Press Release November 26, 2025 A K INFRAPROJECTS PRIVATE LIMITED Rating Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	49.00	ACUITE BBB+ | Stable | Reaffirmed	-
Bank Loan Ratings	128.00	-	ACUITE A2 | Reaffirmed
Total Outstanding	177.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE BBB+’ (read as ACUITE triple B plus) and the short-term rating of ‘ACUITE A2’ (read as ACUITE A two) on the Rs.177.00 Cr. bank facilities of A K Infraprojects Private Limited (AKIPPL). The outlook remains ‘Stable'. Rationale for rating The rating reaffirmation reflects stable business risk profile with improvement in operations to Rs. 1239.30 Cr. in FY25 against Rs. 987.39 Cr. in FY24. Additional positive factors include an experienced management team and a healthy financial risk profile. The rating also considers the group's adequate liquidity position, which is reflected in its sufficient net cash accruals to meet debt obligations. However, the rating is constrained due to the current order book of Rs. ~1245.55 Crore as of 31st Oct 2025 provides moderate revenue visibility over the medium term with an OB/OI of 1.01 times.

About the Company

­A K Infraprojects Private Limited (AKIPL), is incorporated in 2008 as a sister concern of AKCC. The company undertakes building and electrification works for the government entities in Uttar Pradesh. It is promoted by Mr. Awadesh Kumar Pathak, Mr. Suresh Kumar Pathak and Mr. Ramesh Kumar Pathak along with a set of skilled professionals.­

About the Group

­The group consists of two companies namely, A K Infraprojects Private Limited (AKIPPL) a private limited company which was incorporated in 2008 and a sister concern A K Construction Company (AKCC). AKIPPL is promoted by Mr. Awadesh Kumar Pathak, Mr. Suresh Kumar Pathak and Mr. Ramesh Kumar Pathak along with a set of skilled professionals. The company undertakes building and electrification works for the government entities in Uttar Pradesh. Established in 1998, A K Construction Company (AKCC) is a partnership firm managed by Mr. Awadesh Kumar Pathak, Mr. Suresh Kumar Pathak and Mr. Ramesh Kumar Pathak. The firm is based in Uttar Pradesh and is engaged in civil construction works and undertakes contracts for constructing roads, bridges, government buildings.

Unsupported Rating

­Not Applicable

Analytical Approach

Extent of Consolidation

•Full Consolidation

Rationale for Consolidation or Parent / Group / Govt. Support

­For arriving at this rating, Acuité has consolidated the business and financial risk profiles of A K Construction Company (AKCC) and A K Infraprojects Private Limited (AKIPPL) together referred to as the ‘A K Group’ (AKG). The consolidation is in the view of common management, strong operational linkages between the entities and a similar line of business.

Key Rating Drivers

Strengths

Long-standing operations and experienced management AK Group has established a long presence of around three decades in the civil construction industry and has developed a strong clientele base comprising government departments, National Highways & Infrastructure Development Corporation Ltd., Indian Oil Corporation Limited (IOCL), and Bharat Heavy Electrical Limited, to name a few. The group is managed by Mr. Awadesh Kumar Pathak, who has more than two decades of experience, and is supported by the decade-long expertise of Mr. Suresh Kumar Pathak and Mr. Ramesh Kumar Pathak. Acuité believes that going forward, the growth of the group will be aided by the long track record of operations and the management’s strong understanding of market dynamics. Improvement in scale of operations The group witnessed an improvement in its scale of operations marked by an operating income of Rs. 1239.39 Cr. in FY2025 as against Rs. 987.39 Cr in FY2024. Further, A K Group has unexecuted order book position to the tune of Rs. 1245.55 Crore approximately as on 31st October 2025. with an OB/OI of 1.01 times, which provides it moderate revenue visibility over the medium term Going forward, the ability of the group to bag new orders and timely execution of the existing orders will remain a key rating monitorable. The EBITDA margin of the group stood at 4.70 per cent in FY2025 as against 4.82 per cent in FY2024 and the PAT margin of the group stood at 3.69 per cent in FY2025 against 3.62 per cent in FY2024. Though the group’s profitability is exposed to volatility in raw material, it has an in-built price escalation clause for major raw materials in most of its contracts. Acuité believes that going forward the group’s ability to ramp up operations along with stable profitability wil remain a key monitorable. Healthy Financial Risk Profile The financial risk profile of the group is healthy marked by net-worth of Rs. 181.52 Crore as on 31st March 2025 against Rs. 134.03 Crore as on 31st March 2024. Further, the total debt of the group stood at Rs. 69.92 Crore as on 31st March 2025 against Rs. 75.04 Crore as on 31st March 2024. The capital structure of the group is comfortable marked by the gearing ratio of the group which stood at 0.39 times as on 31st March 2025 against 0.56 times as on 31st March 2024. Further, the coverage indicators of the group improved reflected by interest coverage ratio and debt service coverage ratio of the group which stood at 5.71 times and 4.97 times respectively as on 31st March 2025 against 4.64 times and 4.06 times respectively as on 31st March 2024. The TOL/TNW ratio of the group stood at 0.65 times as on 31st March 2025 against 0.87 times as on 31st March 2024 and DEBT-EBITDA of the group stood at 1.16 times as on 31st March 2025 against 1.52 times as on 31st March 2024. Acuité believes that going forward the financial risk profile of the group wil remain healthy with no major debt funded capex plans. Efficient working capital operations The working capital operations of the group are efficiently marked by GCA days which stood at 54 days as on 31st March 2025 against 60 days as on 31st March 2024. There is an improvement in the GCA days due to the debtor days of the group which stood at 46 days in FY25 against 53 days in FY24 and inventory days of the group stood nil in FY25 against 1 day in FY24. However, creditor days of the group stood at 35 days in FY25 against 20 days in FY24. Acuité believes that the working capital operations of the group will remain in the same range over the medium term.

