Press Release January 29, 2026 CMRM INFRAA ENGINEERING PRIVATE LIMITED (ERSTWHILE SREE LAKSHMI ELECTRICAL SERVICES) Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	5.00	ACUITE BBB- | Stable | Assigned	-
Bank Loan Ratings	15.00	ACUITE BBB- | Stable | Reaffirmed	-
Bank Loan Ratings	15.00	-	ACUITE A3 | Assigned
Bank Loan Ratings	60.00	-	ACUITE A3 | Reaffirmed
Total Outstanding	95.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has reaffirmed its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating  of 'ACUITE A3' (read as ACUITE A three) on the Rs. 75.00 Cr. bank facilities of CMRM Infraa Engineering Private Limited (Erstwhile Sree Lakshmi Electrical Services)(CIEPL). The outlook is 'Stable'. ­Acuité has assigned its long-term rating of 'ACUITE BBB-' (read as ACUITE triple B minus) and short-term rating  of 'ACUITE A3' (read as ACUITE A three) on the Rs. 20.00 Cr. bank facilities of CMRM Infraa Engineering Private Limited (Erstwhile Sree Lakshmi Electrical Services)(CIEPL). The outlook is 'Stable'. Rationale for reaffirmation: The rating considers the stable operating performance and healthy financial profile of CIEPL. The Company's revenue stood at Rs.150.62 Cr. in FY2025 as against Rs. 150.25 Cr. in FY2024. The operating margins ranged between 7.14-7.35 percent for the last two years ended FY2025. The financial risk profile of CIEPL continues to be healthy with comfortable debt protection metrics and low gearing. The rating continues to derive strength from the promoters’ experienced management. The rating albeit is constrained by its working capital-intensive operations and highly competitive and fragmented industry with tender-based nature of business for electrical construction works.

About the Company

­Telangana based, CMRM Infraa Engineering Private Limited (Erstwhile Sree Lakshmi Electrical Services) was established as a proprietorship concern in the year 2003, promoted by Mr. Chandra Mohan Reddy. In June 2013, it was reconstituted as a partnership firm. Mr. Chandra Mohan Reddy is the firm's managing partner, and his spouse, Mrs. Sowbhagya Lakshmi, is the firm's other partner. The same directors reconstituted it as a private company in March 2021. The company is an electrical contractor and is a registered Class I contractor with the Government of Telangana, Andhra Pradesh, and Karnataka.

Unsupported Rating

­Not applicable

Analytical Approach

­Acuité has taken the standalone view of business and financial risk profile of CIEPL to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced Management Established in 2003 by Mr. Chandra Mohan Reddy, who has more than two decades of experience in the electrical and related construction industry. CIEPL is engaged in executing turnkey electrical projects for various government departments of Andhra Pradesh (GoAP), Telangana (GoTS), and Karnataka. The promoter, with extensive industry experience and timely execution of projects, has been able to establish longstanding relationships with various governments as well as private clients. The company is a registered class I contractor with different states and local governing bodies. Apart from working with Transmission Corporations of Telangana and Andhra Pradesh, various power distribution companies (Discoms) of GoAP, GoTS, Karnataka, and other states. The timely execution of the projects has helped the company in improving its market presence, besides continuing business from its reputed clientele. Scale of operations and sizeable order book position The operating income of the company has shown muted growth of 0.25 percent in FY2025 as compared to the previous year. It stood at Rs.150.62 Cr. in FY2025 as against Rs 150.25 Cr. in FY2024. Profitability margin i.e. EBITDA margin stood at 7.35 percent in FY2025 as against 7.14 percent in FY2024. The margin is improved mainly due to decrease in raw material cost during FY2025. The company has an unexecuted order book position of Rs.309.39 Cr as on October 31, 2025. The company is planning to execute around Rs.150-200 Cr in next one year, the outstanding order book is 2.01x of the FY2025 revenue. All the orders are related to the distribution and transmission of electrical works in Andhra Pradesh and Karnataka states. Acuité believes that CIEPL’s scale of operations will remain stable on account of its sizeable order book position and the ability of the company to win new orders. Healthy financial risk profile CMRM financial risk profile is healthy marked by healthy debt protection metrics, low gearing and moderate net worth. The tangible net worth stood at Rs. 37.39 Cr. as on March 31, 2025, as against Rs. 31.43 Cr. as on March 31, 2024. The improvement is on account of accretion of net profit in the reserves. The gearing of the company stood at 0.37 times as on March 31, 2025, against 0.40 times as on previous year. The total debt as on March 31, 2025, consists of working capital limits from banks of Rs.10.00 Cr, term loans of Rs. 1.67 Cr, USL of Rs.2.07 Cr. Further, the interest coverage ratio (ICR) stood at 3.42 times as on March 31, 2025, as against 4.31 times as on March 31, 2024. Debt service coverage ratio (DSCR) stood at 2.79 times as on March 31, 2025, as against 2.34 times as on March 31, 2024. The debt to EBITDA of the company stood at 1.21 times as on March 31, 2025, as against 1.17 times as on March 31, 2024. However, the TOL/TNW stood to 1.86 times as on March 31, 2025, as against 2.12 times as on March 31, 2024. Acuité believes that the financial risk profile of CIEPL will continue to remain comfortable over the medium term in the absence of any major debt-funded capital expenditure.

