Press Release September 30, 2025 NATIONAL INFRABUILD PRIVATE LIMITED Rating Assigned

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	12.00	ACUITE BBB | Stable | Assigned	-
Bank Loan Ratings	80.00	-	ACUITE A3+ | Assigned
Total Outstanding	92.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuite has assigned its long-term rating of ‘ACUITÉ BBB' (read as ACUITE triple B) and short-term rating of ‘ACUITÉ A3+' (read as ACUITE A three plus) on the Rs. 92.00 Cr. bank facilities of National Infrabuild Private Limited (NIPL). The outlook is ‘Stable’. Rationale for Rating The rating factors in the company’s moderate scale of operations albeit consistent improvement in profitability margins along with healthy order book position. The rating also positively factors in the company's established presence in the industry with extensive promoter’s experience. Additionally, the rating reflects the comfortable financial risk profile, working capital operations and adequate liquidity position. The rating is, however, constrained by the Susceptibility to tender-based operations and geographical concentration in revenue.

About the Company

National Infrabuild Private Limited (NIPL) was established in 1989 as a proprietorship under Mr. Ibrahim Sharief. In July 2022, it reconstituted as a private limited company under its current name. Promoted by Mr. Sharief and his family, NIPL specializes in executing infrastructure projects such as roads, bridges, and tunnels for various government agencies across Karnataka.

Unsupported Rating

­Not Applicable

Analytical Approach

­­Acuité has considered the standalone business and financial risk profile of National Infrabuild Private Limited (NIPL) while arriving at the rating.

Key Rating Drivers

Strengths

Established presence in the industry with extensive promoter’s experience NIPL has a long-standing presence in the infrastructure sector, with over three decades of operational history. The company benefits from the technical and managerial expertise of its promoter group, comprising Mr. Ibrahim Sharief and his family. Their combined experience in civil construction, highway technology, and structural engineering has enabled NIPL to successfully execute a wide range of government infrastructure projects across Karnataka. Acuite believes that NIPL will continue to benefit from its experience in the infrastructure sector over the medium term.  Moderate scale of operations albeit consistent improvement in profitability margins along with healthy order book position NIPL has reported moderation in operating performance in FY25 (prov.) marked by revenue of Rs. 216.33 Cr. as compared against Rs. 283.14 Cr. in FY24 and Rs.159.76 Cr. in FY23. The revenues of the company grew by 77.23 per cent in FY24 based on timely execution of its order book. However, the revenues of the company declined by 23.6 per cent in FY25 on account of geopolitical conditions prevailing in Karnataka (government change in May 2023) resulted in less budgetary allocation for developmental works. The unexecuted order book position stands at around ~Rs.441.17 Cr. as on 1st August 2025. The company has recorded revenue of Rs. 48.80 Cr. till August 2025. The EBITDA margin improved and stood at 10.12 percent in FY25(Prov.) as against 8.98 percent in FY24 and 6.71 percent in FY23. The construction and operating expenses declined in FY25 due to a significant reduction in fuel costs, consultancy charges, and rent expenses. Subsequently, the PAT margin stood at 5.97 percent in FY25 (Prov.) as compared to 5.86 percent in FY24. Acuite believes that the continuous and timely execution of orders leading to sustained improvement in the overall scale of operations and profitability will remain as a key rating monitorable. Comfortable Working Capital operations NIPL’s operations are comfortable marked by Gross Current Asset days (GCA) of 94 days for FY25(prov.) as against 107 days for FY24. The inventory days stood at 31 days for FY25(prov.) as against 6 days for FY24. The receivables days stood at 33 days for FY25(Prov.) as against 38 days for FY24. Efficient receivable days is majorly on account of healthy collection efficiency from Karnataka government. The average utilization of fund-based limits at ~57 per cent in twelve months ended July’ 2025, and for non-fund based stood at ~52 per cent for the same period.  Acuité believes that the working capital requirement is likely to remain at similar levels in the near to medium term. Comfortable financial risk profile The company has a comfortable financial risk profile marked by moderate net worth, low gearing and comfortable debt protection metrics. The tangible net worth of the company rose to Rs. 54.93 Cr. in FY25(Prov.) due to accretion of profit to reserves. The gearing of the company remained low at 0.45 times in FY25(Prov.) and FY24. The total debt of the company stood at Rs. 24.44 Cr. as on 31st March 2025(Prov.) as against Rs. 18.91 Cr. as on 31st March 2023. The total debt of FY25(prov.) consist of Rs.14.44 Cr. of Long-term debt and Rs. 10.00 Cr. of USL from related parties. The TOL/TNW also stood at 0.86 times as on 31st March 2025(Prov.) as against 1.90 times as on 31st March 2024. The debt service coverage ratio stood at 3.01 times and interest coverage ratio stood at 8.21 times in FY25(Prov.) as against 5.67 times and 16.44 times in FY24 respectively. Acuite believes that the financial risk profile of NIPL is expected to remain healthy on account of steady margins and conservative financial policy.

Weaknesses

Susceptibility to tender-based operations in a highly competitive industry NIPL operates in a highly competitive and fragmented infrastructure sector, where revenue and profitability are closely tied to the ability to secure government tenders. The tendering process often demands aggressive bidding, which can constrain operating margins. Additionally, the cyclical nature of the construction industry makes it critical for the company to maintain operational efficiency to sustain profitability. Acuité believes that while NIPL benefits from its experienced promoter group and execution capabilities, its business profile remains exposed to the inherent risks of tender-based operations. Geographical concentration risk NIPL’s operations are primarily concentrated in Karnataka, with a focus on government infrastructure projects. Any delays in project execution or changes in government policies could impact its business and financial risk profile. Acuité believes that diversification across geographies and client segments will be key to mitigating these risks over the medium term.

Rating Sensitivities

Sustain improvement in scale of operations and profitability margins Elongation in working capital cycle Change in financial risk profile owing to higher-than-expected debt-funded capital expenditure

Liquidity Position

Adequate

The liquidity position of the company remained adequate marked by sufficient net cash accruals against its maturing debt obligation. The company has generated a net cash accrual of Rs. 15.36 Cr. in FY25(prov.) as against the maturing debt obligation of Rs. 3.28 Cr. during the same period.  The average utilization of fund-based limits at ~57% in twelve months ended July’ 2025, and for non-fund based stood at ~52% for the same period. The company maintains a unencumbered cash balance of Rs. 1.20 Cr. as on 31st March 2025(Prov.). The current ratio of the company stood at 2.17 times as on 31st March 2025(prov.) as compared to 1.39 times as on 31st March 2024. Acuite believes the company’s liquidity position shall remain adequate in view of comfortable net accruals against its repayment obligations.

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.	216.33	283.14
PAT	Rs. Cr.	12.90	16.58
PAT Margin	(%)	5.97	5.86
Total Debt/Tangible Net Worth	Times	0.45	0.45
PBDIT/Interest	Times	8.21	16.44

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 • 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 :

­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 Canara Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 80.00 Simple ACUITE A3+ | Assigned Canara Bank Not avl. / Not appl. Secured Overdraft Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE BBB | Stable | Assigned

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nidhi Gala 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.