Weaknesses

Highly competitive industry marked by tender based nature of business The group’s performance is susceptible to the tender-based nature of business, where the business depends on the ability to bid for contracts successfully. Risk become more pronounced as tendering is based on minimum amount of bidding of contracts.

Rating Sensitivities

­Movement in scale of operations Movement in working capital operations

Liquidity Position

Adequate

The liquidity profile of the group is adequate. The net cash accruals of group stood at Rs. 46.78 Cr. in FY 25 against the debt obligation of Rs. 1.00 Cr. for the same period. The group has cash & bank position of Rs. 14.59 Cr. and current ratio stood at 1.74 times for FY 25. The average fund based bank limit utilization is at 89.73% and non-fund based bank limit utilization is at 65.63% for the 5 months’ period ending October 2025. Acuite believes that the group will continue to enjoy adequate liquidity at the back of healthy cash accruals with minimal debt repayments and the absence of debt-funded capex plans over the medium term.

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.	1239.30	987.39
PAT	Rs. Cr.	45.76	35.77
PAT Margin	(%)	3.69	3.62
Total Debt/Tangible Net Worth	Times	0.39	0.56
PBDIT/Interest	Times	5.71	4.64

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

Not Applicable

Any Other Information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.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 Aug 2024 Bank Guarantee (BLR) Short Term 35.00 ACUITE A2 (Upgraded from ACUITE A3+) Proposed Bank Guarantee Short Term 15.50 ACUITE A2 (Upgraded from ACUITE A3+) Proposed Bank Guarantee Short Term 34.50 ACUITE A2 (Assigned) Bank Guarantee (BLR) Short Term 38.00 ACUITE A2 (Upgraded from ACUITE A3+) Proposed Letter of Credit Short Term 5.00 ACUITE A2 (Assigned) Cash Credit Long Term 12.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Cash Credit Long Term 12.00 ACUITE BBB+ | Stable (Upgraded from ACUITE BBB | Stable) Proposed Cash Credit Long Term 25.00 ACUITE BBB+ | Stable (Assigned) 20 Jun 2023 Bank Guarantee (BLR) Short Term 32.50 ACUITE A3+ (Upgraded from ACUITE A3) Proposed Bank Guarantee Short Term 15.50 ACUITE A3+ (Upgraded from ACUITE A3) Bank Guarantee (BLR) Short Term 2.50 ACUITE A3+ (Upgraded from ACUITE A3) Bank Guarantee (BLR) Short Term 38.00 ACUITE A3+ (Upgraded from ACUITE A3) Cash Credit Long Term 12.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) Cash Credit Long Term 12.00 ACUITE BBB | Stable (Upgraded from ACUITE BBB- | Stable) 30 May 2022 Bank Guarantee (BLR) Short Term 32.50 ACUITE A3 (Assigned) Proposed Bank Guarantee Short Term 45.00 ACUITE A3 (Assigned) Proposed Letter of Credit Short Term 10.00 ACUITE A3 (Assigned) Cash Credit Long Term 12.00 ACUITE BBB- | Stable (Assigned) Proposed Cash Credit Long Term 13.00 ACUITE BBB- | Stable (Assigned)

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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 Punjab National Bank Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 73.00 Simple ACUITE A2 | Reaffirmed Union Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 38.00 Simple ACUITE A2 | Reaffirmed Punjab National Bank Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 24.00 Simple ACUITE BBB+ | Stable | Reaffirmed Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE BBB+ | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Bank Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE A2 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 13.00 Simple ACUITE BBB+ | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 5.00 Simple ACUITE A2 | Reaffirmed

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

­ Sr.No. Company Name 1 A K Construction Company 2 A K InfraProjects Private 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.