Weaknesses

­Working capital intensive operations The operations of the company are working capital intensive marked by Gross Current Asset (GCA) days of 236 days in FY2025 as against 208 days in FY2024. Deterioration in GCA days on account of increase In inventory days and also marked by debtors’ days. Inventory days stood at 40 days in F2025 as against 22 days in FY2024. Debtor days stood at 113 days in F2025 as against 115 days in FY2024. Additionally, the company is managing its operations with a minimal working capital limit of Rs. 12.00 Cr. which was moderately utilized at an average of 75 percent during the past 12 months ending October 2025. Fragmented nature of industry and high regulatory intervention limits pricing flexibility Given the highly fragmented nature of the pharmaceutical distribution business, the company’s pricing flexibility is limited. Besides, CIEPL’s operations are also exposed to changes in regulatory policy pertaining to pharmaceutical industry.

Rating Sensitivities

Substantial improvement in scale of operations while maintaining profitability margins Any large debt-funded capital expenditure, resulting in deterioration of financial risk profile Any deterioration in working capital cycle and liquidity profile of the company

Liquidity Position: Adequate

The liquidity profile of CIEPL is adequate marked by its adequate net cash accruals to its maturing debt obligations. The company has reported cash accruals of Rs.6.25 Cr. in FY2025 as against current portion of long-term debt (CPTLD) of Rs. 0.10 Cr and expected to generate cash accruals in the range of Rs.7.52-8.65 Cr. against CPLTD of Rs.0.45- 0.67 Cr. over the medium term. Unencumbered cash and bank balances stood at Rs.3.05 Cr as on March 31, 2025. The current ratio of the company stood at 1.56 times as on March 31, 2025. Further, the average bank limit utilization in the last 12 months ended October 25 remained at ~75 percent for fund based and 70 percent for non-fund based. Acuité believes that the liquidity of the company is likely to remain adequate over the medium term on account of working capital-intensive nature of operations.

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.	150.62	150.25
PAT	Rs. Cr.	5.97	5.71
PAT Margin	(%)	3.96	3.80
Total Debt/Tangible Net Worth	Times	0.37	0.40
PBDIT/Interest	Times	3.42	4.31

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 31 Oct 2024 Proposed Bank Guarantee Short Term 12.00 ACUITE A3 (Assigned) Proposed Letter of Credit Short Term 2.00 ACUITE A3 (Upgraded from ACUITE A4+) Proposed Letter of Credit Short Term 3.00 ACUITE A3 (Assigned) Bank Guarantee/Letter of Guarantee Short Term 33.00 ACUITE A3 (Upgraded from ACUITE A4+) Letter of Credit Short Term 15.00 ACUITE A3 (Upgraded from ACUITE A4+) Cash Credit Long Term 8.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) Proposed Cash Credit Long Term 2.00 ACUITE BBB- | Stable (Upgraded from ACUITE BB+ | Stable) 27 Sep 2023 Letter of Credit Short Term 6.00 ACUITE A4+ (Reaffirmed) Proposed Bank Guarantee Short Term 10.00 ACUITE A4+ (Assigned) Proposed Bank Guarantee Short Term 9.00 ACUITE A4+ (Reaffirmed) Bank Guarantee/Letter of Guarantee Short Term 25.00 ACUITE A4+ (Reaffirmed) Proposed Cash Credit Long Term 5.00 ACUITE BB+ | Stable (Assigned) Cash Credit Long Term 5.00 ACUITE BB+ | Stable (Reaffirmed) 29 Aug 2023 Bank Guarantee/Letter of Guarantee Short Term 25.00 ACUITE A4+ (Reaffirmed) Proposed Bank Guarantee Short Term 9.00 ACUITE A4+ (Reaffirmed) Letter of Credit Short Term 6.00 ACUITE A4+ (Reaffirmed) Cash Credit Long Term 5.00 ACUITE BB+ | Stable (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 ICICI BANK LIMITED Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A3 | Reaffirmed Union Bank of India Not avl. / Not appl. Bank Guarantee/Letter of Guarantee Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 32.00 Simple ACUITE A3 | Reaffirmed ICICI BANK LIMITED Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 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. 10.00 Simple ACUITE BBB- | Stable | Reaffirmed Union Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE A3 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 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. 5.00 Simple ACUITE BBB- | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 15.00 Simple ACUITE A3 | Assigned

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Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Moparthi Anuradha Devi 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.