. The creditor days of the company stood at 5 days as on 31st March 2025(Prov.) as against 6 days as on 31st March 2024. Acuité believes that the company is likely to continue having intensive working capital requirements in the medium term on account of the nature of business.
Presence in Competitive and fragmented nature of industry
With increased focus of the central government on the infrastructure sector, especially in the north-east, NIPL is expected to reap benefits over the medium term. However, most of its projects are tender-based and face intense competition, which may hence require it to bid aggressively to get contracts. Competition can intensify further due to the recent relaxation in bidding norms by NHAI and the Ministry of Road Transport & Highways (MoRTH). Also, given the cyclicality inherent in the construction industry, the ability to maintain profitability margin through operating efficiency becomes critical.

Rating Sensitivities

Movement in the Operating Income while sustaining profitability.
Movement in Capital Structure.
Timely Execution of orderbook.

Liquidity Position

Adequate

The liquidity profile of the company is adequate. The company generated a net cash accrual of Rs. 16.98 Cr. as on as on 31st March 2025(Prov.) against the debt repayment obligations of approximately Rs. 5.25 Cr. in the same period. The current ratio of the company improved to 5.66 times as on 31st March 2025(Prov.) as against 2.97 times as on 31st March 2024. The cash and bank balance stood high at Rs. 47.45 Cr. as on 31^st March 2025(Prov.) as the company received payments of Rs. 40 Cr. in the second half of March 2025 which will help to support their working capital requirements. The loans and advances to its directors of Rs. 9.93 Cr. in FY25(Prov.) (reduced from Rs. 46.33 Cr. in FY24) included in the other current assets. The NCA/TD stood at 0.49 times in FY25(Prov.) as against 0.38 times in FY24. Acuité believes that the liquidity of company is likely to improve in the medium term on account of steady cash accruals from the increased order book of the company.

Outlook : Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 25 (Provisional)	FY 24 (Actual)
Operating Income	Rs. Cr.	181.16	265.40
PAT	Rs. Cr.	7.71	7.32
PAT Margin	(%)	4.25	2.76
Total Debt/Tangible Net Worth	Times	0.24	0.27
PBDIT/Interest	Times	6.25	6.01

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
24 Jun 2024	Cash Credit	Long Term	9.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+ \| Stable)
24 Jun 2024	Term Loan	Long Term	1.00	ACUITE BBB- \| Stable (Upgraded from ACUITE BB+ \| Stable)
27 Mar 2023	Cash Credit	Long Term	9.00	ACUITE BB+ \| Stable (Assigned)
27 Mar 2023	Term Loan	Long Term	1.00	ACUITE BB+ \| 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
Bank of Baroda	Not avl. / Not appl.	Cash Credit	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	9.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed

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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